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Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 39460
Experience:  Texas Attorney for 30 years dealing in real estate
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Good morning: I am a Georgia resident requesting an answer

Customer Question

Good morning: I am a Georgia resident requesting an answer regarding a property in Florida. I am only interested in communicating with a Real Estate Lawyer, licensed in Florida or in Florida and Georgia, who also has landlord experience. I own a rental
property for which I can no longer afford the mortgage payments. Current renters are on a month to month schedule. More than a year ago the renter requested a one third rent rate reduction for a period of one year so that they could start a business, after
which they agreed they would once again pay the original rental charge. I agreed to their request. Prior to, during and since that time the rent has, except for one instance, been late and the renter has never once paid a late fee (as per the rental agreement).
I have continued to pay the mortgage on the property without once failing to make the mortgage payment in full and on time. Property taxes are also current and have never been in arrears. The current taxable value is 47,000. The mortgage responsibility is
53,000. In the current economy, I can no longer afford to pay both my primary residence mortgage and that of the rental property. I am considering surrendering the deed in lieu of foreclosure. My question is; What are (or might be) my financial and legal obligations
to the lending institution and what is my responsibility regarding notice to the renter?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ray replied 1 year ago.
Hi and welcome to JA. Ray here to help you.I am not a Florida lawyer but certainly am familiar with Florida law.I see your question has been here a bit can I respond to you and answer your questions, thanks.
Expert:  Ray replied 1 year ago.
Tam let me go on and answer your question here.

A deed in lieu here in Florida is your best option.If they accept it it should release you from further liability, no deficiency judgment against you.

Here you would need to contact lender, usually there is application procees much like an application for a loan.Here they are going to look for financial distress.If they see that you are underwater financially they are more inclined to accept that.

It is common in Florida for them to require a period of trying to shrt sale the proeprty with you being liable for the shortage or them agreeing to write off some of it.Again it depends on what the lender assesses your financial problems here.

Florida has judicial foreclosure.What this means is that there is awlays a law suit and the house is sold through the courts and there is always a deficiency if the house doesn't sale for what is owed.

I n this situation if you either deed it back or foreclosure occurs through the courts thelender has to deal with the renters.They would offer them cash for keys here, a little moving m,oney or they can just file for eviction.Here they are month to month likely the money offered would be low say a months rent or they may just evict them through the courts.None of this would be your problem once the proeprty is out of your name.

Please let meknow if you have more follow up here.I know this is probably a big worry for you here.Contacting the ledner here about options includng deed in lieu is your first step and it makes sense since it would get you off the hook for a deficiency judgment.

I appreciate the chance to help you today.

Reference to Florida judicial foreclosure.

http://www.nolo.com/legal-encyclopedia/new-florida-foreclosure-law.html

And a Florida judgment if the lender got one is enforceable in Georgia here.It is called a foreign judgment and there is a process for that.

http://law.justia.com/codes/georgia/2010/title-9/chapter-12/article-6

You want to try and avoid judgment if at all possible.