Home > Research Legal Advice > Foreclosure > Are any of my assets at risk if I walk away from my condo that has a mor...
Asked almost 2 years ago - Atlantic City, NJ
FlagMy friend's husband passed away. Her husband purchased a condo in his name only and put 50k down and there's 315K now remaining on the mortgage. The current market value is approx 220k. She really doesn't want to remain in the condo. The amount of her mortgage, condo fees, and taxes is ridiculous given its' current market value. If she walks away from it and lets the bank eventually forclose, can the bank go after any of her assets besides taking back the condo? Can they touch her pension, her husband's pension, the IRA she inherited from him? Up to what point is she still responsible for monthly association dues and taxes if she walks away? Thank you.
If someone owes money on a mortgage and they just "walk away" then the bank can sue the person for the difference, if any, between the amount collected at the foreclosure sale and the amount still due on the loan. Generally, the load documents have a provision that says that whoever is signing the note is going to be personally responsible for that amount.
It sounds like the purchaser is deceased. But that does not mean that the condo is owned by no one. Either it will pass to someone else according to the will, or if there is no will then it will go to anyone who will receive that asset according to probate laws. In your friend's case, that may very well be the wife. While it is usually the case that people can only inherit assets, not debts, it is not the case that banks and other creditors are simply out of luck - the debt is the debt of the estate, and there is usually satisfaction of debts before distribution, as provided by law.
Your friend will need to consult an estates lawyer to help with this matter. The above is just some very general legal information. An estates lawyer will be able to review the documents and facts, and advise on how to proceed. When a person dies, the spouse really cannot just take all the assets on her own and just continue on, business as usual.
Best of luck.
Dan Levy
973-742-1917
dan@raffandraff.com
Your friend needs to look into working with an attorney experienced in short sales and deed in lieu transactions. Either option could protect her assets and the assets of the estate.
Condos are very hard to sell in Atlantic County right now with a backlog as of last month of 40 months or so. An aggressively priced listing coupled with a well negotiated short sale is likely her best option.
Regardless she needs to speak with an attorney about this issue right away rather than live with the stress of this real estate issue on top of the burden of recently losing her husband. The worst thing a distressed homeowner can do is wait and and neglect this real issue.
The specific answers to your questions can be answered in a consultation. She will need to bring a recent mortgage statement, association documents and a recent statement, a copy of her husband's will if he had one or a copy of the probate short form. With these documents an attorney can help her map a plan to get through this.
Best of luck to her and to you for caring enough to ask the question for her.
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