QUESTION
In Florida, can you sell your home to someone for less than what you owe and be released of all debts, past & present?
Asked on Aug 15th, 2012 on Residential Real Estate - Florida
More details to this question:
Facing foreclosure. No paperwork or lein filed to date. Couple wants us to Quit Claim the home to them for $10 because we have no interest in trying to save the home and they will bargain with the bank regarding the mortgage(s) owed. Once it is quit claimed to them, does it release us legally of all outstanding debt, no matter what the outcome is with the bank and them? Does the bank have to be part of this type of deal?
1 ANSWER
Probate & Trust Attorney serving Fort Lauderdale, FL
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Parady & Zikakis, P.A.
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If you transfer the property as indicated in your question, you will remain liable to the lender for the debt. If the lender's collateral (e.g., the home) is worth less than the debt, the lender can seek a deficiency judgment against you. You may wish to consider a short sale with release of liability or consult with a local real estate attorney to review your options.
The foregoing is specific to the law and procedure in Florida. This response does not constitute legal advice as the facts presented are limited and unstated facts will likely impact your particular situation. This response is intended for general education only and does not create an attorney-client relationship. Please schedule a consultation with a local attorney for more specific and detailed answers to your legal issues.
Answered on Aug 20th, 2012 at 12:15 PM