Forclosure??

[JE93072]

Utah

I have a second home that we built about 4 years ago with 3 other partners. One of the other partners is a mortgage lender manager and the other a Realtor. We all invested a sizable about of money to buy into this purchase. The property is located near several ski resorts and our plan was to rent it using a rental firm as a vacation rental for nights and weekends. We have an LLC agreement etc etc for our partnership. Here is the problem. The real estate market crashed and now the home is upside down, my wife was let go from her position and was out of work for about 10 months before finding another job with about a 40% paycut. Due to the economy my income has also dropped about 18%. Not to mention going 10 months with a drastically reduced family income from my wife not working. Bottom line is that we simply cannot afford to pay into this anymore. My partner the lender claims the bank is not interested in a short sell. We are not behind (yet) on the mortgage for this place. I am not convinced that my other 3 partners are ready to let this place go into foreclosure if we cant make our portion of the payments. They are actively trying to find additional partners to solve this problem. When we do stop paying our payments it may indeed be too much for the other three but again I am not convinced of that. We would forfeit our initial sizable investment etc. We are last on the loan so it will affect our credit if it does go into foreclosure. The other option for us is bankruptcy. We would negotiate our other debt and hopefully get caught up in a few years. My concern is that if we were to file bankruptcy that some time in the future my partners will not be able to make the payments either and the home forecloses anyway, then we have a bankruptcy and a foreclosure. My wife and I can make our normal bills and main mortgage with some extra effort but this second property is killing us. We do have equity in our main home but its not much at all in fact if we were to sell today we may be lucky enough to break even on our main home. Anyways, I need a little advice. I am leaning toward telling my partners we just can’t make the payments and risk the foreclosure (they know than may be coming) that way I don’t risk getting nailed with both a foreclosure and a bankruptcy. Ideas?