During the housing boom, Florida was a popular place for investors to scoop up real estate. Unfortunately, as the market declined over the years, many investors found it more and more difficult to keep up with the overhead costs of their properties. If you are one of those investors, it may be helpful to understand what to do when faced with home foreclosure on your investment property.
There are many costs that go into your investment property besides the mortgage. There is maintenance, upkeep costs and, depending on the neighborhood, skyrocketing homeowners’ association fees. If you fell behind on these payments and your mortgage and are now facing foreclosure, you may feel tempted to simply let the process take its course. However, since the foreclosure process takes time until the bank assumes financial responsibility, the property will remain in your name until such time, leaving you financially responsible for other costs. These include:
- Association dues
- Code violation fines
- Management fees
Bankruptcy can provide a more financially sound opportunity. While investment properties are typically turned over during bankruptcy, you will not have to shoulder the ongoing financial liabilities during the process that you would during foreclosure. Also, if you have reached the point of foreclosure, your money situation is probably not doing so well anyways.
Even if it is for a Florida investment property, facing home foreclosure is never easy. Bankruptcy is a smart solution to handling foreclosure, whether the goal is to retain ownership of a primary residence or to limit personal liability on a secondary property. More information about home foreclosure, bankruptcy and more is readily available on our website.