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Ratings. Guidance. The Right Lawyer.
Thinking about walking away from a condo. What are repercussions?
Seattle, WA
Viewed 84 times.
Posted 4 months ago in Foreclosure
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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?
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Answers (1)
Shawn B Alexander
This attorney is licensed in Washington.
Posted 4 months ago.
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I think from what you have stated, is that this condo is like an anchor around your neck and it is pulling you down.
Because the condo is an investment property I think we can safely say it is not a good investment for you at this time. You may offer the lender a "deed in leiu of foreclosure" that will hand them the property and if they accept it you would not have balance remaining. You may also try a short sale, although you will have to work on your sale pitch. your credit will take a hit depending on how this shakes out but without equity to protect walking away may be better than paying for something that is not worth the price. Good Luck |
