Palm Coast FL – The Stop Foreclosure Institute recently received a question from Phil. Here is Phil's Question.
"I am a California Resident but have 3 distressed Florida Properties pending foreclosure. Under Florida law a creditor cannot garnish wages. Will investor pursue deficiency? If yes, will they follow FL or CA law? Thanks, Phil.”
Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.
Here was our answer. That is a legal question. Since I am not a lawyer I cannot answer it.
I do know that you can usually short sale in Florida and get the lender to forgive you of the debt. However, there are other things you can do to avoid the deficiency problem.
First, work hard to convince your lender to waive the deficiency. Investment Property Short Sales are tougher because the lenders are more reluctant to waive the deficiency.
But, many lenders will waive it. Others will agree to waive it when you have presented financial statements that show you cannot afford the deficiency.
So I think that over half of the deficiencies will be waived by the lenders. Here is what you can do for the remaining ones. First, depend on incompetence on the lender’s part.
Most lenders don’t have enough staff to handle their delinquent debt. Even if they do have the right to a deficiency in most cases the only thing they will do is call you.
When they call, you simply tell them that you don’t have the money in your budget that month to pay them anything. Don’t say anything more than that and don’t lie to them.
(A lie can get you in legal trouble later on. You are better saying very little and hanging up the phone than lying.)
Most lenders won’t do anymore than “sic” the debt collectors on you. They hardly ever go to court or attempt to garnish your wages. E-mail me for a simple letter that will legally stop the harassing phone calls.
In my opinion, this will enable you to short sale 90% to 95% of all investment properties and avoid paying a deficiency. Here is what you should do if you fall into the unlucky 5-10%.
Hire a good lawyer. They can usually find a hole in their court case and get you out of paying the debt. These lenders are so disorganized that the often do not have all their paperwork in order.
Or, they can find a situation where the lender broke Collection Law. In that case, the lender is usually more than happy to settle with you versus facing a lawsuit.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at Eddie@real386.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 386-931-9127
Thinking about a Palm Coast loan modification? Our Palm Coast loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy. Thanks for reading this, Eddie Marcal.
Eddie is a Real Estate Agent at Watson Realty Corp. Palm Coast Short Sales Realtor: Phone: 386-931-9127. Eddie@real386.com.
View My homes for sale at www.real386.com.
Eddie Marcal specializes in loan modification assistance and short sales in Palm Coast Florida. Palm Coast Loan Modification Help, Palm Coast Short Sales. Palm Coast Short Sale Realtor. Flagler Beach Florida Loan Modification Help, Flagler Beach Florida Short Sales. Flagler Beach Florida Short Sale Realtor. , Palm Coast Short Sale Realtor. Palm Coast FL Short Sales. Palm Coast Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Eddie Marcal's personal views and do not reflect the views of Watson Realty Corp.
This information on Palm Coast Short Sales: Can I Short Sale If I Don’t Have A Normal Hardship? is provided as a courtesy to our viewers to help them make informed decisions.
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