If I walk away from my condo, besides my credit report getting damage what else could happen?

Question

I'm thinking of walking away from my condo, because the bank will not help me lower my rate, they say I make too much money. I can't re-fi because the association has not been turned over to the owners (which is just me). I live in a 3 unit complex and the developer cut some corners and the outside and inside my unit are ruined with water, mildew, and maybe mold. We're suing the developer but he has not responded in 4 months. We've submitted a claim and it has been denied twice by the insurance company (still working with my lawyer to fight the insurance company), but it looks like I would have to come up with roughly 25-60K to fix the main and all the other problems from the developer. With the market as it is, almost impossible to sell until the unit can be fixed.

So I need to know what could happen to me if I walk away

Answer 1

The answer depends on your mortgage.  If it is the same loan that you got to purchase the condo, the bank can take the condo and ruin your credit.  That is all.

If you refinanced or got a 2nd mortgage, the bank can take the condo, ruin your credit, and then go after you for any money they lost in the resale of the property once they owned it. THey seldom go after people because it is expensive and they never get anything for their efforts.  But they can if they choose. /