So I have been doing what most seem to do on this site which is read, read, read. And then read some more. After consuming as much material as I can, I have decided to post my story in hopes that others in a similar situation can use this thread to help them decide how they may approach their own situation.
I purchased a condo in the Seattle area in November 2007. The purchase price was ~$230K with 10% down and an 80/10 split with IndyMac holding the 1st 5/1 ARM at 6% and Wells Fargo holding a HELOC for the 2nd at with a variable rate. Both loans are purchase money. $185K owed on 1st and $23K owed on 2nd. Property worth ~$120K based on most recent sale in complex.
I moved to NY for a job and have been renting the condo out for a few months and carrying a roughly $700/month loss to keep the loans current. That is going to end as of February 2012. That is when I will stop making payments on both loans. Based on information from the boards I will continue to pay the HOA dues. I have set up a Google # and have updated my contact information on both sites. I will be sending a letter to end any phone calls as I have no interest in attempting to keep the property.
The ideal outcome for me is to have the process end as quickly as possible. I no longer live in the state and do not plan to HAMPSTER in order to add more time to the process. After reading many posts the outcome of SD vs. DIL vs. SS are the same so I want to move on as fast as I can and get this behind me. I know that my credit will take a nosedive. I am trying to accept the fact that a lifetime of working hard to build and maintain good credit will be gone in a matter of months but I'm not sure I see an alternative.
There are a few questions that I have been wondering about:
1. Do I tell the renter that they may receive notices on the door and mail regarding the impending foreclosure?
2. The lease is up in April. Should I just tell them that I cannot renew the lease and leave the place vacant? I would like them to stay on a month to month lease, possibly at a reduced rate due to them having to deal with notes/people at the door. Any thoughts?
3. Why didn't I do this sooner?
Thanks for your thoughts and I will keep this thread posted with any activity that occurs.