[ananda72]

Ok I read another Question and it was similar to what I want to know but a little different so here it goes...
I am not in foreclosure yet. I am intending to be. I bought my house for 214,000 owe 188,000 and was told by a realtor if listed today that it would start at 119,00 I have no equity in the home even though I put 20% down, I've owned the home for 3 years, I moved out a year ago to try to rent it out to help pay the mortgage.. ( I moved back in with my parents). My credit score is about 780 and I have about 3000 in credit card debt and 13,000 in student loans. Besides this I owe nothing and no one. I had to relocate in order to move in with my parents and did so only recently moving from one side of the Us to Florida. Leaving my $18 hour job behind. I'm not worried about getting a job I have a AA and a BA with 6 years of upper mngmt exp. However. I feel at this point there is no real reason for me to continue to 'invest' money into a crater if you will... Only to save my credit? If I have a place to live and don't plan on purchasing anything in the next 3-5 years why should I try to prevent foreclosure? So here is the real?? Once I lose my house to foreclosure how do I go about finding out if the lender will sue me for the difference? I know that they won't be able to sell it for what I owe them because if that was the case I would have sold it and walked away. Do I have to contact an attorney or file for bankruptcy in order to not be held with the difference of what is owed after the bank sells it? Or since the feds just past that new law does that mean I will be forgiven? And if that is the case how does that affect me state, federal and lender wise. Aren't all three going to want a piece of me? This is the only part I can't get any info on... Anyone with any info please help... If I was in California I know that I would be able to just walk away and let the bank take back the house... Does that apply in Florida as well?
HElp!

[George_1950]

ananda72 asks: "So here is the real ????? Once I lose my house to foreclosure how do I go about finding out if the lender will sue me for the difference?" In what state is the home?

[ananda72]

My home is in Southern Florida, Port Charlotte County.

[George_1950]

Take a look at this: "More than half of my bankruptcy calls are from people facing foreclosure on their investment property and who fear a deficiency judgment. One person asked me today if it makes a difference whether a bank sues for foreclosure or whether the bank sues on the promissory note underlying the mortgage security. For general information, most lenders sue to foreclose mortgages in default because foreclosure gets the lender the title to the property. After recovering the property, the lender may choose to pursue a judgment for the deficiency between the amount owed and the property value. To get a deficiency judgment the lender has to prove that the property value on sale date was less than the mortgage debt balance.

"A lender can also sue the borrower for a default under the promissory note without pursuing a foreclosure and recovery of the property. If payments are past-due most promissory mortgage notes allow the lender to accelerate the note and demand full payment of the note. If the borrower does not pay off the note immediately the lender can proceed for to get a judgment against the borrower for the full amount of the note plus interest and usually attorneys fees. In a declining real estate market some lender may elect not to take back the real estate and sue directly for a judgment against the borrower individually, especially if the lender believes the individual debtor is vulnerable to collection. By suing on the note the lender does not have to prove the value of the property in order to get a judgment against the borrower.

"Bankruptcy can discharge individual liability to the lender regardless of whether the lender sues for a deficiency judgment or sues directly for default of the promissory note."

posted by Jonathan Alper, bankruptcy and asset protection attorney, Orlando, Florida

Florida Bankruptcy Law: Dealing With Creditors

[ScottGem]

See if you can do a short sale.

[keithbowers]

Good answer... just what I was looking for!