Surrendering an investment property??

[snook]

I just found this forum and I was hoping to get some advice....

I bought an ivestment condo 2 years ago in FL, subprime loan etc...
I can no longer afford to make the payments. The property has lost 40% of its value....I was making the minimum payments but it was going upside down every month. I now owe the bank (countrywide) 138,00 on the first and 16,000 on the second....I stopped making payments as of march 2008. They told me they would accept a short sell of 80% of the value, so it is listed for that...there are other condos which are the same as mine listed for significantly less.....the bank also said after 60 days they would consider a Deed in Lieu.

The question I have is: My wife and I show good income, with inflation and the costs going up, I believe I can prove financial hardship... in my current situation we work to just pay the bills on our primary home and just eek by....this other mortgage payment would put us in the red...

I have some assets, but there tied up in IRA accounts, significant equity in my primary home....can the bank come after these assets??
I am willing to wreck my credit and repair it over time, my wife has good credit and we did not put her on the investment mortgage....
This property generates rent, but the rent only covers the minimum payment....I would still be going into negative ammoritization every month....
I just want to cut my loss and move on....any advice??
thanks

[HHM]

If they will really do a Deed in Lieu, take it and run.

[snook]

if they do not do the DIL, can they put a judgement on our primary home and or IRA's ??

[HHM]

If they get a deficiency balance and "actually" pursue it (most main line lenders do not pursue the deficiency), then yes, they could use the deficiency judgement to lien your primary residence. But, they could not touch your IRA's

[abe1001]

Find a good Real Estate Lawyer, pay him for an hour of his time and talk to him for 30 minutes, leave the rest for quick e-mails and phone calls.
I am in a similar situation in Florida, but with multiple properties. I haven't paid on one property in 12 months and the bank keeps on calling me to try and work something out. Other properties have been lost to the bank, and it is a bad mark on my credit. Four lawyers have told me that they have never seen a defieciency judgement persued. Once I stopped paying, the phone calls were relentless for a few months. There is a process of collections to negotioations to foreclosure. What it is exactly, I do not know. What I do know is that the banks are starting to make deals. I haven't seen it, but I have heard about principle amounts being reduced. I am trying to work that kind of deal right now, but everything has come to a halt waiting for congess to act. Personally, I am in terrible financial shape. But, the banks really don't want the property.
That is my story.

[rscahn]

Is the situation any different for a principal residence?

My SO has a house in Fl that is deep under water. The mortgage and HELOC are with Countrywide. Her money is running out but she's worried about having other assets seized if she stops paying. I've been scouring the local courthouse for deficiency judgements but they aren't computerized to the point that I can say that none have been filed recently. Has anyone in Fl found evidence of deficiency judgements down at a courthouse?

/Bob