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Law Girl
Law Girl, Attorney
Category: Bankruptcy Law
Satisfied Customers: 4606
Experience:  I am an attorney.
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I am a resident of Georgia and have my primary residence ...

Customer Question

I am a resident of Georgia and have my primary residence here (obviously). I have investment property in Florida that is way under water.   If I were to stop paying the 1st mortgage, 2nd mortgage, HOA dues, taxes, etc. and went into foreclosure, how do the laws between the two states differ? What action will the bank take? Which of my other assets will be at risk in the case of losing the property to foreclosure? This is not really a bankruptcy question, but more of a real estate/creditor question.
Submitted: 9 years ago.
Category: Bankruptcy Law
Expert:  Law Girl replied 9 years ago.


Thank you for your question.

In the event that your Florida property is foreclosed upon, your lender may reserve the right to obtain a deficiency judgment against you for the difference between the amounts owed on the property and what you are able to sell it for. In the amount a deficiency judgment is obtained against you in Florida, it may be satisfied in Georgia.

The creditor may satisfy the judgment pursuant to OCGA 18-4-20, which allows the creditor to garnish you wages for the lesser of twenty-five percent (25%) of your disposable earnings for that week, or the amount by which your disposable earnings for that week exceed thirty (30) times the federal minimum hourly wage. For earnings for a period other than a week, a multiple of the federal minimum hourly wage equivalent in effect shall be used.

The creditor may also have the ability to attach the judgment to your assets like your bank account and/or your primary residence. Unfortunately the homestead exemption law in Georgia only protects up to $5,000 in value pursuant to the Code of Georgia, Annotated, § 44- 13-1 and 44- 13- 100.

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Good Luck!



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Customer: replied 9 years ago.
Reply to Law Girl's Post: What if my other real estate assets are also under water, I am self employed, and any other assets are either held by my wife or in LLCs?
Expert:  Law Girl replied 9 years ago.

Desperate creditors may try all sorts of tricks depending on how much money is owed. Depending on how your LLC's are set up, creditors may try to pierce the corporate veil and come after your personal assets. They may also try to prove that your wife's assets are held by your wife and yourself jointly, even if they only bear her name.