What options do I have when I cannot make payments on condominium?
Full Question:
Answer:
The answer may depend on the type of financial obligation you are referring to when you say "payment on a condominium."
If you are referring to the mortgage loan received to purchase the condominium, you may be entering a default on the loan which most likely could trigger a foreclosure action by the lender who loaned the money for the purchase.
If you are referring to a recurring association fee paid to the condominium association, you could become in default of the obligations of that group. Most associations have regulations and rules laid out as part of the condominium declaration that give the association the authority to levy and collect assocation fees. When those fees or assessments are unpaid by a unit owner, it can lead to very substantial collection costs, for which the unit owner then becomes responsible, and can lead to foreclosure or default if not paid.
Of course, either of these scenarios could have a significant negative effect on your personal credit. Filing bankruptcy may enable you to discharge the debt but not any tax liability that may arise from a foreclosure sale of the property.
It would be recommended that you discuss your particular situation with a local attorney experienced in real estate and bankruptcy law.
