Miami Condo Short Sale Contract Tip #8

Short sales of Miami condos and homes are often a great way for a buyer to get an excellent deal on a property and a seller to get out from under an upside down mortgage with hopefully less damage to credit and his or her pocketbook.  This is the eighth of several blog entries, in no particular order, each with a tip for the buyer or seller or both, to help make sure the deal goes smoothly while giving protection to one or both parties.

Miami Condo Short Sale Tip #8:

Short Sale Lender Approval–You are not special.  Sellers MUST work their approval or it may never happen. The short sale department of any given lender has  been hired to process and approve short sales.  They will tell you what they will approve and what they feel the value is of the short sale property.  That being said, a short sale seller and his or her agent must submit all the proper paperwork and MUST follow the short sale lender’s directions!  The short sale lender will have an abundance of applications, and will not treat your application as a priority or otherwise special.  One negotiator stated that he had 300 files other than one one in question, thus, none of those files will get special attention.  Nor will the processor go out of their way to make sure they receive the required documents.  In fact, the seller’s only notice of a missing document or document in need of an update, may be a letter mailed via USPS.  To get a short sale approved in a timely manner, it is important that the seller or agent calls on a regular basis to make sure the person currently in charge of the file has everything they need.  A good suggestion is to call at least twice a week and always helpfully ask “do you have all the documents needed?”  and “are there any documents which need to be updated?”  Often the answer to the first will be “yes” but to the second, “well actually we did send out a request to update the ‘whichever’ form.”  At that point you can say “what is your fax–I will send it now!”

The “it is in the lender’s hands now” approach will often result in a painfully long short sale process, and often a sale that fails to close, as the buyer decides to cancel and buy a REO property.   If your Realtor is acting as your short sale agent, make sure you get a guarantee that they will call on the file twice a week and keep you updated.  As a seller be sure to promptly provide any needed documentation.  If your agent cannot commit that time, find a new agent to process your approval.

http://www.southptc.com/short-sale-miami-florida-attorney.html

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Miami Condo Short Sale Contract Tip #5

Short sales of Miami condos and homes are often a great way for a buyer to get an excellent deal on a property and a seller to get out from under an upside down mortgage with hopefully less damage to credit and his or her pocketbook.  This is the fifth of several blog entries, in no particular order, each with a tip for the buyer or seller or both, to help make sure the deal goes smoothly while giving protection to one or both parties.

Miami Condo Short Sale Tip #5:

Short sale negotiation.  To complete a short sale, the seller, or an agent working on the seller’s behalf, must interact with the seller’s lender(s) and get them all the documentation they need to approve the sale.  This also includes somebody being available to allow the appraisers into the property when the lender sends them.  It is important that the buyer ask and understand who is taking on these duties, and it is also important that the closing agent be on the authorized list with the lender to inquire after the progress of the process.  Many times this is where a breakdown in the process can occur, because the lender fails to communicate to the seller that additional or updated documentation is needed, and if the seller, or agent is busy with other tasks and fails to respond, this lack of information can stall out the file for weeks or even months until it is provided.  Having the closing agent in the loop with directions to contact the seller’s lender at least once per week to inquire as to the status will help guarantee that the process moves along as fast as reasonably possible.  Seller’s who are unwilling to disclose who is negotiating or allow the closing agent access are likely going to cause the whole process to slow down and have little or no additional oversight, and a buyer should carefully consider if it is a deal in which is is worth investing their time.

http://www.southptc.com/short-sale-miami-florida-attorney.html

http://www.southptc.com/florida-title-company.html

Miami Condo Short Sale Contract Tip #2

Short sales of Miami condos and homes are often a great way for a buyer to get an excellent deal on a property and a seller to get out from under an upside down mortgage with hopefully less damage to credit and his or her pocketbook.  This is the second of several blog entries, in no particular order, each with a tip for the buyer or seller or both, to help make sure the deal goes smoothly while giving protection to one or both parties.

Miami Condo Short Sale Tip #2:

One buyer contract.  As previously mentioned, make sure that there is a bona fide Short Sale Addendum to the contract, the most common being the FAR form.  In this Addendum, make sure you cross out or otherwise invalidate the provision allowing the listing agent to submit more than one contract to the seller’s lender.  This is important because the administrative process for the sellers’ lenders is already very slow, and to submit several offers to the lender and have them choose what supposedly is the best offer is likely a waste of time for everybody.  The seller and listing agent should keep it simple, pick a serious contract, and push the lender to accept it and approve it.   Taking back-up contracts is also reasonable, but they should not be sent to the lender as it will confuse things.  The lender should be called a minimum of once per week after submission, if not twice to keep things moving.

http://www.southptc.com/short-sale-miami-florida-attorney.html

http://www.southptc.com/florida-title-company.html

Miami Condo Reverse Mortgage

Miami Condo and home reverse mortgages are one of the recent targets of fraud schemes in the Florida real estate arena.  Reverse mortgages, whether on a Miami Condo or home anywhere in Florida or the United States, by definition allow senior property owners (defined as age 62 years or older) to borrow against the equity in their homes without the hassle of having to secure a normal equity line of credit.   In particular, as part of the Housing and Economic Recovery Act of 2008, senior homeowners are now able to use a reverse mortgage to purchase a primary residence.  Unfortunately less than reputable sellers and developers are using the new rules to sell low quality properties, often with inflated values,  to seniors who may not be fully aware of the estate planning issues and the complete cost of ownership of the properties, including furnishings, taxes, utilities, condominium fees, special assessments, and other unfamiliar fees.   Additionally, to avoid the down payment requirements, some sellers contract with the senior buyers to “give” or otherwise deed them the properties first, with the subsequent requirement of completing  reverse mortgages to pay for the “gifts.”

