Foreclosure in Orange City>Question Details

Mariann, Home Owner in Orange City, FL

I own a home in Florida and one in NY that I rent. If I do a short sale or in lieu of lien, can the bank touch the house in New York?

Asked by Mariann, Orange City, FL Fri Dec 31, 2010

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5
Mariann,

This is a valid concern for short sale process of a home. The first step is to always consult your attorney and let them know your current situation.

In Florida there are a few possible outcomes that can occur from a short sale, from being given a promissory note to pay the difference between your mortgage amount and sales price to being released and satisfied from your mortgage.

Keep in mind these are just a few possibilities, if you would like to have more questions answers please contact me. I can help you with this process!


Jeramie Vaine
jvaine1@gmail.com
978.870.9429
Web Reference: http://www.jeramievaine.com
0 votes Thank Flag Link Sat Jan 8, 2011
In order to best protect yourself and any other assets you may have, do consider consulting with an attorney who specializes in real estate--he/she can best advise as it relates to your specific situation.
0 votes Thank Flag Link Sat Jan 1, 2011
Hi Mariann,

You also have to be concerned about the tax liability if you do a short sale in Florida. The amount "forgiven" will be reported to the IRS and you will have to include as "ordinary" income. So let's say you are forgiven $100k, all of a sudden you could have a $25k tax liability!

As to your answer about being able to touch your New York house... I'm thinking they can definitely go after you and possibly even foreclose on that house. I'm not an attorney so it's crucial for you to get competent legal advice from both Florida and New York attorneys. Here's one asset protection attorney in Orange County that you may want to retain:

http://alperlaw.com/mortgage_fcdef.html

Hope this helps.

Alma
0 votes Thank Flag Link Sat Jan 1, 2011
Short Sale and Deed-in-lieu-of are a negotiation so you need to negotiate into the agreement that they will not go after you for the deficiency.
A lot of times if they want you to do something about the deficiency there will be a payment plan negotiated into the Shot Sale or Deed-in-lieu-of agreement.

Good Luck
Bob Patrick
Buy a home after foreclosure, short sale, deed-in-lieu-of or bankruptcy expert
Movin-On LLC
Helping families/people that have lost their home get back into a new one in as little as 6 months
0 votes Thank Flag Link Sat Jan 1, 2011
Mariann-
Great question- I do quite a bit of short sales and all I know from negotiating with the bank is that they want whatever you have as an asset- BUT I dont think they can "take away" your other primary residence but they very well put a lein against your property- I would ask them that question and get some answers- also find out if New York is a difficiency state? Here in MD we are which means the lender can come after the shortfall in a number of ways- 1099- personal loan repament for all or some of the loan- etc- hope this helps-
Web Reference: http://www.DarrenAhearn.com
0 votes Thank Flag Link Fri Dec 31, 2010
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