Brad, Home Seller in Tampa, FL

What happens if I walk away from my waterside condo? Just STOP paying???

Asked by Brad, Tampa, FL Thu Nov 20, 2008

My condo has been up for sale for a few months. I am asking $65,000 less than I paid (equal price as some short sales in the complex) for it two years ago and cant get a nibble on it. Im getting sick of paying for a mortgage on a property I'm upside down on and no longer live in. If I just walked away from the house and STOPPED PAYING, what will happen? Besides ruining my credit what can happen? Should I continue to pay taxes and HOA fees so they dont take me to court? Can the mortgage company make me pay legally since technically I do have enough money to pay?

Thanks!

Brad in Tampa

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7
Bill Szydlow…, Agent, Tampa, FL
Thu Nov 20, 2008
Brad,

Your best answer will come from an attorney who specializes in real estate. Realtors would get into trouble giving you an answer since it would border on practicing law. You can ask your realtor for a real estate attorney. If your realtor does not know one, I would be happy to give you a couple of them to call.

Bill Szydlowski
The Szydlowski Team
813-323-4443
1 vote
Omo, , Florida
Mon Jan 19, 2009
I am suspicious that the current and possibly the next 7 months of short sales are from people who want to let go of their house even though they could save it, because it a smart business decision.

Oh, then you have the home owners who managed their money conservatively, who looked at their home equity as future retirement and would not dare touch it, is now looking at their equality dwindling away because of the COMPS.

Thanks alot "SICK OF"
0 votes
Robert Wilson, , Tampa, FL
Sun Dec 7, 2008
The mortgage company might be able to sue you for a deficiency if you walked away... and the fact that you have assets would make you an attractive target.

You might want to explore doing a deed in lieu of foreclosure and speak to an attorney about having language inserted into your deed in lieu agreement referring to a settlement in full or satisfaction of the mortgage.
0 votes
Jim Soda, Agent, Lakewood Ranch, FL
Sat Nov 22, 2008
Brad: These are all questions you need to get legal and accounting advice. An Atty. may be able to negotiate a "work out" or short sale for you. Not knowing your financial affairs, it's impossible to advise you. You are much better off with a Short Sale which will effect your credit up to 2 years. A foreclosure or a judgement against you, effects your credit for 7 years. Your HOA is another set of problems. Dependent on their by-laws they may be able to lien or force a judgement. You really need to consult legal advice.
Jim Soda 941-809-7759
Jim@JimSoda.com
My BLOG: http://sodasells.wordpress.com/
Prudential Palms Realty
Web site: JimSoda.com
Sarasota-Lakewood Ranch-Siesta Key-Longboat Key
Immobel International Property Realtors
Web Reference:  http://www.jimsoda.com
0 votes
Julia Fishel, Agent, Dunedin, FL
Thu Nov 20, 2008
Bill,

Have you asked your current agent these questions? Hopefully he or she has the skills and experience to advise you on your options. That being said, I can appreciate your wanting to become fully informed and so you're taking a great first step by reaching out here on Trulia.

I'd avoid foreclosure at all costs, and talking to an attorney is always recommended. Renting the property is a good option if that will keep you afloat. Generally speaking, I would absolutely do a short sale before going to foreclosure, which is much kinder on your credit and a more responsible way out. Plus it shouldn't cost you anything - BEWARE of any company that wants to charge you a fee or asks you to sign paperwork transferring interest in the property under the guise that they will be 'buying' your home or anything similar.

No two situations are alike so I would seek out a Realtor experienced in short sales and very active in our current market, an attorney and a tax accountant to explore your options. Send me your e-mail or call me at 727-366-0324 and we'll send you our e-book that details every aspect of the short sale and foreclosure process along which is a great first step in exploring your options. I'll also put you in touch with our real estate attorney who usually waives his fee for our clients for a consultation.

You can also visit us here for further information

http://pinellaspeach.com/2008/07/05/fannie-mae-annoucement-8…

Know that you're not alone. About 40% of the properties on the market in Tampa Bay are short sales or foreclosures.

Again, feel free to give a call at 727-366-0324 just to chat.

Regards,

Julia

Julia & Matt Fishel
Suncoast Partners @ Keller Williams Realty
(727)366-0324

http://www.SuncoastDreamHomes.com
http://www.SuncoastPartners.net
http://PinellasPeach.com
Web Reference:  http://pinellaspeach.com
0 votes
Bill Eckler, Agent, Venice, FL
Thu Nov 20, 2008
Brad,

Too many people are doing this today without learning all there is to know about the consequences. We recommend that you begin by collecting as much information on the process as possible and consulting an attorney prior to making a decision.

Be sure you are informed................
0 votes
Louise Warri…, , Lake Mary, FL
Thu Nov 20, 2008
Hi Brad -- Bill's answer was spot on. The only thing I'd ask is--have you considered renting to help you lessen the hit you're taking each month? Maybe you could ride out the market if you could lower the negative cash flow. Just a thought.

Louise Warring
Coldwell Banker Residential Real Estate
0 votes
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