My family has to move for my wife's job and can't afford to pay our mortgage and rent.

Asked by Nick Rogan, Madison, WI Wed Apr 11, 2012

We have a condo we can't sell in Wisconsin and have to move to Arizona for work. We can't afford to pay our mortgage AND rent in AZ. Unfortunately, our mortgage condo fee is more than we can rent for AND we have having trouble finding renters. We think we just want to walk away from the loan. How might this work?

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7
Guy Lofts, Agent, Madison, WI
Thu Apr 12, 2012
Nick, why can it not be sold. All homes can be sold at a price. It may not be what you owe, but that is what a short sale is. We do these all the time and help families to get out from under a pile of mortgage debt.
0 votes
Alex Saloutos, Agent, Madison, WI
Thu Apr 12, 2012
Why can't it be rented or sold? Do the association bylaws prevent renting?
0 votes
Nick Rogan, Home Owner, Madison, WI
Thu Apr 12, 2012
Lets assume the condo can't be rented or sold. What do we do?
0 votes
Nick, I am wondering why you think a home can not be sold. A condo can always be sold. That may be your best bet still.

Like my message below, you can try to hand in the keys. You would speak to the bank and ask for a "deed in lieu".
Or you just walk away. (i would check with an attorney before you do that.)

Check the info on my web site, or you may need to call someone. 608 513 1123
Flag Thu Apr 12, 2012
Guy Lofts, Agent, Madison, WI
Wed Apr 11, 2012
Nick, Walking away is not the worst thing in the world. Some might say, not very responsible but sometime you just got to do it. However there are other options. Short sale is one. deed in lieu another. Renting, as you said is sometimes an option.


We have helped many homeowners out in this situation. If we can't we will guide you in the right direction. see our Short Sale website for more info.
0 votes
Jane Marie P…, Agent, Middleton, WI
Wed Apr 11, 2012
Hi Nick,
Looked for you condo in the Madison area and could not find one listed under your name. Where is it and how much are you asking? I am a Real Estate Broker with several condo listings and it is true that it is a tough market but not impossible. Would love to help you find a buyer or a renter. Much better than walking away.
Jane Marie Pechauer, JMP Properties
0 votes
Alex Saloutos, Agent, Madison, WI
Wed Apr 11, 2012
Have you talked to your bank? What do they say? When you say your "mortgage condo fee is more than we can rent for" I'm not sure what you're saying. Keep in mind the last thing they want to do is foreclose and buy it back at a sheriff's sale. They'd rather work out another solution with you. The sooner you talk with them the better. Why can't you sell the condo? Do you have any equity in the condo? What are you asking for the condo? Is it priced competitively? If it's worth less than you owe, selling it will be a challenge. The bank may approve what's called a short sale if you work with them. A short sale is where the proceeds of the sale are less than what you owe on the home. If the bank knows you have a hardship, they prefer a approving a short sale and taking less than what's owed, than having to buy it back at the sheriff's sale. Regarding renters, a management company can help with that. They screen tenants and have systems and process in place to help control that. They take a cut of the rent and charge fees each time the unit has to be rented to a new tenant. A local management company could be particularly helpful if your in another state. What is the difference between what your monthly costs are for the condo and what you can rent it for? Covering that until it sells may be a solution. Ideally you can stay current on your payments and, if you're underwater (owe more than it's worth) have the bank approve a short sale. As you miss payments and move through the foreclosure process your credit rating will take a huge hit, which will have a big impact on your ability to buy another home or get credit for buying a car or other borrowing needs. If, after researching your options, you feel walking away from your loan is best, signing over the deed to the bank in lieu of foreclosure may be the best options. Again, if you haven't already, pick up the phone and call your bank.
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Thanks, the "mortgage condo fee" meaning mortgage + condo fee.
Yes, the condo is worth less than what we owe and units in our complex are not selling at all. Rents are about $100 less then what our monthly costs are.
I can't say we are too concerned about maintaing our credit score at this point, getting out quick before investing more time, energy and money is proiority.
Flag Wed Apr 11, 2012
Gail Rutkows…, Agent, Town of Sun Prairie, WI
Wed Apr 11, 2012
You relocation is a hardship and there is the HAFA program (Home Affordabiity Foreclosure Altnernative) program that may be available for you. Talking to a (CDPE) Certified Foreclosure Prevention Expert to find out about all your options to avoid foreclosure and work this out so that a foreclosure does not effect your credit and future home buying options.

Gail Rutkowski CDPE, Gail@C21Affiliated.com, 608 345 8737
0 votes
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