Bad Investment-Will I Lose Everything?

[csd]

What is the name of your state? Florida

I took some bad real estate advice and bought a new construction home for a quick sale. Just about the time I signed the papers, the market came to a screeching halt here in Central Florida. I have about $280K into this house, the house appraised for $307K and the prices has been reduced since April from $350K to $299K. I have a realtor who I had trusted, but turned out not to have done much research into the market for me and he woudl take a 5-6% commission. I have done much research since then using tax records, listings and housing reports and see that nothing is really selling right now, regardless of pricing.
I have run ads myself to rent the place, in the paper, craigslist, miitary housing sites and my own sign, I have even sat in y own open house for my realto who does not believe in them..... nothing...a few inquiries from my marketing...but no results as of yet. I can't make the payments much longer. I own with my husband our primary residence, two vehicles-one owned outright, one leased, some artwork and any family anitques. My question is-
If we have to give the house back in foreclosure, can they take my possessions in this state? I have heard they cannot touch your primary residence and one car...the rest, I'm not sure....what are the chances in Florida of the bank filing a deficiency judgement?
Is bankruptcy a better option?
Please ehlp...I'm very frustrated and I totally regret this......
CSD

[seniorjudge]

Originally Posted by csd

What is the name of your state? Florida

I took some bad real estate advice and bought a new construction home for a quick sale. Just about the time I signed the papers, the market came to a screeching halt here in Central Florida. I have about $280K into this house, the house appraised for $307K and the prices has been reduced since April from $350K to $299K. I have a realtor who I had trusted, but turned out not to have done much research into the market for me and he woudl take a 5-6% commission. I have done much research since then using tax records, listings and housing reports and see that nothing is really selling right now, regardless of pricing.
I have run ads myself to rent the place, in the paper, craigslist, miitary housing sites and my own sign, I have even sat in y own open house for my realto who does not believe in them..... nothing...a few inquiries from my marketing...but no results as of yet. I can't make the payments much longer. I own with my husband our primary residence, two vehicles-one owned outright, one leased, some artwork and any family anitques. My question is-
If we have to give the house back in foreclosure, can they take my possessions in this state? I have heard they cannot touch your primary residence and one car...the rest, I'm not sure....what are the chances in Florida of the bank filing a deficiency judgement?
Is bankruptcy a better option?
Please ehlp...I'm very frustrated and I totally regret this......
CSD

Q: what are the chances in Florida of the bank filing a deficiency judgement?

A: 100% if the lender loses money.


BTW, open houses are a crappy idea.

[csd]

What can they take? My primary residence? My posessions? My vehicles?
What items are exempt?

[weenor]

Originally Posted by csd

What is the name of your state? Florida

I took some bad real estate advice and bought a new construction home for a quick sale. Just about the time I signed the papers, the market came to a screeching halt here in Central Florida. I have about $280K into this house, the house appraised for $307K and the prices has been reduced since April from $350K to $299K. I have a realtor who I had trusted, but turned out not to have done much research into the market for me and he woudl take a 5-6% commission. I have done much research since then using tax records, listings and housing reports and see that nothing is really selling right now, regardless of pricing.
I have run ads myself to rent the place, in the paper, craigslist, miitary housing sites and my own sign, I have even sat in y own open house for my realto who does not believe in them..... nothing...a few inquiries from my marketing...but no results as of yet. I can't make the payments much longer. I own with my husband our primary residence, two vehicles-one owned outright, one leased, some artwork and any family anitques. My question is-
If we have to give the house back in foreclosure, can they take my possessions in this state? I have heard they cannot touch your primary residence and one car...That is related to bankruptcy not necessarily debt collection. In most states there is an exemption amount if the property if your primary residence. However, just because they can't force the sale of your home doesn't mean that a judgment lien can be put on the house- to be paid out of the proceeds when you sell.

the rest, I'm not sure....what are the chances in Florida of the bank filing a deficiency judgement?
Is bankruptcy a better option?
Please ehlp...I'm very frustrated and I totally regret this......
CSD

Banks routinely file for deficiency judgments. And once they get the judgment they can garnish your wages and/or your bank accounts as well as get liens against valuable, non-necessity, personal property.

[csd]

An exemption amount on theprimary...is there a limit? What if my property is worth $500K and I owe $406K? Can they go through my house and take things? Can they take one of the vehicles even if we need them for work? I don't mean to be a pain, but I am so scared over this**************..I have 3 kids and we were doing quite well until this bad decision.....

[weenor]

What they can do is post judgment asset discovery and force you to disclose all of your assets and accounts. I do not know the exemption amounts for Florida. Sometimes lender's will agree to settlement post judgment for you to make payments. I really suggest that you consult a local lawyer specializing in credit and/or bankruptcy. Bankruptcy may be a possibility for you as well. I have posted this general information so that you will understand that the worst thing you can do is ignore the situation hoping it will go away. It won't.

[csd]

I appreciate your honest, non judgemental information**************..I am still crossing my fingers that I find either a buyer or renter inthe mext few weeks, it's been on the market for 80 days nw with some interst to rent, but almost no interest to buy.

[tranquility]

I don't know much about mortgages (And, certainly not in Florida.), but when doing taxes, one of the issues that arise is whether the loan is recourse or non-recourse. One of the differences is that a non-recourse loan is against the property and not the person. In other words, if a person with a non-recourse loan defaults--he loses the property. If a recourse, he loses the property and is issued a 1099 for the "income" from the difference of the amount realized at the foreclosure sale and the amount of the loan. (Or/and, is sued to recover the loss.)

Purchase loans tend to be recourse, although certain facts can change things.

Your credit would be ruined if you walk away from a loan. In addition, sometimes they take enough money to make up the difference (Recourse), sometimes they just grumble (non-recourse).

Am I misunderstanding something about Florida law?

[John Se]

the market will recover. but it takes staying power remember the 80's and the 90's and the S&L crash. Bad news but things came back.

I would rent it for a price which will get a warm paying body in there, If you havent been able to rent it then its because you have been asking too much. Cash talks!! of course this may not cover the PITI, then you will be in the position of kicking in the balance. Of course this will make the house a big loser on your taxes which will cut your tax liability. so at the end of the year it may not seem so bad. Do not walk away, bad idea it will haunt you for a very long time.

[pojo2]

Many folks do not have the financial resources to wait out the market and those folks are losing it all right now.

[ice5146]

People will always take vacations in Central FL. That won't stop no matter if the real estate market comes to a crashing halt. Contact a Property Management Co. They're a dime a dozen in that area. They'll fill the property with vacationers and take a cut of the rent and keep it rented almost all year around, depending on the exact area. You may find this option nets you a lot more money than a turn-key sale.