Posted on: 17th May, 2010 02:02 pm
I would appreciate some help very much! I own a condo I bought before I got married. It is in my name only. I got married and moved and had to rent that condo, but it is not going well. I make only 15K a year, do not have any other assets, no 401K, no savings...The condo is in Florida. Again, it is in my name only, I do not live there...
These are the questions:
1. Since it costs me $900 a month to keep that condo, and I do not live there, and cannot rent it, I will stop paying it beginning this month as no money. If I foreclose, will I be liable for income tax? That is why I do not want to do short sale or Died in Leu of Foreclosure, because I know then that for sure you get taxed for the difference. The condo is now worth not more than 40K, and I owe 68K on it. I do not live there, as previously said, and I do not owe any other property and have no other assets.
2. Will my husband credit be affected since we are married and I am going to go through foreclosure, but the condo is in my name? Can they go after his wages? We live in California now.
3. My condo fees are $280 a month, and the reason I cannot rent it is that the condo association makes it impossible to rent...they require $1000 deposit for each tenant, $125 non-refundable for each animal, $150 application fee per person, a strict inteview where they intimidate each applicant...it has been a nightmare! The board hates to have renters there, so they are doing everything in their power to discourage the renters and will not cooperate with anyone. It used to be a senior community only, but that changed, so the members of the board are very bitter and take it out on the rest of us. I do not want to deal with them though.
IF I have already decided to go through foreclosure( no money to keep paying), DO I HAVE to continue to pay condo association fees or not? What can they do to me if I do not? Can they garnish my future wages or my husband's wages?
THANKS A MILLION FOR YOUR ADVICE!!! I really appreciate it and have been losing sleep over it.
Enita
These are the questions:
1. Since it costs me $900 a month to keep that condo, and I do not live there, and cannot rent it, I will stop paying it beginning this month as no money. If I foreclose, will I be liable for income tax? That is why I do not want to do short sale or Died in Leu of Foreclosure, because I know then that for sure you get taxed for the difference. The condo is now worth not more than 40K, and I owe 68K on it. I do not live there, as previously said, and I do not owe any other property and have no other assets.
2. Will my husband credit be affected since we are married and I am going to go through foreclosure, but the condo is in my name? Can they go after his wages? We live in California now.
3. My condo fees are $280 a month, and the reason I cannot rent it is that the condo association makes it impossible to rent...they require $1000 deposit for each tenant, $125 non-refundable for each animal, $150 application fee per person, a strict inteview where they intimidate each applicant...it has been a nightmare! The board hates to have renters there, so they are doing everything in their power to discourage the renters and will not cooperate with anyone. It used to be a senior community only, but that changed, so the members of the board are very bitter and take it out on the rest of us. I do not want to deal with them though.
IF I have already decided to go through foreclosure( no money to keep paying), DO I HAVE to continue to pay condo association fees or not? What can they do to me if I do not? Can they garnish my future wages or my husband's wages?
THANKS A MILLION FOR YOUR ADVICE!!! I really appreciate it and have been losing sleep over it.
Enita
Enita,
As long as you never took out any home equity loans against the condo, there should be little to no tax consequences from the foreclosure. The lender may issue you a 1099, but my understanding of the current tax laws is that there is no actual tax due. You should consult with your tax advisor.
Also, the foreclosure should have no impact on your husbands credit whatsoever.
I don't know enough about Florida law to know if the lender has any further recourse against you or your husband.
As long as you never took out any home equity loans against the condo, there should be little to no tax consequences from the foreclosure. The lender may issue you a 1099, but my understanding of the current tax laws is that there is no actual tax due. You should consult with your tax advisor.
Also, the foreclosure should have no impact on your husbands credit whatsoever.
I don't know enough about Florida law to know if the lender has any further recourse against you or your husband.