mortgage trouble

Guest 0.10 Dollars($)

What else is new, right???
My problem is i bought this condo in 2005, 100% financing 7.5 or 8% interest with an ajustable rate that will adjust in jan 2008 to 11%. I thought i would sell the condo for a profit before 2 years were up but housing market crashed and i got screwed. At the time we had a lot of debt and our monthly bills were adding so with some equity that we had we refinanced to pay off our debt. We bought the condo at 155,000 and now owe 186,000. its worth about that.
The problem is after hurricane season in 2005, the condo complex of approx 300 units, had some roof damage. In order to pay the deductable for 3.3 million dollars, each condo owner has to pay an 8,000 dollar assesment.
Since the worth of the condo wont cover this 8,000 or realitor fees of approx. 6%, i feel like i'm stuck since i don"t have the money to sell. Also with the market so slow who knows if i'll even get a half decent offer. If i try to sell i will probably be coming to closing with around 13,000(if i get a good offer) and/or the difference of what the loan is worth.
I don"t have that kind of money. I've thought about a shoprt sale but i want to keep whatever decent credit i have left to buy something i can actually afford out of state.
I considered renting it out but i could ask no more than 1200.00 a month. my monthly mortgage is 1390.85 plus 272.00 association fee and 84.00 a month for the special assesment!
I couldn't afford the differnce plus a new place to live.
I don't want to forclose....the little credit i have means everything to me..
I even went as far as to get a fake 1 year lease so i can prove i"m not responsable for the condo and therfore allowing me to get a second place. then i would just let the condo forclose. I figured at least i would still have a house.
My husband told me i would probably go to jail, so i guess that wont work. Really i'm not sure how i could get out of this condo my family and i outgrew.
We want another baby and in this 2/2 we just can't...plus i want my dream home in NC.
How the heck can we get out of this mess????[/b]

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi elquny,

Welcome to this Forum.

I think you should talk to your lender and find out what is the right option to choose. If you delay your debt may increase and you may end up in foreclosing and ultimately your credit will be affected.

If you don't want the condo and want to buy a new house in NC, I would suggest you to make the decision soon.

Thanks,
Larry

Guest 0.10 Dollars($)

Hi,

When did you refinance? Is there no more equity left?

I think refinancing at present could help you to lower the rates. Then you could either rent it with a lease to purchase option or try to sell it at a better price.

It will be better if you consult an attorney.

banker0679 · Posted: Fri Nov 16, 2007 6:52 am Post subject: refinancing

the problem with refinancing is that your association has an assessment/litigation pending. the only lenders that will lend will be non-warrantable condo lenders. you will not get the best rates due to this....

Try Wells Fargo...I hear they have good non-warrantable condo programs.

Guest 0.10 Dollars($)

We bought the condo in may05 we refied in nov of 05. I don't think we have much equity if we have any at all. I thought in order to refi your unit had to appraise for 20% more than what its worth or something like that. Well not sure the exact ammount its worth but i dont think its worth enough to qualify for refi.

banker0679 · Posted: Fri Nov 16, 2007 5:10 pm Post subject:

you can do FHA rate/term 97.75% or cash out up to 95%

you should get 7% or lower for a 30yr fixed

Jessica

Hi Elquny,

I understand you feelings. It's terrible to think that you'll lose the home. But try to be positive and take things as they come. Well, if you don't want to leave the condo, try refinancing with FHA loans.

I think as Banker said, you may qualify for such a loan as far as the FHA is concerned. At least you can clear up the mess and then spend according to a well-planned budget. A tight budget is something you require at least for a few months so that things are in place soon.

I suppose you will be going out of state as you have a plan to buy a home in North Carolina. You could have gone for a deed-in-lieu instead of foreclosure but I think it's better if you postpone your home buying plan for quite some time. This is because you need to be financially strong before you can carry on with a new home.

If possible, try to find a suitable tenant who can offer you more than what's being offered now. You can do this while you are looking for an FHA approved lender and if you don't get such a loan then at least you have the tenant with rent payments to cover your mortgage and association fees. If possible either you or your husband can try to look out for a part-time job so that you can make up for what's left after you get your rent payments. I know it's difficult but you should try till you bring things in place.

Regards,

Jessica.

evolovik26 · Posted: Mon Nov 19, 2007 9:18 am Post subject:

Try FHA Loan if not you are kinda stuck caus eyou are overextended with no equity on your property. Dont do fake lease cause its fraud and if you get caught it is a federal offence.

Guest 0.10 Dollars($)

MY CONDO FEES HAVE GONE FROM $180.00 A MONTH TO $350.00 PLUS ASSESMENTS. I CAN'T AFFORD TO PAY THIS AND MY MORTGAGE TOO.
CAN THE CONDO ASSOCIATION FORECLOSE ON ME? I LIVE IN FLORIDA

0.10 Dollars($)

Yes, if you do not pay your condo dues and assessments the condo association can file a lien with the county, the association can then foreclose on the lien.

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