I have a first mortgage (about $210-220K) with PNC Mortgage and a second/line of credit with PNC Bank ($65K) on my apartment in Washington, DC.
I lost my job in 2010 and moved to Illinois to help care for my elderly parents (I’m in my mid 50’s), I am behind on both payments now 7 months. Foreclosure is looming, and PNC Bank is beginning process for a charge off.
I have no income nor prospects for work, I do not live in the apartment (it’s vacant), it’s been on the market since March 2012 with a couple of low ball offers.
I attempted different programs but because of being unemployed and not living in the unit, I qualify for none of them.
What are my options? I have been advised to walk away and face the fact that my credit will be in ruins. What legal course might they take? Please advise, and thank you for your time and expertise.
The key item you mentioned is there is no current expectation you will be able to afford any payments.
Your options seem to be either to get their permission to do a short sale on the property and eliminate your potential lingering liability or allow them to take the property back and then file a chapter 7 bankruptcy to completely discharge any liability you might have on the apartment.
In a short sale situation it would require you getting their permission to do that, find a real estate agent experienced in such sales, find a potential buyer, present an offer to the bank and get them to agree. Getting them to make a decision can take months. All while you hope the buyer doesn’t go elsewhere.
If you filed a chapter 7 bankruptcy your liability for the loans would be eliminated in about 90 days and you could immediately begin to rebuild your credit using the link in the resource section below.
You can click here to find a local bankruptcy attorney and talk to them for free about your specific situation. Get the facts and then you can make an informed and educated decision if bankruptcy is right for you.
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