At the end of the real estate rush of '05 in August we impulsively bought a nicer home falsely assuming that selling the one we had would be no problem. A year and four months later, we have exhausted all of over 25,000$ in our life savings while paying two mortgages and trying to sell our first home without success. We are now in a lengthy process of waiting for approval of a Deed in lieu of Foreclosure but will resort to a regular foreclosure should our request be denied. The problem is that our first homeowner fees are due, we haven't the money to pay them and we stopped paying that mortgage several months ago. Another interesting facet to this is that other homeowners in our development have been allowed to lease or rent out their properties when our covenants state it can only be done in a state of financial emergency with the association's approval. All of OUR attempts at this process-phone calls, letters, and e-mails have gone ignored. What can we do about our impending fees without incurring more problems? Thank You

Hello virgn:

I'd rent the place and let the HOA tell you that you can't. In the meantime, you're getting income. By the way, if there are other tenants, the HOA can't tell you squat. Oh, they'll TRY of course, because they don't have anything else to do.

excon

Ditto EX - renting 6 or 8 months ago would have saved you BEAUCOUP bucks and saved your credit. Had your Realtor/listing agent been a true pro, he/she would have a relationship with a local property management company that would assist you during the next 18 to 24 months until the real estate market settles out... because of the slow down in real estate, many people are renting their homes rather than struggling to pay 2 mortgages, etc.

While waiting for deed in lieu, call some local professional property managers in the area and ask their opinion on prospects of renting it. Don't mention deed in lieu prospects.

If it is going into foreclosure, who cares about the homeowners fees, what is the worst they can do, put a lien on the property,?

And you do know after it forecloses, they can still come after you for the balance of the money that is not covered by the sale of the home.
So you are not near out of the woods on this yet.

You may need to consider a bankruptcy, where you re-affirm your main residence now and allow the other property to be included in the bankrutpcy.