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What happens if my fiance lets her loan default on her condo

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MikeV78 Guest	Posted: Sun Jan 09, 2011 7:50 pm    Post subject: What happens if my fiance lets her loan default on her condo Like 0 Dislike 0 My fiance and I live in California and each own a condo. We have a renter in her unit currently, but would like to get out of the place completely. The builder put an addendum in her original contract stating that after year 3 but before year 5 they would buy the property back at the purchase price. We contacted them about this to say that we wanted to start the process. They said what I figured they would say that they don't have any money. The place is $150,000 below the purchase price and will probably never rebound. We are losing $1300 a month after the renter pays. My question is what would happen if she stops making the mortgage payment and only keeps up on the HOA and property taxes? What will this do to her credit and will it effect my credit once we are married? My name is not on her condo and hers is not on mine. What legal issues would we most likely encounter? Will this hurt our chances of buying a new house together in the future? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Niicss Joined: 03 Oct 2005 Posts: 4831 Location: New Jersey 508.39 Dollars($)	Posted: Mon Jan 10, 2011 2:15 am    Post subject: Like 0 Dislike 0 The mortgage lender will foreclose the property in order to recover his dues if your fiancée stops paying off the dues. A foreclosure will have a negative affect on your fiancée's credit report and lower her score by around 250 points. However, your scores won't get affected due to this if your name is not mentioned on the mortgage for the condo. However, your fiancée won't be able to get a mortgage within the next 3-4 years.
MikeV78 Guest	Posted: Mon Jan 10, 2011 7:39 am    Post subject: Like 0 Dislike 0 Is there any benefit to keeping the taxes and HOA current? Also, because we have the renter in there are there any legal issues to consider if we continue to rent it out but not pay the dues? What kind of timeline would we most likely encounter and what additional fees/penalties might we expect once the condo does foreclose?
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Tue Jan 11, 2011 1:59 am    Post subject: Like 0 Dislike 0 Hi MikeV! Welcome to forums! Unless your property is sold off at a foreclosure sale, you'll be liable for paying property taxes and the HOA dues. Once the property is sold off, you won't remain liable for paying the dues anymore. Sussane

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