Legal Question in Real Estate Law in Florida

My father resides in Florida and owned a house free and clear. Wanting to get out of Florida, he took out a HELOC loan on the house from Bank of American and purchased a house in South Carolina. Since that time, his house in Florida went from $429000 down to $259000 over the last 4.5 years, and is still unsold. He has had the house in SC for sale also but that market is suffering also. The house that he really needs to sell first would be his FL home.He owes B of A approximately $230,000. Now his wife died and he is consumed with her medical bills as she only had a AARP supplemental policy which covered a bare minimum. He is far from loaded and is starting to suffer financially from maintaining 2 houses.
We desperately need to get him out of Florida and at this point are trying to get him to consider walking away from the house somehow, whether is be a deed in lieu, or, hopefully get an offer on a shortsell.
In short, he is concerned that either method will have the bank coming after his house in South Carolina.
What would be the best way to get him out of a house that he's been unable to sell in almost 5 years?

Asked on 2/12/10, 8:05 am

2 Answers from Attorneys

Matt E. Bales, Jr., Esq. Bales & Bales, P.A.

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Please note that walking away (which will likely result in foreclosure) as an exit strategy from a property should be used as a last resort as same has the most detremintal impact on the borrower's credit and the borrower does not have the opportunity to negotiate with the lender. It is therefore advisable to attempt either a short sale transaction with the lender's approval and/ or a deed in lieu of foreclosure transaction pursuant to which the borrower will have the opportunity to attempt to negotiate a complete release (without the lender having the right to pursue a deficiency judgment later). It is advisable to seek the advise of a licensed attorney to advise your father of his options and guide him through the process.

Answered on 2/17/10, 8:47 am

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