Real estate/investments/ShortSale/Forclosure question

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whitemiata
Posts: 538
Joined: Wed Apr 18, 2007 8:44 pm

Real estate/investments/ShortSale/Forclosure question

Post by whitemiata » Sun May 02, 2010 2:45 pm

I know I need to talk to a legal professional... not expecting an answer here but actually a pointer as to what kind of lawyer I should consult for this... real estate lawyer? Estate lawyer? Bankrupcy Lawyer? Some other kind?

Ok so here's the situation.

we own a (very small) home free an clear.
we also have an (even smaller) apartment in miami which we have a mortgage on and which we've tried (so far somewhat unsuccessfully) to short-sell (bank is being a baby).

The apartment was bought by my wife before we were married and we never put it in both of our names

I have significant taxable and roth and 457 investments in my name... never did put the taxable in my wife's name.

my wife has inconsequential taxable and relatively significant (we ain't millionnaires so $25k IS significant to us) roth ira money.

we want to buy a bigger home. We either want to sell our current one, or preferably rent it out.

We want to get rid of the condo in miami through either short sale or forclosure.

we do NOT know what the possible ramifications of forclosure could be... in terms of the bank being able to come after MY personal assets, or my wife's retirement assets.

I've been tossing around the idea of just putting everything I have in taxable into the house, so that they would in essence have nothing to go after, but I'd rather NOT if I don't have to. Plus that would leave the open question as to wether they can in some way go after the home we are currrently living in.

So... what kind of lawyer does it sound like we need to talk to?

FWIW the bank is being completely ridiculous in not accepting the short sale considering some short sales we KNOW they have accepted as we had sunk some SERIOUS dough into the place and the loss they're looking at is much smaller both in dollar amount and percentage than we know they are getting all over the place. We'e be essentially sharing the loss with them.

Anyway... any thoughts would be VERY appreciated :)

64415
Posts: 196
Joined: Wed Jul 01, 2009 8:32 pm

Post by 64415 » Sun May 02, 2010 6:48 pm

Hi

If the bank finds out you have enough assets to cover the shortfall they are going to expect to be made whole. Why not just ride it out? Does your rental income come close to covering your mortgage?

Regards, Sebastian

TRC
Posts: 1893
Joined: Sat Dec 20, 2008 5:38 pm

Re: Real estate/investments/ShortSale/Forclosure question

Post by TRC » Sun May 02, 2010 8:39 pm

whitemiata wrote:
FWIW the bank is being completely ridiculous in not accepting the short sale considering some short sales we KNOW they have accepted as we had sunk some SERIOUS dough into the place and the loss they're looking at is much smaller both in dollar amount and percentage than we know they are getting all over the place. We'e be essentially sharing the loss with them.
Are you behind / late on payments yet? If not, this might be one reason why they don't want to play ball. My buddy's in a similar situation and he's trying to make a short sale happen on a 2 family he wants to get rid of. He's purposely going to stop a few payments to see if this will get their attention and work with him on a short sale.

DaveS
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Joined: Fri Jun 15, 2007 9:42 am
Location: Reno, NV

Post by DaveS » Mon May 03, 2010 8:25 am

You want to talk with a consumer bankruptcy lawyer. Look in the yellow pages and see if you can find one in your neighborhood who gives free consultations. The reason why this is a bankruptcy issue is you have to measure what you could keep if you or yours filed a BK to get rid of the condo liability.

By coincidence I am a consumer bankruptcy lawyer. If you or yours gave the bank a financial showing you have significant assets, they are not going to agree that they will take the loss so you don't have to. After all we are talking about money. Alternatively, the bank may not be able to deal because the loan is secularized in such a way that it is impossible for the bank to compromise anything. For example, try calling 1000 stock holders to see if they agree with your proposal.

State laws differ regarding how marital property is dealt with in a BK, and what you can keep. So your not going to get much advice out of me. If you want to get a list of exempt property Google "(Your states) exemption law." Also if you live in a community property state your better off then if you live in a marital property state. Dave

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