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08-19-2007, 01:51 PM
| | Member | | Join Date: Nov 2005
Posts: 177
| | | Bought Investment homes as Primary Residence
What is the name of your state? AZ
I bought 3 homes in Arizona as primary residences, yes even though they were investment properties and I know it's fraud. But my broker/real estate agent suggested I do it because of the lower rates. However, now all three of my tenants defaulted and abandoned the premises. One of the places was left a mess and quite frankly is a few thousand to get it rentable again. I do have significant cash reserves, however, I do not have enough for all three properties, let alone the major cost of repairing one.
Also since the market went down a bit, I am most likely slightly upside down on some of the properties, therefore, selling (and paying the mortgage) would be hard as I wouldn't have enough cash to pay off the loan.
If I look into bankruptcy or if foreclosure proceedings happen, what will happen to me when they find out about all the primary residences? I know I can go after my Real Estate agent, but sueing someone is expensive and takes a long time- I might not win by the time my stuff happens.
Let me know your thoughts or if you've ever run accross this situation. |
08-19-2007, 01:56 PM
| | Senior Member | | Join Date: Jan 2006
Posts: 9,771
| | Quote:
Originally Posted by JoshDom1898  What is the name of your state? AZ
I bought 3 homes in Arizona as primary residences, yes even though they were investment properties and I know it's fraud. But my broker/real estate agent suggested I do it because of the lower rates. However, now all three of my tenants defaulted and abandoned the premises. One of the places was left a mess and quite frankly is a few thousand to get it rentable again. I do have significant cash reserves, however, I do not have enough for all three properties, let alone the major cost of repairing one.
Also since the market went down a bit, I am most likely slightly upside down on some of the properties, therefore, selling (and paying the mortgage) would be hard as I wouldn't have enough cash to pay off the loan.
If I look into bankruptcy or if foreclosure proceedings happen, what will happen to me when they find out about all the primary residences? I know I can go after my Real Estate agent, but sueing someone is expensive and takes a long time- I might not win by the time my stuff happens.
Let me know your thoughts or if you've ever run accross this situation. | Now isn't THAT odd, in this post you ARE a Real Estate Agent 
[url]http://forum.freeadvice.com/showthread.php?t=289789[/url] |
08-19-2007, 01:56 PM
| | Senior Member | | Join Date: Jul 2005 Location: Massachusetts
Posts: 14,003
| | Quote:
Originally Posted by JoshDom1898 What is the name of your state? AZ
I bought 3 homes in Arizona as primary residences, yes even though they were investment properties and I know it's fraud. But my broker/real estate agent suggested I do it because of the lower rates. However, now all three of my tenants defaulted and abandoned the premises. One of the places was left a mess and quite frankly is a few thousand to get it rentable again. I do have significant cash reserves, however, I do not have enough for all three properties, let alone the major cost of repairing one.
Also since the market went down a bit, I am most likely slightly upside down on some of the properties, therefore, selling (and paying the mortgage) would be hard as I wouldn't have enough cash to pay off the loan.
If I look into bankruptcy or if foreclosure proceedings happen, what will happen to me when they find out about all the primary residences? I know I can go after my Real Estate agent, but sueing someone is expensive and takes a long time- I might not win by the time my stuff happens.
Let me know your thoughts or if you've ever run accross this situation. |
I suggest you google "Bank Fraud + Federal Statutes + Sentencing Guidelines"....
Oh yeah...good luck with that suing your RE Broker thing...
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"So Lil'Blue...Did you like the DVDs I got for you at the library?"
"Yes...I did!"
"Did you learn any interesting facts about the animals on the movie (Nation Geographic)?"
"Yes...I did learn interesting things!"
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08-19-2007, 02:09 PM
| | Senior Member | | Join Date: Jan 2006
Posts: 9,771
| | Quote:
Originally Posted by baystategirl I suggest you google "Bank Fraud + Federal Statutes + Sentencing Guidelines"....
Oh yeah...good luck with that suing your RE Broker thing... | oh, and that too. lol |
08-19-2007, 02:18 PM
| | Senior Member | | Join Date: Nov 2005 Location: South Cackalacky
Posts: 15,040
| | | Landlord insurance will cover the damage done by the tenants. Oops. You can't file a claim, because you didn't tell the insurance company that they were insuring rental property. My bad.
