Posted on: 26th Sep, 2009 07:37 pm
Hello everyone. My parents purchased an investment property in Florida. Unfortunately, it was at the wrong time and are in the "underwater" boat. They are older and are not very worried about a foreclosure's effect on their credit or career.
They are worried about a deficiency judgment. The property is located in Florida. ALL of their assets are in NY. My question is, can a foreclosure in FL affect their assets in NY? Assets of vehicles, property and savings. They are holding the mortgage on a property that they sold a few years ago in NY. They are extremely worried about this. I've been scouring the internet for a few months looking for good information.
I'm hoping someone can shed a little light on this.
We have not ruled out a short sale, I just want to be aware of all the details before we get into this situation.
Thank you.
They are worried about a deficiency judgment. The property is located in Florida. ALL of their assets are in NY. My question is, can a foreclosure in FL affect their assets in NY? Assets of vehicles, property and savings. They are holding the mortgage on a property that they sold a few years ago in NY. They are extremely worried about this. I've been scouring the internet for a few months looking for good information.
I'm hoping someone can shed a little light on this.
We have not ruled out a short sale, I just want to be aware of all the details before we get into this situation.
Thank you.
florida is a state where lender can go after theborrower to collect the money after deficiency judgment
so your parents can look at the option of deed in lieu insted of foreclosure, that way the lender cannot come after thier assests or money
since it is a deficiency judgment state, it may be difficult to get the lender to doa deed in lieu, but it is worht a try
also in the eman time if your aprtnes can do quit claim deed and transfer all the assets to your name, may be that can protect them from the judgement
so your parents can look at the option of deed in lieu insted of foreclosure, that way the lender cannot come after thier assests or money
since it is a deficiency judgment state, it may be difficult to get the lender to doa deed in lieu, but it is worht a try
also in the eman time if your aprtnes can do quit claim deed and transfer all the assets to your name, may be that can protect them from the judgement
Hi lcdtech,
It's the lender's discretion whether or not he would go after your parent's properties in NY. I think sunny has given a good advice. Your parents can speak to the lender about a deed in lieu of foreclosure. If the lender accepts the deed in lieu option, then the deficient amount would be forgiven by him.
It's the lender's discretion whether or not he would go after your parent's properties in NY. I think sunny has given a good advice. Your parents can speak to the lender about a deed in lieu of foreclosure. If the lender accepts the deed in lieu option, then the deficient amount would be forgiven by him.