September 12th, 2006   12:04 am

What I Want

I have about $140,000 of debt in credit cards and business lines (seems unreal!). That’s from all the planned and unplanned acquisition, rehab, travel and holding costs. The houses didn’t retail like I hoped so I can’t repay the lines. The minimum payments on credit lines are over $3500 per month.

Worse yet, I cannot afford the approximate $15,000-20,000 per MONTH in mortgages and utilities on the houses. I don’t want any foreclosures or bankruptcy. Ideally I want to repay every penny I owe.

Preferably I want the mortgages to be cashed out and off my name. However, I’m willing to let an investor just take over my payments and I’ll deed the properties subject to existing financing. I will stay on the loan until the property is re-sold.

It would also be nice to get some cash for my equity. True, most of my properties don’t have any equity. Some have a little. I want to squeeze out as much as I can. That way I can pay down the credit lines and have money to live on.

The only thing I can really do to sell the properties with no equity is a shortsale. I’m willing to work with any investor, buyer or real estate agent in pursuing a short-sale with the bank. That’s better than getting a foreclosure.

So to summarize:

1) I want to avoid foreclosure on my credit record

2) I want to avoid falling behind on credit lines / cards. Or at least avoid having a bankruptcy on my record.

3) I want to get a little cash to live on

25 Comments

  • Well bud I’m sorry to hear about your misfortune but it sounds like you have learned a lot and you will pull through it. Life would be nothing without the stressful experiences, you might even say it would lack excitement without taking risks. It’s remembering that life is not all about earning money but the people and experiences you share, learning about who you are and separating yourself from the hustle/bustle of life to reground yourself ever once in awhile. The grounding keeps you alert through your intuition. This is your 7th sense. It is much more powerful than the other 6 combined but most use it very little. When you master it you will see that you know longer have to go out and search for the deals because you will be able to attract any kind of deal you want without any of the modern day technologies. Of coarse I’m speaking in reference to realestate investing but it works for anything and everything in your life. A easy way to tap into this realm of attraction based universe is through simple meditation. When you go to bed at night think about all of the great things going on in your life right now, then think about experiences you can see coming to you with time and then simply enjoy that experience and feeling. As you see the dreams becoming reality you really start to get excited and you simply continue the same process on a deeper and deeper level. I mean the dreams will fade away from material things and become the core of your very existence, who you truly are and when this happens you have reached the level of enlightenment and you will never want to go backwards again in any facet of your life. You will see all experiences in a different light, good and bad. Your life will forever change and continue to grow through your experiences. I hope this has not been too overwhelming or sound like hocus pocus. But really at this point what do you have to lose. Even if you get nothing from this it has reminded me what is important in my life.
    Aloha,
    Chris

  • Chris, no its not focus pocus but a very good philosophy. Thank you.

    I thought we only have 5 senses (See, Hear, Taste, Touch, Smell).

    Personal development books talks about the elusive 6th sense (intuition, infinite intelligence, God, etc).

    But you’re saying there are is an even higher 7th sense. Interesting…

  • Hey stranger! I perused through briefly and viewed some photos. You have a number of houses, I was thinking (and I could be way off here, but..) with school starting again this month that many college students will be looking for housing. The home in North Hihglands is a short commute to ARC, post some fliers for a rental….at the very least, you’re making a full payment or partial payment on one of the houses as you continue to search for potential investors. Another upside, the students will be out in 4-6 months….could loosen your belt a little. Just a thought…but on another note, we’ve been thinking of you and will keep you in prayer. You’re always welcome to drop in anytime…coffee’s on us! :)

  • Thanks for the encouragement! Renting out the Larchmont house would be pretty tough. It still needs 5-10k of fixup to make it live-able. The rent will not come even close to covering the payment. Also I am about 7k behind on the loans. Unless I catchup the loan the foreclosure process is going to start - it normally starts after the 3rd late. The college student is not going to be too happy if the bank reposes the house 120 days later.

  • I kindof don’t believe this blog. Because if you did this, what you said you did, not only did you get in WAY over your head, but you also LIED about it, and then you POSTED YOUR LIE all over the Internet.

    You’ll probably be facing big fines, jail time, and a lot of other stuff (like tax bill) because if the lenders forgive you (write off the bad debt), then you will still owe the IRS as income for that.

    So you’re kindof like triply screwed.

  • I know you want to cash out equity, and I guess
    you really want to do the right thing, but let’s
    look at it.

    If your appraisals are correct you have about 80-90K in
    equity in two properties, almost twice that in negative
    equity in 4 properties and 150K in loose debt for the
    credit cards.

    So you seem about 200K in the hole.
    Web developers in your area make about 70K

    Now i figure most you can chip off is say
    10K per year, so it’s going to take you
    20 years to pay this back.

    Honestly, I’d suggest you file for bankruptcy,
    get the judge to roll back the underwater notes,
    get court approval to sell the above water houses.
    and use the spare change to settle with everyone for
    10% of face, meanwhile go get a job.

  • Crazy stuff. Never understood why someone would buy a house and not able to rent it out if it does not sale.

  • @Shawn
    I am not going to last long if I rent out my houses because I would be loosing anywhere from $500 to $1500 per month on negative cashflow. The rents would not come even close to cover my mortgages

    @dcguy
    You’re right I don’t really have any equity to speak of and I may need talk to a Bankruptcy attorney pretty quick here. Anybody have a recommendation for one?

