Loans, Debt & Credit - View Single Post - Trying to figure out the best way to walk away.

Mwl40 · 11-02-2009, 02:15 PM

Hello everyone. I have read many of the posts on this board and I need some assistance. Here is the background.

-Purchase townhouse in So Cal in 3/2004 for $340K
-Refinanced in late 04 w/ 80/20. Currently my total debt is $390k.
-In 7/07, we put the townhome up for sale with no offers.
-In 8/07, I lost my job and ended up relocating to Colorado.
-I was able to rent the property out from 10/31/07 to 10/31/09 at a net loss of about $600/month.
-My tenant ended up filing for chapter 7 and vacated the house on 10/31/09.
-My tenant had missed about 2 payments and left me with only the security deposit.
-I visited the property this weekend and there are substantial repairs that would need to be made before being able to re-rent the property out. The estimated costs of these repairs is significantly higher than the deposit I have and I do not have the money to make these repairs.

The CA home was in my name and purchased before getting married. My wife is not on any of the documents.

In 5/09 my wife and I purchased a house out here in CO (at this time, there were no issues w/ my tenant and I did not know about the condition of the CA house).

As previously mentioned, I cant afford the repairs necessary to re-rent the CA house out and I can not afford to keep making two mortgage payments.

The CA house is a townhouse and the unit next door to me just sold at foreclosure for $275k.

I want to just rid myself of the CA house and move on with my life. The only reason i still have the CA house is cause I could not sell it at the time I relocated to Colorado.

I am not too concerned about the 1st mortgage (provident bank) doing a judicial sale, but I am concerned about what the 2nd mortgage (WAMU) will do when they get nothing. I want to protect my current house in CO as this is my primary residence.

Does anyone have any suggestions for my problem?

11-02-2009, 02:15 PM	#1 (permalink)
Mwl40 Junior Member Join Date: Nov 2009 Posts: 1 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Trying to figure out the best way to walk away. Hello everyone. I have read many of the posts on this board and I need some assistance. Here is the background. -Purchase townhouse in So Cal in 3/2004 for $340K -Refinanced in late 04 w/ 80/20. Currently my total debt is $390k. -In 7/07, we put the townhome up for sale with no offers. -In 8/07, I lost my job and ended up relocating to Colorado. -I was able to rent the property out from 10/31/07 to 10/31/09 at a net loss of about $600/month. -My tenant ended up filing for chapter 7 and vacated the house on 10/31/09. -My tenant had missed about 2 payments and left me with only the security deposit. -I visited the property this weekend and there are substantial repairs that would need to be made before being able to re-rent the property out. The estimated costs of these repairs is significantly higher than the deposit I have and I do not have the money to make these repairs. The CA home was in my name and purchased before getting married. My wife is not on any of the documents. In 5/09 my wife and I purchased a house out here in CO (at this time, there were no issues w/ my tenant and I did not know about the condition of the CA house). As previously mentioned, I cant afford the repairs necessary to re-rent the CA house out and I can not afford to keep making two mortgage payments. The CA house is a townhouse and the unit next door to me just sold at foreclosure for $275k. I want to just rid myself of the CA house and move on with my life. The only reason i still have the CA house is cause I could not sell it at the time I relocated to Colorado. I am not too concerned about the 1st mortgage (provident bank) doing a judicial sale, but I am concerned about what the 2nd mortgage (WAMU) will do when they get nothing. I want to protect my current house in CO as this is my primary residence. Does anyone have any suggestions for my problem?