Legal Question in Real Estate Law in Georgia
upside down property -- seeking forclosure
I owe 237,000 for a property worth ~70,000. Balloon due in 2 months � looking at foreclosure.
Two of my �friends� approached me, and the three of us purchased a piece of property in the fort Walton Florida for 270,000 total & took out a 3-year balloon. I am current, but I know we can�t pay the balloon and am considering foreclosure � deed in lue of foreclosure, bankruptcy -- something.
I am the �owner� of the loan, although all three of us are mentioned in the papers as being on the �mortgage� � but the bank considers me the borrower. Properties in that community are not selling, and would likely bring 50,000-70,0000 if auctioned. The two partners can�t pay their 1/3 of the mortgage when it is due. (They are in financial trouble)
1. What are the changes of the bank actually seeking a deficiency judgment and winning? How long do they have to issue a deficiency judgment against me?
2. What is my personal liability? (garnish wages, 401K etc), liquidate my other bank accounts, put a lean on my house & seek the equity in my house if I have to foreclose?
3. I live in Ga., but the land is in Fl. I know state laws are different, should I try to do it in Ga. or Fl? Assuming I get a lawyer, should I get one in Florida or Ga.?
2 Answers from Attorneys
Re: upside down property -- seeking forclosure
Your post is far from clear. You need to read and understand your loan documents. Someone being "mentioned on the papers" is meaningless if you, or we, can't figure out what that means. The same goes for being "owner on the loan." All of this should be understood before anyone signs contracts. YOU should know your personal liabiliy -- you have the note. We do not. If you want responses about foreclosure and deficiency judgment, re-post in the appropriate state where the property is located, and provide specific information on who owns the property and who is liable on the note. If you have questions about Bankruptcy, re-post in that category.
Re: upside down property -- seeking forclosure
It is impossible to accurately assess your situation without reviewing all the documents. You should consult with a GA attorney who has affiliate attorneys in FL, to answer the FL law questions. I have such a network, if you would like to give me a call.
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