Foreclosure Deficiency Judgement

[mattellis00]

What is the name of your state? Colorado

I am about to go through foreclosure with two investment properties. - I do not own a primary residence and have no other assets besides the two rental properties that are going into foreclosure...is this a good option for me? The properies are worth about 210K and I owe about 255K on each. There is a 1st and 2nd mortgage for each property, with the 2nd held by the same individual on both. I am worried about possible defiency judgements on these...should I file for bankruptcy? -and if so when, after foreclosure...before or what? - I definitly am not going to be able to keep the properties so am not worried about trying to file BK to keep the properties, just to aviod defieciency judgements and possiblly tax consequences -Thanks for any help you can give

[FlyingRon]

Originally Posted by mattellis00

Is this a good option for me?

Foreclosure, deficiency judgments, and bankruptcies are not "good" options under any circumstances.

I am worried about possible defiency judgements on these...should I file for bankruptcy? -and if so when, after foreclosure...before or what?

You should be worried. The foreclosure comes first. They don't know that there *IS* a deficiency until after the foreclosure sale.

Your best option would be to do what you can to sell the properties, either making up the deficiency yourself or asking the lenders to take a short sale.

As for what the lessor evil is, is hard to say without knowing all the aspects of your financial situation. You're going to need a lawyer to file for bankruptcy anyhow. You should talk to one to decide what your options are.