jonnycsd/urbanrealtor: The biggest reason I’m considering BK are the potential liabilities from the second lien holders. The rentals will have about 150 – 180k in debt forgiveness after short sale/foreclosure. As I understand it that leaves me with 3 possibilities for the seconds that will get nothing or less then amount owed….
1. Send 1099C to IRS and I will have to include that as income probably in tax year 2009.
2. Bring suit against me to recover the difference
3. Do nothing but write off the loss.
The first 2 are concerning enough for me to want to surrender houses in BK so federal law will eliminate that possibility. I’m not looking forward to the Credit score in the 400’s though. So if anyone feels I’m mistaken I’d welcome a correction.
PS. Hopefully this isn’t too much of an annoying “all about 92126_guy” thread, if so just don’t comment and I’ll take the hint. Appreciate the advice already given.
