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Cynthia Anne Riddell

Cynthia Riddell’s Answers

2 total

  • Do I have to file bankruptcy or can I just walk away from my home?

    Husband lost job early 2008 - had first child 2008 Tried to work with mortgage company for a loan modification on my own for a year with no luck Hired lawyers to help me get a loan modification for a year with no luck Really do not want to stay...

    Cynthia’s Answer

    Just walking away may actually prolong your credit score recovery so you should speak to an attorney, specifically a bankruptcy attorney. Most offer free consultations to go over options. I would especially be concerned about the second mortgage. Many second mortgage holder sue borrowers personally since the value of the underlying real estate will not be enough to pay the second lien fact what you could sell the real estate for can often time not be enough to pay the first mortgage in full.

    The problem you can have is that you could live for free in the property for a long time but your credit report will reflect the default of the mortgage payment for as long as the foreclosure case is pending which in Florida can be two years or more. Then when the bank finally gets a foreclosure judgment against you it is then reported as "foreclosure" on your credit report for seven years from the judgment being entered so that is 2 years of late line items on your credit report plus seven years of the "judgment" reported on your credit report. Filing bankruptcy may actually help you recover your credit more quickly. Plus if you have judgments and you gain more assets later your creditor may come out and try to take what you have accumulated later on when things improve.

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  • Can owner of condo in foreclosure avoid personal liability for future association due assessments by quit-claiming it to a LLC?

    I've got an unoccupied condo that has been in foreclosure for 2 years. The association has assigned my unpaid assessments to a law firm. That law firm (and their related funding company) profit by immediately invoking the association's accelerati...

    Cynthia’s Answer

    The personal liability for the ongoing condo assessments runs with the land. Therefore as long as the debtor remains the record title owner of the real estate (the debtor's name is on the deed until the bank finishes their foreclosure) the association has the ability to sue whoever is the owner of the property. Therefore if the owner files chapter 7 bankruptcy and surrenders the property any liability for assessments up to the date of filing is dischargable. If the association filed a claim of lien then the association's lien will remain as a lien against the real estate. The association fees that accrue after the date of filing bankruptcy is considered post-petition liability that may nnot be dischargable in the previously filed bankruptcy case. So getting the debtors name off title is the best way to cutt off liability for the post-petition assessments. You can offer the association a quit claim deed in exchange for a complete release of the owner for all assessments. That was the association avoids filing their own foreclosure case foreclosing their claim of lien, the association takes ttitle subject to the forclosing mortgages but may be able to rent out the property while the bank forecloses to recoup unpaid assessments. Get the association to pay doc stamps transfer taxes as well. The debtor can also try to short sale to get their name off title or as for a consent jugment when the bank files a motion to lift stay in the bankruptcy case. Quit claiming to an LLC may work but you may need a multi member LLC to avoid an argument by the association to reach past the LLC vehicle to the member personally or a proceedings summplementary action against the LLC. If the only thing in the LLC is the property a judgment against the LLC may be worthless however the creditor can subpoena the member manager to answer the suit.

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