What are the consequences of foreclosure in the state of Florida?
Question
Have you ever been in this type of situation? Has it/Did it ruin your life? Would you ever recommend this option as a last resort? Why or why not? Please elaborate as much as possible. Thank you.
Have you ever been in this type of situation? Has it/Did it ruin your life? Would you ever recommend this option as a last resort? Why or why not? Please elaborate as much as possible. Thank you.
Answer
The consequences of a foreclosure are pretty much the same, no matter where you live. Your credit score will take a very serious hit, you will lose the house, and you may be held liable financially for the deficiency amount of the mortgage. If you owe $300K and the property brings $225K at sale, you will probably be held liable for the $75K shortfall plus the lender expenses incurred in handling the foreclosure. Some lenders are agreeing to not pursue the deficiency in return for reporting the shortage amount to you at year's end on Form 1099, which will cause you to claim the shortfall as regular income on your tax return.
The consequences of a foreclosure are pretty much the same, no matter where you live. Your credit score will take a very serious hit, you will lose the house, and you may be held liable financially for the deficiency amount of the mortgage. If you owe $300K and the property brings $225K at sale, you will probably be held liable for the $75K shortfall plus the lender expenses incurred in handling the foreclosure. Some lenders are agreeing to not pursue the deficiency in return for reporting the shortage amount to you at year's end on Form 1099, which will cause you to claim the shortfall as regular income on your tax return.
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Source: answers.yahoo.com
