I have 4 rental properties and a home of my own that I live in with my wife and child. I do not have a regular pay check coming in and can have pretty much depleted my savings to pay the mortgage and bills on the home I live in. My wife's paycheck does not cover our home and expenses. The rentals do have some income coming in but does not cover the mortgage and bills and I have been unable to keep up the payments - some I havent' made and some have been late. I have no choice but to foreclose on rentals and move on or file bankruptcy. What will happen to the home I live in now. Will that be affected? Will the banks take that home also? What is the optimal choice? Help!

Whether your home is at risk depends on what form your ownership of the other properties is in. If you can be held personally liable for the debts, it is possible that they could go after your house. Depends on what you owe and how much equity you have.

Bankruptcy might be a better choice. It may allow you to keep the properties so you can use the income to pay your debts.

Hello Extravagance:

You picked a pretty good name...

Assuming you aren't incorporated, you're going to lose the rentals, and you'll owe the difference between what they sell them for and what your mortgage balance is now - plus all the added fees.

They'll sue you and win. They'll slap a lien on your house, which is probably going to be for MORE than your house is worth. Then they'll seize your bank accounts and your wife's paycheck.

I don't know why you don't have a job, but maybe if you got one, you could save your stuff. Otherwise, its bankruptcy court for you.

excon