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Should I let my investment property go into foreclosure?

On Behalf of | Apr 18, 2019 | Firm News, Home Foreclosure

Maintaining an investment property in Florida can be an effective way to create an additional source of income. However, you may not have been able to predict changes in the market and growing costs to maintain your second or even third property. Despite doing your best to keep up with these expenses on top of the property’s mortgage, you might have still found yourself facing foreclosure. This can be a difficult experience, but it is not impossible to come out on the other side with a satisfactory solution.

If the property is not your primary residence, you might be tempted to simply let the property fall into foreclosure. But ignoring a problem does not make it disappear. Your name will remain on the property’s title until the final foreclosure hearing, when the bank finally assumes title. Any association dues, code violation fines, management fees and more will still be your responsibility.

To avoid taking on the added burden of costs that you already cannot afford, you could consider filing for bankruptcy. Surrendering an investment property through bankruptcy is usually effective at eliminating those liabilities. Bankruptcy can also help you address other debts that you are having trouble paying.

Even if you own an investment property in another state, you still have to file in your state of residence. It may come as a relief to realize that you will not have to make multiple filings or deal with other states’ laws that you do not understand. If you need more information about filing for bankruptcy in Florida, property foreclosure or debt relief, be sure to visit our website.

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