Asked in Real Estate Law for Florida

Q: Can I reneg on paying for this condo?

I purchased a condo in Florida in 1984 as a rental property. I refinanced a few times and still have a sizeable balance (but I am not underwater after many years of being in that situation). The mortage has passed many hands with over the years with a new processor about every five years, or so. Early on, I noticed that they had the wrong address for the unit. The address they are still using does not exist at all. Someone told me just let it go (back in 2008 when the market dropped to the floor.) Should I have done that (ethically, no)? Can they come after me if they don't even know the address? The flip side: Can I lose what tiny equity I have due to this error? (It is still rented, but rents have not kept up with mortgage and fees....every.)

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2 Lawyer Answers
Seril L Grossfeld
Seril L Grossfeld
Answered
  • Fort Lauderdale, FL

A: If you stop paying the mortgage eventually there will be a mortgage foreclosure action with your name on it which will not help your credit score, whether or not the correct legal description is on the property, it still will name you as a defendant not paying your legal obligation. Records of a mortgage foreclosure being filed against you stay on the public records forever and you will always need to account for it. Back in the mortgage foreclosure debacle there were people that stopped paying the mortgage so they would be in a situation where the banks would consider a short sale.

If you don't want to deal with it anymore and you have some equity why don't you just list it for sale and sell it, thereby protecting your credit. After expenses if you have a loss you can take it on your tax return which will if nothing else perhaps lower your tax liability in the year of the sale.

Stephen K. Hachey
Stephen K. Hachey
Answered
  • Tampa, FL
  • Licensed in Florida

A: Your best option is either a short sale or a traditional sale - provided there is equity after the mortgage and closing costs have been paid.

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