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FLRealEstateAnswer, Attorney
Category: FL Real Estate
Satisfied Customers: 28005
Experience:  Experience handling landlord/tenant issues, mortgage foreclosures, eviction, purchase and sale agreements
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I have a rental property that is no longer worth as much as

Customer Question

I have a rental property that is no longer worth as much as I owe on it. The condo fees are too high for me to sell it. How do I let the bank foreclose and no longer pay condo fees or special assessments for it without ruining my credit rating?
Thank you
Brad Komishke ***@******.***
Submitted: 2 years ago.
Category: FL Real Estate
Expert:  FLRealEstateAnswer replied 2 years ago.

I certainly understand the situation and your concern. This is a situation where you need to minimize the hit that your credit will take but need to understand that it will be lowered. If the bank forecloses, the foreclosure will be on your credit for roughly 7 years and your credit score will certainly drop. If you no longer want to keep the property, then you need to speak with the loss mitigation department of your lender and see if they would agree to a short sale or deed in lieu of foreclosure. In both situations, you likely would need to have the fees current, since nobody will want to take the property and have to pay all the past due amounts. A short sale or deed in lieu will still lower your credit but not as much as a foreclosure. I know you want to know how to do this without ruining your credit but it will have to take a hit.

Expert:  FLRealEstateAnswer replied 2 years ago.

I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!