The Real Estate Frenzy
In the early years of the new millennium many people in Florida had big dreams of buying real property, fixing it up, and selling it for a profit. And many were successful. That is, until the bottom fell out of the real estate market leaving many people who dabbled in real estate holding the proverbial bag. Some people tried to hold onto properties and rent them out to cover the mortgage expense and other other expenses including property taxes, insurance, and in the worst cases condominium fees or homeowner’s association fees.
Some of the hardest hit properties in Florida during the real estate crisis were condominiums. These properties generally lost value at a greater rate than single family homes. The declining values coupled with the condo association fees made making the required payments nearly impossible for a lot of folks. With the accrual of condo fees and non-payment of the mortgage, these property owners faced protracted litigation from both the mortgage holder and the condo association. Bankruptcy could be the answer.
In Re: Rosa
A decision in a Hawaiian bankruptcy court allowed the owners of a condominium to “vest” the property back to the mortgage holder in a Chapter 13 Bankruptcy. This meant that upon recordation of the confirmation order, the order would act as a deed of conveyance and the bank would legally own the property. The Reissman Law Group, P.A. has been successful in transferring real property in Chapter 13 back to mortgage holders. It should be noted that the bankruptcy court cannot force the mortgage holder to accept a deed under Florida law. However, upon the filing of a motion to vest the property back to the mortgage holder and if no objection or other response is made by the mortgage holder, several bankruptcy judges in the Tampa Division have granted these motions and transferred title to back to the mortgage holder.
If you would like to discuss your options about the possibility of transferring your property back to your mortgage holder in a Chapter 13 contact us today for a free consultation with one of our attorneys.