Many Florida reverse mortgage companies will focus on their job of getting the reverse mortgage application properly completed and approved for the Miami condo or other property, rather than the underlying property quality, estate planning issues, or individual ramifications of the decision.  Reverse mortgages are more complicated than standard mortgages, and have many different and generally substantially higher fees.  As a result, borrowers, and where appropriate, their families, should always consult BOTH a Board Certified Real Estate attorney AND a Certified Public Accountant before signing the paperwork.  This will cover both the legal and estate planning issues involved.

http://www.southptc.com/reverse-mortgage-attorney-miami.html

http://www.southptc.com/florida-home-refinance-mortgage.html

Miami Condo Foreclosure Rescue Fraud

Miami condo and home buyers, sellers and owners were recently given some protection and education when recent laws were passed by the Florida Legislature to help educate and inform Florida residents about fraudulent foreclosure rescue and avoidance schemes.  A recent article byJ. B. Davis of Attorneys Title Insurance Fund, Inc., describes, in part, the basics of the legislation as follows:

“Session Law Ch. 2008-79, HB 643, concerning foreclosure fraud and the regulation of mortgage rescue companies, was passed by the Florida Legislature creating Sec. 501.1377, F.S., which became effective Oct. 1, 2008. The newly created statute targets “foreclosure-rescue consultants” and “equity purchasers” in an attempt to protect homeowners who may be vulnerable to fraud, deception and unfair dealings as a result of being in default on their mortgages, in foreclosure or at risk of losing their homes. Sec. 501.1377(1), F.S. Under the statute, persons or entities engaging in foreclosure rescue schemes must now disclose the terms of the transaction in a written agreement and provide homeowners with the opportunity to cancel a conveyance of their home in advance of a closing.

At the outset, it may be helpful to recognize that the statutory scheme differentiates between “foreclosure-rescue consultants” and “equity purchasers.” Sec. 501.1377(2)(a) and (b), F.S. Foreclosure-rescue consultants provide services defined as “foreclosure-related rescue services” and the written agreement required to be provided is a “foreclosure-related rescue services agreement.” Sec. 501.1377(2)(c) and (4), F.S. An equity purchaser, on the other hand, seeks a conveyance of the homeowner’s subject property to the equity purchaser and the homeowner retains a legal or equitable interest in the property being conveyed. Such transaction is defined as a “foreclosure-rescue transaction” and the written agreement required to be provided to the homeowner is a “foreclosure-rescue transaction agreement.” Sec. 501.1377(2)(d) and (5), F.S. A foreclosure lis pendens must be of record in connection with a foreclosure-rescue transaction by an equity purchaser, but a foreclosure lis pendens may or may not be of record where a transaction involves a foreclosure-rescue consultant who provides foreclosure-related rescue services.“

Although the details of what is and what is not improper foreclosure rescue services may be unclear or otherwise difficult to fully understand, the important thing is to always get the appropriate WRITTEN agreement of the terms of service, and always get a second or even a third opinion from a Board Certified Real Estate Attorney and/or an experienced mortgage and lending law attorney.

 http://www.southptc.com/foreclosure-attorney-miami-florida.html

http://www.southptc.com/real-estate-closing-attorney-miami.html

Miami Condo First Time Home Buyer Free Tax Credit

United States Congress, in February 2009, altered the first time Miami condo and home buyer tax credit, making it $8,000.00, and eliminating the repayment requirement.   First time Miami condo and home buyers can take advantage of this primary residence tax credit through December 1, 2009.  Unless Congress votes to extend the program, buyers need to be sure to take part in the program by December 1, 2009.

According to the IRS Website:

“For 2009 Home Purchases
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase.

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.“

http://www.southptc.com/reverse-mortgage-attorney-miami.html

http://www.southptc.com/real-estate-attorney-miami.html

Miami Condo Real Estate Agent

http://www.southptc.com/miami-beach-real-estate.html

http://www.southptc.com/florida-title-insurance-rate.html

Here is a copy of the Florida Department of Revenue Form DR-430, including the instruction: 

Florida Department of Revenue DR-430 now required Page 1

Florida Department of Revenue DR-430 now required Page 2

http://www.southptc.com/florida-closing-cost-calculator.html

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Mortgage finance giant Freddie Mac said this past week that average rates on 30-year fixed-rate mortgages fell to 4.82 percent this week, down from an average of 4.87 percent last week.  According the the Florida Association of Realtors, the all-time low of 4.78 percent was recorded on the week of April 2. Freddie Mac’s survey dates back to 1971.