Banks that foreclose on homes in Florida, and are part of a HOA or condo association will get 12 months of fees paid upon the sale.

In two current short sale files I am representing the HOA fees are over 12 months in arrears, and as part of the negotiations with the seller’s lender(s) they will agree to pay 12 months of the hoa fees. Their rational is that since this is all the HOA would get in a foreclosure sale, then they should be satisfied with the same amount with a short sale.

This is a common sense and rational conclusion.

Two association attorneys are unfortunately not willing to bend off the total amount of the back hoa fees, and the extensive attorney’s fees, and penalties.

In both cases the attorney that represents the home owners association has taken the position that if you want the deal to close, then the entire amount that is owed shall be paid. In both cases the sellers are not in a position to pay these charges, and the buyers are either unable, or unwilling to pay these additional fees.

In one case the sale is around 100,000, and the total outstanding hoa, condo, and assocation attorney fees are in excess of 18,000! The lender in this case has agreed to pay the association/attorney 12,000.

This lender has stated “the buyer should pay the fees, or the real estate agents should.”

I will say that the lender has taken almost 8 months to finally approve the short sale which in itself has really caused the charges to run up.

I find that it makes no sense that these home owner’s associations are doing their residents any justice. By preventing the sale they are ensuring that they net the same or less money. They are also most likely going to cause that property to sit vacant, longer, and probably foreclose and sell for less money than the home’s current value. Furthermore, there is all the lost revenue from having a new owner move in and start paying. The neighbors may not want to offer a break to seller who is short selling because they either don’t care, or are made that they are selling but the net effect is lost revenue for the neighborhood, and a decrease in the value of the properties.

I am amazed that the HOA associations residents would allow this extortion to be allowed. Here is Sarasota and Bradenton there are in excess of 25,000 homes in some state of foreclosure. And this does not include those that are delinquent, and not yet filed. Everyone needs to get on board to help fix this crisis in housing, including the attorney’s and the hoa/ condo boards that they represent.

I believe that the law that required foreclosing banks to have to pay outstanding HOA fees has done more damage to the short sale process. It was well intended, but the effect that it has had with Short sales is regrettable.

My best advice to my short sale customers is to keep paying the HOA fees to the best of their ability otherwise run the risk of putting in a ton of effort for no effect. My hope is that this is an isolated incident, and will not become a trend for more associations to pursue hardball negotiations in short sales.

www.manateemoves.com

real estate for sarasota and bradenton

Florida HHF Program: Financial Assistance for Unemployed Homeowners

 

In February 2010, US Treasury (Treasury) created the “Housing Finance Agency (HFA) Innovation Fund for the Hardest-Hit Housing Markets” (HFA Hardest-Hit Fund). The funds were allocated to 18 states and the District of Columbia to assist in foreclosure prevention efforts. A total of $7.6 billion has been allotted for this fund; Florida’s total award amount is more than $1 billion.  

 

Florida Housing Finance Corporation (Florida Housing) is the administrator of the Florida Hardest-Hit Fund (HHF) program for the state, and was directed by Treasury to use a portion of the funds for a targeted unemployment/underemployment program to provide temporary financial assistance to eligible homeowners.

 

These programs are as follows:

 

•        Unemployment Mortgage Assistance Program (UMAP)—can provide up to six (6) months of mortgage payments (with a cap of $12,000) paid directly to the mortgage lender to assist unemployed/underemployed borrowers with their first mortgage until they can resume full payments on their own.

•        Mortgage Loan Reinstatement Payment (MLRP) Program—can be used to bring a delinquent mortgage current (up to $6,000) for a homeowner who has returned to work or recovered from underemployment/underemployment.

 

For additional information on the HHF program, visit www.FLHardestHitHelp.org. For information on how financial institutions can sign-up to become a servicer in their area, contact Nicole Gibson, federal loan program administrator, Florida Housing, via e-mail at nicole.gibson@floridahousing.org. 

Posted via email from Joe Murphy Knows Real Estate in Bradenton

Upside down on your mortgage?

