Legal Question in Real Estate Law in Florida
Construction/Foreclosure
Currently left with 3/4 finished investment home. Builder gone/ unpaid subs with claim of liens that the builder took the draw for and did not pay. I can't make interest payments to the lender any more. If this goes to foreclosure...there is $202,000 currently drawn on project. The house is not worth what it was appraised for 2 years ago before building. There will probably be a deficiency judgment. My total loan was for $275,000. If the home has not been completed and only $202,000 has been drawn ... will that be the dollar amount used to determine what the deficiency is?
1 Answer from Attorneys
Re: Construction/Foreclosure
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It should be. I would speak with the lender and see if they can help you complete the home. Generally, a completed home is worth more than an unfinished one or one in the middle stages of major remodeling. The lender might be willing to loan a little more in order to limit their losses. I am currently working with a client in a similar situation and the lender has been very understanding ..... at least so far.
Scott R. Jay, Esq.