Hire an attorney so that you might receive legal advice based upon all the relevant facts. Your posting only raises issue which require further investigation of the facts.

Tough decisions - whether to fold completely (bankruptcy), retrench (allow some of the properties or loans to be foreclosed), or continue to struggle (paying, managing, scrimping and negotiating). A stranger without an opportunity to interview you shouldn't be advising. Also, bankruptcy is such a specialty you'd need a separate consultation there.

A few bits of peripheral advice. Suits against borrowers for deficiencies, even where permitted, or by "sold-out juniors" who have lost their collateral and hence (usually) aren't subject to the antideficiency laws, are not that common. I have more clients who have walked away from defaults on non-purchase money loans on income property, or owe on secods after the first foreclosed, without being sued (so far, at least) as who have been pursued.

Generally, what I've noticed and what I'm hearing from others is that there are certain risk factors that make a defaulting borrower more prone to be sued. (This is considering only situations where the lender could sue for a deficiency, of course).

First risk factor is that the lender has some gripe with the borrower that constitutes an independent ground for suit, such as loan-application fraud or deliberate waste to the collateral, such as logging off the landscape trees and selling them to the sawmill the week before the foreclosure sale.

Another risk factor is when the borrower is well known to be a rich guy with assets he could have used to stay current, or which he is trying to hide in offshore trusts, gifts to his children, or in his mattress.

Next, a borrower is more likely to get sued by a small lender, such as an individual, or a small investment partnership or pension fund, than where the lender is a major financial institution. These little guys can't afford the hit, or they have to show their investors, members or beneficiaries how tough they are.

Having an attorney will strengthen your bargaining position. Another thing that's helpful is to bargain very methodically and professionally - take notes, get names, titles and phone numbers, return calls, respond to letters and e-mails, keep files, expect responses within the promised time frames, question the powers and authority of people you come in contact with, be clear on all the details.

One thing you can do to prepare now is to make a six-month cash flow forecast and see what has to happen to survive.

The advice you have recieved so far is sound, particularly the advice regarding your situation being too complicated to get any meaningful advice without sitting down with an attorney and going over everything. I have over twenty years of real estate law experience, and I maintain meeting facilities in Sacramento off Florin and I-5 to serve clients in your area. Let me know if you would like to set up an initial consultation at no obligation.