Legal Question in Real Estate Law in Florida

I currently own a rental property in Windermere, Florida, but now reside in Pennsylvania. We moved to Pennsylvania for family reasons, and have been renting the property for the past 2 years. Unfortunately, as the real estate market in the Orlando/Windermere area has been hit extremely hard, we are now finding it difficult to maintain our property here in Pennsylvania, and also the property in Florida as what we are able to rent the property for is far less than what our mortgage payment is. So, carrying both mortgages has started to drain our savings, and put us in a financially difficult situation. In speaking with our lender, we do not qualify for any sort of loan modification, nor refinancing. They have suggested that our only other option, aside from keeping the property, is to short sale. We are wondering what are our rights, options, etc. are in regard to short selling the property, even though we are current on our payments? Is there anything we should be cognizant about in pursuing a short sale?


Asked on 8/12/10, 10:31 am

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

A reputable and knowlegeable Realtor can list either or both properties for sale. The banks will not be particularly sympathetic or willing to do a short sale until you have exhausted all of your assets. Banks have no incentive to do short sales where the state permits them to go after foreclosure deficiencies, and the owner has assets to cover the debt owed.

Get the properties listed and take your losses. Short sales are not for people who actually have money, and can still make the payments. Short sales are for people who will declare bankruptcy, and walk away from the foreclosure deficiency. Unless you fall into the "bankruptcy-on-the-verge-of-happening" category, a short sale is highly unlikely. If you don't qualify for a loan modification, you probably have enough money to pay the difference between the mortgage balance and the true cash value, and obviously, now the bank knows this.

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Answered on 8/17/10, 2:50 pm


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