Legal Question in Real Estate Law in Florida

My situation is similar to others we are upside down on our mortgage. My Husband and I owe 127,000 on our condo but currently the condo's are selling for much less as they are everywhere in the United States. The last condo that sold in our complex was back in March of 2010 for 90,000. We are trying to decide if we should a) try to sell our place and pay out the difference. b) Try to rent out our place and still pay out of our pockets each month because our mortgage is more than what the current demand for rent is for our neighborhood. Or C) Attempt to short sale. We are eager to buy a home in the near future and are afraid if we short sale we won�t be able to get approved for another mortgage because of the short sale. The mortgage is only in my husband's name so at least we have my credit to get another loan but I�m afraid the loan amount I get approved for will be very low due to my income. We have been in the process of trying to obtain a modification through our mortgage company for the last 5 months and are current on all of our payments. It seems as if that is a stand still process and we aren�t optimistic that they will approve us. What would be the best possible action for us to take on our situation.


Asked on 1/12/11, 12:24 pm

1 Answer from Attorneys
William Gwaltney William W. Gwaltney, Attorneys at Law

Unfortunately, most lenders will not work with you on a modification of your mortgage while you are current with the payments. I know, this sounds crazy, but it is true. This doesn't mean that you are completely without options.

In order to completely advise you there is a lot more information that I should have, and it could ultimately come down to your personal preference on how you want to proceed. Providing you an easy off the cuff answer may not give you the answer you actually need.

I think you would find it very beneficial to schedule an appointment with an attorney who counsels people on how to avoid foreclosure and let them get all of the information needed before making a recommendation. Every situation is different, and some areas of the state even handle the process differently. It may cost you a little money in the form of a consultation fee, but you should come away with a lot of information on how to proceed.

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Answered on 1/19/11, 2:22 pm


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