Tag Archives: foreclosures and short sales

Foreclosure Properties: Common Buyer Mistakes

Buying a foreclosed property is much different than a traditional home purchase. Certain repairs and defects often associated with foreclosed property may require significant and often overly burdensome cost and attention, so it is important to know what you are taking on. During the growth of the foreclosure problem in Florida, homebuyers across the State have been abundantly utilizing Foreclosure Auctions and Short Sales to purchase homes and property for costs well below market value.

However, when purchasing a home, especially in short sale or foreclosure auction, it is important to inspect the premises and discover any defects or structural deficiencies prior to closing on the home. Many times, homebuyers who purchase a short sale ignore defects and property deficiencies because the bargain is too good to pass up. Often, this creates problems that end up costing more than the bargain is worth.

Homebuyers tend to become so passionate about purchasing the real estate at such a lower cost that they refuse to accept the risks that can arise. Common mistakes include:

  • Ignoring property problems – Severe problems with the property may exist due to neglect, mold exposure, termites, and even vandals. Structurally, these homes may be in severe disrepair and even uninhabitable.
  • Ignoring legal and Insurance Information- Information that identifies any flood exposure or renovations and repairs made on the home is available to homebuyers and should be utilized to identify possible flaws and dangers that may exist on the property.
  • Failing to have the home inspected – Many buyers are so anxious to proceed with the acquisition of the property that they fail to have an adequate inspection of the premises conducted. Later, latent defects can become huge problems and the homeowner may incur exorbitant costs to repair the damages.

If you or your family are purchasing a home and have concerns regarding short sales or foreclosure auctions, call Blick Law Firm today at (813) 931-0840 and schedule a free 15-minute consultation with attorney Michael Blickensderfer.

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Florida Real Estate Foreclosure Alternatives

According to a report released last week by the California-based real estate data company, RealtyTrac., Florida leads the nation in home foreclosure rate for the second month in a row in October, with one filing for every 312 housing units. Florida’s rate is more than double the national rate of one in every 706 housing units, and this report confirms that Florida continues to struggle to recover from the recent housing crisis. Though indicators suggest that the housing market is improving, foreclosure still appears to be a significant problem.

If your property becomes subject to foreclosure, here are some potential remedies:

  • 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.
  • 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.
  • 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.
  • 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.

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 @ 813-931-0840. Schedule an appointment for a free 15 minute consultation with Attorney Michael Blickensderfer to see what your legal rights are in defending a foreclosure action.

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Short Sale: Questions and Concerns

Homeowners are often unsure of what options are available when they reach financial hardship. A short sale is an agreement by a mortgage lender to sell property for an amount lower than the balance owed in order to relieve the buyer of the mortgage obligation.

A short sale can be a helpful tool when trying to avoid foreclosure. Depending on the negotiated amount of the sale and the timeliness of past mortgage payments, a short sale may help avoid the huge hit to your credit score that foreclosure causes. Additionally, short sale participants can later purchase a home in a shorter time than those who foreclose on their property.

A short sale can be completed by finding a buyer to purchase the home who 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 an IRS 1099 is issued to the seller, or a deficiency remains which the lender may pursue to collect against the seller.

Beginning November 1st, 2012, changes were made to help streamline the short sale process including:

  • An expedited short sale approach for borrowers most in need.
  • Lenders will now have the power to quickly and easily qualify certain borrowers who are current on their mortgages for short sales.
  • Lenders will waive the right to pursue deficiency judgments in exchange for a financial contribution when a borrower has sufficient income or assets to make cash contributions or sign promissory notes.

The short sale process can be complicated, and the lender may not be willing to negotiate. It is important to know that a real estate attorney can help negotiate the sale and terms with the mortgage lender and provide you peace of mind that your short sale is being handled by an accountable professional.

If you have legal questions regarding your short sale or you are considering your options, call Blick Law Firm today at (813) 931-0840 to schedule a free 15-minute consultation with attorney Michael Blickensderfer.

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Foreclosure and Short Sale

Foreclosure is the process by which a lender attempts to recover the unpaid balance of a loan after the borrower discontinues payments. Foreclosure allows the lender to force a sale of the home in order to satisfy the remaining balance of the loan.

In Florida, if you have received a foreclosure summons complaint, you have 20 days to answer in order to avoid a default judgment being issued against you. Once your home is threatened by foreclosure, it is important to seek legal advice and explore what options may be available.

For many homeowners, a short sale can be a helpful tool when trying to avoid foreclosure. A short sale is an agreement by a mortgage lender to sell property for an amount lower than the balance owed in order to relieve the buyer of the mortgage obligation. Depending on the negotiated amount of the sale and the timeliness of past mortgage payments, a short sale may help avoid the huge hit to your credit score that foreclosure causes. Additionally, short sale participants can later purchase a home in a shorter time than those who foreclose on their property.

Though a Short Sale may be an available option to avoid Foreclosure, it is a complicated process, and sometimes the lender may not even be willing to negotiate with you. It is important to consult a real estate attorney  who can offer you peace of mind that your potential foreclosure is being defended by an accountable professional.

If you or a loved one are being threatened by Foreclosure or have legal questions regarding a Short Sale or other potential legal remedies, call Blick Law Firm today at (813) 931-0840. Schedule a free 15-minute consultation with attorney Michael Blickensderfer. Think quick, call Blick!

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Foreclosure Auctions and Short Sales: Common Buyer Mistakes

During the growth of the foreclosure problem in Florida, homebuyers across the State have been abundantly utilizing Foreclosure Auctions and Short Sales to purchase homes and property for costs well below market value.

When purchasing a home, especially in short sale or auction, it is important to inspect the premises and discover any defects or structural deficiencies prior to closing on the home. Many times, homebuyers who purchase a short sale ignore defects and property deficiencies because the bargain is too good to pass up. Often, this creates problems that end up costing more than the bargain is worth.

Homebuyers tend to become so passionate about purchasing the real estate at such a lower cost that they refuse to accept the risks that can arise. Common mistakes include:

  • Ignoring property problems – Severe problems with the property may exist due to neglect, mold exposure, termites, and even vandals. Structurally, these homes may be in severe disrepair and even uninhabitable.
  • Ignoring legal and Insurance Information- Information that identifies any flood exposure or renovations and repairs made on the home is available to homebuyers and should be utilized to identify possible flaws and dangers that may exist on the property.
  • Failing to have the home inspected – Many buyers are so anxious to proceed with the acquisition of the property that they fail to have an adequate inspection of the premises conducted. Later, latent defects can become huge problems and the homeowner may incur exorbitant costs to repair the damages.

If you or your family are purchasing a home and have concerns regarding short sales or foreclosure auctions, call Blick Law Firm today at (813) 931-0840 and schedule a free 15-minute consultation with attorney Michael Blickensderfer.

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