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Atlanta Bo

Beach Lover
Jul 12, 2005
64
0
What would be the actual long term consequences of letting a property go to foreclosure beyond the obvious of credit damage , loss of down payment and equity . Have fun Shelly .

JB
 

6thGen

Beach Fanatic
Aug 22, 2005
1,491
152
Other than what you mentioned, I'd add personal honor, duty, integrity, and whatever good name you had left.
 

Bob

SoWal Insider
Nov 16, 2004
10,364
1,391
O'Wal
Most foreclosures are not from a lack of honor, but a cash flow crisis precipitated by job loss, medical expense or divorce. You will be able to secure another mortgage with reasonable terms in a few years, provided you have a history of paying creditors going forward.
 

6thGen

Beach Fanatic
Aug 22, 2005
1,491
152
Most foreclosures are not from a lack of honor, but a cash flow crisis precipitated by job loss, medical expense or divorce. You will be able to secure another mortgage with reasonable terms in a few years, provided you have a history of paying creditors going forward.

Or from getting greedy and one getting in over one's head (not nec. the ATLBo). As for securing another mortgage, not if Congress has anything to do with it. That would be considered "sub-prime". I'll also add that if there is a deficiency after the property liquidation, lawyer fees, etcetera, you get sued.
 

Atlanta Bo

Beach Lover
Jul 12, 2005
64
0
Other than what you mentioned, I'd add personal honor, duty, integrity, and whatever good name you had left.

These are exactly the reasons why I have not done such a thing but based upon the current market and the length of this downturn ( with no relief in sight ) , it is only human to think about all options , no matter how extreme . How upside down does one get ? I have no intentions of foreclosure ( I would really take a bath ) but thought it would stir up some discussion or other possibilties or solutions in this market .

AB
 

Mango

SoWal Insider
Apr 7, 2006
9,709
1,360
New York/ Santa Rosa Beach
Foreclosures negatively affect entire communities as well. People would have been wise especially in condominiums and townhome developments to ask to see what the financial credentials were of some of these flippers during the frenzy before allowing them to buy in their developments.

In Florida, if the home is sold on the county steps as a foreclosure and the Bank purchases it, depending on the parcel type (condo or townhome) the Bank is limited in how much they have to pay in back assessments. In a townhome, they are not responsible for any delinquent common charges, hence the other "paying" owners have to cover the "delinquents" and foreclosed properties. I find this all ridiculous since the Banks were the ones who signed and sealed the mortgages being foreclosed in the first place.

I hope to see some legislation regarding foreclosure laws. The subprime market and interest only loans adjusting is going to affect everyone even who are timely with their mortgages. :blink:

In most of the Northeast States, common charges and taxes takes precedence over a mortgage, the way it should be. The Bank who made the loan gets whats left.
 

flyguy

Beach Lover
Apr 2, 2007
77
12
I was doing a little research on the tax assessor site today on one of the condo buildings I am tracking. There were two units sold in the spring of 2005 for 560,000 and 564,000.

The last sale was for 360,000 and that was 8 months ago.

I have to think there are folks up and down the coast who are not only upside down on their mortgage but also looking at continued negative cash flow. These folks may be looking for any way out they can find.

I bet alot of people are researching their options. I would imagine a bunch of folks would love to just walk away from their property if they could.

On a related note. Does anyone know how to find properties in Bay and Walton counties that are in foreclosure or preforclosure. I know you can buy a service but thought their might be a better way.

JMHO
Flyguy
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
On a related note. Does anyone know how to find properties in Bay and Walton counties that are in foreclosure or preforclosure. I know you can buy a service but thought their might be a better way.

I understand that, locally, Realtors will soon (within the next month or two) be able to search for properties which are marked as pre-foreclosures or short sales. You can contact a good Realtor and have her or him put you on their Prospects list and notify you when any new listing marked as pre-foreclosure or short sale come on the market.

You can also find foreclosures on the Clerk of Courts sites for Okaloosa and Walton County.
 
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SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
What would be the actual long term consequences of letting a property go to foreclosure beyond the obvious of credit damage , loss of down payment and equity . Have fun Shelly .

JB

Foreclosures? In Florida? In the North Florida? In South Walton & Destin?? How could that be possible?

There's no risk in owning real estate....if anything goes wrong one could just sell it or live in it....that's what I've been told.

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Bob

SoWal Insider
Nov 16, 2004
10,364
1,391
O'Wal
Foreclosures? In Florida? In the North Florida? In South Walton & Destin?? How could that be possible?

There's no risk in owning real estate....if anything goes wrong one could just sell it or live in it....or so I've been told.

.
And heat the home by burning Enron stock.
 
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