Home Buying in 33060>Question Details

08ram1500, Home Owner in 48066

what happens if I buy a new house and let current house go into foreclosure?

Asked by 08ram1500, 48066 Sat Jan 14, 2012

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You have no less than eight options. All of which must be presented to you by a real estate attorney, because each option has consequences. Some are little bites others can result in long lived nightmares.

A walk away can result in financial bondage for the next twenty years. That is not what I define as a walk away but a nightmare.

Being very serious, the option you choose and the sequence in which you execute them will determine the outcome. Don't play around, get an attorney. The outcome you have hinted at is doable, but not without risk. Call an attorney, and listen very carefully. Listen very critically. It is very possible the action you MUST take will not be written out, step by step for you.

You should also seek solutions through your real estate professional who has exceptional investor networks. There are solutions, but each persons situation is different therefore the best solution is found through agile and creative thinking.

I wish you the very best outcome.
Web Reference: http://www.MyDunedin.com
1 vote Thank Flag Link Sun Jan 15, 2012
Hi Ram,

In Florida if a seller gets foreclosed upon, the lender can get a judgement and go after you for 100% of their loss including attorney fees, court costs, etc. Judgements can stil for many, many years in Florida so you are much better off attempting a pre-foreclosure, short sale or Deed In Lieu of Foreclosure.

If you do not have a genuine hardship, you may be asked to sign a Promissory Note to repay part of the lenders loss and that may actually be your best bet.

Of course, consult with an attorney before you make any move.

Oh and if the home is part of an HOA, make sure to pay your fees because in Florida and HOA or Condo association can also foreclose and take ownership and that would make it more difficult to get a short sale or deed in lieu.

Hope this helps.

All the best,
Alma Kee
http://www.SoldOnTampa.com
0 votes Thank Flag Link Sun Jan 15, 2012
Definitely talk to a good foreclosure attorney. You could be very disappointed living in your new home and finding out that the original lender is pursuing you for a deficiency judgement that could substantially exceed what you currently owe. If you can qualify for the new loan while keeping the current home, keep the home and rent it. Talk to a lender first. They may be reluctant to loan on a new home while you are under water on the first home - they may suspect you are going to walk away from it.
Jim Price
Prudential Florida Realty
jimprice1@hotmail.com
0 votes Thank Flag Link Sat Jan 14, 2012
Before considering the foreclosure idea do protect yourself, and consult with an attorney who specializes in real estate, he/she can best advise as to your options.
0 votes Thank Flag Link Sat Jan 14, 2012
Your credit will be adversely effected. You would be better off to sell the current house before you buy a new one.

It takes such a long time to repair your credit that I would try to avoid allowing your home to go into foreclosure is you are able to do it.

Good luck,
Nicole Marks Mason, Realtor
http://www.buysellboca.com
Web Reference: http://www.BuySellBoca.com
0 votes Thank Flag Link Sat Jan 14, 2012
I'm not allowed to give you legal or financial advice, but as an experienced Realtor in South Broward, my first question is whether you can qualify for the new house without selling or letting the other house go? If so, then you should seriously consider a short sale, not foreclosure.

This will depend on many other factors - are you still paying your mortgage and condo/HOA fees? What does your credit currently look like (I have had clients with good credit that can absorb the hit from a short sale, and just move on). A short sale will involve time, patience and an experienced team on your side.

Laura, Gabriel and Matt are all correct in that the bank that foreclosed on you could place a lien on your new property. Foreclosure is not something to you want to do - it really will affect every aspect of your life and credit.

Timing and advice is of paramount importance in this. Consider the short sale rather than the foreclosure - it will be better in the long run and yes, speak to a good real estate attorney about your options. I have had a lot of situations where short sales have gone through successfully and lots of happy buyers and sellers! Mind you, you will need the patience of a saint when dealing with your lender. Do you have one or two mortgages on the property? One is always far preferable.

Good luck to you - there are options out there.

Angela
Villa G Realty, Inc.

Good luck!!
Web Reference: http://www.villagrealty.com
0 votes Thank Flag Link Sat Jan 14, 2012
If I understand your question and I think I do. You will attempt to walk away from your original home after you successfully closed on the new one
It sounds like an idea but a bad one. They can lean your new house come after to you legally and may even end up in jail for tax fraud. One way or another you will change address but you will be spending most of it in the big house.
0 votes Thank Flag Link Sat Jan 14, 2012
I'm with Laura on this one. Think about a short-sale, DIL and get advice from an attorney, cPa and real estate broker.
0 votes Thank Flag Link Sat Jan 14, 2012
Hello Home Owner,
Chances are that if you allow your current home to go into foreclosure then you will not qualify for a mortgage on the property that you would be purchasing. Even if you paid cash for it; the bank of your current home may place a lien on it.

I suggest that you speak with a real estate attorney to find out what your options are.

Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Sat Jan 14, 2012
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