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Default - What Should I Expect Next?

2138 Views 11 Replies 6 Participants Last post by  AJAX
I've been in the business for almost 20 years (carpenter, superintendent, etc) but just got my general contractors license in '06. I went in business with a partner who had the financial backing I needed (I thought) and started my first spec house just before the market crashed. Of course no bank would give us a construction loan unless we both personally guaranteed it, so we did. After the crash, homes are sitting all around us. Values have fallen. We have not been able to sell it ($300,000 - huge discount, good price for the area), but did a lease purchase for a year. Now the lease is up and the tenants are leaving. My partner has no money left. I have enough equity in my personal home to make the payments for about a year, but of course don't want to go that route. We are about to go into default.

What should I expect next? And what would you do in this situation?
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just kidding...god forbid. I agree. Get a new estimate and try to sell for anything. Foreclosure is not fun. It is scary for the family too.
Oh snap. For the banks though it is Winterization season. Watch out they don't come breaking in the place. When that happens its all over.
He should be fine. The banks take do a lock change, not to mention winterize.

My neighbor works through Fidelity with all these foreclosures so, I know all about how they operate.

Hell, a buddy of mines brother has a house that he hasn't paid on in 2 years! Keeps telling them "go ahead foreclose, I don't care". They wanted him to refi at HALF! and he turned them down, dumbass. He called them up couple months ago, "So, how long do I have before I'm kicked out?" They say they don't own the mortgage anymore and and infact after looking into it's turned over twice since and new lender isn't really aware it's in default (how couldn't they?) and when they do it will be another 12 months after that for foreclosure proceedings, which could easily turn into another 12mo. Go figure? So, he could be living there for another 2 years, no rent...

BEER MONEY!!!!:clap:
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