Does anyone know how to accomplish a short sale without damaging my credit? Or just how to get rid of a condo?

I’m trying to get rid of my condo because I can no longer afford my association fees along with my mortgages.

At this time I’m able to keep up with my 1st and 2nd mortgages as long as I don’t pay my monthly association fees which are close to $ 400/month for only a 1bed/1bath.

I can attempt a “short sale” with an investor but, from what I’ve heard I’d have to stop paying my mortgages (1st and 2nd) so that an investor can show to the bank that I cannot afford my condo and therefore convince the bank that they are better off selling it at a discounted price to the investor rather than foreclose on me (which is much more expensive to the bank than to sell at a lower price).

However, these late payments would eventually be reported to my credit, and considering I have really good credit and I’d rather if it stayed that way.

Is there any way to accomplish a short sale while protecting my credit or any other method for unloading a condo?

2 thoughts on “Does anyone know how to accomplish a short sale without damaging my credit? Or just how to get rid of a condo?

  1. you should contact the lender and tell them about your situation. include a hardship letter. they will work with you. maybe if you are lucky they will modify your loan. they will want proof that you are not going to be able to pay for your mortgage any longer.

  2. I do shortsales as an agent, they will want all your financials down to the penny. They more than likely will not consider the short until you can’t pay. So the answer is that it is very unlikely to get out unharmed.The investor probably found out about your dilemma due to the notice of default that was filed. Make sure the debt is satisfied or your credit will get damaged further when they put a judgement against you.
    I also work with a non profit and have been able to negotiate the debts with banks after they’ve adjusted, and I don’t know if this is your case. If it is request a loan modification and explain what is going on, they’d rather put you back to the old payment than go through the whole mess.
    Most of the banks I work with say that they would have been able to redo the loan had the client given them the opportunity to.

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