Short Sale on Investment Property

[kirdito]

Greetings,

This question is regarding property in Portland, Oregon. My husband owns two investment properties that he purchased in his name only after we were married. It was a pre-forclosure type deal where the previous owners are now our tenants. They will have an option to buy within one more year.

My concern is that the market has obviously changed and it is quite possible that the tenants will not be able to finance the houses on their own and that their value has decreased and that he is going to have to short sell them eventually because we could never rent them for anywhere near the mortgage.

I recieved an inheritance before we were married and have a substantial amount of money in CD's. Also, our primary residence is in my name only as I bought it before we were married and never added him to the title.

If he has to short sell the properties will the bank be able to claim my assets? What options do I have available to protect my assets?

Thanks

[ShayShay1]

Extending the lease options for your tentants isn't possible? Are the mortgages adjustable rate mortgages or did you buy the properties under fixed rates? If they are currently adjustable, I understand your immediate problem.

You should really pay a consultation fee to a local lawyer and get the best advice... It would be worth it. Even if your tenants end up not being able to pay rent one day, much less get financed, probably a good idea to know your options in the current market. Hard to get free advice where that's concerned. Good luck