Good luck with this and let me know if there is anything that I can do to help!
REALTOR, CDPE, The Elite Team
Your Castle Real Estate
The first step is to call the Colorado Foreclosure Hotline - 1- 877- 601- HOPE. they will spend time with you and give you some free advice as to your options at this time. If they suggest a short sale there are real estate professionals and Short Sale Coordinators that know how to get the ball rolling. The bank is not going to help or advise you since they do not have your best interests at heart. I would suggest you keep making your payments in the mean time and especially the HOA. Under certain circumstances, they can go after you for any remaining balances even after after you have settled with the bank. Again, call the hotline, it is free and you will walk away with some valid options.
Your mortgage company is correct - you have to have a hardship to do anything, as well as to be "under water" value-wise. There are many options available to you - some better and some worse. Short sales (there is a HAFA and regular one) are the best option in most cases - you can go on renting as you wish, after selling your property at the price lower than your mortgage, and your bank agreeing to it and forgiving (waiving) your deficiency. You will be able to buy another property in about 3 years, and the damage to your credit history is minimal (and it's not a foreclosure, which is the worst option - because if you have "mortgage deficiency" - the bank can potentially garnish wages).
To know if you have a hardship (and your boyfriend is not part of this, as he is not on the note or mortgage) - you take your assets, subtract your debt, and if you are in the read - you are considered to be insolvent or "broke", and that gives you some tax advantages (exceptions). You also have to be in the read after your monthly expenses (and your expenses have to be modest - because the bank is looking to see where you spend money, because they want to see a true hardship).
Of course, foreclosure hotline is a great thing, and visiting attorneys for a free consult would be very useful, and, if possible, seeing a CPA would help to plan your tax protection (you have to get that "deficiency waver" from your bank - and be insolvent - but CPA will tell you more on this).
I suggest to interview a couple of CDPE (Certified Distressed Property Expert) designated realtors in your area - you can find them on http://www.CDPE.com site.
Best of luck,
Beachfront Realty, Inc.
CDPE - Certified Distressed Property Expert
You don't always have to pay the deficiency. It depends on how well the short sale is negotiated with your bank. A good result of a short sale for a resident (not an investor) should include a signed letter stating you will not receive any proceeds and that the bank won't come after you for the deficiency. If don't get this agreement, you don't have to sign it and do the short sale. Since you can stay at the home until the short sale is complete, you have nothing to lose by trying. The last resort would be letting them foreclose and possibly filing bankruptcy. Again you should a good realtor or real estate attorney to make sure what your ultimate results will be.
Robert McGuire ASR
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
I am not worried about buying in the near future. Because of the bankruptcy, I won't be able to buy for a while anyways.
It is SUCH a scary decision and right now, I don't really know what I am going to do. I love my place (not the neighbors, poor management, poor maintenance) but it is eating me alive. I could be in a 3 bedroom house right now for what I am paying.
I have talked to other residences and they are not happy about the rates but about 80% of the condos in my place are owned by 60+ year old's who bought their places for $20,000, $30,000 and only have $300 mortgage payments to begin with. The one's who are in my situation are foreclosing and most of the older people are renting their places out for $600-$700 a month and leaving. I would need at least $1100 a month and that would be me covering $100 of the HOA dues. I also do know of 2 people that the HOA's are foreclosing on for non payment. There is a lot of talk around there but not a thing we can do. We have looked into it and everything the HOA are doing is supposedly legit and they have a great lawyer backing them.
I worry about this daily and am not sure what my decision is going to be. Regretting ever buying in the 1st place, now.
Renting can be tough too, your credit will be destroyed for 18 months minimum and any landlord will run a credit check on you and unlikely to find a place to rent. Thing to do is rent a place now to live in before you have the bad credit and try to rent your condo. Get legal advice on bankruptcy chapters and negotiate the best deal you can get from the bank. Watch out for agents that claim to be "short sale experts", while one can specialize in short sales, that does not make one a legal expert. Err thats called practicing law not real estate! Any responsible agent will have you sign a disclosure that you might owe money to the bank and you are still on the hook for a commission.
You don't get to foreclose. Foreclosure is a legal action taken by the lender or state to collect money. In some states an HOA can foreclose on a property, I do not know if this is the case in Colorado.
You can possibly consider bankruptcy, however there are serious legal and credit ramifications to doing this and you don't want to do so without a full understanding of what you're doing. This should be part of your conversation with the attorney.
You are not the only owner who must be concerned about the HOA fees, you need to start contacting other owners and discussing the fees. How do you know you are getting what your paying for. HOA's should be audited every year by an outside accountant. Perhaps you and other owners need to challenge the fees. As an owner you are entitled to a vote, if you don't pay attention to your HOA, this is what happens.
Do not waste anymore time on line. Go meet with an attorney.
