HELP....Underwater and in foreclosure

[Corinne Faivre]

Here is the scenario. The condo has a first mortgage for 156k with BofA and a second for 29k with Green
Tree. The loans are baked by Freddie Mac. The condo is only worth 50k at best and is rented for $895. PITi is @ $1200 per month.The Hoa is $395.
it is seriously underwater and in foreclosure for 2 years already. The loan mod has been denied and BofA is giving the homeowner the run around.
The second mortgage and the HOA are threatening the home owner to sue for unpaid balances!
What to do???? Pay the 5k and bring the Hoa current, negotiate the second mortgage for a lesser payoff,
Keep pushing forward for a loan mod on the first mortgage????? Short sale? L/O options to someone with poor credit???? What are your recommendations to get out of this mess? Thank you for any suggestions

[Karen Margrave]

Corinne Faivre If it's only worth $50,000 it's a tough one. I'm not familiar with the laws in NY, so you need to find someone that is. Go see a real estate attorney. Some states allow deficiency judgments. As for the holder of the 2nd, their position allows them to bring the 1st current and take the property. However; since there's no equity there, why would they want it? They don't, and so they're trying to intimidate the property owner to pay them.

I don't know why the owner would want to get in deeper and throw good money after bad. TALK TO AN ATTORNEY!