Legal Question in Real Estate Law in Florida

Re: Foreclosure advice

Probably a Florida attorney however what they can do witha deficiency judgment depends on the law of the State in which you resdie.

Re: Foreclosure advice

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

If you stop paying, the lender can sue you for foreclosure and then the property will be sold at a public sale. You will be responsible for any deficiency between the sales price and the judgment amount which will include the principal amount owed, accrued interest (at the default rate), attorney's fees, and court costs including the costs of the sale. The lender can garnish or levy any assets you have including bank accounts except those which may be protected such as your homestead. Since you do not seem to be living here, I presume none of the houses are your homestead and will thus be subject to attachment by the creditor. Further, your credit score will be seriously damaged as a result of your delinquency and the foreclosure action. You should consult a Florida real estate attorney to discuss all of your possible options which might include selling the property for a loss in order to minimize your potential exposure.

Scott R. Jay, Esq.

Re: Foreclosure advice

NOTICE: The information provided in this response is not, nor is it intended to be, legal advice. Many factors contribute to providing legal advice, including the specific facts of a situation. You should consult a competent attorney in your jurisdiction for advice regarding your individual situation. By reading the "Response" to your question or comment, you acknowledge that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then do not read any further.

I am assuming that you have personally signed the note and mortgage. If you cannot make the payments due under the mortgage, the bank will ultimately file foreclosure proceedings against you. If the foreclosure action is completed, your house will be sold at Sheriff�s Sale and you will lose the property. If the value of the property on the date of the Sheriff�s Sale was less than the mortgage balance, the bank will have the option to file a motion for a deficiency judgment after the foreclosure sale. This is an additional court proceeding that could result in a personal judgment against you for the deficiency. The bank could take steps to enforce this judgment against other assets that you own, including the other properties. In addition, there may be federal income tax consequences in connection with a foreclosure proceeding and subsequent deficiency judgment, a short sale, or a deed in lieu of foreclosure. Depending on the facts and circumstances, you could receive a 1099 reporting income for the forgiveness of the mortgage debt. A deficiency judgment and/or 1099 income are possibilities.

Your realtor is giving you a very realistic assessment of the market. If you could sell the property for a loss, even if you had to bring money to the closing table, it might be your best option to extricate yourself from the situation and preseve your good credit.

I urge you to consult with a real estate attorney as soon as possible to evaluate the facts of your situation and explore the possible strategies and consequences.