| Buying a Home / Selling a Home | Ventas Corto en Espanol / Short Sales in Spanish | Annual Rentals / Property Management | ||||||
| Vacation Rentals | Boat Rentals / Charters | |||||||
| GET OUT of DEBT Wealth Builder! | 239-540-4884 | Real Estate Business Opportunity | ||||||
|
||||||||
| |||||||||||||||||||||
|
|
If My Lender Forecloses, Can They Come After Me For The Loss?In order for your lender to recover losses incurred on your mortgage as a result of foreclosure, the lender would need to do a Judicial foreclosure. While, theoretically a lender could pursue a deficiency judgment through a Judicial Foreclosure on some mortgages, it almost never happens in Florida. The lender is normally left with the proceeds
generated at the Courthouse Steps Sale or from a sale after
acquiring the property at the Courthouse Sale. This is another
reason why lenders would prefer to work with the homeowner to
solve the problem and avoid getting the property through
foreclosure. Can I Just Deed My Property To Someone And Avoid Foreclosure?Deeding your property to a third party does not eliminate your obligations related to the loan. Unless the mortgage is paid off when you deed the property, you will almost certainly remain as the party primarily responsible for the repayment of the loan. If the lender eventually forecloses, it will be on your credit record. If you deed your property to a third party you also give up control of the property. It is nearly always a bad idea to simply deed your property to a third party. Do not deed your property to someone without
paying off the loan unless you have consulted with an attorney. What will a Foreclosure do to my credit?By almost any measure a completed foreclosure is the most damaging event your credit status can encounter – worse than bankruptcy. A foreclosure on your credit record will negatively impact your ability to borrow money for years. For most people, it is well worth the time and
effort to solve the problem before the foreclosure is done. What does a Notice of Default mean?If a Notice of Default has been recorded against your property it means your lender has started the formal foreclosure process. In Florida, a borrower must be two months delinquent before a lender can commence a foreclosure action by recording a Notice of Default. A borrower has over three months from the recording of the Notice of Default to work something out with their lender and avoid the completion of the foreclosure. Once the Notice of Default has been recorded, it
is important to act to avoid losing the property and having a
foreclosure on your record. Can I try a Forbearance Agreement to avoid Foreclosure?Yes, you can and you should look at a Forbearance Agreement as an option to avoid foreclosure. FORBEARANCE AGREEMENT – An agreement between a mortgage company and a borrower in which the borrower promises to stay current on the mortgage going forward and agrees to a repayment plan for delinquent payments and costs and fees associated with the foreclosure action. A Forbearance Agreement is a tool that allows the borrower to keep the property. The lender will expect you to show that the
delinquency was due to circumstances out of your control (injury,
illness, job loss) and that the financial difficulties have been
corrected. I Have Heard Of Foreclosure Scams, What Should I Look For?Unfortunately there are quite a few people that might try and take advantage of your temporary misfortune. These people will try and convince you that they can provide a quick and easy solution to your mortgage problem. As a general rule, if it seems too good to be true, it usually is. Here are a few examples of the scams you could encounter: You need to sell your property fast or you will be ruined. If you have equity, these guys want it by providing fast cash, they solve your problem and they get your equity. On occasion they offer a small amount of money to you – which is normally a signal they are getting lots of your equity. If you are truly in a short sale scenario then you have no equity. Sign the deed to the property to us and we will take care of everything. Sometimes called the “Bailout” scam, the investor tells the homeowner that he will be allowed to stay in the home and pay “rent” to the investor until a long term solution can be worked out. Once the owner signs the deed to the property over to the investor, big trouble usually follows. If the investor has the deed, the investor has control. Here is the big kicker – the homeowner who signed over the deed is still responsible for the loan. The investor nearly never makes the mortgage payments and the homeowner gets hit with the foreclosure. For a consulting fee, I will work with your lender to find a solution. Your lender will work with you directly if you
want to make arrangements to make up past payments and keep your
property. This would normally involve a Forbearance Agreement. Will A Short Sale Stop A Foreclosure?While the Short Sale itself does not stop the foreclosure, lenders normally work with a homeowner and delay the foreclosure if necessary, if they receive a legitimate Short Sale proposal. The key here is to submit a complete, well organized, Short Sale proposal. The lender does not want your property, and
