We also have our primary residence in WA and have only lived in it for 1.5 years. The investment property (condo) was our primary residence for 2.5 years before we moved into our house. We have 2 cars that we own outright, each have a 401k and small balances in bank accounts. Besides the condo itself, what else might we lose?
Also, what tax implications would a foreclosure have for us. We bought the condo for $127,450 in Nov 2005. We refinanced (FHA loan) and took out equity in Jan 2008, so we now owe $165,000. The County Assessor has our property worth $165,000 for 2009 and $139,000 for 2010. A unit similar to ours in the complex sold a few months ago for $155,000.
