Posted on: 05th Apr, 2009 02:03 pm
We own a condo in a four unit building. All owners bought between June 2007 and Nov 2007. The units are worth from $360-$430K. After moving in, we all started to find major water and structural damage. The City of Chicago has fined the developer for code violations etc, but we are still stuck here.
The entire building is worth about 1.3 million - but given the current damages and structural issues, no one can resell a unit in good conscience. The developers were crooks, but the City of Chicago is too . . . so us honest, working folks are stuck with the problem.
What happens if we all just stop paying our mortgages and foreclose? Can we walk away with losing the deposit and taking a hit on the credit scores? A small penalty compared to being stuck with these places...
We all have jobs, savings, 401Ks etc. Can the banks go after all of that as well?
The entire building is worth about 1.3 million - but given the current damages and structural issues, no one can resell a unit in good conscience. The developers were crooks, but the City of Chicago is too . . . so us honest, working folks are stuck with the problem.
What happens if we all just stop paying our mortgages and foreclose? Can we walk away with losing the deposit and taking a hit on the credit scores? A small penalty compared to being stuck with these places...
We all have jobs, savings, 401Ks etc. Can the banks go after all of that as well?
Hi mkfeeney!
Welcome to forums!
If you stop paying the mortgage dues and walkaway from the property, the lender would foreclose it. A foreclosure will have a bad effect on your credit score. Moreover, it would remain on your credit report for next 7 years. The lender can demand the deficient amount resulting from the foreclosure sale from you. If you do not pay the deficient amount, then the lender may garnish your wages or savings account.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
If you stop paying the mortgage dues and walkaway from the property, the lender would foreclose it. A foreclosure will have a bad effect on your credit score. Moreover, it would remain on your credit report for next 7 years. The lender can demand the deficient amount resulting from the foreclosure sale from you. If you do not pay the deficient amount, then the lender may garnish your wages or savings account.
Feel free to ask if you have further queries.
Sussane