I own a condo in San Diego that I am currently upside down on by about $75,000.?

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I was transferred to New York and began renting out the unit and I bought a new house in New Jersey. I am comfortable with this arrangement and can meet my financial obligations. I just put a large chunk of money down on my new house and have pretty much no liquid assets left. I just received a letter from my mortgage company stating that my loan was a CalHFA loan and I am obligated, per the terms of my agreement (which I was not aware of) to maintain that property as my primary residence. If not, I have one month to obtain new financing or sell the property. I can not obtain new financing because who would finance a property for $ 75,000 more than it is worth? I can not sell because I could not pay the balance at closing. I just want to keep comfortably meeting my obligations as I am now. Isn’t this what is in the best interest of the mortgage company, the state of California, the real estate market, and me? Do I have any options?

3 Comments
  1. Reply
    Mad Men
    January 21, 2011 at 4:08 am

    You need to work with the bank to see if you can get a short sell approved.

  2. Reply
    loanmasterone
    January 21, 2011 at 4:37 am

    Some lenders require you to occupy a property as your primary residence. Apparently this is the case with your mortgage loan, as this is a[ state government mortgage loan.

    Under the circumstances with your new place of employment this is not gonna happen.

    You might try

    #1 Deed in lieu of foreclosure- You would request the lender to take the property instead of going through the normal foreclosure procedure. California lenders normally use the non-judicial foreclosure procedure.

    #2 Short Sale- Obtain the services of a real estate agent that is well versed in the application and approval of short sales from your lender.

    #3 Foreclosure- Allow this condo to go through the foreclosure procedure by no longer paying the monthly mortgage payments.

    #4 Contract Modification- Notify your lender that your job has required to relocate, you have a renter, is able to continue paying your monthly mortgage payment, therefore you are requesting that the occupancy requirement be modified to make this a non-owner occupied property. This is all that you would want to modify. They might attempt to change your interest rate, this is not what you want, so make sure that all other parts of the contract remain unchanged.

    Number 1-3 would reflect a negative on your credit report for several years.

    I hope this has been of some benefit to you, good luck.

    ‘FIGHT ON”

  3. Reply
    E&L
    January 21, 2011 at 5:02 am

    Hate to say, to qualify for the loan you received on your condo in San Diego it clearly states that it must be owner occupied until it is sold. You may need to see about taking out a home equity loan on your current residence to put down money to refinance the house in San Diego.

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