Legal Question in Real Estate Law in Florida

Re: Foreclosure

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You can try one of several different things. The first is to try and get a buyer for the property which sales price would cover the balance of the mortgage and get you out of the property cleanly. If that will not work, you can try to offer a deed in lieu of foreclosure to the lender although many are currently refusing to agree based on the downturn in the marketplace. Last, if the property does go through foreclosure, you will have the opportunity to defend or simply ignore it and allow a default judgment to be entered against you. If you defend, it will increase the judgment due to additional interest while the case progresses. The property will eventually be sold at a forced auction and the proceeds used to pay the lender. You may wish to go to the sale and see that the lender is forced to bid the full amount of the judgment in order to minimize any shortfall. Some banks will seek any losses from you or write it off as bad debt. Your credit will get negative information placed on it due to the foreclosure.

Scott R. Jay, Esq.