Business Foreclosure

[Mike]

My husband and I bought a business 2 years ago when I was 24. It was a small country store in rural Vt. Over the course of 2 years we fought hard to build it up, but it just kept sinking and finally we made the decision to close it this June. The mortgages on the building haven't been paid in almost 3 months and the bank is definately threatening foreclosure. We want to try to come out as clean as possible we already owe some companies alot of money and are trying to work out payment plans. We are sole proprietors so we are personally responsible for the failure of the business and the repercussions from that.Meanwhile we haven't gotten any official foreclosure notice yet the bank has been sent in to take pictures of the building and has had a environmental company come in and make sure thier are no hazards, all in the event that they will be foreclosing. Does anyone have any advice on the best way to deal with this to come out as clean as possible. I think our state is a deficiency judgement state, and our banker has mentioned that the bank would want to get rid of the property before winter to avoid heating costs, so I suspect they would just auction it off and stick us with a bill. Are thier other ways to handle this? Can we ask for a deed in leui of and will that release us from this?Thanks for any advice that comes my way.Jacqui

[lauren14]

sounds like you need to just get rid of it, try to sell it. You have plenty of time before foreclosure, don't do deed in lieu yet.