Actual consequences of foreclosure
- Thread starter Atlanta Bo
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I would get advice from a good Florida foreclosure attorney. The peanut gallery may not be the best place to get advice from on such a serious issue. I have been told Lewis & Jurnovoy give good free advice. There number is 850-863-9110.
I thought this question was just thrown out there to stir up some conversation...if it was otherwise, BJ is right about getting some SERIOUS input from more knowledgeable folks. Seek out a professional who can look at one's ENTIRE portfolio and budget to advise where to do some NipTuck.
Lewis & Jurnovoy are Bankruptcy Lawyers--hopefully you won't find yourself that far down in the ditch (trying to keep your primary residence from going into foreclosure).
If you're trying to hang on to a second/vacation/investment home, it may be just a matter of selling off the Hummer and jetskis; cutting back on the number of next year's vacations from 4 to 3; skipping the Latte Grande every morning; and doing a refi from adjustable to a fix (with no money out).
If you're planning on unloading a dog, do a cashflow sheet to include what it will cost you to carry the property for another year or two (tax, insurance, maintenance, PM, utilities, interest, etc)--would subtracting the costs from the asking price bring the buyers running to snatch it off your hands tomorrow?
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Good advice Shelly. I believe those guys also do foreclosures? Anyway, I am pretty sure they will consult one time for free.
If anyone consults a foreclosure attorney, I'd love to hear what the official word is, just to add to my general knowledge. I don't really understand the whole process and from the projections, it will be a big issue in the coming months/years.
It was my understanding that if you foreclose on a property in Florida say for $500,000 and the bank sells it for $200,000 you are still responsible for the $300,000. I would think that this would wreck your credit for many many years........any comments.
That amount would presuppose a BK.
I think it all really depends on the deal with the bank.
I would recommend that someone who is not on the brink of bankruptcy (i.e., you've got an "investment" condo that you want to unload, but you've still got some assets the bank/developer can come after) consult a lawyer who specializes in Real Estate (vs. bankruptcy)--there are more and more of their ads popping up in newspapers as this RE frenzy continues to unwind.
Foreclosure will put a big black mark on your credit report which will not only make it a bit more difficult to get a loan (since the subprime industry is tanking), but also can affect job prospects, insurance rates, security clearances, etc.
Additionally, the difference in the amount of money you owe on the home and how much the bank can sell it for may be counted as taxable income and can also come back as "Zombie Debt" to haunt you further down the road if some debt buying agency like Asset Acceptance Capital scoops it up at pennies on the dollar and comes knocking for their money years down the line.
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