Mortgage Forum

Mike

OKay, large mistake three years ago. Took all my equity and put it into my inlaws house with every intention of selling my old house. My wife and I own 51% of the inlaws house. House is paid for but we owe them 125,000 - gave them 125,000 as a down payment. House is worth $575,000. We get the other 49% as inheritance. Sounds good so far BUT back to the huge mistake on the other house. We owe 292,000 on the first and 75,000 to a different bank on the second. Had two rentors in there the past three years and they have beaten the house up. Even with rent we were losing money each month. Tried calling to see if we can get into a 30 year fixed rate and try to make it work. NO help, only if we are behind in our payments. The second said they would renogotiate the loan after the sale or when we fall behind. last month my rentors moved out in middle of night. House thrashed and now we are going to short sell - first listing is at 250,000. Questions: If I short sell or it forcloses can the bank come after the inlaws house since I am on the deed? I have read many articles, since I am in an interest only loan, should I make the payments when my credit is going to take a hit anyway? My wife has a small home based business and is not LLC, can they come after her business? Not really worried about my credit and just tired of working 80 hours a week to keep a house that is falling every month in value and I have no way of locking in a fixed loan. So what can they do to me if I quit on the payments now while we are trying to short sell? Can I deed in lieu of forclosure? We live in Reno, NV. Thanks for any help possible.