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.


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