Homeowner · Miami, FL · Member since 2008 · 1 post · 0 votes
I am in the beginning stages of listing my home in Florida as a short sale. In 2007 I helped my mom purchase a home in Georgia. The title & mortgage is in my name, but it is my mom's home & solely she has been making the mortgage payments from day one. I am concerned as to how this situation could affect my mom, myself & this property. Can anyone help me out with info on the laws in both states and what could be the outcome in this situation? Any suggestions??
Real Estate Consultant · Member since 2008 · 792 posts · 30 votes
18y
Joann,
It matters not who is paying the mortgage, but who is on the mortgage. I strongly suggest making sure that you have an agent on both ends (GA and FL) who knows what they are doing regarding a short sale. Short sale skills are not taught in standard real estate schools. Most agents have no clue how to work short sales.
Things to think about before listing:
[list]Why did you become delinquent?
Have you done a cash out refinance?
How many payments have you missed?
Have you been in contact with the bank(s)?
Why do you feel that you will no longer be able to afford the payments?
Have you tried loan modification/refinance/forbearance?
[/list:u]
Atlanta Metro, GA · Member since 2008 · 13 posts · 5 votes
17y
The bank will want to know if you have any assets that could be used to repay the loan on the FL property.
If you (because it's your name on the mortgage) have equity in the GA home, they could refuse the short sale and want you to liquidate that asset first.
You should (if you haven't already) sign a purchase and sale agreement for a sub2 and deed the GA property to your mother.
Then you could claim no interest in the GA property.
I'm assuming these are two different lenders. If it is the same lender this could be complicated.
Do not let the lender of the GA property know you sold it on a sub2. Lenders generally do not care when they are getting paid but usually have a clause stating if you sell (deed) the property to someone, the balance of the loan is due immediately.
That is what I would do.
You should consult with a real estate attorney ;-)