Short sale advise

[simonbart]

I’m after some advise for a work friend.

He bought a pre-development property in Sth Carolina a couple of year ago for around 180K. It was supposed to be on a golf course with all the normal resort ammenities. The developer has since gone belly-up and the developmnet has come to a halt. I don’t think any units have been built in the development.
He put around 35K down for a deposit and borrowed the rest. He wants out of the arrangement. I seriously doubt he will find a buyer at any price….so I would guess a short sale is out of the question. If he just walks away from the property….can the bank come after his primary residence here in San Diego??
I think he can only afford to keep paying for another couple of months before he runs out of money. He also has a neg-am on his primary home which he is upside down on.

How can he save his primary home from forclosure??
Any creative ideas are appreciated.

For the record…..I am a tight wad with my own money with only 6 yrs left on my 15yr mortgage 🙂

[PCinSD]

I just did a google search for “south carolina recourse home loans”, and found this:

http://www.fhfa.gov/webfiles/15051/wp09-10.pdf

According to the article, S.Carolina is a recourse state. So, yeah, his California property could potentially be in jeopardy. Practically speaking, tho, no creditor will be able to go after his CA property given that he owes more than it’s worth.

He could do what many others are doing. Quit paying on both. Live in the primary for the next year for free.

By the way, any idea why he wants to save a house he is upside down on, when he has run out of money? Just curious.

Hopefully everything works out for him.

[PCinSD]

I just did a google search for “south carolina recourse home loans”, and found this:

http://www.fhfa.gov/webfiles/15051/wp09-10.pdf

According to the article, S.Carolina is a recourse state. So, yeah, his California property could potentially be in jeopardy. Practically speaking, tho, no creditor will be able to go after his CA property given that he owes more than it’s worth.

He could do what many others are doing. Quit paying on both. Live in the primary for the next year for free.

By the way, any idea why he wants to save a house he is upside down on, when he has run out of money? Just curious.

Hopefully everything works out for him.

[PCinSD]

I just did a google search for “south carolina recourse home loans”, and found this:

http://www.fhfa.gov/webfiles/15051/wp09-10.pdf

According to the article, S.Carolina is a recourse state. So, yeah, his California property could potentially be in jeopardy. Practically speaking, tho, no creditor will be able to go after his CA property given that he owes more than it’s worth.

He could do what many others are doing. Quit paying on both. Live in the primary for the next year for free.

By the way, any idea why he wants to save a house he is upside down on, when he has run out of money? Just curious.

Hopefully everything works out for him.

[PCinSD]

I just did a google search for “south carolina recourse home loans”, and found this:

http://www.fhfa.gov/webfiles/15051/wp09-10.pdf

According to the article, S.Carolina is a recourse state. So, yeah, his California property could potentially be in jeopardy. Practically speaking, tho, no creditor will be able to go after his CA property given that he owes more than it’s worth.

He could do what many others are doing. Quit paying on both. Live in the primary for the next year for free.

By the way, any idea why he wants to save a house he is upside down on, when he has run out of money? Just curious.

Hopefully everything works out for him.

[PCinSD]

I just did a google search for “south carolina recourse home loans”, and found this:

http://www.fhfa.gov/webfiles/15051/wp09-10.pdf

According to the article, S.Carolina is a recourse state. So, yeah, his California property could potentially be in jeopardy. Practically speaking, tho, no creditor will be able to go after his CA property given that he owes more than it’s worth.

He could do what many others are doing. Quit paying on both. Live in the primary for the next year for free.

By the way, any idea why he wants to save a house he is upside down on, when he has run out of money? Just curious.

Hopefully everything works out for him.

[simonbart]

I’m not really pushing him for what direction he is going to take….just acting more like a sounding board.

To walk away from his home would be emotionally crushing. He spent a few yrs renovating it, then HELOC’ed the crap out of it and invested in all kinds of get rich annuities and real estate. Very foolish thing to do. I advised against it at the time…but no one listened to conservitive advise back in 2005.

People might never be able to financially recover from bad decisions. Life is too short.

[simonbart]

I’m not really pushing him for what direction he is going to take….just acting more like a sounding board.

To walk away from his home would be emotionally crushing. He spent a few yrs renovating it, then HELOC’ed the crap out of it and invested in all kinds of get rich annuities and real estate. Very foolish thing to do. I advised against it at the time…but no one listened to conservitive advise back in 2005.

People might never be able to financially recover from bad decisions. Life is too short.

[simonbart]

I’m not really pushing him for what direction he is going to take….just acting more like a sounding board.

To walk away from his home would be emotionally crushing. He spent a few yrs renovating it, then HELOC’ed the crap out of it and invested in all kinds of get rich annuities and real estate. Very foolish thing to do. I advised against it at the time…but no one listened to conservitive advise back in 2005.

People might never be able to financially recover from bad decisions. Life is too short.

[simonbart]

I’m not really pushing him for what direction he is going to take….just acting more like a sounding board.

To walk away from his home would be emotionally crushing. He spent a few yrs renovating it, then HELOC’ed the crap out of it and invested in all kinds of get rich annuities and real estate. Very foolish thing to do. I advised against it at the time…but no one listened to conservitive advise back in 2005.

People might never be able to financially recover from bad decisions. Life is too short.

[simonbart]

I’m not really pushing him for what direction he is going to take….just acting more like a sounding board.

To walk away from his home would be emotionally crushing. He spent a few yrs renovating it, then HELOC’ed the crap out of it and invested in all kinds of get rich annuities and real estate. Very foolish thing to do. I advised against it at the time…but no one listened to conservitive advise back in 2005.

People might never be able to financially recover from bad decisions. Life is too short.

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