Foreclosure University

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I own a home in Florida. We owned the home outright and then got an equity line of credit.

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Question: I own a home in Florida. We owned the home outright and then got a home equity line of credit. We have not made a payment in 2 years!! I heard they can not evict. Is this true? I call and email them all the time and they never respond.

Answer: -You haven’t made a payment in two years and you own the home outright beside a small line of credit…You are crazy for not making that payment unless the home is not worth what you owe on the home equity line of credit. No they can’t evict you…yet! Once they foreclose on the property they can evict you. I would try to get something worked out quickly especially if you have a great deal of equity in your home.

I am selling a house with an “as is” clause that will be torn down.

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Question: I am selling a house with an “as is” clause that will be torn down, the town requires it, we also had a clause that there was no inventory. By this we meant that we could take out whatever we wanted before settlement. We also meant that we could also leave what we did not want. The buyer now wants us to empty the house, however we would like to leave the contents as it will be torn down anyhow.
What do you think ?

Answer: -Well, I’d probably just leave the stuff there too…As long as it didn’t jeopardize the deal going through

Purchased four homes. Two of the homes are in FL, and the other two are in SC. We may be forced to foreclose. How is a foreclosure going to affect our homes in SC?

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Question: My husband and I invested our life savings and purchased four homes. Two of the homes are in FL, and the other two are in SC. We live in one of the FL homes, and we may be forced to foreclose on the the second home in FL. How is a foreclosure going to affect our homes in SC? Is the bank going to put a lien on the home we live in or the other two in SC? Please I need help.

Answer: – More than likely nothing will happen to your homes in South Carolina if your home in Florida goes through foreclosure, unless you used your South Carolina homes as collateral to purchase your Florida home. Your biggest concern would be a deficiency judgment which would definitely affect you and possibly other real estate that you own. But again, more than likely they will 1099 you for the amount they lost and write it off. But there is always that chance, which is why it’s always better to try to do a short sale instead of just giving up and letting it go to foreclosure. At least with a short sale and a good agent or investor who knows what they are doing can help you avoid a possible deficiency judgment altogether.

My husband bought a condo a few years back. If we dont get a renter soon we will have to foreclose on the condo or short sale it.

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Question: My husband bought a condo (Interest only loan) a few years back before we got married. It is now worth less then half of its value, therefor we couldnt sell it, and was too small for us to live in it together. We ended up buying a second house together and was planning on renting out our condo. With our bad luck we have not been able to find a renter, so we have been paying on 2 mortgages. It is getting to the point where we can not afford both, and if we don’t get a renter soon we will have to foreclose on the condo or short sale it. My questions are as followed:
1. Will it affect my credit even though I didn’t purchase the condo or sign a contract. Only my husband did?
2. Can the bank go after us if we foreclose or short-sale? Can they take our current home?
3. Will we owe taxes on it and if so is there ways of reducing those or getting around them?
4. My parents co-signed on the new house, can this effect their credit, or can the bank go after them?
5. Lastly my husband has an HOA fee on the condo as well, can they come after us if we stop paying that? Can they garnish our wages.
Thank you for all of you help!!

Answer: –

1. It will only affect the credit of the person who’s name is on the loan, not the title. So in this case, your husband will be the only one who’s credit is affected if the property goes into foreclosure or short sale.

2. The bank can come after you (deficiency judgment) if you foreclosure or short sale…however they typically don’t. More than likely they will just 1099 you for the difference and count it as income. They can’t take your current home unless you pledged it as collateral in order to get the condo which you didn’t since you bought this home after the condo.

3. As for the taxes, yes you will most likely be given a 1099 for the loss which counts as income to you on your taxes. Depending on the situation, you may be able to use IRS form 982 which will counter act the 1099. You will need to discuss this with your accountant. As for property taxes, those will be taken care of either by the bank if they take back the home when it goes through foreclosure or even a short sale.

4. Because these are 2 separate transactions and homes, and was not used as collateral, they cannot do anything to your parents.

5. Yes, they could file a judgment against you as well…but more than likely they won’t.

My home is currently on (short) sale. I may be ultimately forced to file bankruptcy & foreclose on the house.

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Question: My home is currently on (short) sale since I can no longer afford it. I may be ultimately forced to file bankruptcy & foreclose on the house. My husband is not on the mortgage but he is on the deed. Will he become liable for paying the property taxes if I foreclose or file bankruptcy?

Answer: -If you go through foreclosure, and your lender ends up with the property, they will most likely pay the property taxes on the home if any are owed in order to try and sell it. If the short sale is approved, those taxes will be paid up as well because it will be part of the deal and the new owners will start paying the taxes from there.