Posted on: 09th Jul, 2010 10:46 am
I have a mortgage balance of $110K on a condo that is worth $40K. The unit is currently rented and roughly breaking even on a monthly cash flow basis.
I don't want the property. My credit is perfect and I have income and other assets. What are my options? Will a bank work with me to restructure the loan (ie. cram down the principal?) since there is no financial need? Is there any strategy to avoid a deficiency judgement? I have read prior posts that say banks CAN file, but do they actually file? Do I need to think about getting the other assets and income out of my name so that I can qualify for some of these programs?
Thanks in advance for any help or info you can provide.
I don't want the property. My credit is perfect and I have income and other assets. What are my options? Will a bank work with me to restructure the loan (ie. cram down the principal?) since there is no financial need? Is there any strategy to avoid a deficiency judgement? I have read prior posts that say banks CAN file, but do they actually file? Do I need to think about getting the other assets and income out of my name so that I can qualify for some of these programs?
Thanks in advance for any help or info you can provide.
Hi p,
As you are not facing any financial hardship, there is hardly any chance that the lender will consider your request for a principal reduction. In case your property is foreclosed by the lender due to the non-payment of mortgage dues, you would be liable for paying the deficient balance to the lender. It won't be forgiven as you are not facing any kind of financial hardship.
Thanks
As you are not facing any financial hardship, there is hardly any chance that the lender will consider your request for a principal reduction. In case your property is foreclosed by the lender due to the non-payment of mortgage dues, you would be liable for paying the deficient balance to the lender. It won't be forgiven as you are not facing any kind of financial hardship.
Thanks