Bankruptcy - Florida Loan

G

Golf2014

Registered User
Messages
5
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
 
Golf2014 said:
Can they bankrupt me from a Florida case in Ireland?
Click to expand...

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