Posted on: 23rd Feb, 2011 04:12 pm
i bought a condo in 1997 and recently retired. unfortunately, over the years i had to take a second mortgage. both mortgages are abt. 90k and my condo is assessed less than that. to add to this, my hoa is in severe financial distress and i recently became aware that the property (58 units) may be condemned as the water bill has not been paid (arrerrage of 140k) insurance on the property is late and the county code enforcement has issued citations. also, my unit has had a problem with two large trees that have shifted and are leaning into my unit resulting in the studs having pushed through the back wall and my roof leaks. none of this was fixed since i was told there is no money to fix repairs. i pay a monthly association fee of $224. but what is collected by those who do pay is not enough to pay the bills for the property. the stress of having to live in such a state, i am planning to rent an apt. paying rent and two mortgages may be impossible. what are my options? is a dil somethning i may pursue?
Hi Guest,
You can apply for a deed in lieu of foreclosure with your lender and try to get rid of the property and the mortgage. However, though the first lender will forgive the deficient balance resulting from the property sale, you'll be liable for paying off the dues of the second mortgage lender in full.
Thanks
You can apply for a deed in lieu of foreclosure with your lender and try to get rid of the property and the mortgage. However, though the first lender will forgive the deficient balance resulting from the property sale, you'll be liable for paying off the dues of the second mortgage lender in full.
Thanks
You can give the property back to the lender by a deed in lieu, this is still subject to the investors approval and does not necessarily mean you will be approved. Due to the current issues with the HOA they may not even consider a deed in lieu, however, you should still try to apply and explain the situation to them. Under the HAFA program you may be able to get relocation assistance as well. Good Luck