Legal Question in Real Estate Law in California
I am trying to figure out what I should do with this condo I have in Sacramento. We purchased it for 180,000, and now it is worth 40,000. I now live in Texas. It was rented for the past 5 years, and now it seems to be having difficulty being rented again (unless I put a lot of money into it) due to the huge amount of homes on the rental market. I want to know my options. Can I get a modification, short sell it, should I foreclose? Would a Lawyer be able to help me?
1 Answer from Attorneys
Only your lender can tell you if you can get a modification or short sale. There is no legal right to either one. With that big delta between price and value, I expect you are going to have to walk away from it. There is not much sense putting good money after bad trying to sell it in a short sale. It would probably be a good idea to have an attorney you can consult with to make sure you avoid being responsible for a deficiency, but the bottom line is it sounds like you are realistically looking at letting it be foreclosed on.