Contact your servicer (the company you pay your mortgage to, they probably are not the actual investor/owner, by the way) and try to get your principal reduced. If you're one of the lucky few and the actual investor that owns your mortgage is Bank of America, you may be able to get up to $100k of the principal taken off of the amount you owe on your mortgage!
Also many lenders are offering a Deed for Lease. This would allow you to stay living in your home and you may be able to get below market rents.
You can also try a Deed In Lieu of foreclosure and some lenders are offering cash incentives.
Additionally a Pre-foreclosure, Short Sale may also give you a cash incentive. One of my tenants actually got $35k from Chase for closing on a Short Sale!
Most importantly if you DO NOTHING and they foreclose then YES you could end up with a judgement and have to repay 100% of the loss!
All the best,
First Congratulations on buying instead of renting. I would highly recommend that you contact a good Real Estate Attorney. Two reasons; it is a family member (which can be complicated) and the property is in a trust, more reason that you protect yourself.
The attorney will walk you through each step to protect you and prepare you to be a home buyer.
Sewalls Point is a great area to live in Martin County. You are close to beaches, boat ramps, shoping etc. It really doesn't take that long to get to I-95 from Sewall's Point. Maybe 15 minutes to 20 minutes.
Generally, traffic in Martin County is just not an issue. Schools are rated A+, As for flooding some areas of Sewall's Point are low, and some areas are quite high and not prone to flooding. When purchasing a home on Sewalls Point you want to take that into consideration.... more
So long as your Realtor gets the approval of the tenant, the Realtor can share the report with you. I suggest you mandate that the Realtor make sharing the report with you a necessity for approval by you of the tenant.... more