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Condo way underwater

Posted on: 06th Apr, 2009 04:12 pm
Three years ago, when my son was a sophmore at a College in Ft. Myers Fl, I purchased a brand new condo in a nice development. I thought it was a good decision at the time, giving my son a clean, new place to live off campus as well as a three year investment for myself, which I would sell upon graduation. I paid 260k of which I put down 100k. My mortgage balance now is 143k. There are 45 condos in the development for sale, the lowest price 75k. I don't need it after graduation in May, and don't want the headaches of being a landlord. I am current on my payments, but it has put a strain on my finances. I thought about a deed in lieu of forclosure. I need advice


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Posted on: 06th Apr, 2009 04:31 pm
Hi Joe,

As far as I know, lenders generally offer this program if you are delinquent on the mortgage payments. You need to write a hardship letter to the lender stating the reasons for the non-payment of mortgage dues. If the lender is convinced, he would accept your deed in lieu request.

As Bill has mentioned in his post, you will have to transfer the property to the lender and he would sell it off in order to recover the dues. The deficient amount resulting from the sale of the property will be forgiven. You should also note that a deed in lieu will lower your credit score by 250 points.

Thanks
Posted on: 06th Apr, 2009 08:07 pm
Seems you're going to take a hit somehow. Why not subcontract the landlord duties to a local manager. It will bring in income to help cover your mortgage and relieve you of day to day hassles.

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Posted on: 09th Apr, 2009 09:15 am
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