Hello,I own a condo that I am being threatened foreclosure on. The issue is that in 2011, it was found that the developer used Chinese drywall, which is both an issue for safety reasons as well as the property value plummeting. The developer had a class action suit against them, so we stayed in the property hoping that it would be redone. However, the developer went out of business and here I am. My question is this - the bank is refusing to allow a short sale at a reasonable price for having the drywall, so we have been unsucessful. They have been threatening foreclosure for the last 4 years but obviously don't want the property either, so no proceedings have started. If we were to abandon the property, is there anything else we can do besides wait for them to foreclose on us? Can we get in front of it and still somehow let the property go with the least pain to our pockets (besides the short sale, as the bank is just not having it).
What you really need to do is contact a good real estate attorney. Make sure the attorney specializes in real estate. I know some of the best in Wisconsin.
I am a licensed Real Estate Broker in Wisconsin and state law forbids us from giving any legal advise. There are lawyers here on this site. That may be a good place to begin. The important thing to do is get facts together and maybe a free consultation is all you'll need.
Of course you will not want to go through a foreclosure without an attorney. The bank has lawyers, so even the playing field.
As far as the drywall goes. There may be funds available. Search the internet. As always begin with sites ending with .GOV. The .gov shows it is a government site. See what you can find. I tried a search with, "chinese drywall settlement .gov" that came up with nothing. Be careful of scams. People will use any and every issue to make money the illegal way.
Talk to a local real estate agent and tell them your problem. Stay away from ads claiming to be short sale experts. Many of them have people sign a listing contract, take 1 picture, and throw in on the Internet. But there are a lot of great agents who know the systemS. Each bank is different.
A good real estate agent should be able to get you the info you need on the drywall. If not, most states have full time real estate lawyers they can contact for legal advice. A good agent will know about those benefits and has used them when problems and questions come up. Our job is to find answers. But we don't have that drywall issue here in Wisconsin.
The foreclosure situation is somewhat standard. Laws vary from state to state Usually in time frame. Here are a few sites:
If you have equity in the property, you may be able to sell and walk away with a little cash. Check on the local market, sales history in the condo complex, and compare that to what you owe on the house. A good real estate agent can sit down with a form and estimate a profit or loss from the sale of your condo. That is another sign to watch for.