Need to get out from under our Mortgage, what are our options and ramifications?

Asked almost 5 years ago - Carlsbad, CA

We bought a condo 4 1/2 years ago for $375K, put down 20% and owe $300K on the property that is appraising for $250K. We are current on our mortgage. My husband recently closed down his small business and we only have my income now. We currently have renters in the condo at a loss and are ourselves renting another property that fits our now larger family. The bank won't do anything to modify our loan to bring down our monthly payments and we need to get rid of the condo. What is our best bet to get rid of the condo and minimize the fall-out for us? Do we try to short sell it, do a deed in lieu, foreclose, what do you recommend?

Attorney answers (2)

  1. Steven Alan Fink

    Contributor Level 20

    Answered . You should consult a HUD housing counselor. HUD offers free counseling advice. at 1-888-995-HOPE (4673). Banks can change their minds on loan mods with the right documentation. Short sale is better than deed in lieu is better than foreclosure.

    Disclaimer: The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.

  2. Raffy Mikaelian Boulgourjian

    Contributor Level 9

    Answered . Attorney Fink's answer is spot on in my opinion. If you have been denied a modification, your next best option would be to sell the property at a price that today's market would bear. A realtor experienced with short sale work could help you. If that doesn't work, then a deed in lieu would be your last resort short of foreclosure.

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