Quick scenario is that we(husband and wife) initially purchased the property(no house, just land) on recommendation from a realtor friend in Santa Rosa Beach, FLA in hopes of flipping within 2 years. We paid $192,500 with $20,000 down and paid all closing out of pocket. We took a 2 year interest only with enough in savings to pay the note for that time, anticipating a sale. After Katrina and Dennis nothing was selling and the loan period was coming due. At that time we approached our loan officer at bank to explain the situation. He initially tried to get us another loan and it was denied (the property would not appraise and they sent us a letter denying the loan). When I told him that we would need to hand over the “deed in lieu of foreclosure” (that our savings that were paying the note were depleted) he miraculously go the loan to go through. My wife did take a job working 11pm-6am for 8 months to pay the note but could not keep it up with the 3 young kids. We tried to contact the realtor in hopes of the bank agreeing to a short sell but the values had gone down so drastically that it was no longer an option. The last tax appraisal that came in lists the property at $96,000 down from $183,000 the previous year. We just found out that the HOA also has a lien on the property from July 2008 in the amount of $1,735.00. The Fl. Property is in both our names and our house in Georgia is just in husbands name. The suit is for $177,138. Default started August 2007. Between down payment and payments, we are already out about $60,000.
Obviously, we’re trying to get out of this and minimize our loses. If the property goes to auction in a few weeks (as the attorneys state in their letter) we can’t imagine it would sell for very much, leaving us concerned with a large remainder due, which we have no way to satisfy. So now our fears are on our home in GA and my salary. We’re not sure what they can touch or have access to or if it will just come down to a judgment. We were hoping we were one of such a large number that foreclosures in the area that they would not pursue every defaulted loan in Florida but apparently that is not the route they are taking. We have sent letters to bank and attorney with no acknowledgement.

1. Can they do anything to the house we live in that is in Georgia(around 40K in equity based on current prices)
2. How much can they garnish my wages for?
3. Do they charge interest on judgements?

1. Can they do anything to the house we live in that is in Georgia(around 40K in equity based on current prices)
2. How much can they garnish my wages for?
3. Do they charge interest on judgements?



Yes, if they get a Judgment they can:

1. Lien against your house in Georgia.

2. Garnishment in Georgia is by Federal Law: "Pursuant to OCGA 18-4-20, the maximum part of the aggregate disposable earnings of an individual for any work week which is subject to garnishment may not exceed the lesser of twenty-five percent (25%) of his disposable earnings for that week, or the amount by which his disposable earnings for that week exceed thirty (30) times the federal minimum hourly wage. For earnings for a period other than a week, a multiple of the federal minimum hourly wage equivalent in effect shall be used. "

3. Yes, interest is calculated in Florida: "Interest Rate at which Judgments Accrue On December 1 of each year, the Comptroller of the Statutee of Florida shall set the rate of interest that shall be payable on judgments or decrees for the year beginning January 1 by averaging the discount rate of the Federal Reserve Bank of New York for the preceding year, then adding 500 basis points to the averaged federal discount rate. This process shall not affect a rate of interest established by written contract or obligation. Fla. Statute. Ann. _ 55.03. Applicable Forms Fla. R. Civil. P., Form 1.907. "

Can they force us to sell the house in Georgia? Or just put a lien on it?

Can they force us to sell the house in Georgia? Or just put a lien on it?



Just put a lien on it - they may decide to attempt to force a sale and then a lot depends on the math, how the figures play out, what makes sense.

They don't want to own your house and in this market forcing a sale makes little sense.

Of course, with a lien if and when you sell, their money (and interest) comes off the top.

What kind of attorney should I contact? And at this point could an attorney really help? Or just add cost to our problem? I don't think Chapter 7 or 13 is an option because we don't have any debt except our home in Georgia and the property in Florida that is being foreclosed.

If we quick claim our deed for the house to someone else before judgment, would they still be able to lien the house in Georgia?

If we quick claim our deed for the house to someone else before judgment, would they still be able to lien the house in Georgia?

Yes. This is known as hiding assets, and is generally against the law.