Question: My husband and I own a condo in Florida. We paid $163,000 and it is now worth $30,000. It costs us about $20,000 to keep up yearly. We are really struggling to make the payments and are thinking that we just can’t anymore. I am really worried. We own a house in New York and it has some equity (maybe $100,000). Can they come after my house in NY and put a lien or judgement on it if we foreclose? We didn’t use the house or anything from NY for the mortgage in Florida. Thanks. Also, our only income is from SS Disability and a pension.
Answer: – This is unfortunate. You like many others have had the same thing happen to them. It’s hard to suggest what to do in this case… all you can do is all you can do. If you can’t afford it, then you can’t afford it. Yes, the lender can a file deficiency judgment against you for the loss, but most homeowners will file bankruptcy which wipes out the judgment. In this case where you have equity in your personal residence, it would be in your best interest to work out something with the bank to avoid the judgment altogether. Make sure when you work out your agreement, you settle on a “satisfaction” of the loan, that way the worst they can do is 1099 you for the amount they lost.