I would like to know why everybody is telling me that i should file bankruptcy?

Asked by R. Davis, Miami Beach, FL Sat Apr 18, 2009

My hoa and mortgage is 2 month late. Lost my job so i got refused modification. Rental income would only
make up for 50% of expenses for the condo so that is senseless.
I really don't want to file bankruptcy, what are my other options? I put 45% down on the property in 2005!

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Dp2, , Virginia
Sun Apr 19, 2009
Besides short selling your condo, you could also arrange to sell your property with seller financing (since you did put 45% down on it). If you opt for the latter, you'll need to factor the 2 late mortgage and HOA payments (along with any and all of the associated penalties and fees) into your price, and you'll need to further reduce your price to consciously underprice your competition.

If I were you, then I'd contact several of those "We Buy Houses" companies immediately to negotiate a sale (that might even leave you with some cash after closing--provided you don''t have to do a short sale).
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Mott Marvin…, Agent, Sunny Isles Beach, FL
Sun Apr 19, 2009
It seems like trying a short sale may be your better options. Assuming that your debt is isolated to the condo fees and mortgage being 2 months late. Perhaps you have several other financial obligations that are past due- in that case, perhaps that is why you are being told to file for BK.

It seems that you may have some equity, being that you put down 45% when you bought it. I know that values and sales prices were very high in 2005 compared to the current situation.

A short-sale will not allow you to get any money from the sale. Perhaps, if there are not many units for sale in your building you could get out with a profit...
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The Hagley G…, Agent, Pleasanton, CA
Sat Apr 18, 2009
your best bet is to speak with an attorney or tax professional about your specific situation
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Keith Manson-…, , Milwaukee, WI
Sat Apr 18, 2009
I know you have a tough situation. The miami beach condo market has been hit hard. I am not sure if your deelopment is mostly vacant like some I have heard. The real question is why you are looking to file bankrupcty. Make sure you get good advice when making the decision to file bankuptcy or other options available. I am not an attorney and you should talk to an attorney. However, my opinion is, a chapter bankruptcy 13, requires you to repay and thus income is needed to be approved for a chapter 13. A chapter 7 bankruptcy would discharge the debt but would be on your credit for 7-10 years and there would be a foreclosure too.

I would recomend try two things at the same time. First , try hard to get a new job so you have some income. You are going to have to do this any way. You may also look at getting room mates to assist in with the mortgage payment. The mod programs have changed and should be considered again if you get a job. Look at makingaffordablehomes.com to see if you could potentially qualify for a mod now. It will depend on the investor of your loan and bank servicing your loan. Having a job will allow you to review banktructy options to if your attorney suggests that.

The other thing I would do is investigate a possible short sale with a realtor in your area that has experience do short sales. Also check the credit score issues tied to bankruptcy, foreclosure and short sale. Look up fannie mae underwriting quidelines on the internet to give you a better understanding of potential credit issues.

Before paying anyone for help make sure you understand what you are getting. I have a customer that paid $2000 for mod assistance and did not get what was needed or expected. That customer has now come to me for assistance.
Wish you the best!

Keith Manson
First Weber Group Realtor
CDPE and Home Retension Specialist
Greenfield, Wisconsin

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Colin Storm, Agent, Falls Church, VA
Sat Apr 18, 2009
Semia: Bankruptcy sounds like it is far from the right answer for you. Selling the home would be the best bet. Having put 45% down you may be able to sell with minimal loss, or even a gain depending on the market in your area. Worst case is a Short Sale, which is a fantastic option if you can find an agent who knows how to handle them. The HOA lien will make it more difficult to do, but not impossible.

Go to CDPE.com and find the "Find a CDPE" area on the right. Anyone who comes up for your area will have training from one of the best programs out there, which was actually developed down in Florida.

Getting face to face with one of those folks is the best advice I can give you. They will be able to help you cater your actions to your specific circumstances. You will need to be ready to share a lot of personal financial information, but it will be worth it in the long run.
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