Posted on: 09th Sep, 2009 09:25 am
I have a condo in Florida that is so underwater. I bought it in August 2007 the balance on the mortgage is $137,000 and it is now worth about $35,000. I have rented out on a six-month lease to a tenant. The rent is not covering my mortgage and HOA. I have another condo in NY with no mortgage. The rent from the condo in NY is covering the HOA and taxes as well as the mortgage for the condo in Florida. I am slowing depleteing my savings. I tried doing a loan modification and submitted all the paper work WAMU but the have not been responsive when I followed up the indicated that they have closed my file and I need to resubmit the paperwork all over again. I temporarily relocated out of the country and gave my mom power of attorney to handle anything related to the loan mod in the interim. How can I walk away from this property without the WAMU ruining my credit, losing my other condo(with no mortgage)and losing my savings and retirement accounts? Any insight would be helpful.
try to see if you cna do a short sale or a deed in lieu
Hi chikamanu!
Welcome to forums!
If you walkaway from the property, the lender will have the right to foreclose it. This will badly affect your credit score. It will get lowered by around 250 points. After foreclosure, if you are unable to pay off the deficient amount, then the lender will place lien on your other condo as well. As Sunny has suggested, speak to your lender about a deed in lieu of foreclosure.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you walkaway from the property, the lender will have the right to foreclose it. This will badly affect your credit score. It will get lowered by around 250 points. After foreclosure, if you are unable to pay off the deficient amount, then the lender will place lien on your other condo as well. As Sunny has suggested, speak to your lender about a deed in lieu of foreclosure.
Feel free to ask if you've further queries.
Sussane