Legal Question in Real Estate Law in Massachusetts

Urgent question re: foreclosure

Hi. I own 2 condos in the same building. Stupidity and greed won over. I lived in 1 bdrm condo, then bought 2 bed room and was going to sell the one bedroom. It was in 2005, so it was highly priced. I thought I should wait and get more. So, now I am selling it lower then I purchased it for and no buyers. I want to foreclose the 1 bedroom apt, however my husband thinks it's a bad idea. How long does foreclosure stay on the record? If the apt is sold for less, will I have to pay the difference to the bank? The loan is only under my name (I was not married at the time of purchase), so will my husband's credit be affected?

I have a potential renter but I will still have to pay extra every month, it just seems money is going down the drain and perhaps it is better to foreclose now. Or can I negotiate payments with the bank somehow? PLEASE HELP!


Asked on 4/18/08, 9:27 am

1 Answer from Attorneys

Re: Urgent question re: foreclosure

Foreclosure will stay on your credit for up to seven years. you have an alternatve. Ask the lender if you can do a short sale or offer a deed in lieu of foreclosure without adverse credit report on you. The bank should prefer a deed in lieu of foreclosure as it reduces there costs and risks greatly.

You could also try to do a rent at a higher amount with credit toward purchase as a rent with an option to buy in 12 months.

Good Luck

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Answered on 4/18/08, 10:17 am


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