would rather resolve the situation before the foreclosure is
complete. If My Lender Has Started A Foreclosure, Can I Still Sell My Property?Absolutely, In fact, your lender would rather you sell the property than allow the foreclosure to continue. Your lender does not want to take your property through foreclosure. Even if you have no equity in the property, the lender wants to find a solution. This is precisely why lenders agree to a Short
Sale and accept a discounted payoff to fully satisfy the loan. In
a Short Sale, the lender in nearly all cases pays all the closing
costs – including title fees, escrow fees and the real estate
commission. Should I speak with my lender when they call?It is best that you not avoid calls or letters from your mortgage company, particularly if a foreclosure is pending. Your mortgage company does not want to take your property through foreclosure. The mortgage company would rather look for options to avoid foreclosure. When speaking with your mortgage company, be honest about your circumstances and listen for them to possibly suggest options. The mortgage company knows the best way for them to limit losses on a delinquent mortgage is to work with the homeowner. Be sure to keep notes of all conversations you have with the mortgage company including dates and times of calls, the name of the representative with whom you spoke and the details of the conversation.
Short Sale TermsAdvertising- (or Publishing)A copy of the Notice of Foreclosure Sale must be published once a week for four weeks. Bankruptcy-Chapter 7Often called a straight bankruptcy-involves the liquidation of all non-exempt by the bankruptcy trustee, who in turn distributes the proceeds to qualified creditors. All dischargeable debts are discharged and the person(s) filing receive a ‘fresh start’. Bankruptcy-Chapter 13Often called a debt reorganization. A Chapter 13 Bankruptcy is generally appropriate for those individuals who have non-exempt property they wish to retain and who have enough income to reasonably pay the reorganized debt after covering reasonable living expenses. BeneficiaryThe beneficiary in a foreclosure context is generally the mortgage lender. Frequently referred to as the ‘Benny’. Deed in Lieu of ForeclosureThe voluntary surrender of property by an owner/borrower to a lien holder that eliminates the need to continue foreclosure action by the lien holder. The lien holder can refuse to accept the Deed in Lieu and file a Notice of Non Acceptance with the County Recorder. Discounted PayoffThe payoff of a mortgage loan where the lender accepts an amount less than the actual amount owed to payoff the loan. Equity DeficientA property is Equity Deficient when, if sold, sales proceeds would not fully pay off existing mortgage debt. Forbearance AgreementAn agreement between a mortgage holder and a borrower that lays out a specific loan payment plan and puts a stop on the foreclosure action so long as the borrower meets the terms of the agreement. The payment plan includes provisions for repayment to the mortgage holder of all delinquent interest and fees and could include extending the life of the mortgage beyond it's original term. A Forbearance Agreement is a tool that allows the borrower to keep the property. Judicial ForeclosureA foreclosure action conducted through the courts instead of through a foreclosure trustee. Junior LiensA lien, usually a mortgage loan, that is subordinate to a Senior Lien, usually a first mortgage. Lien priority is generally established by order of recordation . NOTE: if you refinance a 1st mortgage on a property with a 2nd mortgage already in place the new 1st mortgage holder will require a subordination agreement from Junior Lien holders to legally establish the new mortgage holder as 1st or Senior Position. LIBOR (London Interbank Offered Rate)The interest rate charged among banks for short-term Eurodollars loans - LIBOR is a very common index for adjustable rate mortgages (ARM). Loss MitigationHome mortgage lenders look to limit losses on delinquent mortgages by working out solutions with borrowers through their Loss Mitigation Departments. MailingA copy of the Notice of Trustee’s Sale must be mailed (certified and first class) at least 20 days before the foreclosure sale to the borrower and to anyone who was entitled to receive a copy of the Notice of Default and Secretary of State and IRS, if applicable. NODShort for Notice Of Default. Notice of DefaultAn official notice filed and recorded by a designated trustee at the request of a lender indicating lender has commenced foreclosure action. Notice of Trustee SaleAn official notice that is posted, mailed, published/advertised and recorded by trustee at the direction of lender indicating lender’s intention to sell the property at public auction. The notice includes a specific date, time and location. PostingA copy of the notice of sale must be posted in a conspicuous place on the property to be sold at least twenty days before the sale. Also, a copy of the notice must be posted at one public place in the