Neverending Florida story

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LoanSafe Member
Dec 4, 2013
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Hello everyone.
I have been reading posts on this site since 2011, so I thought I would finally tell my story. I realize I am mostly ranting at this point, but I know many people are dealing with similar situations.

I bought a townhouse in Florida in 2006 for 175K and I watched the value of it drop to approximately 55K. I moved out of the townhouse in 2008, and began renting it until 2011. Problems with the HOA started (failure to maintain exterior, water damage problems, etc.), and I decided to walk away. I initiated the short sale process, and although I received cash offers over the appraised value, I was turned down by the bank 9 times in 2012. The mysterious deed-in-lieu appeared to be a waste of time, so I did not pursue that route. I stopped paying the HOA fees, cut all utilities, and removed valuables once the short sale option was denied by the banks. The property had already been vandalized several times as my renters moved out due to the HOA negligence that I mentioned above.

BOA transferred me to SLS in 2012, and at this point SLS is transferring me to Nationstar. I have not received a Lis Pendens and I rarely receive communication from the banks/servicers. I had a second mortgage that was charged off last year, and I have been following Tom's advice and not responding to them (although I hear from them very rarely). The HOA has threatened to place a lien on the property, but they have taken no real action.

I am hopeful that House Bill 87 will help me by reducing the period of time in which the lender can seek deficiency to 1 year. I am also hopeful that the process will speed up or the HOA will initiate foreclosure. I do not want the property, I just want to cut my losses and have it out of my name.

Does anyone know if the new Florida law (House Bill 87) reduces the time to 1 year from the first missed payment or from the actual foreclosure date? Also, if anyone has any advice for me I am all ears. I'm sure I will just have to wait it out.

Thanks for all of the fantastic posts over the years!
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
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San Diego, California
www.LoanSafe.org
Welcome and thanks for joining the LoanSafe community.

As you know your situation is quite common in states such as Florida where the foreclosure process can take years to complete. We always recommend to continue paying the HOA dues if you're walking away as they will sometimes come after you personally, but in this case they'll likely take senior lien position and foreclose themselves.

Florida's House Bill 87 - the period of time in which the lender may seek a deficiency judgment is reduced from five years to one year for residential properties with no more than four dwelling units. The one year period begins after the official foreclosure date, not when you stop making payments.
 

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LoanSafe Member
Dec 4, 2013
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Thanks Evan. I finally received a LP from the bank so the foreclosure is finally proceeding. My credit dropped in 2011 after the initial default and has slowly started to recover. Do you know if the 7 years of credit recovery begins at the default, or should I expect another significant drop in my credit score after the foreclosure is finalized? There is so much time between default and final foreclosure, I have heard conflicting opinions. Thanks again!