Transfer Homestead Away from Delinquent Condo to new Property purchase

[enriquetejeda]

Hello.

We are a couple who has questions about a homestead on a property that will be foreclosed upon.

We live in Las Vegas, Nevada.

We were married October 2003, purchased a condo property together April 2005, and divorced March 2009. We reconciled September 2009 and have been living together since, but have not re-married.

We stopped making mortgage payments to the condo the same month we divorced, March 2009. We are still living in the same condo. We do not wish to make payments because it makes no sense to do so: our 1st mortgage was for $153000, we took out a 2nd mortgage for $26000 when home prices were at their peak, and now type of condo in the same property complex (1br 1ba) is listed on zillow.com for just $40000. We are so far underwater that we do not want to pay until a) the bank reduces the principal or b) the bank forecloses.

Because we've stopped paying the mortgage, we've been able to save up some money and we'd like to use that as a down-payment on another property.

A homestead was filed during our marriage on the original 1st condo property. If we get the 2nd property and move into it, would we be able to cancel the homestead on the 1st and put it instead on the 2nd. Or should we wait until we loose the 1st before we buy the 2nd. I don't want to buy the 2nd, not be able to put a homestead on the 2nd, and then have creditors force a sale of the 2nd.

 

[Michael Wechsler]

This is perhaps one of the most infuriating posts I've ever read. It's a classic reason why so many hard working American taxpayers were the real victims of the real estate scandals and the bail out.

So you think that you should be able to just walk away from your debt obligation with the bank and start fresh? You took the risk. You purchased the property. Why should the bank take YOUR LOSS as their own?

Here's what you should do. Expect to have the bank eventually foreclose and charge the loss to you, including attorneys fees. They will obtain a judgment against you. And expect no bank to provide you with a mortgage on this new condo.

I don't want my taxes to be used to bailout people who just decided to walk away from their mortgage obligations and pretend as if it's "the bank's" problems. You should have whatever savings you've saved used to satisfy your debts. The only thing delinquent is your sense of right and wrong and your obligations to the bank. Don't expect sympathy here.