Expert: Dennis Herman - 10/13/2009

Question
QUESTION: I own a home in Florida that has been determined to be non repairable do to construction deficiencies.
It will not have any real worth short of taking the house down and selling the land.
Our only income will be SS.
The current mortgage is at approx 138k.
If I buy another house as my primary can I deed my home in Florida in lieu of foreclosure?
If I just let it be foreclosed can they attach my new primary residence?

ANSWER: You may already be working with an attorney, due to the circumstances you described.  I am not a licensed attorney and I do not know the details of the property.  

Why is the house condemned?  Have you contacted an attorney to see if you can collect for damages?

After reviewing the details, an attorney would be able to explain how this situation effects your deed.  You may also have insurance which may cover a part or all of your loss.  Have you contacted your insurance agent to see if they may be of some help?



---------- FOLLOW-UP ----------

QUESTION: the contractor did not properly fill the lot and the house is sinking
we have recieved a settlement but it is only enough to pay off existing mortgage with very little left to buy a home of comparable value. we will not be able to afford paying a mortgage
can i buy a new primary rsidence home first then deal with my current residence?

Answer
If you received a settlement on the house with the fill problem, you must have had some type of representation.  You may want to consult your attorney to find out exactly how the matter will be handled.  You may also want to consult your insurance agent to find out if the insurance will cover the replacement cost of the home.  

Not knowing all of the details I really can not answer your question.  Has anyone informed you or discussed any type of change to the title?  Have you signed any papers in regards to the settlement?  I'm sure the attorney representing on the suit concerning the contractor will be able to answer the questions.  Ask them if the mortgage has been paid off and if the title has been cleared.  Also ask them if you will retain the title or if the title is to be transferred to the contractor or insurance company.  If the title remains in your name ask for what they would recommend.