Posted on: 09th Nov, 2009 08:44 am
I bought my condo exactly 4 years ago for $249,000, I put $50,000 down making my loan $199,000 @ 6.25%. I have never been late on a payment and never have asked for a rate adjustment. My current balance is $196,550 and my house is worth 175-180K. I live in MA and have been ofered a job in CA, I have a good credit score and carry less then a $1,000 a month of credit card debt. I do have a 6 months of emergancy funds in savings, so I know my bank we not accept a "finacal hardship." I think I can rent my place for 1,200/mo leaving a short fall of $400 after taxes and condo fees. That with the fact that I do not want the head ach of renting out a place on the other side of the country. Can I just give the keys to the bank and walk away? Between my down payment and 4 years of payments the bank has made about 100K from me. I have also put about 10K in upgrades into the condo. I do not want to sell my condo then write a 20K check to the bank. Do I have any options?
If the your market is so bad see if the bank will accept an offer on a short sale. Please note you may still be on the hook for any shortage. Be sure you know all the details before you agree to anything.The bank doesn't want your home, they want your payments. You walking away will kill your credit, property will go into foreclosure and you just removed yourself from being able to purchase a home for the next 3-5 years. It's just not as easy as strolling into the bank and handing over the keys. If I were in your position I would really consider other options.