Category Archives: Real Estate

Written By Louie B. Talacay

Imagine having a nightmare in which you encounter a monster. The monster breathes fire, is on a rampage, and has a thick, impenetrable hide. Worst of all, the only weapon you have are your hands your wits and your will to survive.

Unfortunately for some homeowners under water, this nightmare is very much real. The monster is their situation, the rampage is the preeminent foreclosure, and the impenetrable hide is the blockade between them and financial recovery.

Luckily for them, the option to short sale is available; Government backed programs such as HAFA allows these homeowners to sell their homes for less than what is owed on their mortgage. Participants of the HAFA program can sell their homes and walk away free and clear with a guarantee that the deficiency will be waived by the lender. Best of all, a credit (up to $3000) is often given to the seller for relocation assistance. Of course, homeowner’s must meet certain eligibility guidelines in order to participate in HAFA. To see if you meet these guidelines reference the “Making Homes Affordable” website –Link found below.

http://www.makinghomeaffordable.gov/Pages/default.aspx

Appealing as it may sound; most homeowners who go through this process will find that short selling is another beast of its own. Even with the help of the most experienced realtors, sellers encounter many difficulties navigating through the entire process. The problem stems from the uniqueness of each transaction. Lenders require different documentation and every situation is different. The best way to handle this challenge is to be equipped with a knowledgeable team of short sale experts. Shop around for a negotiator, typically an attorney, who is familiar with every servicer. Blick Law Firm specializes in short sales and captures the negotiation fees from the lender. They’ve closed on a myriad of short sale files and are familiar with every loan servicer. They can get the job done. Schedule your free consultation with Blick Law Firm experts today, Call 888-973-2776!

A foreclosure happens when one stops paying the mortgage payments, usually for a period of months. At that point, the mortgage company has a right to foreclosure, and legally follows a standard process similar to an eviction. Here are some potential remedies if your property becomes subject to foreclosure:

Short Sale – To avoid foreclosure, you may also be able to sell your home for less money than owed. A short sale can be completed by finding a buyer to purchase the home and is willing to pay current market value, and having the mortgage provider agree to the sale. Any shortage after the sale will then either be written off by the lender and a IRS 1099 be issued to the seller, or a deficiency remains which the lender may pursue to collect against the seller.

Mortgage Modification – The lender may be willing to modify the terms of the mortgage. Modification of the agreement may involve adding payments to the end of the mortgage and simply extend the term of the loan. Modification of the mortgage agreement may also be made by reducing the interest rate of the original Mortgage Agreement, and it could include partial forgiveness of the amount of money you owe.

Forbearance Plan – As a borrower you may be able to file a forbearance plan with your mortgage provider. Under this arrangement, the lender will agree not to pursue the foreclosure action; but, the lender will likely require proof of adequate means to satisfy the repayment on the loan. This is generally a viable option if you have encountered a temporary setback such as poor health or loss of employment.

Reinstatement – To avoid the completion of the foreclosure process, you may be able to reinstate the loan by making payments on the past due amount. Generally, the lender will be cooperative if you bring your account up to date, or demonstrate that you now have the means to catch up on the past due payments.

Deed in Lieu of Foreclosure – You may also deed the home back to the mortgage provider if the lender agrees to accept a Deed in Lieu of Foreclosure. The lender will take back the property and cancel the remaining debt. You will be unable to keep your home, but avoid foreclosure and minimize the detriment to your credit score.

Foreclosure continues to be a growing problem in Florida, and if it happens to you, the worst thing to do is ignore it.

Call Blick Law Firm today and make an appointment for a free 15 minute consultation with Attorney Michael Blickensderfer to see what your legal rights are in defending a foreclosure action.