I am facing foreclosure, how can I repair my credit

I am currently living in a condo, have been paying my mortgage but my condo association has not been paying the utilities of the building and there are 150 foreclosed apartments. I can't rent or sell because of the decay of the building. I am being forced to foreclose. The association is now teling us that there will be another assessment and I can't afford it. What are my options
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Margery Ellen Golant

Margery Ellen Golant

Contributor Level 8
Unfortunately, you are really in a box, and it is not your fault at all. While it may surprise you, your best bet at this point, assuming your income and other assets fit the profile, is to file a Chapter 7 bankruptcy and walk away from the whole mess. All of the things that are going on, including a foreclosure, a condo association lien and collection action and a deficiency judgment in favor of the lender will be damaging to your credit, and the defiiciency judgment claim will be a major issue for you in far more than just credit quality. A deficiency judgment is available to the mortgage holder for the entire shortfall between the value of your condo (which presumably is very small) and the total debt due the lender, including all accruals, interest, advances, legal fees, etc etc. Once they get this judgment, it has a potential life of 20 years, and can be used to pursue you personally, and to pursue your non-exempt assets, garnish your wages, in Florida, and to enter the judgment and enforce it in any other state.

Filing a bankruptcy will of course have credit consequences, but will preclude a deficiency judgment and all the attendant complications.
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