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Ask a real estate pro: The consequences of walking away from a mortgage – Sun Sentinel * coral springs real estate jennyforhome *

* coral springs real estate jennyforhome *

By Paul OwersJuly 27, 2012 07:00 AM

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Board-certified real estate attorney Gary M. Singer writes about the housing market in this space each Friday. To ask him a question about short sales, mortgages, refinancing, homeowner’s associations or any other residential real estate topic, click here.

Q: My mom lives in Florida and she is currently “underwater” on her mortgage. Due to other circumstances, the house is in poor condition. She is considering just letting the bank foreclose and walking away. Before she decides, though, what are the potential ramifications and legal fallout of her doing this? – Bill

A: The answer to this question depends on your mother’s financial circumstance. When you decide to walk away from a mortgaged home, you still actually own the home until the bank, or someone else, becomes the new owner. If you mother chooses to just up and leave the property, she would be legally and morally responsible for everything that happens there until there is a new owner. Any homeowner’s association dues and any mortgage deficiency after the foreclosure could be turned into judgments that could then be collected against any of her savings or other assets.

However, a lot of people do not have any savings or own anything else. These people are commonly referred to as “judgment proof” because they don’t have anything for the bank or association to take.

Some homeowners who walk away from an underwater mortgage don’t stop to consider how their move affects other people. The neighbors will have their home values reduced or association dues raised. Or teenagers could wander into the unattended property and get hurt. I strongly recommend that you pursue all available actions, such as a short sale or deed in lieu of foreclosure, instead of just walking away.

Q: I own a condo in Boca Raton and I want to apply for a reverse mortgage. I was told that the association needs to be approved by the federal government. How does that happen? – Barry

A: Condominium associations must meet certain guidelines in order to qualify for most government-insured (Federal Housing Administration) loans. In order to get your association approved for this sort of loan, you need to check to see if your condo meets the requirements. The Department of Housing and Urban Development, which oversees FHA, will look at certain factors to determine if it will allow FHA loans to be issued in your community. Those factors include: number of units and how current your neighbors are on their association dues. FHA will give only a certain amount of loans in one community, so if too many of your neighbors already have this type of loan, you will not get one. Applying to HUD for this approval is a fairly arduous process, but it can be done. You can get all the information about how to do this here.

The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed, nor should any such relationship be implied. Nothing on this blog is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

To follow Gary Singer on Twitter, click here.

* coral springs real estate jennyforhome *

About jennyformiamihome

성심껏 도와드리겠습니다. 연락주시면 바로 상세히 답변드립니다. Jenny Shin / 신정미 부동산 (Broker's Real Estate) 남부 플로리다 마이애미 지역 한인 부동산 주택매매 렌트 싱글하우스 타운하우스 콘도 브라워드 카운티 마이애미 데이드 카운티 포트로더데일 웨스턴 코랄스프링 도랄 Rent or Buy single house, town house and Condo Miami Dade County / Broward County, fort lauderdale, coral springs, copper city, weston, doral 1398 SW 160TH AVE. SUITE 105 Weston, FL. 33326 Direct : 954-551-0236 Office : 954-384-1616 Fax : 954-697-0447 E-mail : jenny_shin62@hotmail.com

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JENNY SHIN PROFILE


Jenny Shin / 신정미 부동산
(Broker's Real Estate)
1398 SW 160TH AVE. SUITE 105
Weston FL 33326
Direct : 954-551-0236
Office : 954-384-1616
Fax : 954-697-0447
E-mail : jenny_shin62@hotmail.com

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