Upside down in my condo - Loan Modification Forum

RodeoClown11 · 12-23-2008, 04:40 AM

Hi
I live in Florida and bought a condo just before the bubble burst. I am now about 100k under water. I have 80/20 loans both with Wells Fargo. The 80% is non-recourse, the 20% is an adjustable rate HELOC. I have minimal equity in the condo, maybe 5-7k.

The condo is not my primary residence. It was my first post-divorce purchase. As time went on I purchased a home for my kids to have more room and I try to rent out the condo w minimal success. There is a homeowners assoc and the fees continue to rise.

I have never missed payments on either but I am at my breaking point and am strongly considering walking away from the condo. My credit is stellar. I was just wondering if there was any constructive advice.
Thanks
John

The Professor · 12-23-2008, 06:40 AM

The recourse, non-recourse determination is made at the State law level (in your case Florida), and I'm unaware of any provision like we enjoy here in California that provides non-recourse designation for either of your loans. Key determining factors which help forecast the likely direction creditors will take include the amount of the debt and the chances that they will be able to collect (your current net worth and income).

There seems to be an unclearness to your situation as stated. On one hand you indicate that you are underwater $100K and on the other hand you state that you "have minimal equity in the condo, maybe 5-7k." Please provide the following information to give us a better handle on what is going on:

1. Your estimate of the condo's present fair market value
2. The amounts owed on each loan.

Daniel

12-23-2008, 04:40 AM	#1 (permalink)
RodeoClown11 Junior Member Join Date: Dec 2008 Posts: 1 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Upside down in my condo Hi I live in Florida and bought a condo just before the bubble burst. I am now about 100k under water. I have 80/20 loans both with Wells Fargo. The 80% is non-recourse, the 20% is an adjustable rate HELOC. I have minimal equity in the condo, maybe 5-7k. The condo is not my primary residence. It was my first post-divorce purchase. As time went on I purchased a home for my kids to have more room and I try to rent out the condo w minimal success. There is a homeowners assoc and the fees continue to rise. I have never missed payments on either but I am at my breaking point and am strongly considering walking away from the condo. My credit is stellar. I was just wondering if there was any constructive advice. Thanks John

12-23-2008, 06:40 AM	#2 (permalink)
The Professor Senior Member Join Date: Jul 2008 Location: 49er Gold Country Posts: 1,543 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Upside down in my condo The recourse, non-recourse determination is made at the State law level (in your case Florida), and I'm unaware of any provision like we enjoy here in California that provides non-recourse designation for either of your loans. Key determining factors which help forecast the likely direction creditors will take include the amount of the debt and the chances that they will be able to collect (your current net worth and income). There seems to be an unclearness to your situation as stated. On one hand you indicate that you are underwater $100K and on the other hand you state that you "have minimal equity in the condo, maybe 5-7k." Please provide the following information to give us a better handle on what is going on: 1. Your estimate of the condo's present fair market value 2. The amounts owed on each loan. Daniel

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