Posted on: 03rd Jan, 2008 06:28 am
My father who is 65 bought a condo about a year 1/2 ago for $179K . He had purchased the property with the intent to occupy as a primary but shortly after the closing decided he was not going to move there. He tried for a few months to resale but no luck. He finally was able to rent the property to at least cover some of the payments. The property now has been vacant for 8 months and he can no longer keep paying that payment along with his current home and other obligations. He has not made any late payments yet but is getting ready to walk from the property since he can not sell nor rent. The condo developer had a total of 750 units at the time he bought for sale but they only sold 1/3 of them and now are leasing the rest so that has affected the value and he would be lucky if he could get a buyer for even $150K. He does own 2 other investment homes but this is the one that he is most concerned with since he can not sell nor rent. What would you suggest?
Hi lagoonlisa,
Welcome to the forum.
It is good that your father has not made any late payments but as he is facing problem with mortgage payments, he should immediately talk to the lender.
From you post it is clear that your father is not willing to stay in that Cando. So better go for short sell or deed in lieu. I would suggest you to go for short sale as it will hurt your credit less than DIL or foreclosure.
Feel free to ask if you have any further questions
Best of luck,
Larry
Welcome to the forum.
It is good that your father has not made any late payments but as he is facing problem with mortgage payments, he should immediately talk to the lender.
From you post it is clear that your father is not willing to stay in that Cando. So better go for short sell or deed in lieu. I would suggest you to go for short sale as it will hurt your credit less than DIL or foreclosure.
Feel free to ask if you have any further questions
Best of luck,
Larry
hello lagoonlisa,
is the property already listed with real estate agents? if not, i think your father may do that and try to sell the property.
but if this does not come to his help, he may try to do a deed in lieu of foreclosure or a short sale. in case of a deed in lieu, the lender cannot seek a deficiency judgment but he might do so if your father is doing a short sale and the state doesn't have any anti-deficiency law to protect him.
is the property already listed with real estate agents? if not, i think your father may do that and try to sell the property.
but if this does not come to his help, he may try to do a deed in lieu of foreclosure or a short sale. in case of a deed in lieu, the lender cannot seek a deficiency judgment but he might do so if your father is doing a short sale and the state doesn't have any anti-deficiency law to protect him.
He may want to wait until the market becomes more favorable to sell. He might be able to get into a mortgage with reduced payments and if he could find a renter for now, that may benefit him in the long run. If he just wants to be done with it and sell now, I would suggest listing it lower than the competition.