What are my options???

You were able to show both the condos as primary residence for getting the loan?

Speculative Investor, I am also not clear how you were able to get the financing for both the condos separately, showing them as your primary residence. Also, you already have a home which you are using as your primary residence. As far as I know you can have only one primary residence, please do correct me if I am wrong.

Welcome Speculative investor.

You may go for a deed-in-lieu of foreclosure – a process by which you can hand over the properties to the lender who will then sell them and retrieve his money. Or else, you may do a short sale on the property. By this process, your properties may be sold at a lower price.

It's true you will not gain from it but then you can get rid of the properties and he mortgage by paying it off with the sale proceeds. In this case, however, your lender has to forgive the remaining debt or else he may seek a judgment against you. You need to check if there are anti-deficiency laws in your state that will prevent the lender from seeking the judgment.

Thanks.

spec,

I can't say that I agree with helping user because when you approach the lender about a voluntary foreclosure or "deed-in-lieu" they are going to notice really, really quickly that you committed loan fraud by claiming that property was going to be your primary residence.

I know I just accused you of loan fraud and while that may seem harsh....it's what you did according to your own words. You intentionally purchase two condos you had no intention of living in and signed legal documents saying you DID intend to occupy as your primary residence.

Not a big deal? no. In the current mortgage fraud climate, the lender isn't going to care who told you to do it, that the developer said it was "ok". In the end, if you signed paperwork knowing you were making a false statement then you are stuck with that bad choice.

My recommendation would be to call the developer you bought them from and offer them a chance to get you out of this. Tell them that you now realize they were instrumental in making you believe it was "ok" to commit fraud but now that you are aware of your mistake, you want them to buy the property from you. If not, you can tell them you will call the FBI - google FBI and mortgage fraud and you will find their tip hotline. Yes...it's that bad that the FBI has a mortgage fraud tip hotline.

Perhaps your threat of exposing them to the authorities will get you out of these two properties. Once out, I think you still have an obligation to report wrong-doing but that's your conscience that has to make that decision I guess.

Yes Ken that is what I was also not sure how can be possible. Having already a primary residence and then purchasing another 2 condos stating they are the primary residence. But Ken the finance provider does not care to validate if the borrower is providing correct info or not? How he allowed that transaction to take place in the first place itself? He is also liable to answer for his negligence, isn't he?

Are there multiple people with liability issues? Yes. Does that somehow alleviate your liability issue? Well...I think you know the answer.

Look, I'm not trying to be a jerk about this but you need a reality check. If you call the lender looking for "help" it's going to blow up in your face. You asked for advice, and my advice is to call the developer and threaten to blow the whistle on them if they don't bail you out. Other than that, and perhaps even in addition to that...hire a lawyer.

Ken

ok i agree with you Ken. This is a loan fraud. But then i think the lender should have checked whether Speculative investor had two primary residences. I mean if you say primary, it implies to a particular residence here. So how can one say two primary residences? Here is where the lender offering financing for the two units needed checking.

Spec also mentions his current home as another primary residence. How's that possible. That is why, I thought if the lender hasn't checked initially, he may not do it even now. So, getting a deed in lieu or short sale being done on the property seemed easier to me.

Thanks

I'm just guessing here helping_user but I bet the same lender wasn't used for both his current home and his two "primary residence" spec homes. If it is the same lender then you are right. If not, a lender can't look at every applicant as if they are lying.

Recently there was a mortgage fraud case where two underwriters at the lender were being paid off by the mortgage broker to ignore things like this and to not ask a lot of questions about the loans they were approving. Just because there may be dishonest employees in the lender's company doesn't change that speculative_investor lied on his application.

If he contacts the mortgage servicer to say, "hey, I lied on my application and now I need help dumping the property for less than I owe you." I'm thinking the mortgage servicer is going to slam him pretty hard.

As I said in an earlier post, I'm not here to bash speculative_investor and there are DEFINITELY other culpable people involved.

Yeah Ken,

Even I think Speculative investor may have dealt with two lenders for two residences. And, if he has really done this, then it is tough for him to convince the lenders that he hasn't lied on the application.