TRY..
I’m a mortgage consultant and may be able to help.
Are both spouses on the condo loan ?
It doesn’t sound like both of your incomes were needed to qualify and you should NOT have both been on that loan. Credit profiles of spouses are separate, unless you have joint debt.
Spouses can still be on title/deed to a property without being on the loan. This is routinely done for various reasons. Consult an attorney for legal advice.
A foreclosure could whack your credit scores 100 to 200 points, and disqualify you for financing regardless of down payment for a few years.
Your broker committed fraud and you were complicit in buying a rental property as a 2nd home.
You can get the same rate as an owner occupied home by paying a pricing hit, and then you’re not committing fraud. That’s 4.875% today.
MOST people get irresponsible mortgage advice from friends, neighbors and Realtor referrals and end up paying too much for the wrong loan, especially when it’s free.
You can DEFINITELY rebuild a credit score, however,you will probably never recover the money that you are losing monthly to “protect” your credit score.
Another option is to try and find a qualified buyer who cannot qualify for a new loan, and give them an option to buy the condo from you for $1000 a month payment or $800 or $900 or whatever you are willing to cover. Many ppl have plenty of income but cannot qualify by today’a guidelines.
A bit of risk, but could help your situation.
When people shop for a mortgage, they truly don’t understand what they are actually shopping for.
Feel free to contact me privately for honest advice.,,, HLS
PS: I hardly ever recommmend that anybody buy a condo for rental purposes anywhere, and per your #2, things ARE turning around. They have turned to the direction of reality and will continue for some time, esp in AZ. My guess is that condo will never be worth $140K in today’s dollars. (Inflated dollars, maybe) I laugh everytime the experts talk about things turning around… they don’t want to admit that the turn around has occured because they don’t like the direction it’s headed.