city where the property is to be sold at least twenty days before the sale. PostponementTrustee Sales may be postponed by the first at the direction of the lien holder. Notice may be given in advance or at the time and location specified for the intended sale. Private Mortgage Insurance (PMI)A policy of insurance paid for by the borrower to protect the lender in the event the borrower defaults on the mortgage. Typically PMI is required by the mortgage holder when the down payment is less than 20% of the purchase price. Qualifying FundsIn order to bid at a Trustee Sale bidder must have qualifying funds available at the sale. Qualifying funds are cash or a cashiers check(s) drawn by a State or National Bank, a check(s) drawn by a State or Federal Credit Union or check drawn by a State or Federal Savings and Loan Association, savings association or savings bank specified in section 5102 or the Financial Code and authorized to do business in the State of Florida. REOShort for Real Estate Owned. When a mortgage lender acquires a property, typically through foreclosure, it becomes real estate owned – or REO. ReinstatementTo bring the loan current. Borrower may reinstate up to five (5) business days before foreclosure sale. Short SaleThe sale of a home which is completed through negotiation with the existing lender(s) in which the lender(s) agrees to accept less than the full amount owed to satisfy the debt allowing the debt to be ‘paid off’, (short). 1099-CIRS Form 1099-c is issued by those canceling all of part of a debt to the person receiving debt relief. Note: The cancelled debt may not need to be reported as income. For more on a 1099-c see below
The author, Ian Agster, was a law student and summer inter at Legal Services of Northern Virginia. Legal Terms Creditor – A person or corporation to whom a debt is owing by another person who is the “debtor.” Debtor – One who owes a debt to a creditor. Write off – To cancel from accounts as a loss. Default – To fail to pay money when it is due. Fair Market Value – Price at which a willing seller and a willing buyer will trade. Net Gain - An increase in the value of a capital asset. What About My Credit?One of the primary benefits of a successful Short Sale is avoiding the credit damage of a foreclosure. The damage to your credit done by a foreclosure lives on for years – at least seven years. Your credit will recover much quicker from the credit dings of a few late mortgage payments, if you keep your other accounts current. So, consider allocating your funds to meet basic necessities (food, utilities, household needs, auto expenses and such) first. Beyond paying for necessities plan to pay other bill to keep as many accounts current as possible. Keep “necessary” Accounts CurrentWhen deciding which credit bills to pay review the terms of your credit accounts. If you are using a credit card to temporarily pay for necessities, you want to be sure to not jeopardize the availability of that account. A Short Sale may be just one part of a larger effort to get through a tough period. We want to help make it possible for your credit to recover quickly. We need to avoid foreclosure – and that we can help with. Buying a Short SaleIf you are an investor looking for a deal that gives you instant equity, or a home buyer just looking for a good deal, buying a Short Sale may be your answer. The risks that go along with foreclosing on a property have mortgage companies looking for ways to avoid foreclosure and reduce the losses incurred when a loan goes delinquent. A Short Sale allows the mortgage holder to limit losses on a delinquent loan and take the loan off their books. The discount a lender is usually willing to approve means the buyer gets a very good deal Everyone WinsIt isn't often in real estate transactions that virtually all parties with a financial interest can be winners in the same transaction. A successful Short Sale is one of those rare situations where everyone wins. The Buyer Wins by acquiring a property at below market price. While some Short Sales will be bigger bargains than others, nearly all Short Sales will represent a good deal for the buyer. The Seller Wins by avoiding foreclosure and all the credit damage that goes along with it. The property gets sold, all the loans get paid off and the existing lender pays all the sales costs. In most cases the Seller has no out-of-pocket expenses. The Mortgage Holder Wins by reducing the loss they absorb to get the delinquent loan off their books. Mortgage companies know that the costs associated with acquiring a property through foreclosure hit their bottom line - hard. To resell the property the mortgage company frequently needs to invest money in clean up and repairs, and they need to pay staff to manage and maintain the property as well. This is precisely why they have set up Loss Mitigation Departments to resolve delinquent mortgages before the foreclosure is complete. Getting A Short Sale ApprovedWorking with lenders to get short sales approved is what we do every day. We know the importance of getting started on the right foot with the lender’s loss mitigation department. We have learned