Michigan Condo-Foreclosure question - Loan Modification Forum

beanie376 · 08-21-2009, 05:34 AM

Hi, My husband and I bought our first home a condo 5 years ago with the intention of it being our 3-5 year home, we started a family and quickly outgrew the home. Very soon after we bought it the market started declining and we couldn't sell it without a loss. We for years now have wanted to move but have had to stay because of the market value. Fast forward to the present the market as you know has totally tanked and we are completely upside down by at least $70,000 or more. Properties are not selling here at all there are only foreclosures that are not even selling at even the $40,000 asking price. A neighbor recently tried and did find a buyer but upon closing Fannie Mae denied the sale due to the Condo Association being $80,000 in the hole from resident not paying the HOA fees. To make matters worse our HOA is going to have to raise the fees next year from what is already high $185. to somewhere in the $250. range.

We are totally frustrated here is our situation. I lost my job 6 months ago and was the majority provider. Our mortgage is going to adjust next year and our payment is going up by about $200-300 more. Then the HOA fees also going up. The neighborhood has drastically changed in the last year with a lot of inner city folks moving in. We also have a lot of section 8 here, I do not want my children to continue living here. It is becoming unsafe with vandalism and break ins that we did not have 5 years ago.

We cannot refi because we are underwater, we do not qualify for the loan modification. I have talked to CitiMortgage numberous times, they suggest short sale however nothing has sold here in at least a year, then Fannie or Freddie are turning down the sale. They also said we could request a deed in leiu but would have to see if it's approved. I feel like we ultimately are going to have to walk away.

My question is what will happen if after all else has failed what will happen financially in a deed in leiu or foreclosure. I know the credit rating issue which is of concern my husband and I both have 750 and higher credit scores. I want to be prepared for any surprises that may come. Am I financially held liable or on my taxes. I know there was a debt relief act signed but I don't understand the lingo.

Sorry for the long post, any help would be appreciated.

08-21-2009, 05:34 AM	#1 (permalink)
beanie376 Junior Member Join Date: Aug 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Michigan Condo-Foreclosure question Hi, My husband and I bought our first home a condo 5 years ago with the intention of it being our 3-5 year home, we started a family and quickly outgrew the home. Very soon after we bought it the market started declining and we couldn't sell it without a loss. We for years now have wanted to move but have had to stay because of the market value. Fast forward to the present the market as you know has totally tanked and we are completely upside down by at least $70,000 or more. Properties are not selling here at all there are only foreclosures that are not even selling at even the $40,000 asking price. A neighbor recently tried and did find a buyer but upon closing Fannie Mae denied the sale due to the Condo Association being $80,000 in the hole from resident not paying the HOA fees. To make matters worse our HOA is going to have to raise the fees next year from what is already high $185. to somewhere in the $250. range. We are totally frustrated here is our situation. I lost my job 6 months ago and was the majority provider. Our mortgage is going to adjust next year and our payment is going up by about $200-300 more. Then the HOA fees also going up. The neighborhood has drastically changed in the last year with a lot of inner city folks moving in. We also have a lot of section 8 here, I do not want my children to continue living here. It is becoming unsafe with vandalism and break ins that we did not have 5 years ago. We cannot refi because we are underwater, we do not qualify for the loan modification. I have talked to CitiMortgage numberous times, they suggest short sale however nothing has sold here in at least a year, then Fannie or Freddie are turning down the sale. They also said we could request a deed in leiu but would have to see if it's approved. I feel like we ultimately are going to have to walk away. My question is what will happen if after all else has failed what will happen financially in a deed in leiu or foreclosure. I know the credit rating issue which is of concern my husband and I both have 750 and higher credit scores. I want to be prepared for any surprises that may come. Am I financially held liable or on my taxes. I know there was a debt relief act signed but I don't understand the lingo. Sorry for the long post, any help would be appreciated.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode