I bought a condo in 2005 with 40% down. Now i lost my job!

Asked by Thomas Q., Miami Beach, FL Sun Mar 1, 2009

I have no income for mortgage payments nor hoa and special assessments. Now i got to try to get together
the money for the property taxes. I will go into foreclosure soon, or how could i save my 40% from going under?
It's also not worth it to pay for the condo as the building is now 65% foreclosures.

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Paula Bean, , Orlando, FL
Sun Mar 1, 2009
So sorry to hear of your plight M. There are many things you can do. First of all, look up your paperwork where you bought the property and see if i is a fannie mae or freddie mac loan. They are doing special mortgage mods right now to help people stay in their properties, especially those like you who have a special situation with your job loss.

The next thing to do is see if you are going to be able to get another job in the near future - if so, then you might be a great candidate for forebearance (where the lender lets you skip some payments and adds them on to the back end of the loan).

If you DO have to do a short sale, I would recommend using an attorney or an agent who is experienced in short sales, don't try to navigate this on your own as it is very complicated and most of the lenders don't hire people who know the laws either.

And last but not least - Mr. no $ down gave some very bad advice. He must have had a bad experience with a Realtor in the past, but there are good and bad apples in everyone's cart. If you check his profile out and look at the comments he has made, it is very evident that he is anti-Realtor. That is a shame because for the most part we really are good people who try to help people as best we can.

Telling people not to use a buyers agent and save the money is one example of tvery bad advice. Just because you go to the listing agent yourself does not mean you'll save 3%, in fact, since you also have no advocate on your side and the lack of knowledge legal, paperwork, etc. you could very well lose a lot more money than the 3% your hoped to gain.

Buying a house is one of the biggest investments one makes in their life, and you need a buyers agent (or an attorney) to navigate you through this complicated transaction.

I don't work with buyers, I only list property and market it to sell, but if someone does email or call me and wants to buy the house, I refer them to another agent or an attorney so they can get the representation they need.

I hope Mr. no $ down will meet a good agent one of these days and I'm very sure that whatever industry he works in, he also has good and not so good people in it as well. I will never recommend someone go it alone when buying or selling a home and spending that much money on their own without the knowledge or expertise that a REALTOR or attorney has.

Just as Doctors don't operate on themselves or family, Attorneys who represent themselves have a fool for a client, someone who tries to navigate the real estate market alone is also making a big mistake. The most important consideration when hiring a Realtor is to see how much experience they have, were you referred to them by a friend or family member or pick someone at an open house? How do you communicate with each other? You need trust, faith and communication with each other or things can turn out badly.

Good luck M on your ordeal, if you would like to bounce some idea's off as to your options, feel free to email or call me.

Best wishes,
Paula Bean
1 vote
Beth Jenkins, Agent, Miami Lakes, FL
Sun Mar 1, 2009
First let me say I am sorry you lost your job. In reference to the comment below, does "Mr. No $ Down" think that realors have some kind of special powers to see the future? That is just not going to help anyone be procative about their problems, and many reators are in foreclsoure themselves so we can give people first hand advice and information as we all navigate this market.

The first think you have to do is speak to your lender and try to get some breathing room. This could have happened regardless of what you owned or even if you were renting. Job loss is one of the biggest reason for defaults. In some cases a lender will eliminate some of your principle so that you are not upside down in your mortgage.
The condo association is not likely to improve its situation if everyone stops paying he maintenance, and what we see happening in this type of building is as the prices have come way down and the unit become bank owned and then sell for great prices, they will end up selling and the maintenance will start being paid. You can work out payments on your taxes also. These are all things you have to be proactive with and try to not loose the property. If you believe you can get another job making close to what you were making it would be a good time to try to hang in there, as things that are inexpensive are selling very well, and without knowoing what building you are in , I can say that if it is newer, people like the newer buildings.

If you have to let your property go, a short sale wll be your best way to do that. You need a realtor to put your property on for short sale and guide you through the process. You have to get it on the market at a competitive price to get the activity you need for it to sell.

I hope this helps, and best of luck.

Beth Jenkins
South Florida Brokers
Web Reference:  http://www.arealtyteam.com
1 vote
Wanna Buy?, Home Buyer, Charlotte, NC
Mon Mar 9, 2009
Agents like John say:

"M - you have received some very good advise from some very good agents.
You have a tough situation and I wish you the best outcome. "

Agents like John told you that when you bought it was a "GREAT TIME TO BUY!!!!!!!!!!!!!!!!!!!!!!"
0 votes
John Bennett, Agent, Orlando, FL
Fri Mar 6, 2009
M - you have received some very good advise from some very good agents.
You have a tough situation and I wish you the best outcome.

0 votes
, ,
Sun Mar 1, 2009
Hi M,

Like it or not, if you have to sell your home your 40% may be gone. It depends on what the condo is worth now. Your only hope for saving that money is if you keep the condo and ride things out. If you're determined to let the house go into foreclosure then you get nothing. If you want to stay in the condo then your lender may be able to work out a modification to stay there. If the condo is worth more than what you owe on it then you could try selling it and you'd get to keep the difference. Sorry about your circumstances, and I know what you were hoping to hear, but unfortunately it looks like you're going to have to bear the loss
0 votes
No $ Down, , Kansas City, KS
Sun Mar 1, 2009
Wow. I bet you had a Realtor back then that told you "IT WAS A GREAT TIME TO BUY!!!!"
0 votes
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