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I owe 130K and my condo is worth 50K max. How do I get out

of t he mortgage with...
I owe 130K and my condo is worth 50K max. How do I get out of t he mortgage with no debt ASAP.??
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4/23/2015
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,473
Experience: Attorney and Real Estate broker -- Retired (mostly)
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Hello,
A Chapter 7 or 13 bankruptcy will absolutely terminate your liability to pay the mortgage. However, the bankruptcy will not terminate the creditor's ability to foreclose and take the property from you so as to recover whatever it can from the sale of the property.
Also, you cannot rid yourself of any unpaid homeowners association fees -- because such fees are not dischargeable in bankruptcy (Bankr. Code 523(a)(16)). So, if you are considering bankruptcy, you may want to continue paying the HOA fees, so that you don't dig yourself into a different, and unexpected debt.
I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.
Thanks again for using justanswer.com!
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Customer reply replied 2 years ago
In my email I asked for a Foreclosure attorney. I can't claim bankruptcy I have a little money. I am current and intend to stay current on my condo fees. My tenant has been sick and has no job and hasn't paid the rent in 5 months so now I must evict him and his family. I am $70k > $80k under water with the loan to value. I will never catch up. I just want out of this mortgage without the bank coming after me for the $80k difference. The bank may get $50K to $60K on a foreclosure sale. This is in Broward County Florida. I want out of this mortgage and property. I am to old and tired to deal with this.
Customer reply replied 2 years ago
In Florida the Association fees if not paid will come out of the proceeds of the foreclosure sale. We are a mortgage state and a judicial state when going into foreclosure. I am really going to hate evicting my Tenant but I should have already done it. I am to easy and lenient to be a landlord.
Hello again,
First, to clarify, your original question did not request a "foreclosure attorney." You may believe that you provided this request, however, the post does not display any such reference.
Second, I thank you for your info on Florid law, though I am extremely familiar with the law of Florida.
Third, the question was posted in the Bankruptcy Law category, which is why I answered it as I did.
That said, avoiding liability for an underwater mortgage can only be accomplished by either: (1) getting permission from the lender to short sell the property, or to provide a deed in lieu of foreclosure, with an agreement to release you from liability for the deficiency balance; or filing for bankruptcy protection.
There are, of course, anecdotal stories and a few actual legal cases where borrowers have avoided foreclosure by showing that the lender has lost the original promissory note. Without the note, the lender has no standing to sue, which means that no foreclosure can be accomplished. Unfortunately, the mortgage remains in the county recorder's public record, so the owner/borrower, cannot sell the property unless the buyer is prepared to purchase subject to the lien. This can create a great deal of uncertainty for the buyer, who risks that the lender will "find" the original note, and then bring a foreclosure action under the original lien.
Consequently, this isn't a great overall plan, and further, it renders most of the anecdotes about mortgage "escapes" as mostly "smoke and mirrors," presented by lawyers who are looking to make a little dough by offering borrowers the promise of avoiding foreclosure.
Reality is that bankruptcy or negotiation with the lender to sell or provide a deed in lieu are the only two practical options. And, frankly, most people who think that they are not a candidate for bankruptcy, discover that once they present all of their financial circumstances to a competent bankruptcy attorney, that bankruptcy suddenly becomes a viable option, and the borrower can usually keep most if not all of their money.
Conssequently, I strongly suggest that you contact a local consumer bankrutpcy lawyer and "lay your cards on the table" to see what you can accomplish.
Also, if the lender believes you are going to file for bankruptcy unless you can get a negotiated settlement on the debt, then the lender may just decide that it's easier to let you off the hook, than to fight about the issue in bankruptcy court.
All of which argues that you consult a bankrutpcy lawyer before you decide on any other option.
I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.
Thanks again for using justanswer.com!
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,473
Experience: Attorney and Real Estate broker -- Retired (mostly)
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Customer reply replied 2 years ago
Socrateaser, You were helpful and informative.
Why was my credit card hit twice for the same question? I will ask accounting to take one of the charges off.
I am going to give you a 5 star rating.
Ask socrateaser Your Own Question
socrateaser
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,473
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Experience: Attorney and Real Estate broker -- Retired (mostly)

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