Considering a Bankruptcy?

Behind on Credit Card payments?

Would 5-25,000 dollars help out to relocate?

Interested to refinance at today’s low rates, but unable to?

Upcoming Free seminar this coming Monday November 7, 2011 at the Waterlefe Golf and River Club from 6-8 pm. Cyndi Riddell Will be on hand to update on the most recent changes with Bankruptcy law, Short sales, Mortgage loan modifications.

If you were wondering about the new program from Bank of America and Chase that will give up to 25,000 cash to upside down borrowers details will be available.

Learn about the newest Obama loan modification program through Fannie Mae and Freddie Mac. Even if you don’t have any equity in your home, there are no refinance programs that can allow you to take advantage of the historic low interest rates.

I hope that you can attend, please feel free to email or call, and we would be happy to get you information on the next upcoming seminar.

Posted via email from Joe Murphy Knows Real Estate in Bradenton

525 homes went pending in the month, and 431 homes were sold in the month of September.

This is typically the slowest time of the year for Real Estate for sale in Bradenton, and Sarasota Markets.  However I think that it has been brisker than last year, and homes for sale that have gone pending has increased by 8% from last September 2010.

The law allows lenders up to five years to file for a deficiency judgement, and up to 10 years to collect, which can be extended for another 10 year period.  So, you have 5 years for the lender to decide to go after you for allowing the home to foreclose and sue you for the difference between what was owed, and what they recovered through the sale.

This is just one more huge reason to try and do a short sale or deed in lieu with your lender instead of just letting the home foreclose.

Right now there are not many residential loans that lenders are seeking deficiency judgements, but there are some examples of commercial loans that the lenders are aggressively going after, and winning huge deficiency judgements. In many cases where the owners of these failed commercial deals the only option is Bankruptcy.

When I am helping my customer complete a short sale getting the lender to release any deficiency rights is a huge goal for us.  In the 100 plus short sales that I have successfully closed here in the Sarasota and Bradenton areas, I have yet to have anyone get sued for a deficiency judgement. I hope it stays that way.

Not all lenders are equal in their willingness to let short sale homeowners off the hook.  In one case with BBandT they were very reluctant to release their rights to a deficiency judgement.  In that case with BBand T the homeowner ended up having to offer cash at time of closing to remove the right for them to collect in the future.  Most lenders like Bank of America, Wells Fargo, and Chase have been much easier to deal with getting this deficiency right removed from the short sale.  I have had no issues dealing with Freddie Mac, and Fannie Mae with this issue as well.  In most cases Bank of America short sale approval letters will have the deficiency rights removed before we even have to ask.  Here’s to Bank of America Wells Fargo, and Chase for really improving their short sale efficiency over the past three years!  Short sales with Chase and Wells Fargo have not become quite as fast as Bank of America, but there is notable improvement.

I could see how some collection agents could start working these types of cases by looking for individuals that have assets that the lender could go after.  For example, someone that does a strategic default, and lets the home just foreclose, and then comes into a lot of money within that 5 year period would be someone that should be wary of this rule.

Right now I believe that we are not hearing about deficiency judgements against residential loans because of the huge amount of foreclosures currently in the system.  Eventually, when our market stabilizes those that have simply walked away and let their homes foreclose will have to be mindful of that 5 year period their lenders can decide to come after them.

I hope that if you, or someone you know is facing a foreclosure that they strongly consider doing a short sale instead.  I hope that you would call me, but regardless call someone.  No one needs to have the uncertainty of a lawsuit against them for 5 to 20 years.  As a short sale expert I have yet to see anyone get a deficiency judgement filed after a foreclosure, but I am sure that this will eventually catch up as our economy improves.

Given the current rate of absorption, we can be considered to be in a flat market, and close to a SELLERS MARKET.  I have to pinch my self when saying this, since for the past 5 years we have been in a Strong buyer’s market with prices dropping year after year. 

