Just got discharged and closed on Wed., and I thought I was beginning my fresh start -- but I've been up the past two nights thinking about the decision to keep the condo I bought 5 years ago.
I filed the Statement of Intention to reaffirm it, but when I contacted Wells Fargo for the Agreement, they said under the advice of counsel they weren't doing reaffirms at this time. So I thought I would just be happy that I could do the ride-thru retain and pay thing.
But...what has had me losing sleep is that even without the credit card debt that was discharged, it's still a huge struggle to afford this place. If it were just the mortgage payment, that I can do -- I made sure of that before I decided to close on this place. It's the monthly condo assessment plus, since my condo isn't funding reserves to artificially keep the monthly assessment low ("low" being relative because in my mind $250/month is a lot), we are getting hit with special assessments constantly -- I just got one for $500 in yesterday's mail, due in 30 days. We also have 2 special assessments each year ($600 each) to cover the master insurance condo policy. My individual owner condo policy is $220 each quarter.
Anyway...I made the decision about 4 a.m. this morning that I'm going to have to just let this place go. It's emotional for me because I bought it when my husband and I separated 5 years ago. It's only a tiny 587 sq. ft. 1BR/1BA, but it was mine and I was OK with the size because it's a little villa on a golf course in a country club community, where I feel safe -- all my neighbors are retired and everyone watches every little movement haha.
After getting that assessment for $500 yesterday, with the ink on my discharge papers not even dry yet, something sort of just let go in me. If I'm going to really have a fresh start, I can't be holding on to this money pit where I can't even budget really because of the unknown surprise assessments cropping up constantly.
I know justbroke and several others said all along to definitely not reaffirm AND to consider not keeping it all, but until last night I really thought it was doable.
Acceptance is a good thing I guess because today I was looking at rental condos online (it's easier to find something reasonable here in SW FL during the spring/summer than it is during the winter season) just to get an idea of what rental rates were now since it's been so long, and lo and behold the 2 BR/2BA 1800 sq. ft. condo I rented back in 2004 right in a different condo complex but right around the corner is available...for $250 less than my current mortgage payment alone -- not to mention that as a tenant, I wouldn't have to pay for master insurance $, no assessments, and no repair responsibility.
I just called the property manager, and she said both she and the owner remembered me from 2004 and would love to have me lease the place again. She waived 1st and last, so it's only one month's rent for security deposit now and then 1st month's rent when I decide I want to move in. They've taken it off the rental market as of today, and she's sending the lease paperwork over by courier. I know I don't have to move this month, or probably even in the next few months because I'm not late on the mortgage, but again, with seasonal people coming down again when the weather cools, I'd rather lock in this place now than try to wait out the foreclosure.
Soooooooo, I'm going with July 1st for beginning the lease. My current quarterly condo assessment is due July 1st, and I guess my question is should I pay that to keep it current and then see what happens when the foreclosure process starts? I believe in FL that the mortgage company is responsible for 12 months, or 1% of the mortgage balance (thank you as always JB!), but what happens if I let the monthly condo dues slide and the condo association forecloses before the mortgage company? I'd almost rather just keep the condo assessment current throughout (or at least escrow the $$ for when the crap hits the fan). I'm just not clear with what happens if my assoc. decides to get trigger happy and come after me before Wells Fargo forecloses.
Anyone who has managed to read this far, big thanks for that!!
I filed the Statement of Intention to reaffirm it, but when I contacted Wells Fargo for the Agreement, they said under the advice of counsel they weren't doing reaffirms at this time. So I thought I would just be happy that I could do the ride-thru retain and pay thing.
But...what has had me losing sleep is that even without the credit card debt that was discharged, it's still a huge struggle to afford this place. If it were just the mortgage payment, that I can do -- I made sure of that before I decided to close on this place. It's the monthly condo assessment plus, since my condo isn't funding reserves to artificially keep the monthly assessment low ("low" being relative because in my mind $250/month is a lot), we are getting hit with special assessments constantly -- I just got one for $500 in yesterday's mail, due in 30 days. We also have 2 special assessments each year ($600 each) to cover the master insurance condo policy. My individual owner condo policy is $220 each quarter.
Anyway...I made the decision about 4 a.m. this morning that I'm going to have to just let this place go. It's emotional for me because I bought it when my husband and I separated 5 years ago. It's only a tiny 587 sq. ft. 1BR/1BA, but it was mine and I was OK with the size because it's a little villa on a golf course in a country club community, where I feel safe -- all my neighbors are retired and everyone watches every little movement haha.
After getting that assessment for $500 yesterday, with the ink on my discharge papers not even dry yet, something sort of just let go in me. If I'm going to really have a fresh start, I can't be holding on to this money pit where I can't even budget really because of the unknown surprise assessments cropping up constantly.
I know justbroke and several others said all along to definitely not reaffirm AND to consider not keeping it all, but until last night I really thought it was doable.
Acceptance is a good thing I guess because today I was looking at rental condos online (it's easier to find something reasonable here in SW FL during the spring/summer than it is during the winter season) just to get an idea of what rental rates were now since it's been so long, and lo and behold the 2 BR/2BA 1800 sq. ft. condo I rented back in 2004 right in a different condo complex but right around the corner is available...for $250 less than my current mortgage payment alone -- not to mention that as a tenant, I wouldn't have to pay for master insurance $, no assessments, and no repair responsibility.
I just called the property manager, and she said both she and the owner remembered me from 2004 and would love to have me lease the place again. She waived 1st and last, so it's only one month's rent for security deposit now and then 1st month's rent when I decide I want to move in. They've taken it off the rental market as of today, and she's sending the lease paperwork over by courier. I know I don't have to move this month, or probably even in the next few months because I'm not late on the mortgage, but again, with seasonal people coming down again when the weather cools, I'd rather lock in this place now than try to wait out the foreclosure.
Soooooooo, I'm going with July 1st for beginning the lease. My current quarterly condo assessment is due July 1st, and I guess my question is should I pay that to keep it current and then see what happens when the foreclosure process starts? I believe in FL that the mortgage company is responsible for 12 months, or 1% of the mortgage balance (thank you as always JB!), but what happens if I let the monthly condo dues slide and the condo association forecloses before the mortgage company? I'd almost rather just keep the condo assessment current throughout (or at least escrow the $$ for when the crap hits the fan). I'm just not clear with what happens if my assoc. decides to get trigger happy and come after me before Wells Fargo forecloses.
Anyone who has managed to read this far, big thanks for that!!
Bankruptcy Wizard
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