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Originally Posted by arazi Quote: |
I'll take you on one-to-one in a volcabulary test anywhere, anyplace, anytime.
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08-19-2007, 02:22 PM
| | Senior Member | | Join Date: Jul 2005 Location: Massachusetts
Posts: 14,003
| | Quote:
Originally Posted by moburkes Landlord insurance will cover the damage done by the tenants. Oops. You can't file a claim, because you didn't tell the insurance company that they were insuring rental property. My bad. | LOL!! Talk about _ _ _ _ _ _ _ yourself over!! 
__________________
~A 8 a.m. bus-stop conversation~
"So Lil'Blue...Did you like the DVDs I got for you at the library?"
"Yes...I did!"
"Did you learn any interesting facts about the animals on the movie (Nation Geographic)?"
"Yes...I did learn interesting things!"
"Would you share with me an interesting fact?"
"Wellll....I learned that Naked Mole Rats are WICKED naked!"
~~~~~~~
|
08-19-2007, 08:00 PM
| | Senior Member | | Join Date: Feb 2002 Location: Nashville,TN
Posts: 15,706
| | Quote: |
what will happen to me when they find out about all the primary residences?
| As far as the Trustee is concerned, the only PRIMARY residence you have is the one you currently LIVE IN. The rest is just property to be seized by the Trustee and sold to pay your creditors.
Sue your RE agent ?? For what ?? Did that person twist your arm to commit fraud and claim those properties as 'primary residences' ?? I doubt it. Oh, and debts incurred by fraud - are NOT dischargeable !
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I am not a lawyer or a member of the legal profession. My advice is based on research and experience, my own and others, some who practice law. You decide for yourself what actions you do or do not take from my advice.
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08-19-2007, 10:58 PM
| | Senior Member | | Join Date: Jul 2005 Location: Missouri
Posts: 3,803
| | | The irony is that your lenders could argue that since you committed fraud, none of the loans are dischargeable.
DC
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Three books every person should read cover to cover at least once: The Richest Man in Babylon, The Complete Works of Shakespeare and the King James Bible. -- If you can't learn how to live a happy successful life from those books, you are beyond hope. Quote: |
OP needs counseling...not a court house. --Zigner | |
08-20-2007, 07:42 PM
| | Senior Member | | Join Date: Oct 2004 Location: Phoenix, AZ.
Posts: 3,076
| | Quote:
Originally Posted by JoshDom1898 What is the name of your state? AZ
I bought 3 homes in Arizona as primary residences, yes even though they were investment properties and I know it's fraud. But my broker/real estate agent suggested I do it because of the lower rates. However, now all three of my tenants defaulted and abandoned the premises. One of the places was left a mess and quite frankly is a few thousand to get it rentable again. I do have significant cash reserves, however, I do not have enough for all three properties, let alone the major cost of repairing one.
Also since the market went down a bit, I am most likely slightly upside down on some of the properties, therefore, selling (and paying the mortgage) would be hard as I wouldn't have enough cash to pay off the loan.
If I look into bankruptcy or if foreclosure proceedings happen, what will happen to me when they find out about all the primary residences? I know I can go after my Real Estate agent, but sueing someone is expensive and takes a long time- I might not win by the time my stuff happens.
Let me know your thoughts or if you've ever run accross this situation. | I slap you for ruining our state... Now law abiding citizens can't afford a decent priced home because of jack holes like you... Oh, and blame your tenants for your problems... If you hadn't committed fraud, you wouldn't be asking for advice.... get bent...
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"Alaska landlord" has been permanently banned for providing inaccurate, misleading & potentially dangerous advice. Any of AL's previous posts should be heavily verified by a competent Real Estate Attorney. Quote:
Originally Posted by Number21 Alaska landlord, please don't reply further to my thread, you'll just turn it into another pissing match. | Quote:
Originally Posted by Alaska landlord As tenants, you have no credibility. | Quote:
Originally Posted by Alaska landlord The landlord should not only be allowed to turn off the water, but he should also be allowed to throw OP into the street. | | |
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