many times over that being prepared and maintaining our professionalism are critical to getting short sale approval. The Lender Wants a Great File…And from us that is just what they will get. We have one opportunity to impress the lender with a strong, complete and well organized file. That initial step will go a long way towards determining the lenders position on approving your file. Lenders do not want to acquire properties through foreclosure, but they will not approve just any short sale. When your short sale file is submitted to your lender for approval we will map out a plan for approval that will have the lender feeling positive about approving the short sale. Appeal to the Human InsideYour short sale file will be reviewed by a living breathing human being. Someone, that can’t help but be influenced by the difficult circumstances being faced by others. We will help you outline the events that caused you to fall behind on your mortgage so that the loss mitigation representative handling your file will look for ways to give us approval. Finding a Short SaleMany real estate investors, as well as a large number of bargain seeking homeowners have turned to Short Sales as the best way to buy real estate at a big discount. Do a Google search and you will find literally hundreds of websites set-up to show potential buyers how to buy Short Sales. To hear them tell it, you need only put some signs up on electric poles, respond to a few newspaper ads and send out a couple letters and you will find Short Sale properties. While these methods will work for some home buyers, most will be left wondering why they are not finding properties. Further, even when you find a good property, the seller’s financial circumstances may make getting a Short Sale approved impossible. Why not purchase a Short Sale property that has already been qualified and has a high likelihood of lender approval? It sure can’t hurt to get information on Short Sale properties on which the file is already submitted for approval. Check out our list of Short Sales. Why Do Short Sales Work?For the mortgage holder there are real advantages to getting the property sold, even at a discount, while the borrower is still in the home. The costs to maintain the property are paid by the borrower and the borrower has an incentive to keep the property in good shape. The foreclosure process can get very unpleasant, particularly towards the end of the process. Borrowers have been known to remove built-in appliances, cabinets and plumbing fixtures on their way out. In the end, it’s usually to the mortgage holder’s financial advantage to accept a short Sale as opposed to completing the foreclosure. Seller InformationWe specialize in the sale of homes that are equity deficient - homes with loan balances at or above the home's value. Homeowners across the country are finding themselves faced with very difficult decisions because their mortgage balance is higher than the value of their home. If you find that you need to sell your home and your loan balance is too high, what do you do? That's where we can help! We have helped hundreds of homeowners by working out a solution with the mortgage holder that allows the home to be sold. The Benefits
Q & A for this Short Sale PACKAGE Why use Marzia
Rivera, Realtor? Marzia Rivera's objective is to discount the debt owed to the lender(s) in order to purchase the property directly from the homeowner. Our Short Sale TEAM is constantly networking with other experts in the industry to keep up to speed with the changes in the real estate market. Does
a short sale cost me any money? Most times nothing at all but the bank may require a sum to be settle with the owner, this will depend on the bank and your financial statement. It could be as little as an appraisal. At times we need to prove the value to the bank to finalize the negotiations and request the owner pay for an appraisal. We put all other fees and commissions on the HUD for the mortgage holder to pay, all commissions are negotiated with the bank and paid upon closing. Ask for details. How
long does the process take? The Short Sales process contains many phases and can be a lengthy process. The time can vary depending on the cooperativeness of the Homeowner and the Mortgage Lender(s). Typically, short sales will take up to several months from the time Marzia receives the completed short sale package to the closure date. As complicated as it is, it is important to be patient during this process How much work does it take from me? Homeowner's
involvement is needed only to carry out the following actions:
2. If all documents are received and upon
Lender(s) approval on the
short sale—Homeowner Why
pursue a Short Sale? A result of a successful short sale is that the homeowner can avoid a foreclosure on his/her credit report. Marzia Rivera, will get paid directly from the lender. If the homeowner can bring his/her mortgage loan current or sell the house without a short sale, we encourages the homeowner to do so. Short Sales are used as a way to avoid foreclosure when all other alternatives have been exhausted. I’m
ready to get started, what’s the process?
