Hello,
I own two condo's purchased at the height of the real estate boom. Each has a $75,000 mortgage. I tried to sell them initially without any luck, so I have been renting them for a while. I am up to date on my mortgage payments, but even with the rental income, I am losing almost $10,000 a year when I net out my expenses (Insurance, taxes, mortgage, maintenance) and rental income.
My dilemma is that I will be losing this $10,000 each year for the rest of my life because these units cannot be sold because the value of each unit is $20,000! This is due to all the foreclosures and short sales in that community. It doesn't make sense to lose this money every year.
I tried to modify my loan with Wells Fargo to make it more affordable and they denied me. So I'd like to get rid of these condo's so I can save that $10,000 a year.
My question is, what is the best way to get rid of the two condo's that would have the least impact on my credit and borrowing future? My credit is now 800 and I have no negative items on my file. I have a 20+ year good history of credit and I am up to date on the payments of these two mortgages.
Should I do a short sale, or foreclosure, or deed in lieu, or some other way? What is the credit impact on each?
Lastly, how long will these negative incidents be on my credit file and effect my credit score? Will this always effect me for the rest of my life?
Please help!!!
