Have 2 houses and about to lose 1 to foreclosure...need advise

[callylr]

Hi, new to the forum...
I purchased a condo back in Feb 2008 in Indiana. My husband got relocated to Tennessee and I also purchased a home there in March 2012, which is now our primary residence. Both homes are in my name. Husband is now layed off and we are starting a family business. I am still working but we are having trouble making both mortgage payments. Condo has been on the market for over a year and is vacant and value has gone from $130k to $110k. The HOA will not allow me to rent it out. My husband is not on either loan and both homes are mortgaged by CitiMortgage. I have excellent credit and I hate to just walk away but I don't know what else to do. The condo was not used as equity for the new home.

I have 2 questions: Can they come after my home in Tennessee if I walk away? And is it worth applying for hardship with CITI and seeing if I can get a shortsale?

I am just not sure what to do and do not want to risk losing my new home in Tennessee. Thanks for your assistance in advance...

[Evan Bedard]

I have 2 questions: Can they come after my home in Tennessee if I walk away? And is it worth applying for hardship with CITI and seeing if I can get a shortsale?

Welcome and thanks for joining the community.

Since Indiana is a judicial state you may want to consult with a local real estate attorney to get their opinion on walking away from this property and the chances of the lender pursuing a deficiency judgement against yourself. A short sale will basically have the same consequences as a foreclosure so there is really no benefit for you to pursue that route. The only short sale option that prevents the lender from pursuing a judgement is the HAFA short sale program but in order to qualify you cannot have purchased another property within the last 12 months..