Negative equity

Iberstonespain · Joined: 26 Aug 2008 Posts: 1 1.37 Dollars($)

Dear Sirs,
I have purchased a condo in Florida as an investment and its market value now is $190K, however I owe the bank $300K. It is rented but every month I have to pay about $1,500 out of pocket to cover mortgage, HOA fees, etc.
I am planning to stop paying the mortgage and I do not care about my credit score as I live abroad and do not plan to go back to US for at least 10 years.
As there is a private mortage insurance in place, if I am in default I assume that the insurance co will get the property and the bank will get paid, but: is the insurance company going for deficiency judgements or similars? I still have some savings in US banks. Then, are they going to chase other accounts/assets inside and outside the US?

helping_user

Welcome Iberstonespain.

Irrespective of the deficiency, the insurance company should cover the entire loan balance you owe if you're in default. However, if the balance exceeds your coverage, then you will have to pay the deficiency on your own as Florida is a deficiency judgment state. And yes, the lender may come after assets or accounts provided yours is a full or limited recourse loan.

Thanks.

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