Atlantic City Condo Deed In Lieu with other partners not in mortgage (foreclosures)

[fling85]

Hi,

I own a condo in Atlantic City with my parnets but only my wife and my name are on the mortgage. Currently, the fair market value is still higher than the amount owed.

We have try to sell the condo for two years with no luck. We are thinking of returning the condo back to the bank as there are just no demand for a vacation home in south jersey and we just can't afford to pay the mortgage anymore.

If the bank wants to forclose this condo, they will have to deal with my parents' share of the condo. Is this correct?

Can I work out a good deal with the bank if my parents are willing to forfeit their share of the condo.

thanks

frank

[ocnjgirl]

Have you tried renting it? There are a lot of people who may not be able to afford to buy a vacation place, but you might be able to get enough from summer rental income to buy you some more time.

[MaverickDD]

Originally Posted by fling85

...Currently, the fair market value is still higher than the amount owed. We have try to sell the condo for two years with no luck...

First, be aware that you may be overestimating the value. If you haven't sold it in two years, you're probably asking more than current fair market value warrants. Try lowering your asking price to your mortgage balance.

Deed in lieu? If 1) your parents aren't on the mortgage, and 2) you really can't afford it, and 3) you don't mind your credit being temporarily ruined, you may be better off defaulting on the loan. However, the bank won't even consider taking a deed in lieu until the property has been competitively marketed for 3 months without a nibble. Presently, some banks will not take property back, period!

Speak with a competent attorney who is familiar with NJ foreclosures and "vacation property."