Venice, FL asked in Real Estate Law for Florida

Q: Hello, My property and house sold at a tax deed sale what happens to the mortgage on the house? I live in Florida.

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2 Lawyer Answers
Richard Paul Zaretsky
Richard Paul Zaretsky
  • West Palm Beach, FL
  • Licensed in Florida

A: great question -

If there is still a mortgage on the house, the first thing that will happen is the person at the mortgage company that is supposed to monitor these things may be fired.

Second is that the mortgage lien on the house is gone. You have no mortgage anymore - but neither do you own the house (unless it was YOU who bought the house at the tax deed sale, which raises more complex issues).

Third is that you STILL owe the money on the mortgage note to the lender.

If you have more questions - and I realize my answer may have raised more issues than you expected - contact a real estate attorney.

Barbara Billiot Stage agrees with this answer

A: You may have a right to the surplus proceeds on the property. Often the mortgage company does not realize the house sold and does not file a claim for the surplus. You should immediately file a claim for the surplus. You are still liable to pay the note even though you no longer own the property. You should consult with a bankruptcy attorney to see if and when the timing of filing a bankruptcy would be beneficial to discharge the debt.

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