Like many people in Dallas, Greg bought a house in 2007 for use as a rental property. The property was purchased with an 80/20 balloon note, and the mortgage broker assured him that he could “just refinance the house” if the monthly payments became unmanageable.
Unfortunately, the house value has dropped making it ineligible for refinance. The mortgage company has been unwilling to modify the loan terms, as the house is not Greg’s primary residence. The house was vacant for part of last year, making the financial strain even worse. Greg doesn’t want to give up the house, since the economy is just starting to show some signs of life, but he doesn’t see any way he can afford to keep it.
Many, many people in Dallas are talking to the experienced bankruptcy lawyers at Henley and Henley because they find themselves in this same situation.
In this instance, as there is little or no equity in the property and the property is producing revenue, the owner may be able to keep the house whether he files a Chapter 7 or a Chapter 13 bankruptcy.
If you are considering bankruptcy but have questions about your rental property, call today for your free consultation. The answer may be more favorable than you think.
