Should I walk away from my condo?

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Should I walk away from my condo?

I am 62 years old living on SSD of $1000 a month. I and can no longer afford my mortgage, real estate taxes and condo association fees. I am $10,000 away from being upside down on my mortgage. In order to pay my bills, I’ve been withdrawing monthly from an IRA that is quickly diminishing. My condo has been on the market for 8 mos, and I am scheduled to move into a government subsidized apartment in 2 months. My realtor has not been helpful with regard to my options. I don’t know what to do in the event my condo does not sell before I need to move.

Asked on November 3, 2011 under Real Estate Law, Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You need to sit down with your real estate agent to discuss the possibility of a short sale on the unit or even renting it out before you decide to walk away from it. Have you considered refinancing the property for a lower interest rate? A danger of doing so is losing any purchase money loan benefit that your state may have to prevent a deficiency judgment in the event of a foreclosure.

You need to be aware that if the loan presently on your home is not the original loan and the property is lost in foreclosure the lender possibly could file suit against you for any deficiency owed on the loan.

Good luck.


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