63Taylor
Dec 10, 2009, 07:46 PM
Question about an underwater property in Florida. I have seen similar questions but they are few years old and was curious if the answers may have changed. Like many others here in Georgia I bought a lot in Florida that has lost considerable value. I had a 3 year interest only loan. It was obviously upside down so I got a 5 year extension. I have been paying the interest however I finally come to the realization that the value will not come back in 5 years and I will be getting forclosed on then. I bought the lot for 275k, borrowed 245k and it is probably worth roughly 50-60k hard to tell exactly nothing has sold. The neighborhood did get finished (amenitites, streets, etc) but it took much much longer than I was told because of a land dispute. By the time the neighborhood was finished there was the crash.
Looking to advice as to the best course of action. I have heard short sale but I think they can be hard to get and the tax implications would be huge I think. I have friends who have been forclosed on down there and they seem OK but I don't know about suits. I know Florida is a judgement state and I do have equity in my current home, so I don't want be sued for that. Curious as to what some have done. I see a lot of the properties in the development for sale as bank owned so others are in the predicament. Were all these people sued? How could I tell? If they short sold will they pay taxes, I thought there was a law signed about not being 1099'd for that, was it primary residence only. Would the bank allow me to trade the lot for a forclosed condo that I could at least rent and keep? Looking for ideas
Thanks
Looking to advice as to the best course of action. I have heard short sale but I think they can be hard to get and the tax implications would be huge I think. I have friends who have been forclosed on down there and they seem OK but I don't know about suits. I know Florida is a judgement state and I do have equity in my current home, so I don't want be sued for that. Curious as to what some have done. I see a lot of the properties in the development for sale as bank owned so others are in the predicament. Were all these people sued? How could I tell? If they short sold will they pay taxes, I thought there was a law signed about not being 1099'd for that, was it primary residence only. Would the bank allow me to trade the lot for a forclosed condo that I could at least rent and keep? Looking for ideas
Thanks