Divorce and an underwater mobile home in Florida

rodder

LoanSafe Member
Mar 10, 2014
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Hello everybody,

This is my first post here, but, I've been reading for days and I think I'm more confused now than when I started.

In 2007, I purchased a mobile home and one acre of land in Florida. Both the land and home were financed under one loan and there is no HELOC or 2nd mortgage. Since I bought in 2007, it was pretty much right before the housing market collapsed. I still owe $132,000 on the mortgage. According to Zillow, the market value is around $82,000. However, since my wife and I decided to divorce, I moved out in June of last year (much longer story too it than that). According to my attorney, the wife's attorney has stated she doesn't want the house, and now, neither do I. The animals the wife allowed our daughter to bring into the house after we decided to divorce have destroyed the carpeting and damaged the sub-flooring. In every room - and that isn't going to help the market value any.

The house is in my name only - wife hadn't been employed in her job for two years so the mortgage company wouldn't consider her on the loan. So I'm basically looking at a mobile home that is at least $50,000 under water and am discussing with my attorney the best way to get out from under the debt - he's suggesting a short sale; I'm not convinced that's the best route.

I'm not worried about the impact to my credit at this point since it's simply a horrible business decision to continue paying a mortgage that will never appreciate, no matter what the housing market does - I can recover from that. There's no emotional attachment at all.

Any suggestions?


Thanks,

rodder
 

rodder

LoanSafe Member
Mar 10, 2014
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Thank you for the response, TomEason. I've been leaning towards the FC route. I'm not interested at all in the work required this house would require for a SS, not to mention turning over all of my financials.

Thanks again,

rodder
 

rodder

LoanSafe Member
Mar 10, 2014
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0
Thanks for the link, OverandDone. A lot of good info about the real/personal property issue.

Looking up the county property appraisers GIS info, my lot use is for a mobile home. I guess the question needing answered is if the court would consider the home as personal property rather than real property.


Another link on the page lead me to here: Florida Home Foreclosure Laws - AllLaw.com

This part was interesting: Effective July 1, 2013, 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. Fla. Stat. Ann. § 95.11 (5)(h).
 

Erik Sandstrom

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I would say it would depend on whether or not you want to purchase another property in the near future. If you do, go the short sale direction. It doesn't necessarily matter the condition of the property for the short sale (if you're not trying to get the highest bidder). Going the short sale direction will allow you to purchase another home sooner than if you were to foreclose.

The legal ramifications are not my area of expertise, in that category maybe a foreclosure would be better.