# Bankruptcy - Florida Loan



## Golf2014 (18 May 2014)

Hi there,
     I bought an investment property in Florida 8 years ago, 3 years ago I had to hand back the property as I could no longer rent the property or pay for the mortgage from Ireland.
     I recently had a letter from a UK debt collector informing me that the  US mortgage company was looking for a "Floridian Deficiency Judgement" and then pursueing a bankruptcy in Ireland.

      Has anyone had an experience with this situation? 
      Can they bankrupt me from a Florida case in Ireland?
      I travel to the US for work, would this judgement affect me this travel?

 Thanks in Advance
 Golf2014


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## Bronte (19 May 2014)

Golf2014 said:


> Can they bankrupt me from a Florida case in Ireland?


 
Well we haven't come accross this before.  How much do you owe.  Do you have assets in Ireland, do you have a good job.

I don't see any point in them making you bankrupt unless it is worth their while financially.


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## Golf2014 (19 May 2014)

Bronte - Thanks for the reply

 I owe $125k less the amount the property was sold for (probably around $40k). Yes I have a good job with a house,mortgage and some personal loans but no extra income to pay for this.

 If I engage with the Debt collector I don't know if they have any rights to collect the debt in Ireland? 

 Any further advice?


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## Dr.Debt (19 May 2014)

I understood that most house loans in Florida are / were non-recourse, meaning that the debtor is responsible only to the extent of the realised value of the collateral. I would have thought that you were off the hook once the house was repossessed. Is that not the case ?


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## Palerider (19 May 2014)

First time I also ever heard of this and I have some experience of property ownership in the U.S., some U.S. mortgages are full recourse, some if not most are not, you need to review your mortgage offer to see where you fall, do check it and come back to the forum, you are raising a very interesting point.


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## Golf2014 (19 May 2014)

Thanks Bronte,Dr.Debt and Palerider
 I thought this too and was told this by the Bank in the US at the time but I'll read the mortgage and comeback to all

 Thanks again


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## Bronte (19 May 2014)

Is your home in negative equity.  What is it's value and how much is the mortgage?


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## Palerider (19 May 2014)

Bronte said:


> Is your home in negative equity.  What is it's value and how much is the mortgage?



OP says the property was handed back three years ago.


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## Time (19 May 2014)

They would have to get a judgement in Florida, that may be the easy part. Then they would have to go through some complex legal procedures to get the High Court in Dublin to recognise the Floridian judgement. A very expensive move. Then they would have to go through Irish judgement enforcement procedures before they could even think of bankruptcy. For a small amount this is simply not going to happen. 

It is just sabre rattling hoping you crack.

Have a read of this link: [broken link removed]


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## Bronte (20 May 2014)

Palerider said:


> OP says the property was handed back three years ago.


 
I was referring to his current home to see if there is any value in it.


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## Bronte (20 May 2014)

Time said:


> It is just sabre rattling hoping you crack.


 
Yes this is probably what they are at.  I guess it works sometimes.


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## Golf2014 (20 May 2014)

Hi 
   Looked thru half the mortgage documentation last night and can't find anything either way about the recourse have the rest of the documents for tonight.

Bronte
 Just on your questions of is there value in my current home, the property isn't in negative equity and there is probably is a bit of value but not a $125k but as the market changes this will change.  Added to this, it is my family home.


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## lopin (20 May 2014)

Hi Golf2014, the following is a fantastic forum for advice http://www.top-forums.com/. I went through something similar a few years ago and got some great advice here


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## Bronte (20 May 2014)

Lopin any chance you could share how you tackled your Florida loan?


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## lopin (20 May 2014)

Its about 5 years ago, I had to do a short sale, I lost a lot of money but heard noting after the deal was done. The guy I got to do it was very sound and he managed to sell the furniture for me at least I got a few dollars back. From what I know you can not be persued for outstanding money. As I pointer out in an earlier post you will get great advice on http://www.top-forums.com


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## Golf2014 (22 May 2014)

Thanks for the great help everyone
 I have ran through all the documentation  and can't find anything about defaulting.
 I'll keep you uptodate over the next few days.


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