You
Agent
will be your primary contact throughout the entire short sale process.
Please contact your
agent or
contact Marzia to become your Agent to keep you updated and
answer your questions throughout the short sale process. Hopefully
this information helps. with Marzia Rivera
as your Agent, I am here to help. Even though we are
not attorneys, we will do what we can to help you understand the process
and what the bank is doing. A Short Sale does not cost the homeowner money, call us to stall the foreclosure process and to begin the short sale. We have investors waiting to review your property, offer to purchase, then we negotiate with the banks. Call or email Marzia Get Professional RepresentationGetting a short sale approved by the existing lender is a multi-step process that requires patience, persistence and a lot of experience. If you decide that a short sale is the best answer for your situation, have a qualified professional represent you Let us speak for youIn order to get a short sale approved your mortgage holder will require that you provide a personal financial information and documentation. Professional Representation – Free to youBecause the mortgage holder pays the real estate commission, professional representation is free to you. In effect, the mortgage holder pays the real estate fees, along with most other sales costs, so the short sale file can be handled by a professional. The mortgage holder knows that it is in their best interest as well as that of the borrower to the have short sale file put together properly from the beginning, by a professional that does not have a conflict of interest. Call Marzia Rivera Today, 239-540-4884 Marzia
Rivera, Broker
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 | The Wholesale Investor buys property for
themselves and use their own money. No loan.| The Wholesale Investor can make the
transaction simpler and faster. | The Wholesale Investor buys property as-is
without requiring the seller to make repairs. They will close
escrow with your tenant still in the property – even if
it’s a bad tenant. | The Wholesale Investor won’t try to scare
you. They tell you they are buying wholesale to make a profit
and they will be the first one to admit their price will leave
room for them to make money. | |
Direct 239-540-4884 Fax 888-540-4884
Property
Management * Home
Sales * HOME
Great Links Worth Checking Out!
*
LAST CALL VACATION SPECIAL *
Great
Deals if you are traveling within 45 days!
Southern
World Class
Reatly
Let
us help You find Your Place in the Sun
CourtAuctionMLS
Savvy Buyers tech tool to keep your mouse on the pulse of the
market
Property
Management, Home Watch and Vacation Rentals
Are
you and Owner looking to Lease your Home? Or a Tenant?
Vacation
Homes and Condo Resorts all Gulf Access or Gulf Views
Paradise
Property
Management, Home Watch, Vacation Rentals
Orlando
Florida Vacation Resorts, try New Years at Disney/Universal
Christmas
and News Years in Orlando, Florida, SUMMER BAY RESORT
Catch
The Big One! Back Bay and Offshore Fishing Charters SWFL
Back
Bays and Off Shore Charters
Tarpon
Point River Cruise Boat Rentals and Charters
Party
with 40 of your closest friends, Sunset Weddings,
Receptions, Birthday Party, Island Hopping, Lunch Trips
DIRECT
EMAIL and PHONE to
Marzia Rivera, Realtor
MarziaRivera@239-540-4884.com
5-9-10
This page was last updated on 12/03/12.
