Posted on: 25th Jan, 2010 10:34 am
condo purchased in FL 2006 208,900. Balance on current loan is 179,000. Payments are current. Property is appraised at 96,000. Motgage payment is 1400. HOA dues are 300 mo. Moslty renters now and developer is not putting any money into property. It is going down hill fast. The same unit is 1/2 as much to rent as my mortgage and no HOA's. My lender suggest I apply for loan Mod. would reduce payment by 300 month for 5 years providing I send in paperwork every thirty days. Not sure what happens after 5 years as far as loan and payments.
Option 2 was deed in lieu. What exactly would that entail financially for me? and option #3 was short sale. I would have to pay tax on deficiency which could be as much as 100,000 or more. Ouch!!! Then there is the option of foreclosure which I am tempted to do. I know it will affect my credit negatively. It has already been effected by late pays and debt/credit ratio it's (645) and I know that foreclosure will have the longest lasting effects on my credit...Here's the thing. I hate where I live. It is an older property that was a conversion form Apts to Condos. The property is going to hell in a handbag, literally falling apart and the developer is not putting anything in to fix it. It cost less to rent (half as much) than for me to own and No HOA fees (300 mo) there are more renters than owners, many have foreclosed and some have been auctioned or sold as short sales. My car has been broken into as have many others. It doesn't feel all that safe here. There are many new properties around it so I don't see the value going up. I'm so tempted to just let it go and deal with the negative impact on my credit.
Option 2 was deed in lieu. What exactly would that entail financially for me? and option #3 was short sale. I would have to pay tax on deficiency which could be as much as 100,000 or more. Ouch!!! Then there is the option of foreclosure which I am tempted to do. I know it will affect my credit negatively. It has already been effected by late pays and debt/credit ratio it's (645) and I know that foreclosure will have the longest lasting effects on my credit...Here's the thing. I hate where I live. It is an older property that was a conversion form Apts to Condos. The property is going to hell in a handbag, literally falling apart and the developer is not putting anything in to fix it. It cost less to rent (half as much) than for me to own and No HOA fees (300 mo) there are more renters than owners, many have foreclosed and some have been auctioned or sold as short sales. My car has been broken into as have many others. It doesn't feel all that safe here. There are many new properties around it so I don't see the value going up. I'm so tempted to just let it go and deal with the negative impact on my credit.
Welcome jaxbeauty,
If you want to get rid of the property, then the option of deed in lieu of foreclosure would be the best. It will affect your credit score badly and lower it by 250 points. But the best part of deed in lieu is that you won't be responsible for the deficient amount resulting from the sale. After the property sale, you won't get qualified for a loan immediately. You'll have to wait for 3-4 years in order to get a loan. During this time, you can rent a property and try to improve your credit score.
If you want to get rid of the property, then the option of deed in lieu of foreclosure would be the best. It will affect your credit score badly and lower it by 250 points. But the best part of deed in lieu is that you won't be responsible for the deficient amount resulting from the sale. After the property sale, you won't get qualified for a loan immediately. You'll have to wait for 3-4 years in order to get a loan. During this time, you can rent a property and try to improve your credit score.