MY MOTHER OWNS A HOUSE IN PUERTO RICO AND SOME OTHER BUSINESS ASSETS. SHE BOUGHT AN APARTMENT IN MIAMI BEACH IN 2006 VALUED AT 275K. SHE OWS 247 AND SHE HAS PAID ONLY INTEREST PAYMENTS SINCE. THE VALUE OF THE PROPERTY IS AROUND 189K TODAY. SHE MIGHT SELL HER BUSINESS AND HER INCOME WILL NOT BE ENOUGH TO PAY HER INVESTMENT ONES SHE RETIRES. SHE IS AFFRAID THE BANK WILL WANT TO TAKE AWAY HER CURRENT ASSETS. WHAT ARE HER OPTIONS?? IS THERE ANYTHING SHE CAN DO? PLEASE HELP
In my opinion the best thing for her to do is to walk away. She can place it on the market and try for a short sale or after a couple of months of nonpayment the bank might agree to a deed in lieu of foreclosure. I understand that most banks in Florida are not pursuing a deficiency judgment. Ask the realtor what is happening to the other units in the immediate area. He or she would know what is happening and can give you and idea of what to expect. lwpat40243.0719320949
What exaclty is pursuing a deficiency judgment?
A bank can obtain a judgment for the difference between the amount owed. on the house and the amount they are able to resell it for. Then they can come after you for the difference.
This is what I understand.
If we place the condo in the market as a short sale. Then if the house is sold for 180 for instance and we owe 247 they can still go after the difference (67) correct...
What about her other assets? Will they attempt to reposes anything? Or if she does qualify for a short sale would they just do the judgment for the difference - if they do.
How bad affects the credit and for how long?
What you do in a short sale or deed in lieu of foreclosure is to try and get the bank to waive any deficiency. I cannot preduct what they might or might not do. A foreclosure stays on your credit report for seven years.
Final question, do you know how long a short sale stays on your credt for?
It may not show at all. That would be one of the negotiation items. Otherwise it will be on there for seven years.
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