Legal Question in Bankruptcy in Arizona

foreclosure

My wife and I own two homes, One in Arizona that we do not live in and one in Florida where we live in. We are current on both of our mortages and have excellent credit rating. I am retired my wife is in education and is being laid off. Our home in Arizona has been on the market for two years, This home was built in 2006 and in excellent cindition. We have mortgage insurance on this home. The Interest Rate is 6.75 and I have been told that I can't refinance the home as long as I have it on the market We have lowered the price of the home 35% over #100,000 dollars and if we sell the house at the curent listed price We will have to come up with $50-60 thousand to pay off the difference between what we owe and what we sell it for. My question is when my wife is nonger working and we can' pay for both homes what happens if I just let the house in Arizona go into foreclosure or can I just stop paying. Wikk Country wide garnish my retirement and my social security, I don't have any other assets beside my home in Florida and I actually some what upside down in this one too the way houses have gone down in value.


Asked on 3/06/09, 12:58 pm

1 Answer from Attorneys
Raymond LaBella LaBella Law, P.L.

Re: foreclosure

Social Security income is not subject to garnishment under Florida exemption law (F.S. 222). If your retirement income comes from a qualifying retirement account (401k, pension, or IRA) then it would likewise be exempt.

For more information about exemptions, check out the Debtor's Rights section of our website at www.LaBellaLaw.com.

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Answered on 3/06/09, 2:08 pm


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