Contractor Talk - Professional Construction and Remodeling Forum banner

Default - What Should I Expect Next?

2141 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?
1 - 1 of 12 Posts
you def will not be able to fha unless it becomes your primary res. and i really doubt fannie/freddie would touch the loan at this point. think about it... would you lend your money to someone in this situation? not trying to be mean, but that's the real world.

your best bet (and maybe the only bet) is to work something out with the current note holder. they are all so overwhelmed with requests that you may not get much of a response for some time.

should you elect to rent it, make sure your homeowner's insurance is correct. or you may not be covered if something were to happen.

either way, i would immediately contact an attorney and see what they may have for options for you. a foreclosure and chapt 7 afterwards may be the route if nothing else.

but always remember... getting advice in a forum may not work for your state or municipality. good luck and realize that this will pass =)
1 - 1 of 12 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.