I have a condo that is now a second home. It was my primary residence for at least two years within the last five years. I moved out two years ago when I got married and bought my primary residence. I had a tenant to cover part of the mortgage. I have lost my tenant, cannot get a new one and lost my job. I can no longer pay the mortgage on this condo. I am trying to short sale property but have no buyers. I am going to try to negotiate a deed in lieu of foreclosure. Do I need to be current with payment on HOA or Property taxes to get either a short sale or deed in lieu of foreclosure? What if I can only pay one or the other? Which is more important? Here are my questions below:
#1 I lived there for more than two of last five years, would this still be considered primary residence for not having to pay tax consequences on short sale/foreclosure?
#2 Should I pay the HOA fees still while not paying mortgage? What is the benefit? Will they not accept a short sale or deed in lieu if I default on HOA fees?
#3 Should I pay property taxes? I can either pay HOA fees or property taxes? But not both. Which is more important to keep paying to get the short sale or deed in lei of foreclosure? Or does it not matter if I don't pay either?
#4 If they pursue a deficiency judgment and get it awarded, if I don't have any assets, how do I get out of paying it without filing bankruptcy? Or will they not award a deficiency judgment if I have no assets?
Thank you. I live in Massachusetts.