Short sales and Foreclosures continue to make up about half of those homes that sell.  And the absorption rate for bank owned homes in Manatee county is less than 30 days!  That’s quick.  Of the last few bank owned homes that I have written offers on all have had multiple offers.  Even the last two Short sales I have sold here in Bradenton had both more than one offer at the time they went pending.

So much depends on what happens to the huge back log of inventory that is some stage of foreclosure.  With over 16,000 homes in Manatee county in some active state of foreclosure our market could change if a huge amount of those homes came on the market at once.  The current bank owned and short sale inventory is just barely keeping pace with the demand for homes from buyers in the Bradenton area.

If you are thinking about selling, especially a move up, or downsizing, this might be a good time to consider making a move.  I would be happy to discuss what’s happening related to your personal situation.  Whether buying or selling please give me a call for all your real estate needs in Bradenton and Sarasota.  I am a short sale expert for Manatee and Sarasota county

Posted via email from Joe Murphy Knows Real Estate in Bradenton

I was impressed to see the argument presented for Compelling the lenders in the United States to agree to reduce the principle of underwater homeowners to the actual value of their home. 

As an experienced short sale real estate agent, I have seen too many families lose their home, and have a new owner buy it with a payment that they, the sellers, could have afforded.
 
“Why can’t they give me the same deal the new buyer gets?”  This is a common complaint that many people that are going through a short sale.  Here in Bradenton, FL there are almost half of all homes underwater.  With over 16,000 homes in some stage of foreclosure, and probably double that in people about to go into default, this could become worse.
 
The website that just launched the new bottom line, http://www.newbottomline.com/underwater_mortgages_report, really has a great proposal outlining the potential benefits and effects from a wide scale mortgage reduction program. 

I know many, people here in Bradenton that would welcome the idea of a lower mortgage payment, and not feeling the weight of being trapped upside down in the their home.  This will give those homeowners that really would rather stay n their home rather than short sale their home.  With less distressed homes to sell, the real estate market could start to stabilize.
 
I suggest that you take a look at the article, and if this makes sense, they even have a petition to send to every state’s Attorney General.  Let me know what you think?  I believe that principle reduction might be part of the solution to getting our economy back on track?

Do you think it’s fair for underwater home owners having their principle reduced?

Underwater Report

THIS IS A STARTLING SET OF PICTURES!    Note: The red dots show homes currently in foreclosure. The slide title describes the fraction of homes that received foreclosure filings in 2010  Although some of the worst hit areas in Nevada, California and Florida improved from 2009, the foreclosure rate in these areas remains high. For a way to visualize the foreclosure crisis, they borrowed a Google  maps technique described by Barry Ritholtz   . Keep scrolling down, Las Vegas is the big winner/loser with its number of foreclosures. 20) Boise, Idaho — 1 in 21 homes in foreclosure (The red dots show all foreclosures in process) Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 19) Sarasota, Fla. — 1 in 21 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 18) Lakeland, Fla. — 1 in 21 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 17) Tampa, Fla. — 1 in 20 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 16) Port St. Lucie, Fla. — 1 in 19 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 15) Sacramento, Calif. — 1 in 19 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 14) Naples, Fla. — 1 in 18 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 13) Deltona, Fla. — 1 in 17 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 12) Bakersfield, Calif. — 1 in 17 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 11) Reno, Nev. — 1 in 16 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 10) Vallejo, Calif. — 1 in 16 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 9) Orlando — 1 in 15 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. Merced, Calif. — 1 in 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 7) Stockton, Calif. — 1 in 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 6) Riverside, Calif. — 1 of 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 5) Miami — 1 in 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 4) Phoenix — 1 in 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 3) Modesto, Calif. — 1 in 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 2) Cape Coral, Fla. — 1 in 12 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 1) Las Vegas — 1 in 9 homes in foreclosure Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. BONUS: USA — 1 in 46 homes in foreclosure Image: Courtesy of Google Maps  Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. How ‘s that  ” Hope & Change “  working out for ya?

 

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Posted via email from Joe Murphy Knows Real Estate in Bradenton