PLEASE HELP! Nevada Foreclosure, complicated and havent taken 1st step yet.

[speedway121]

I am 22 years old and was duped into buying a property in Nevada as a rental property in 2006.

Let me give you the run down:
purchased property as investment through countrywide august 2006 (ARM loan)
Purchase Price: 225k
Down: 30k

refinanced property june 2007 through CLARION Mortgage as primary residence loan (no cash out, term.payment refi, 30 yr fixed)
Put in: 10k more
Loan total: 202k

Countrywide bought loan from clarion in July 2007.
Now loan is in hands of contrwide

House is now primary residence
October 2007 - placed property in LLC (quitclaim deed in Nevada to my LLC, mortgage is stil under my personal name and SS#)

tenant left property-November 2007

Jan 2008 - new bank account for LLC is formed in Nevada- all funds start transferring from this account

property is still vacant
Property is worth approx 150k


Would like to buy new property in California, as primary residence.
I cannot afford the nevada property and new property in california.

The Nevada property is a LOSER. VACANT for 6 months, rent is well below averages and still no traffic (only low lifes with 400 credit scores and no job who want to rent it!)
I dont want it and will take the loss of all my down at this point.


1) What should i Do, foreclosure or short sale or deed in lieu of forclosure?
2) when should I buy the next property?
2) what can happen?

a) recourse or non-recourse
b) deficiency judgement
c) HOA fees, collections
d) Credit implications
e) Property is owned by my LLC and not my own name on title
f) am I liable for any other liens on property (ie if there is a lien by HOA or etc)
g) should i transfer my stock out of my name, 401k , open another llc in california?? How do I protect my assetts if foreclosure happens?
h) if i move money out of my name and into my mom's name immediately, will show up on Countrywide Radar? I can transfer now and wait for foreclosure, but how long?


PLEASE HELP GUYS. I am young and screwed up based on bad advice. I dont know what to do and want to start my financial future off right. I have had countless sleepless nights on this.

[speedway121]

I do have assetts, 20k in stocks, 30k in bank acct at this time, (prob will transfer to mom's name immediately)

[tranquility]

refinanced property june 2007 through CLARION Mortgage as primary residence loan

and:

House is now primary residence
October 2007

OK, mortgage fraud.

foreclosure or short sale or deed in lieu of forclosure?

If you can get a deed in lieu, score disco!

when should I buy the next property?

You haven't given enough information. You should completely pay for your first property before thinking about your second. (Or, different "first". )

what can happen?

Who knows? You could go to jail. You could use up other assets to pay for the deficit from your loan on your speculation property. It depends on how the lender wants to treat this.

recourse or non-recourse

Clearly recourse.

deficiency judgement

Yep.

HOA fees, collections

Yep, again.

Credit implications

Assuredly bad.

Property is owned by my LLC and not my own name on title

LLC didn't get the loan. You did.

am I liable for any other liens on property (ie if there is a lien by HOA or etc)

I think you are, but am not 100% sure.

should i transfer my stock out of my name, 401k , open another llc in california?? How do I protect my assetts if foreclosure happens?

The die has already been cast. While there are some ways to protect some assets, everything you have is at risk. (Subjet to homestead and ERISA limatations.)

if i move money out of my name and into my mom's name immediately, will show up on Countrywide Radar? I can transfer now and wait for foreclosure, but how long?

A SECOND fraud? That puts you closer to prison. Better to see a BK attorney.

[speedway121]

Does a deed in lieu of foreclosure cause foreclosure on my record?
If it does, then I cant buy my 2nd property! This is why I want to buy my 2nd property now, then negotiate with the bank,
but this is the problem, the property in nevada is listed as primary residence.
the property in CA which I want to buy will also be a primary residence! so what do I do?
How would the bank in Nevada see this purchase? fraud as in I knew I was going to get rid of the 1st and bought a 2nd such that I would show enough debt to get out of the 1st?

The truth is I am just trying to purchase another property, and if I cant find a renter for the 1st, then I will have to get rid of it!

FYI- the primary residence in Nevada does have a clause saying that I can rent it out after 1 year without any implications.

Please any advice would help.

I am thinking of buying the property in CA with my parents, such that to protect it further from the bank taking it in the event of foreclosure on the NV property... please advise the way to take title, ie tenants in common or ???

[tranquility]

I don't believe a deed in lieu results in poor credit beyond the original issues with late or missed payments. I have no idea of what you're asking in the rest of the first paragraph.

As to the final question, you need to see a BK attorney to find out your best options.

[speedway121]

Hi Tranquility,
why a BK lawyer. and not a real estate lawyer?
I am not filing for Bankruptcy.

regarding the paragraph,
what I was saying is I would like to purchase another home right now in CA.
After a few months, I will either short sell or get foreclosue the property in Nevada.
What are the implications?

[LindaP777]

Originally Posted by speedway121

I do have assetts, 20k in stocks, 30k in bank acct at this time, (prob will transfer to mom's name immediately)

Please explain to us why we should help you commit fraud?

Originally Posted by speedway121

2) when should I buy the next property?

When you are mature enough to handle the responsibilities.

Originally Posted by speedway121

I am 22 years old and was duped into buying a property in Nevada as a rental property in 2006. .

You just proved my last point. How were you duped?

Originally Posted by speedway121

If it does, then I cant buy my 2nd property! This is why I want to buy my 2nd property now, then negotiate with the bank, but this is the problem, the property in nevada is listed as primary residence.

If you have already stopped making payments, then I doubt you can get a loan. If you have not stopped making payments, then why would your current bank consider a short sale or deed in lieu of foreclosure?

[speedway121]

Linda, I am not looking for your sarcastic comments. I am looking for some assistance.
What makes you think I am asking you to help me commit fraud?

Do you know anything about assett protection? Are you saying that anyone who tries to protect their properties from creditors is committing 'fraud'?


If you dont have any useful information to provide to me, then find something else to do on the internet.

[speedway121]

Linda, FYI banks work with their customers, regardless if they are late with payments, as it is so common these days. Short Sales and Deeds in Lieu are always an option, even if 2 or 3 payments late.