How to get rid of the condo that is underwater?

I have a condo which I bought 5 years ago for $125,000. I recently got married and moved. Is there any way to get rid of this condo because I cannot afford to pay for 2 houses? I cannot sell it because the market value of this condo is $95,000-$105,000 as of today; the remaining balance of my mortgage is $117000. What is the best option for me?

Asked on October 24, 2011 under Real Estate Law, Connecticut

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the condominium that you purchased still has its original loan in place that is a plus for you in that potentially your state has anti-deficiency laws precluding deficiency judgments on purchase money loans.

Have you thought about trying for a loan modification with your lender? Renting out your condominium? Doing a short sale of the condominium?

The price differential from what you bought it for and its current fair market value is not as great as many other people are facing in this country.

I would consult with a real estate attorney or a licensed real estate agent about the best way to resolve the issues that you are having with your condominium.

Good luck.


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