Walking away from high condo fees and payments on an upside-down mortgage can have serious consequences such as collection efforts from lenders and a lowering of your credit score. Nevertheless, increasing numbers of "upside down" homeowners who owe significantly more than their home is worth have been doing this during 2008-2009 to escape what seems to be an impossible financial situation.
Before taking such drastic action, we recommend that you speak to your condo association and mortgage lender about possible concessions or new housing programs that might lower your monthly payments. If all else fails and you still want to "walk away," get legal advice first from a lawyer in your area who practices real estate law. The lawyer can tell you all the pros and cons of walking away in your state of residence and help you to make an informed decision.
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