Bought Investment homes as Primary Residence

[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.

 

[fairisfair]

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

https://forum.freeadvice.com/showthread.php?t=289789

 

[Just Blue]

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...

 

[fairisfair]

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

 

[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.

 

[Just Blue]

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!!

 

[Ladynred]

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 !

 

[TigerD]

The irony is that your lenders could argue that since you committed fraud, none of the loans are dischargeable.

DC

 

[Who's Liable?]

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...