Profile picture for user0096589

condo underwater by 25%. credit down to 640. just can't do it anymore. what are my options?

quick background:
i purchased my condo in 2007 for $239k.  I bought with zero down, with two mortgages (80/20) to avoid pmi.  Condo fees are now $390. When i bought, money was tight but I managed.  It's now valued at only $180k. i've begged/borrowed from family to keep my head above water, but the well is running dry.  I refinanced with the primary lender within the past year to save $150 per month.  I just missed a credit card payment which dropped my credit to 640 otherwise i'm up-to-date on my mortgage.  i've been at my full-time job for 11 years which pays much less than it should, but I've held onto it for the guaranteed income and the inexpensive 15 minute commute.   I downsized my SUV to a little hatchback car for better gas mileage.  I'm just not sure what to do anymore.  I've been living hand to mouth for 5+ years now and about to give up.   at this point, i don't mind renting.  any suggestions on the best way to end this love/hate relationship with my condo?  I feel like i just wasted 6 years of my life...
  • June 17 2013 - Bernards Township
  • 1
    1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (9)

Best Answer

Good Evening,

It sounds like you will be a great candidate for a short sale. Lenders are easier to work with as they would rather short sale than foreclose. Some are offering relocation funds and releasing the full deficiency balance.

It is important to do your homework and choose an agent that has experience and a proven successful track record closing short sales.

You will be able to begin repairing your credit as soon as the short sale is closed and potentially could qualify for a new loan within 3 years.

Wishing you much luck and success.
  • June 17 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You sound like a good candidate for a short sale. Definitely  consult with a Short Sale certified agent and a CPA or tax attorney. Short Sales have changed dramatically. Banks have finally started to acknowledge they save tons of money. Banks are now even offering "Relocation Assistance" we are now often seeing sellers get checks in double digits thousands. with a minimum $3,000 That may be just enough to cut your ties and start fresh. Hope that helps. If so please give thumbs up.
  • August 04 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

If you can, get a short sale approved before the end of the year. Because of the debt forgiveness act, you are not liable for tax ramifications like you will be in 2014... If you have any other questions, feel free to contact us. We short sale negotiation experts, we do not work in your direct area but we can put you in touch with someone that does!
  • July 28 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Call your lender and see if you can modify your loan. Also, call the HUD hope hotline and get counseling from them. If the loan mod does not work for you, call a Realtor to help you with a short sale.
  • July 25 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Bethe Frazer
Consult a good attorney that is experienced in short sales before making any decisions. Also, call the HOA and they may be able to put you on a payment plan until that time happens to make things a little easier. Many people don't know that is often an option.

You may have done this already, but see if your lender will do a loan modification, where the lender would lower the payments. It requires a lot of paperwork on your end, but is worth it in the end. Call you bank and ask if they have a loan modification department or loss mitigation department.

You are in a high rent area, so that may be another way to go.
  • July 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

"Just Let Go." The best 3 words of advice I ever received. So I say to you, "Just Let Go." Short Sell NOW!
  • July 12 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The Best thing to do is consult with an Attorney before you make a final decision. After you have proper consultation than make an educated decision. Don't rush into a short sale it may not be the best option for you.
  • July 12 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user0096589
I looked into holding onto it and renting it out until the market picks me back up, but unfortunately, between my mortgage payments and association fees, i'm paying over $2k per month.  there is no way I'd be able to get even close to that for my home, which still has all original appliances from 1983, including furnace and air conditioning.  Rent for comparable units in my development are around the $1300 - $1500 per month range.

It looks like Short Sale is the direction i'm headed.  Thank you for your answers!
  • June 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user5751317

Hello,

Have you thought about renting out your condo? Rents are at an premimun you may find you come out even or have little extra income per month.  Secondly short sale you should speak to an estate realtor.

  • June 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.