S FL Condo - walking but have questions

[FLgirl]

Firstly...great site and great info.

Apologies, in advance, for the novel...

So...with my stomach sick and a mini anxiety attack occurring simply by typing this...here goes...

Bought my condo 8/05 for $560,000. Put 20% down. During 2005/2006 I reduced my principal by an additional $57,000 (yup...looking back...I'm a fool). Have a 2nd heloc which I took out after closing (in 11/05) and didn't start using until mid-2007.

Chase 1st mortgage has a principal balance of $391,000. Monthly pymts of $2300 on 5yr I/O at 5.375%. Condo fee of $610/month. Taxes of approx $550/month are escrowed.

BofA second mortgage heloc has a principal balance of $45,000. Monthly pymts of $200 on I/O at 4%. So combined outstanding is $436,000.

Cannot rent the place since market rents are approx $2000/mo which would leave me with a huge monthly deficit (after figuring in condo fee and increased property tax exposure (i.e. - no more homestead exemption).)

Have had condo listed on MLS since Oct 2007. Took off market for one month and then re-listed 09/08. Have had minimal interest/showings, NO offers (this is an oceanfront condo...the market is saturated with the same). It is currently listed at $479,000 which is middle of the pack as far as the other listings in the building and the surrounding area comparables. At current MLS list price and assuming full offer (as if), I would basically break even on the mortgages, closing fees and realtor fee (buyer side only). As far as out of my pocket...more than sickening to know I won't see the $169,000 in cash that I have invested in this condo.

Everything was going along fine and dandy....living well within my means...then...I lost my +9yr job (mtg industry) in May 2007. +25yrs in that industry and now a snowball has a better chance in he77 as far as finding a job. I went from making mid-six figure income to now making about $22,000/yr (self-employed business I started 9/07). Depleted the lovely state of Florida maximum of $225/wk unemployment benefits over a year ago. Not one blemish on my credit; everything I owe is current as of today. Have depleted a huge portion of my savings keeping my payments current (I've also taken a big hit on what's left of my investments with the current Wall Street debacle).

Removing the emotion and looking at it from a business standpoint...I refuse any longer to throw what's left of my good after bad (and am kicking myself pretty hard for not taking the walk earlier).

Questions:

1. I want to make this as 'clean' as possible. Out of savings (and my minimal income), I plan to maintain auto loan and two small cc payments. Plan also to continue paying condo fee.

2. Since I'm in this lovely state of Florida...do I continue to pay the BofA heloc? Should I attempt to pay down the heloc so as not to have a charge-off/judgement against me (i.e. - with the money that would go toward the 1st mtg that I now will not pay)?

2. It's obvious that I would not qualify for a Chase loan mod, (based on income and plus on an I/O...there's not much of a point, is there?). Nor do I even want a loan mod. Do I call them to advise I won't be making any more mtg payments...next pymt due is 2/09? I'm thinking I just wait for their call?

3. I do not wish to provide Chase with any financial info...I want to keep what I have left and I refuse to touch my IRA acct (which has also suffered considerably due to Wall Street crap). I'm preparing to move my accts out of BofA just to protect myself from them potentially taking any money. When they ask for financials (I'm assuming they will)...do I just ignore the request?

4. What should I expect as far as calls from Chase? I've never been to this rodeo...do I just tell them I don't plan to pay any longer?

5. Do I ask (or offer) Chase a DIL? How do I (or can I) approach them with a DIL while having the heloc 2nd? Do I suggest that it would be in their best interest to grant me a DIL instead of going through the foreclosure process?

6. In the event that a DIL is agreed upon, how/what do I negotiate? i.e. - I don't want to be chased for deficit and what about cash for keys?

6. Should I expect calls from BofA heloc when Chase goes delinquent? Haven't even thought or investigated whether BofA heloc has a due-in-full clause if 1st mortgage goes delinquent.

7. What else do I need to do or what else should I do?

8. I don't plan to move out until either the elephant sells (thinking that snowball metaphor again...) or a DIL is executed or I get an eviction notice. I assume that is correct?

Thanks, in advance, for your thoughts and suggestions.

[FLgirl]

I missed the time limit for edit feature.

My numbering of questions is...way off.

[The Professor]

The lenders' lobby in Florida worked overtime to insure that they have the worst consumer borrowing laws of any state. You can view a summary of them provided on this site at:
Florida Foreclosure Law

Frankly I simply do not have much to offer in terms of advice. One way or another, unless you can arrange a short sale that provides you with some relief from liability, I see nothing but an outcome that isn't going to be healthy for your financial future. Florida law appears to provide a quick foreclosure process that leaves you open to the lender obtaining a deficiency judgment. I wish my conclusion was otherwise. I'd encourage you to seek the advice of a Florida attorney skilled in both real estate matters and debt collection practices as soon as possible.

Daniel

[FLgirl]

I appreciate the response but I'm a bit confused as to why the simple questions were not answered? Is it because I was in the mortgage industry? (fyi - not all of us are/were bad, evil, scum-sucking scourge of the Earth AND being in the mtg industry doesn't mean I know this information).

I'm in no way looking for feel-good smoke blowing but I was looking for advice as far as what seems to be 'the simple stuff' always answered in others' threads.

Knowing that I can no longer pay and having had no offers for 13 months that I could even take to the lender for a possible short-sale request, what I was looking for was simple answers as far as:

1. Do I contact the lender or should I wait for them to call me?
2. Should I continue to pay the 2nd Heloc?
3. Should I offer or ask for a DIL? Has Chase permitted DILs or do they play hard-ball?
4. What is the process of these calls from the lender? What should I expect...daily calls?

[cactus77727]

Not what you want to hear, but I think the Professor is trying to tell you, because you are in Florida with its unfavorable laws, there isn't much he can advise. You need an attorney right now, which trumps your other questions. From what little I've read about Florida, if I were you, I'd be looking for the best attorney I could afford immediately. I'm sorry for your situation. Let us know what the attorney advises you.

[The Professor]

Thanks cactus77727 for your response which pointedly expresses what i was trying to say. This is one of those situations that makes you glad you live in Arizona and me glad I live in California. It truly amazes me the difference in state laws when it comes to potential downside liability when the real estate market goes to hell in a hand basket.

Daniel

[cactus77727]

Hey FLgirl,
I really wish there was more help someone could provide for you here. I am going to lose my home in Arizona, and there isn't anything anyone can do to prevent that. It's just the way it is. So I want you to know that you are not alone in this mess. Just do the best you can with any resources you have to start over, and build a new future. Talk to a qualified attorney, you don't know what they will say, so you need to find out. I talked to one in a free consultation, and others have gotten advice for a small fee. You don't have to spend a fortune if you don't have it. Let us know what happens OK?