mortgage

7 choices for underwater condo owner

Walk away
Walk away

She could walk away.

Huss could stop paying the mortgage and condo dues and move out. The condo would go into foreclosure and her credit record would take a huge hit.

"I don't recommend it under any circumstances," Garfinkel says. "It's absolutely a total disaster. To the extent that you can afford foreclosure and bankruptcy, and preserve your credit and live to see another day, I think it's worth doing that."

Drewes concurs. In fact, he doesn't even mention walking away until asked. He says that if Huss allows the unit to go into foreclosure, the lender would have the option of suing her to collect the difference between what she owed and what the condo sold for at auction. She also could be liable for the lender's legal expenses. The condo association could sue her for any unpaid dues.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
MORTGAGE & REAL ESTATE NEWSLETTER

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.

Blog

Poonkulali Thangavelu

Homeowership rate down for all groups

Even as the housing market continues to improve, there are still signs that it has not yet fully recovered. Among them: the homeownership rate for the first quarter of 2015 fell to 63.7 percent. When was the homeownership rate last lower than this? You would have to look back to 1986, that long-ago year when  ... Read more

advertisement
Partner Center
advertisement

Connect with us