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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 53671
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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home sebastian, fl. have 1st and 2nd mortgage.

This answer was rated:

home XX, XX. have 1st and 2nd mortgage. probably owe more than it's worth. must move to assisted or independent living due to health problems....oxygen 24/7. Need help with selling or dumping the house. thank you. Caroline XXX-XXX-XXXX XXX, XXX.

Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. Are you looking on information regarding your alternatives or are you looking for someone to actually implement these alternatives? Thanks.
Customer: replied 3 years ago.

I want to walk away. What ever it takes.

Thanks so much for following up. Can you tell me your overall financial situation?
Customer: replied 3 years ago.

My monthly income is $2650. (ss, Florida state retirement, 401K- $800.) I am a veteran and the VA will assist with extended care. I have no paid off. very good credit rating. I just need out of here.

Thank you! You have several options and very little downside because your retirement account assets and retirement income are all exempt and untouchable. You have basically 3 options available to you when considering walking away from the property…foreclosure, deed in lieu of foreclosure or short sale. Florida, unfortunately, is a deficiency state...which means the lender can pursue the borrower for the deficiency...the amount owed over the amount of the foreclosure sale. But, because you have nothing but exempt assets which can't be touched. Whether or not they will depends upon their assessment of the collectibility of a deficiency judgment. So, if you can convince them there is nothing for them to get, and that if they were to pursue a judgment, you would simply file for bankruptcy protection and get the judgment discharged—and even if you have no intention of doing so, it is still good leverage with the bank because they do not know whether or not you would… then it is unlikely the lender will spend the time and money necessary to get a judgment they believe is uncollectible in the end. Short sales are dicey. It is generally preferable to do a deed in lieu of foreclosure with the bank (where the bank accepts a deed in exchange for releasing the borrower from the loan) or let the bank foreclose. A deed in lieu of foreclosure saves the bank the time and expense of foreclosure. A short sale only frustrates the buyer and costs the buyer more because the broker is paid a commission which results in less proceeds being available to the bank.....and if the bank is going to release the borrower from the deficiency, it would do so under a deed in lieu of foreclosure without the frustration to the buyer and the payment of the broker commission. If the bank won't do a deed in lieu, simply walk away.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!

Richard and 5 other Real Estate Law Specialists are ready to help you
Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help! For easy access, my bookmark is:
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