Your credit will be severely impacted. You will have a far from perfect retirement, especially in the first few years afterward. You will be hounded by creditors until the bankruptcy is finalized and you will need a very good attorney.
A loan for the final home may be challenging before you stop making payments on the other real estate and most likely impossible once you are in default.
The ownership of the real estate in several different states will also need to be considered.
On the face of what you have outlined here, it seems to me you have several options for resolving the financial pressure you are under, all which are better choices than the foreclosure/bankruptcy route you are considering.
A "strategic default" should be the last path you follow at this stage of your lives.
I am a Chicago based real estate broker with a strong networking relationship in both Arizona and Florida.
I would be glad to spend a few minutes on the phone with you or in person to talk more about the choices you have. This is not the kind of question we can easily answer completely here on the forum. It is the kind of question that needs a complete answer.
Disclosure: This is not legal or tax advise.
Keller Williams, Gold Coast
YOU GOT SOME GOOD ADVICE FROM REALTORS. NOW, IS TIME TO ACT. DO IT NOW...SELL NOW...GET IT SOLD!
YOUR OPTIONS ARE CLEAR. CALL ATTORNEY, CALL A REALTOR...AND GET IT SOLD! I AM AVAILABLE AND SO ARE THESE OTHER REALTORS. NOW IS THE BEST TIME TO ACT. AS YOU PREPARED FOR RETIREMENT...SO IS THIS MOVE CONSIDERED PREPARING FOR RETIREMENT. IT WILL DIRECTLY AFFECT YOUR PLANS. SIGN THE CONTRACT AND LET'S GET IT SOLD!
Americorp Real Estate
Brokers Associate, e-PRO
Short sales seems to be the best option. The transaction can be negotiated with the bank to forgive the balance due thus barring them from coming after you in the future.
Additionally not only will a short impact your credit less than a foreclosure or bankruptcy, 50-100 points with a short sale VS up to 200+ with the latter, but you will also be able to purchase another home (your ideal retirement home?) within 18-24 months. Time is of the essence!
Good luck and if I can be of further help listing your Chicago homes for sale, please do not hesitate to contact me directly. I am a certified Short Sale/Foreclosure rep and an Accredited Distressed Property Realtor.
KELLER WILLIAMS REALTY PROFESSIONALS
IF YOU NEED MORE INFORMATION DON'T HESITATE TO CALL ME. DO NOT LET THEM GO INTO FORECLOSURE.
KELLER WILLIAMS REALTY PROFESSIONALS
1- Be aware that short sales will also impact you credit adversely.
2- Creditors will not hound you if you file for bankruptcy. As soon as you file, you
are protected and any creditors must
stop calling you. You will not hear from
them again far before your bankruptcy is
3- Be advised also that real estate
brokers (and agents) are restricted in
dispensing this sort of legal advice.
Unless an agent has a law degree,
he/she is prohibitted by law from
practicing law. You really need to talk to
an attorney and one who is a specialist
in bankrutcy to know if this is a good
option for you.
I know a couple of great attorneys in
Chicago who would be happy to talk to you. Feel free to contact me and I will
pass on their contact info.
Also, I am a real estate investor and may be interested in purchasing the properties in Chicago... depending on location... Please forward your contact info so that I can follow up; Carolinefelix7@gmail.com
You would be better off trying this as opposed to letting them both go to foreclosure. You say your current on both homes so you have time to negotiate a short sale on both homes.
You need to find a SFR certified realtor in both state to assist you on listing these homes for a short sale.
Short sales can be done for both primary and investment properties . If a Short sale does not work then you should also consider a DEED-IN-LIEU of Foreclosure on both properties.
The worst case scenario would be a foreclosure and bancruptcy on your record. You do need to consult with a bancruptcy attorney to see what assets would be protected. Most people are forced into bancruptcy when the lender issues a deficiency judgement on difference owed and received after the foreclosure.
The lender starts to garnish wages and this forces people into bancruptcy. Now if you purchase something else with cash prior to the bancruptcy or after is what you need to discuss with an attorney?