Big Foreclosure Happening
Jill has a huge foreclosure heading her way, and Dave reminds her of what to do, and what's really important.
QUESTION: Jill was served last week with foreclosure papers for $1 million. They borrowed money to develop 16 lots, but they aren’t selling and the interest rate is 18%. Dave has some bad news for her, but some suggestions as well.
ANSWER: This is the kind of stuff that I beg people not to do, because this happens. There is no answer to this; the lender is not helping you and they want to own the lots. Bankruptcy will slow them down, but ultimately they have a secured lien against these things and eventually will get them. Something has to be sold. Unload the rental and throw the equity at them, telling them you are willing to work with them. All we can do is minimize and delay, and try to sell some lots and keep cash flowing. Above all, keep your faith and marriage strong. This is DIRT, and dirt comes and goes. Your marriage stays.