Tag Archives: carrollwood real estate

Bank of America is offering up to $30,000 for short sale

Posted on May 28, 2012 by Blick Law

Bank of America released a press release Tuesday, May 15th, announcing the launch of a nationwide program offering delinquent homeowners more assistance with relocation expenses upon the completion of a qualifying short sale.

Qualifying borrowers could receive anywhere from $2,500 to $30,000 in cash upon the close of a short sale. The amount of assistance provided under the new program is determined on a case-by-case basis, taking into consideration the value of the home, amount owed and other considerations not clarified in the press release.

Bob Hora, an executive in home transition services for Bank of America, stated that the company is committed to providing alternatives to foreclosure whenever possible. This program will benefit homeowners when all other home retention offers have been exhausted.

To see if you qualify for the relocation assistance payments under the new program, call Blick Law Firm today.  The short sale must be initiated by the end of the year and close by Sept. 26, 2013.  If you have already started a short sale process and have not closed, you may still be eligible for this program. 

Bank of America is currently the only bank offering this program to its homeowners.  While it is available nationally, the greatest response is expected from borrowers in California, Nevada, Arizona, Florida and the other states hit hardest by the housing market.

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Consequences to your credit following a short sale

Posted on May 3, 2012 by Blick Law Firm

After selling your home in a short sale, many factors must be taken into account to determine your ability to obtain a mortgage.

Your post-short sale credit score may drop, usually around 100 points or more. This could prevent you from obtaining a favorable interest rate on any new home loan. Also, you may have to put more money down. In many cases, it often takes two to three years before you’re eligible for another mortgage.

As long as you were current on your older home mortgage before short sale, you will have to wait at least two years for a loan that is federally backed, such as those from the Federal Housing Administration (FHA). If you are delinquent, it could take as long as three years. Private lenders, of course, are free to set their own time requirements.

Your credit score generally suffers a similar hit after a short sale or a foreclosure. However, most federally backed home loans don’t weigh your actual credit score or history too heavily when you go for a new home loan.

When you are ready to consider purchasing in the real estate market again, call attorney Michael Blickensderfer and let Blick Law Firm handle your proceedings and title closing.  As an experienced real estate lawyer, he understands the aftermath of a short sale and how to recoup and move forward with your life. Call us today at 813-931-0840.

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What about the deficiency owed when I short sale my home?

Posted on April 4, 2012 by Blick Law Firm

This is a question every seller asks when they consider a short sale of their home.  And it is a very legitimate question.

While some lenders may forgive a deficiency balance, not all do. It is often an unsound economic decision for a lender to sue you for the deficiency balance. For one, you may not have any resources to pay them. You likely would not have defaulted on your mortgage if you could have afforded to pay it.

Some states protect their citizens with anti-deficiency laws. Rules vary from state to state.  Unfortunately, Florida does not have such a law mandating the lenders to forgive a deficiency.  Attorney Michael Blickensderfer will advocate for the seller in an attempt to convince their lender to waive the difference between the amount owed and the amount for which their property sold.

If you are considering a short sale of your primary residence, you want to consider contacting a Tampa real estate attorney.  Michael is experienced in dealing with mortgage companies.  While they are all governed by the same guidelines, they each have their own idiosyncrasies which Blick Law Firm deals with routinely on a daily basis.

Every seller in a short sale will receive a 1099-C, which is a notice to the IRS that the financial institution has forgiven or canceled a debt of $600 or more.   Although this must be reported on your tax return as income, the Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence. This act is in place through December 31, 2012. The forgiveness is restricted to mortgage debt that you incurred to purchase your home. If you took out cash from the equity in your home in a refinance, as many Americans did during the real estate boom period, you are not covered by the Mortgage Forgiveness Act. Even if you cannot use the protections of the federal act, you may still be able to avoid declaring the dollars listed on the 1099-C.

Call Blick Law Firm today to see if you meet the IRS rules regarding your assets and liabilities and can use the IRS Form 982 to avoid declaring the 1099-C as income.

If the financial institution issues a 1099-C to you, it will probably not pursue you for the deficiency balance because it has deducted the loss on the loan from its taxes. However, there is no guarantee the financial institution will not pursue you for the deficiency balance and then later amend its tax returns.

If you end up with a deficiency balance, consider negotiating with your lender in an attempt to reach an out-of-court settlement on the debt. If necessary, enroll the debt in a debt negotiation program.  Another option is to negotiate the debt yourself. Consider offering the creditor 10 cents on the dollar for a lump-sum settlement.

Blick Law Firm can assist you, should this negotiation be necessary. Call today 813-931-0840.

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