I currently have a condo (investment property), that I owe more than what it's worth (it's at about 125% LTV). There have been flooding and leak problems, mold, etc and the home owners association is not taking care of these problems. The place is run down, I can't sell it. I had an arm that reset (and, I can't refinance because of LTV, and I can't get a mod because of my income). Thinking about walking away. Nervous about repercussions, credit score, etc, but it seems there is no end in site. Payment is so high (it's not covered by the amount I can charge for rent), and I'm underwater. Is there ever a good reason to walk away? And, will the lender come after me for what I owe above what they can sell it for if I do voluntarily foreclose?
