People walk away from their previous home 5 yrs ago, Can they purchase a new home with cash now?

Asked by Lydia Ma, Lake Worth, FL Fri May 31, 2013

This is the case for my current clients. They walk away from their previous house due to unable to afford the mortgage payment in Arizona. They also lose their restaurant business and relocate to Florida 5 years ago. Now the couple are looking for a new home under 100k and they have CASH to pay for it (some are borrowed from their parents). They would like to know if the lender will come after them with a deficiency judgment after their new purchase?

The reason that they just walk away instead of short sale or foreclosure is that, they both do not speak English, they do not have money to hire anyone for any type of help at that time and they have to start a new job immediately in order to support their two children.

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marc jablon,…, Agent, Boca Raton, FL
Fri May 31, 2013
It is always a good idea to consult an attorney about possible outstanding judgments. However, if there is no deficiency judgment still outstanding, your customers can buy for cash without problem.

That's because a cash purchase requires no credit checks of any kind.

The only problem they may face is a distinct shortage of inventory available within that price range. If they are truly interested in purchasing a home in Boynton Beach, you should try to show them homes as quickly as possible before they disappear.

This is the price range where investors, also with cash, jump in rapidly and purchase anything that is available.

Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
0 votes
They even do not know if there are any lawsuit against them or not in AZ. If there is a final judgement, then they probably can not own anything in more than a decade. Not just the statute of limitations. Am I right?
Flag Fri May 31, 2013
Thanks Marc, They are currently live in Lee county and the property price are cheaper than Boynton Beach. They just try to save on their rent. Not very picky though.
Flag Fri May 31, 2013
Todd Kevitch, Agent, Boynton Beach, FL
Fri May 31, 2013
it would depend upon what the statute of limitations is for Arizona.

Todd Kevitch
BPO Realty LLC
0 votes
Teddy Jagess…, , Wellington, FL
Fri May 31, 2013
The dificiency Statute of limitaitons in Florida is 4 years for mortgage and 5 years for line of credit.. Since the property is in Arizona then Arizona law applies which is I believe 3 years in Arizona. Your customer should consult with a lawyer.
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