Condo value: $250,000 (maybe)
1st mtg: $260,000 (payment $2600)
2nd mtg: $70,000 (payment $450)
Past Due HOA: $7,000
Escrow Shortage: $9,000
Obviously upside down with the bottom nowhere in sight.
I am on the first by myself, and it is current.
My mom co-borrowed on the second and it is one month past due.
Income has been reduced from $125,000 to $35,000 with no increases on the horizon. Have exhausted savings and all resources trying to keep up payments. Can no longer do it, and I want to surrender the condo.
I talked with my mom, and she understands that she will have to file as well.
She has no assets that aren't protected by exemptions, mine is a no asset case.
Am I correct in thinking that all debt will be discharged through the Chapter 7?
Will the second sue for deficiency since they won't get anything? I think Washington is a anti-deficiency state, BUT we got a stupid stated income loan that our loan officer told us was fine,to put whatever he said for income...I know now it was DUMB, but I am worried about (one of us or both of us being on the hook for the $70,000) after the discharge.
I never thought that I wouldn't get another job AND that the condo would depreciate $135,000 in three years....
Thank you for any advice.
1st mtg: $260,000 (payment $2600)
2nd mtg: $70,000 (payment $450)
Past Due HOA: $7,000
Escrow Shortage: $9,000
Obviously upside down with the bottom nowhere in sight.
I am on the first by myself, and it is current.
My mom co-borrowed on the second and it is one month past due.
Income has been reduced from $125,000 to $35,000 with no increases on the horizon. Have exhausted savings and all resources trying to keep up payments. Can no longer do it, and I want to surrender the condo.
I talked with my mom, and she understands that she will have to file as well.
She has no assets that aren't protected by exemptions, mine is a no asset case.
Am I correct in thinking that all debt will be discharged through the Chapter 7?
Will the second sue for deficiency since they won't get anything? I think Washington is a anti-deficiency state, BUT we got a stupid stated income loan that our loan officer told us was fine,to put whatever he said for income...I know now it was DUMB, but I am worried about (one of us or both of us being on the hook for the $70,000) after the discharge.
I never thought that I wouldn't get another job AND that the condo would depreciate $135,000 in three years....
Thank you for any advice.