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Ready to bail on condo

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jaman602

Junior Member
What is the name of your state (only U.S. law)? Arizona
I can no longer afford my condo, can I just stop paying the mortgage?
Should I still pay the HOA fees?
What should I expect from the mortgage co?
Any info would be usefull, thanx
 


You don't pay, they'll boot you out and sell the condo to someone who will pay.
I think the OP knows this.

What they want to know is how the bank is going to act and how soon. I don't know which bank the OP uses and I don't know their policies. I would assume it would take a two or three months of missed payments before they started to foreclose.

However, there is one thing the OP seems to not understand. Even if they stop paying their housing bills, they will still owe them. You see jama602, after the condo is foreclosed on and sold to someone else, you will owe the difference in what your loan amount was and what the home sold for. For example; say your mortgage is $200,000. The bank forecloses and auctions it for $150,000. The amount it sold for does not cover the total of your loan and therefore you still owe the remaining $50,000.

As for your dues. They will be your responsibility every month until new owners take over. In that case, it would be the bank. Once they take possession, they will be responsible. Now the unclear part is whether or not the HOA will be happy that a deadbeat is gone and new responsible owners are moving in. If they are, then that debt will probably not chase you. However, in my HOA, we are quick to use our lawyer and sue the deadbeat. We try to get a lien on the place before it is foreclosed on. Regardless though, once we have a judgment against the deadbeat, it sticks to their record long after they have moved out.

Now I understand that Arizona, along with Nevada, is one of the worst hit in the housing crash. For that I am sorry for your troubles. But if you just up and stop paying, it won't mean they will end. If you are that broke, seek other means. Try mortgage assistance of some kind. I would even recommend bankruptcy over just walking away. Although both will stain your credit record, the latter will be looked down upon much worse.

Good luck.
 

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