Tax Foreclosed Real Estate
November 18th, 2009
Tax Foreclosed Real Estate
Question: To foreclose or not to foreclose?
Here's the situation: real estate prices fell, my mortgage is more then the condo is worth (which means I can't refinance). I am renting the condo out, but still have to come up with over $500 out of pocket every month to cover the HOA and taxes. I also have an adjustable interest (which will only keep going up). If I sell, I'm still going to own on the loan. I really don't want to foreclose. Can any one come up with any good ideas of what I should do?
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Answer: 1- if you go to foreclosure your credit will be ruined for 7 years and you will still owe the difference from the sheriff sale and the actual mortgaged amount.
2- I assume since you are renting it that you own another place that you live in. If this is so, then you should outright sell the condo- take the loss as a tax loss, and save your credit rating-- if possible, lease with option to buy and get a percentage down payment that would help reduce your monthly fees. The person you are renting to may be interested in that scenario since he is already there.
3- Are you sure your rent is high enough for the condo? that is another option to bring in more money/month.If all of the above fail and you DO own another property- you might want to do a bridge mortgage and put some of the debt on your other home.
If you do not HAVE another home, then you have to save your credit or you will not be able to buy anything for 7 years--- you can go to the bank and see if they will do a "buy out" to save you from going to foreclosure. You actually just sign over the title to the bank and yes, you will have to pay off whatever difference there is left but at least it wont ruin your credit for life. Go to your bank-- have them discuss these option to you. If you have no other home - YOU should live in it and then you can write off the mortgage interest on your taxes----- you have options---- and there are attorneys who, usually are not well versed in real estate/mortgage options so I would choose one that specializes only in real estate law.... good luck to you.
John Beck Tax Sales, Tax Liens & Tax Foreclosure Real Estate System
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Tags: auction, foreclosed, Foreclosed Real Estate, Foreclosure, Real Estate Tax, realestate, tax
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