Have Legal Questions? Ask a Lawyer Now.
Hello and thank you for allowing me to address your legal question.
“Since I live in Washington but own property in Florida, does Fl law take precedence?” If you were to file for bankruptcy protection, you would do so in your home state. Therefore, you would file for bankruptcy in Washington state rather than Florida. With regard to the properties outside of bankruptcy, however, Florida law is applicable (for example, if you default on the mortgages, then the lender will foreclose according to Florida law).
“Is walking away from the properties an option” If you refuse to pay the mortgages, then the lender will foreclose on the properties and if your parents and the renters do not move out, they will all be evicted. As mentioned above, the foreclosures would be completed according to Florida law. Florida allows deficiency judgments, so you will probably be on the hook for the difference between what you owe on the mortgage, and what the properties sell for at auction. This is particularly true since you can still make the payments, but choose not to (i.e. there is a good chance the lender can recoup against you).
If the lender does obtain a judgment against you, it will need to file the judgment with the courts in Washington. The judgment will then be treated as though the lender won it in Washington rather than Florida. At that point, Washington law will be applicable with regard to how the lender can collect on its judgment. Washington law allows judgment creditors to garnish wages as well as place a lien on the judgment debtor’s real estate if there is more than $40,000 in equity in the property.
Have I answered your questions? If you need clarification, please ask.
If the information that I provided was helpful, please remember to ACCEPT my post as that is the only way I will receive credit and compensation for my answer. Thank you and good luck!
DISCLAIMER: Please understand that the complexities of most legal problems cannot be sufficiently addressed in this setting. Accordingly, my post is intended as general information only, and should neither be construed as specific legal advice, nor as an adequate substitute for the retention of legal counsel.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).