Expert: Terry Leeders - 2/25/2008

Question
Terry,

I co-own a 2 unit with my brother.  I had lost my job in October and have been unable to secure another since.  I am due to be foreclosed or start foreclosure on March 7th.  Without being able to get a loan to buy my brother out so I can collect the rent from the 2nd unit, I am thinking of a quick sell agency or bankruptcy.

Answer
Bankruptcy can help you get caught up on the default amount.  you can always sell the property during the case too.  A short sale may be taxable to you for the amount they are discounting, so be sure to talk to your tax preparer about any consequences.  The chapter 13 is a good option if you want to keep the property.  If you want to surrender it and walk away, then chapter 7 is the way to go.