Should we move back in?

[ALZYMER]

We included our house in C7 in 2009, and came out of C7 in 2010. We moved out of the house at that time and the house is still empty, but it is still in our name. We recently put it up for a short sale, but if it is still on the market in 6 months time (when our rental lease is up) would it be a good idea to move back in and claim the house free and clear as it's over 5 years since we made a payment. We live in Florida.

[justbroke]

I don't know about the free-and-clear angle. There are some mixed rulings in Florida between the District Courts of Appeal (DCAs) where one court opined that the statue of limitations (5 years) on foreclosing creates a permanent prejudice against filing a foreclosure, whereas another opined that the 5 years is only for a single default. (For example, you missed the payment on 4/1/2010. One court says that the SOL has expired and no foreclosure could ever occur. The other says that only the 4/1/2010 default is past the SOL, but the lender could file for 5/1/2010.) You would need a solid attorney that knows what they are doing if you're going for a quiet-title action.

Since you own the home, you can do whatever you want. That may include moving back in. You may need to perform some overdue maintenance and should probably have an "inspector" check the home out (costs from $250-$450 for a home inspection). I suggest the home inspection since it has been unoccupied for many months. The person will look at the roof, plumbing, electrical, foundation and other systems to make sure it is safe to move in. I personally think a home inspection would be worth it.

I don't think it's a bad idea to move back in and save some money.