This will allow you to sell for less than what you owe the bank. By going the short sale route you can salvage your credit and purchase another home in 3 years. Speak to an experienced agent in your area today!
Best of Luck!
Regarding your housing question, here is how we did it. Last fall was used to search the web extensively for prospects and Property managers. One of the reviews that came up was from travelexplosion.com
We went to each homepage of the agencies mentioned and picked three that we would like to check out further. I suggest anyone looking for a property manager do the same. What we felt was right for us may not be right for you.
Then last Christmas we spent 3 weeks visiting communities and homes in the area and ended up with Compass Bay on top. Then we asked a representative from the agency to view a model home with us. His first question was: is the pool heated? The sales representative was a little stunned by the question, because as it turned out, no pool heaters were installed. I did not even think of asking that question, because I took it for granted. He explained to us that every renter will expect a heated pool in the wintertime, and that this is a must as far as rental is concerned. His summary at that point:
â€¢ Excellent location for renting
â€¢ Pool heaters must be installed
â€¢ Overpriced (they were asking almost $250k + closing cost for a 1797 at that point)
We told them no interest from us before there are heaters installed. Then after a few months we got word that the heaters were in place, and after some more time monitoring the prices and seeing one house after the other go, we made an offer lower than suggested price and it got accepted. Then another 3 weeks over in May to pick the options at KB home studio and a meeting with the Property manager to sort out some questions. Again over for the walk thru and closing in September.
We are fairly confident that we have some control, we got the HOA deed of restrictions up front and discussed them with our Property manager, got insurance quotes, prices on electricity, water and what not, so hopefully there will be no big surprises.
Since you are working---It does not apply for you.
You should add yr monthly expenses and see where you stand against yr Income.
If you are going in debts, you shld consult yr Mortgage for Loan modification.
They will work with you and you can Hang in there and things will turn better.
NYS Associate Broker
Keller Williams Landmark II
Serving Queens, Nassau and Brooklyn
Please see my blog for how a short sale works with some tips and advice for home owners
Sounds like you are in a tough situation.
I see that some answers below recommend the Colorado Foreclosure Hotline - 1- 877- 601- HOPE . Good advice.
If that does not work for you, the U.S. Department of Housing and Urban Development keeps a list of Approved Housing Counseling Agencies. These are free services where the workers have a lot of information about programs to help solve issues like yours. For Colorado, the link is : http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction
There is a lot of good help out there for people in your situation and you can find the best options if you use these services. However, stay away from any unapproved service that sounds at all suspicious. If it sound that way, it probably is.
Prudential Real Estate of the Rockies
That is a difficult situation you describe. And, this is a lousy time to be out of work.
Consider if you become delinquent on your HOA dues:
1) Some HOAs are using collection agencies to recover unpaid dues and they will pursue their money
2) Your credit becomes tarnished
3) Some HOAs have been filing suit
1) Offer your place for rent (if that is allowed). Make sure the rent you can charge will cover your mortgage and a bit more for setting aside in case you can't rent it for a few months or something needs repair.
2) Talk to the HOA about a reduced payment until your boyfriend is paying his share again.
4) Short sale
5) Sit down with your budget and see if you can't endure some austerity until conditions improve
The best thing you can do is what you did here. Communicate with people and see if you can't improve your situation. If you have noticed that there have been a number of foreclosures in your HOA, your HOA might be having to absorb a number of delinquencies. Approach them in a professional manner and see if they haven't already considered a program that would work for you.
And good luck.
PML of Longmont, CO
It sounds to me like you might have a hardship. If so, you should qualify for a short sale. I have over a 95% success rate getting short sales approved. I am a Certified Distressed Property Expert. Call me as I can help you.
Ethan Besser, CDPE
Certified Distressed Property Expert
Keller Williams - DTC
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
To reiterate what Michelle said you will still have HOA dues that are owed even after a foreclosure. They can and will come after you. The foreclosure avenue is best to be discussed with a real estate attorne.
Good luck to you whatever you decide.
Sr. Loan Advisor
American Liberty Mortgage
They are a pure non-profit housing agency that won't charge you and will connect you to a housing counselor for free.
Summit Home Mortgage
To Your Great Success!
Cherry Creek Properties
I would be happy to talk with you and give you all of the details on how the process works and answer any questions you may have and see if this is the right solution for you.
You can reach me at 720-296-5262
Have you considered a short sale for your condo? It's very common now and in many instances the best option for a lot of people. Especially with your financial circumstances. I am happy to talk to you abut short selling as I have had 8 years experience in them.
As for your HOA dues, most people find that if they don't keep paying those dues until either the short sale is done or foreclosure is finished, the HOA can come after you for those payments and court costs. That is a very important matter to get good advise on from many people before stopping payments. I can give you a list of people to call who can advise you on that matter if you wish.
Call text or email me anytime and we can discuss all these matters.
Co Real Estate Group