Thanks everyone, This is a great forum for us dealing with the foreclosue process in Washington State.
Here is my story:
Purchased a low end condo for my son (he could not qualify) in 2007 in the San Juan Islands for $125,000. Thought at the time that it was a pretty safe investment. Ha!
It is listed as my 2nd home but was acturally purchased as a primary home for my son. He is listed on tile but not on the mortgages.
Took out two loans, 1st for $100,000 and a 2nd Heloc, for $12,500 through Countrywide.
Both loans were taken out at the same time for the sole purpose of purchase.
My son agreed to make all payments and did so until the recession hit the market hard and work became scarce.
We keep up on the mortgages but had to let the HOA dues fall into arrears (now over $5000) but resumed paying regular dues and some arrears) when son fianlly got a job.
Subsequently, Bank of America acquirred the loans when all that went down, and then, two years later sold the first to Green Tree Financial, but held on to the Heloc.
Currently the total owed on the 1st and Heloc is $106,000.
On top of this, the condo complex has been so neglected and is so badly in need of repair that an assesment is in place dinging each owner with a $5000 assessment.
The condo is now valued at less than $65,000 with a very, very low probability that anyone would buy any of the 4 units for sale including ours. There have been no offers and no lookers in more than two years... The last unit to sell in the 23 unit converted apartment complex went for $56,000 in a bank sale three years ago.
So what to do with this POS Condo ?
After reading many posts on this forum, Strategic Default seems the best way to go especially since Washingon is a non-recourse state.
We have now stopped paying all mortgages and HOA dues and will go into default Aug. 1, 2013. We are taking all monies normally paid by my son, and putting the $$ away for furture use if needed.
Other options such as refianace, Short-sale, DIL etc. have all been thoroughly explored and ruled out; as have all goverment programs.
I am retired on small social security income supplemented by some retirement funds and other investments.
Note: I think, after reading many posts, that it is highly unlikely that the bank will want this condo back at all, or at least for a very long time. Additionally, considering all the HOA problems, sale is also very unlikely.
Here are some unreslolved questions I have and hope to get some answers from this great group.
1. Since both mortgages were taken out at the same time for the sole purpose of purchase, do they both come under Washington State non-recourse laws?
2. Since I am a California resident, is it likely that the HOA will come after me for the past dues/assessments, if and when, the bank forecloses. The HOA, at a recent meeting, has decided not to foreclose on any of the units in arrears. They are in bad shape with little reserves.
I'm sure that there will be many more questions that will pop up and appreciate any input that anyone can give.
Thanks very much,