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Company Loan Type APR Est. Pmt.

Possible Foreclosure

Posted on: 01st Jan, 2007 01:17 pm
you've probably heard this one before. we purchased a condo in feb. 2006 and are now trying to sell it to cover the mortgage, pre-payment penalties and closing costs. if we cannot sell it to cover these costs, what options do we have? how will foreclosure affect us? will we be responsible for a deficiency judgment if it gets foreclosed upon and sells for less than our mortgage amount? our first mortgage is $320k and the second mortgage is $70k. we live in florida.
Posted on: 01st Jan, 2007 01:36 pm
I also agree with Biot, foreclosure should always be the last option to think about as it has negative impact on the credit profile of a person.

If the lender accepts a short sale instead of foreclosing the property then it will not be possible for him to get deficiency judgment.

As it can arise only after foreclosure take place and the foreclosure sale does not meet the complete dues of the mortgage.
Posted on: 01st Jan, 2007 03:42 pm
Hi Hanna,

Welcome to the forum.

Since you are thinking of selling the condo, I shall suggest that you take help from a real estate agent. He will be able to make the process easier for you.

I guess you are selling the property in order to avoid foreclosure. If that is so, then there are a number of alternatives such as forbearance, deed-in-lieu or a modification of your mortgage.

For the details on each of the alternative, you may go through our section on The ways by which one can avoid foreclosure

Hope you will get some help from the information given.

God bless you.

Samantha
Posted on: 01st Jan, 2007 08:50 pm
Hi Hanna,

In Florida there is a possibility that the lender can sue the borrower in order to recover the deficiency. The deficiency judgment is provided at the discretion of the court itself.

You may refer to Florida Statutes for further knowledge.

Thanks,

Caron.
Posted on: 02nd Jan, 2007 12:13 am
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