Legal Question in Real Estate Law in Florida

We live in Florida and bought a house when the market was at its highest. Now after the market crash our home is worth less than half of what we bought it for. We are now working to get our principal reduced with the bank but if this doesn't happen we will have to walk away or do a short sale. At this time we don't have much money in the bank and we haven't accumulated much equity. My concern is my elderly parent (83 years old) who is frail. If she were to die before this gets resolved we (Me and my two children) would be inheriting an amount of money. It would not be enough to pay even a third of our mortgage but I am concerned that the bank will consider this money eventhough the loan is under my husbands name alone and he is not the one inheriting.


Asked on 1/02/11, 11:33 pm

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

While you have an interest in the home, if only your husband signed the mortgage, he is the one who is responsible for the loan. However, your lender will attempt to attach any assets it can. You need to see an estate planning attorney soon, to make a financial plan that makes sense under these circumstances. You also need to see an attorney about "walking away". This is not as easy as people think. Banks don't just let their borrowers "walk away". They are very aggressive in collecting the money, and his credit report affects yours.

Read more
Answered on 1/08/11, 5:00 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Florida