  • I really don’t get this. I make 90.000 euros per year, and my credit card is limited to 2500 euro (not that I want a higher limit mind you). How on earth did you manage to rack up 140.000 USD in debt without an income? It would be a bad joke if it weren’t so serious.

  • t say if I actually have any power to completely change a bad spin in the media. I will have SOME influence though. I have a good story to share - Dealing with Foreclosure, Bankruptcy, and what NOT to Do in Real Estate. My primary goals are: 1) I want to Sell My Properties Fast to Avoid Foreclosure and Bankruptcy 2) Share what NOT to in Real Estate as a Home Buyer or Investor 3) Help Other People Who are Facing Foreclosure 4) Discuss Shady Loans and Real Estate Practices

  • dcguy,

    I am pretty sure that Come Back Time’s comments were satire. I sure hope so.

  • Casey, you said the following:

    “It would be nice to get some cash for my equity.”

    Newsflash: You have no equity.

    Please get a job.

  • Even if you claim bankruptcy, do not be discouraged. You are a typical entrepreneur! As Rich Dad Poor Dad says, expect to fail 9 out of 10 attempts at making it big. Anything less is a great success! Count this as 1, learn from your mistakes and get back in the game as soon as possible.

  • Casey,

    You might want to leave the country like right away!

  • Casey,

    Take it from a 60 year old who has made her share of mistakes and learned from experience.

    GET A GOOD LAWYER!!! Ask him/her what your options are. Just get out of this situation asap and as cleanly as you can. You need to accept the fact that your credit WILL suffer, but that can be built back up in time. You are not going to walk away with any money.

    You need a fresh start. Get out from under these properties and stop wasting further funds on them. You will be glad you did.

    Kathy,
    Good luck and God bless

  • Casey,

    For success in business you need the right mind set and self development is a big par of it.

    For the situation you are in, you need lots of money fast. Go sign up for this free online course on how to attract lots of MONEY FAST.
    Courtesy of Stuart Lichtman.
    http://www.moneycareeradvice.com

    Good Luck

  • estate investor from Sacramento CA. After going to a few seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and fell flat on my face with millions in debt and facing foreclosure. Trying to avoid foreclosure, sell quickly, repay everyone, and blog my lessons to help others in trouble. Comments welcome! Email CaseyView All Entries

  • estate investor from Sacramento CA. After going to a few seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and fell flat on my face with millions in debt and facing foreclosure. Trying to avoid foreclosure, sell quickly, repay everyone. I’m going to weigh in here and point out a very common misunderstanding when it comes to real estate “investing” as Casey calls it. First and foremost, fix’n'flip is not “investing” it is instead speculating. There’s

  • estate investor from Sacramento CA. After going to a few seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and fell flat on my face with millions in debt and facing foreclosure. Trying to avoid foreclosure, sell quickly, repay everyone, and blog my lessons to help others in trouble.” What he really did is by questionable means, ( some say fraud), used “liar loans”, 0 % percent & cash back at closing financing, pumped up appraisals, and more dubious

  • 20. Michael Cooke
    January 17th, 2007 at 3:19 pm

    Quote from Deep Sigh.

    “I really don’t get this. I make 90.000 euros per year, and my credit card is limited to 2500 euro”

    Thank you Deep Sigh. Yet another case to dump the USD (USA of going down the toilet real quick - Bush, false war,debt,illegal immigration etc) and invest in the EUR.

    Stricter lending standards in most EU nations + real capital backup + responsible lending = the worlds new reserve currancy.

  • Casey,

    I have a suggestion on how to get out of all of this. But first, let look at the options you don’t have.

    Bankruptcy - No. If you file for BK, the BK judge will not allow it due to the blantant fraud you committed times 8.

    Short Sale: No. You are hurting the banks and society. The banks can come after you for fruad.

    Forclosure: No. Credit will be ruined, banks can also come after you for fraud. Don’t forget wify too.

    GET A JOB: YES. You and your wify need to get x2 x3 jobs each and pay it all back.

    Sweet :-)

  • “would-be real estate mogul” from Sacramento CA. After going to a few seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and am now millions in debt, trying to avoid foreclosure, sell quickly, repay everyone, and share my lessons to help others in trouble. Comments welcome! |View All Entries

  • ” from Sacramento CA. After going to a few seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and am now millions in debt, trying to avoid foreclosure, sell quickly, repay everyone, and share my lessons to help others in trouble. Comments welcome!” Ca sa intelegeti entuziasmul meu, daca nu v-a cuprins deja, recititi, va rog, articolul meu despre cel care a transformat o agrafa intr-o casa cu

  • ” from Sacramento CA. After going to a few seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and am now millions in debt, trying to avoid foreclosure, sell quickly, repay everyone, and share my lessons to help others in trouble. Comments welcome! via Economist

  • ” from Sacramento CA. After going to a few seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and got over-leveraged, trying tried to stop foreclosure, and still trying to repay everyone (if possible), and share my lessons to help others in trouble. CNET has him as basically being picked on by groups who think he’s a sniffling little brat for lying on mortgage applications and letting his debt

  • “would-be real estate mogul” from Sacramento CA. After going to a few seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip. I made some mistakes and got over-leveraged, trying tried to stop foreclosure