Mott Kornicki,
Broker, Miami Beach, FL
Lisa~
You already have a few great answers from my fellow agents. Although it is of little consolation; many condominiums are in the same boat. Values have declined just about everywhere from the high and artificially inflated levels of 2006. Credit was easily obtainable- if one could breathe and stand upright... Qualified!
I don't know what building you are refering to, but there is hope- try a short sale- and request that the lender forgive the debt. Being that there are several foreclosures in the condo, the lender may be receptive.
Offer the deed in lieu of foreclosure- that may be another option. Whatever you decide to do- ask the lender to release you without recourse and damage to your credit. It may be a possibility.
You already have a few great answers from my fellow agents. Although it is of little consolation; many condominiums are in the same boat. Values have declined just about everywhere from the high and artificially inflated levels of 2006. Credit was easily obtainable- if one could breathe and stand upright... Qualified!
I don't know what building you are refering to, but there is hope- try a short sale- and request that the lender forgive the debt. Being that there are several foreclosures in the condo, the lender may be receptive.
Offer the deed in lieu of foreclosure- that may be another option. Whatever you decide to do- ask the lender to release you without recourse and damage to your credit. It may be a possibility.
Web Reference: http://www.waterwayrealty.com
Keith Manson- Metro Milwaukee Wisconsin,
Agent, Milwaukee, WI
This sure is a difficult situation. If the homeowners dues are that far behind it does not sound likely that the complex can make it. My first thought is to contact your bank, but not who you were talking , and make your case of the condition of the building and ask for assistance or reduction in principle. The person you were talking to was most likley someone in collections and all they want is for you to pay your bills and not concerned with the situation.
You want to get to someone in the loss mitigation department and not the collection department. It was also be interested how many loans your bank has within the complex because that might open their eyes on what they need to do.
In general, if you let the foreclosure be completed or complete a deed in lieu, your credit score will be hit between 200 -300 points or dropping you credit score of 700 to between 400-500. Under curent Fannie Mae guidlines you would not be able to purchase a property for 5 years. If you do a short sale you will have about the same hit on your credit score but under current underwriting guidelines you could purchase a property in two years.
You check a blog I wrote about the draw backs and benifits for a foreclosure and a short sale under the trulia foreclosure section.
Good Luck!
You want to get to someone in the loss mitigation department and not the collection department. It was also be interested how many loans your bank has within the complex because that might open their eyes on what they need to do.
In general, if you let the foreclosure be completed or complete a deed in lieu, your credit score will be hit between 200 -300 points or dropping you credit score of 700 to between 400-500. Under curent Fannie Mae guidlines you would not be able to purchase a property for 5 years. If you do a short sale you will have about the same hit on your credit score but under current underwriting guidelines you could purchase a property in two years.
You check a blog I wrote about the draw backs and benifits for a foreclosure and a short sale under the trulia foreclosure section.
Good Luck!
Web Reference: http://www.keithmanson.firstweber.com
Ashton Coleman,
Agent, Miami Beach, FL
Whew, that's a tough call. Where's the Suze Orman of real estate when a good question like this one pops up!? It seems as though the association/condo board have failed at going after delinquent fees needed to maintain the building. Delinquent payments are very common in all condo buildings yet at this high level of 65%, it a surprise the water is still on. The new Fannie Mae guidelines from January 2009 would not allow financing so it would have to be geared to cash investors yet no investor would take on the liability of covering everyone elses slack with inevitable assessments on the horizon.
A Deed in Lieu of foreclosure may be the most viable option although speak to your bank(s) in all honesty on the current circumstances and be sure to negotiate DOWN the deficiency lien. Do not take no for an answer and keep climbing the peon ladder until the manager can help. I say this only because I'm afraid a short sale just won't fly from lack of a ready willing & able buyer. IF you could find a buyer, then please jump on the short sale option making sure there are no deficiency liens or 1099's if it's an investment property. I assume this is your "home." I also heard an interesting concept yesterday where it MAY be that FICO (credit) scores will be weighted in favor of owners such as yourself who are forced into foreclosure or hand over their properties between the years of let's say 2005-2009. Meaning less likely to greatly "break" the FICO instead weighted and factored in favor on the years of trouble down the road when you feel it's time to borrow again. Just an idea that may make sense in the future because of the current circumstances (not a fact but likely).
It's been a tough battle over the last 4 years for a large majority of owners in similar circumstances as property values tumbled. This building WILL eventually turn around after a financial correction and an efficient condo board is established. Miami Dade residential sales are up 67% over this time last year and 20% over March! Stay positive & strong no matter how bad it gets and remember this simple (& odd) advice from my father when I've have hard problems to swallow... "they can't kill you!"
I am open to more ideas & opinions and my answers can be wrong as a fallible sales associate.. This is only opinions and advice from today's knowledge/understanding and I welcome any further insights I may be unaware of.
A Deed in Lieu of foreclosure may be the most viable option although speak to your bank(s) in all honesty on the current circumstances and be sure to negotiate DOWN the deficiency lien. Do not take no for an answer and keep climbing the peon ladder until the manager can help. I say this only because I'm afraid a short sale just won't fly from lack of a ready willing & able buyer. IF you could find a buyer, then please jump on the short sale option making sure there are no deficiency liens or 1099's if it's an investment property. I assume this is your "home." I also heard an interesting concept yesterday where it MAY be that FICO (credit) scores will be weighted in favor of owners such as yourself who are forced into foreclosure or hand over their properties between the years of let's say 2005-2009. Meaning less likely to greatly "break" the FICO instead weighted and factored in favor on the years of trouble down the road when you feel it's time to borrow again. Just an idea that may make sense in the future because of the current circumstances (not a fact but likely).
It's been a tough battle over the last 4 years for a large majority of owners in similar circumstances as property values tumbled. This building WILL eventually turn around after a financial correction and an efficient condo board is established. Miami Dade residential sales are up 67% over this time last year and 20% over March! Stay positive & strong no matter how bad it gets and remember this simple (& odd) advice from my father when I've have hard problems to swallow... "they can't kill you!"
I am open to more ideas & opinions and my answers can be wrong as a fallible sales associate.. This is only opinions and advice from today's knowledge/understanding and I welcome any further insights I may be unaware of.
Web Reference: http://MiamiDreamRealty.com
