Foreclosure in Florida>Question Details

Gabriel Palo…, Real Estate Pro in Pompano Beach, FL

How can you win when you are loosing? Foreclosure could be the answer?

Asked by Gabriel Palotas, Pompano Beach, FL Tue Nov 2, 2010

With all the negative news give some encouragement to those that need it.

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Answers

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Florida is a recourse state. That means that the lender has 20 years to go after the deficiency. Consequently foreclosure is NOT a preferred option in Florida.

If a borrower has lots of other debt besides the underwater mortgage, bankruptcy may be the way to go. Otherwise a SHORT SALE is the solution. While neither remedy is pretty, a short sale is less damaging as the borrower can qualify for a new FHA loan in 2 years.
Having said that I always recommend that the borrower seek legal and tax counsel first and then decide on the course of action.

So to answer your question, how can you win when you are loosing? You can win by following the best solution under the circumstance and get on with life. Focus on the new start, learn from the experience and know that poverty in this country is not a career but a temporary state. Tomorrow is a new day!
1 vote Thank Flag Link Tue Nov 2, 2010
Watch out the banks are going to start foreclosing like gain busters now that the government imposed new regulations on them (we are seeing it already B of A is on a tear). My thoughts on the reasoning behind banks not caring is this; government backs them, they have insurance to cover their losses, and above all those who own the real estate have power over the underlings and with the new regulations limiting their ability to lend to financially incompetent people it limits their ability to take advantage of them. Their solution to that problem is as such; foreclose and take title to boot loads of real estate or offer deed-in-lieu-of-deed-for-lease allowing them to become slumlords keeping their control on 85% of the population.
Lending institutions do not make money on interest they make money on fees, they liked people that were in default until the market started to decline making loan values higher than market values, which in turn weekend the economy causing unemployment, more foreclousre, more declines and where does it stop?

Bob Patrick
Buy a home after foreclosure, short sale, deed-in-lieu-of or bankruptcy expert
0 votes Thank Flag Link Thu Nov 4, 2010
I have raised a question on Trulia. Name a positive reason for foreclosure as a choice? With the few angry answers I received,all come to the same conclusion. There is no sane reason to name one thing positive about foreclosure. How is it that the banks do not come to the same conclusion?
Tolerance is not a choice it should be mandated.. When a borrower lost their job the last thing they need is a notice of foreclosure.
A legislative emergency moratorium should be introduced with heavy penalties to institutions that push that critical envelope of foreclosure on the unemployed. When this government talks of compassion the irony is that they have exercised just that with a majority democratic support. The problem it was not in support of the little guy but saving the banks from bankruptcy.
Before I sound one sided . Please note that I abhor and object for forgiveness or the reduction of debt. That matter should not provide a free pass for anyone. It should be treated by the courts as a responsibility that the borrower should be held liable and their earnings to be garnished for as long as it takes to pay it back. I have provided a solution for that mater as well. I believe that under the circumstances a faire way to accomplish the need of the borrower and the institutions is by relieving the the borrower from paying interest on the debt for a agreed time. With no debt reduction the institutions come out smelling like a rose. With the saving of interest on the mortgage the borrower can rapidly pay down debt and save substantially and still maintain the property and their self esteem. Now that is not compassion but faire play.
0 votes Thank Flag Link Wed Nov 3, 2010
You call; the potential of being sued for a deficiency (walk away foreclosures open people up to liability even in non recourse states), major credit score hits, not being able to reenter the housing market for 7 years, insurance rate increases, credit card interest increases, job promotion, location or even loss issues, being treated as a second class citizen WINNING?

Bob Patrick
Buy a home after foreclousre expert
0 votes Thank Flag Link Tue Nov 2, 2010
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