Posted on: 26th Jun, 2011 12:22 pm
Hello,
We live in Orlando, Florida, I'm in my late 70’s and my husband is in his 80’s and was recently diagnosed with pancreatic cancer. We have no assets but our home and our Social Security. Our mortgage is with Sun Trust for $230,000 and our home is worth about $130,000. We’re moving out of state very soon and would like to strategic default on our loan, and we were hoping that Florida was a "non-recourse state", but I just found out that they are in face a "recourse state". If we walk away from our home, and since we have no assets, what can the bank do to us?
Thanks for your help.
We live in Orlando, Florida, I'm in my late 70’s and my husband is in his 80’s and was recently diagnosed with pancreatic cancer. We have no assets but our home and our Social Security. Our mortgage is with Sun Trust for $230,000 and our home is worth about $130,000. We’re moving out of state very soon and would like to strategic default on our loan, and we were hoping that Florida was a "non-recourse state", but I just found out that they are in face a "recourse state". If we walk away from our home, and since we have no assets, what can the bank do to us?
Thanks for your help.
Hi Geta!
Welcome to forums!
Deficiency judgments are allowed in the State of Florida. Thus, your lender will be able to come after you in order to recover the deficient balance resulting from the sale of the property after foreclosure. The bank can file a lawsuit against you and get a judgment and garnish your bank account.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Deficiency judgments are allowed in the State of Florida. Thus, your lender will be able to come after you in order to recover the deficient balance resulting from the sale of the property after foreclosure. The bank can file a lawsuit against you and get a judgment and garnish your bank account.
Feel free to ask if you've further queries.
Sussane
It seems that a garnishment that touches folk who have no assets would be a pretty meaningless instrument.
Geta, it would seem likely that you've got little to worry yourselves about here - if you don't have the funds in the your possession to begin with, this lender isn't about to try to take the proverbial blood from a stone.
Let them obtain a judgment...I don't see how they can enforce it unless you acquire some additional asset down the road.
Geta, it would seem likely that you've got little to worry yourselves about here - if you don't have the funds in the your possession to begin with, this lender isn't about to try to take the proverbial blood from a stone.
Let them obtain a judgment...I don't see how they can enforce it unless you acquire some additional asset down the road.
Geta, even if they get a judgement against you, if you live in the state of Florida, they can not garnish your social security or disability. A lawyer can send in a form that will make the judgement null and void. God bless