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"Diane Oberman" <poncholuv@webtv.net> wrote in message
news:19830-44F4FE19-339@storefull-3234.bay.webtv.net...
>I bought the condo in Feb 2005. Loan was $138,500 with a three year arm
> of 3.75 till July of 2008. Have called and asked realtors and had a
> market analysis done. I owe more than it is worth. There is no equity in
> it. Appraised at around $110,000. I'm from Ca. Daugter talked me into
> buying. I'm on a fixed income and with a medical problem that I'd
> like to deal with back home. Never should have bought it. Here in Co
> they sell homes and condos for much more than they are worth. Hope this
> clarifies. I'm under the impression that that is why I pay PMI so if I
> default, FHA picks up the difference. My only concern is making sure
> that FHA pays the difference and they do not come after your and take
> your income.
>
Yes, the PMI insurance is to pay the shortfall, in your case it appears to
be about 29,000.
You are getting ready to make a seriously bad mark on your credit report
though. This mark will affect your ability to rent or buy another home for
several years. A foreclosure is much the same as a bankruptcy from the
perspective of a future landlord or lender. If you gotta do it, then do it
and just be aware of the consequence.
They do not sell anything anywhere for more than it is worth, that is the
first rule of economics.
If they can sell it for that, then it is worth that by definition. Now, if
it was once worth that but no longer is, then that is another matter. But,
when they sold it, that's what it was worth or they could not have sold it
at that price at that time.
Can you rent your unit for the mortgage payments? Then in a year, sell it to
the renter or put it on the market or rent it another year. The rental
income has to cover the payments due plus the management fees that a local
real estate office will want to collect for handling your affairs while you
are away.
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Re: Foreclosue
