US Legal Forms
Legal Resources
Questions & Answers
Real Property
If i Sell My Home in a Short Sale Can the Lender Take other Assets I Own?

If i Sell My Home in a Short Sale Can the Lender Take other Assets I Own?

Q: What is the statute of limitations for mortgage foreclosure in Florida?

In Florida, the statute of limitations for mortgage foreclosure is five years from the date of default. This means that a lender must initiate foreclosure proceedings within five years of the borrower failing to make payments. If they do not, they may lose the right to foreclose on the property.

Q: Can I withdraw from my IRA without penalty for home purchase?

Generally, you can withdraw from your IRA without penalty for a first-time home purchase, up to $10,000. This is available for both traditional and Roth IRAs, provided you meet specific criteria. It's important to consult with a financial advisor to understand the implications and ensure compliance with IRS rules.

Q: How long after a short sale can I buy a house?

After a short sale, you can typically qualify for a new mortgage in two to four years, depending on the lender's guidelines and your credit situation. It's advisable to check with potential lenders for their specific waiting periods and requirements.

Full question:

I have a mortgage of 98k here in florida. If I short sale my place can the bank try to take my truck? Or take money from my IRA to recover what i owe? What if there is a second name on the truck title and IRA?

Category: Real Property
Subcategory: Foreclosure
Date: 04/07/2025
State: Florida

Answer:

A short sale is a transaction in which a lender allows the real property securing the loan to be sold for less than the remaining mortgage amount due and accepts the proceeds as full payment of the loan. A short sale is a process that needs to be approved by the lender. A lender may accept a short sale when the borrower is in severe financial straits and market conditions make a short sale the best choice to mitigate the lender's damages. Like a deed in lieu of foreclosure this saves the lender the costs of foreclosure and the borrower avoids having a foreclosure on his or her credit report. As long as you have their agreement to accept the proceeds of the short sale as full payment, you should have no need to worry about them pursuing your assets for the balance on the original loan.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can you get a mortgage on a short sale property?

Yes, you can get a mortgage on a short sale property. However, the process may be more complex than a traditional purchase. Lenders will typically require that the short sale is approved and that the property is sold at a fair market value. It's essential to work with a knowledgeable real estate agent and lender to navigate this process effectively.

Can a bank come after you after foreclosure?

In Florida, after a foreclosure, a bank may pursue a deficiency judgment if the sale of the property does not cover the outstanding mortgage balance. However, this depends on the circumstances of the foreclosure and whether the lender follows the appropriate legal procedures. It's advisable to consult with a legal professional to understand your rights and options.

What is the statute of limitations for mortgage foreclosure in Florida?

Can I withdraw from my IRA without penalty for home purchase?

How long after a short sale can I buy a house?

Is it a good idea to buy a short sale house?

Buying a short sale house can be a good idea if you are willing to navigate the potential challenges, such as delays in the approval process and possible repairs needed. It's essential to conduct thorough due diligence and work with experienced professionals to ensure you understand the property's condition and the terms of the sale.