Stephanie Anson

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Gainesville Short Sales – Should I Stop Paying My HOA?

Gainesville Short Sale – Should I Stop Paying My HOA? If you are a Gainesville homeowner considering a Gainesville Short Sale or already in a Gainesville short sale you will want to ensure you continue to pay your HOA dues. For reference in this blog post we will refer to HOA neighborhood or condo association fees as HOA Fees. Based on our experience and based on all the sellers that we have worked with living in HOA communities, failure to pay your HOA fees may result in a foreclosure and/or lien placed on your Gainesville home.

Even if the short sale bank told you to stop making your mortgage payments,you have stopped out of necessity or it is a strategic decision you; still need to continue to make those HOA payments. Failure of payment can cause the Gainesville short sale to fall apart.

This past year the State of Florida legislature passed very strict HOA rules to benefit the HOA’s. Your HOA payments typically go to taking care of common grounds, amenities, entrance signs, insurance for the roof or building if applicable, lawn care, etc. When these payments are not made it causes the HOAs to have financial distress and they will have to assess the rest of the paying community in order to maintain and keep up with the expenses.

The remaining Gainesville homeowners have been very displeased with having to carry others expenses. They are going to these board meetings and are demanding the HOA board to stop making deals on behalf of those Gainesville homeowners facing foreclosure. They have to pay the full amount plus take care of others and they are screaming it is not fair.

So in the past year it has become extremely hard to negotiate with the HOA Board of Directors or Property Management Companies for this reason alone. Once you become delinquent they the Gainesville HOA will hire an attorney and now the attorney’s fees are tacked on to your back owed dues and they can sue for FORECOSURE.

Now your bank does have first position for your Gainesville foreclosure, however it does not stop the HOA from foreclosing and they do it as “subject to the first”. The first still retains their right to foreclosure, but the HOA does it under the new law and can seek a judgment. Through the judgment your wages may be garnishedand if they recover the unpaid assessments they do not have to waive any claim of the lien against your Gainesville home. They can cut off your access to amenities; they can evict you, rent out your unit if it is vacant or confiscate the rent directly from your tenant and even charge you rent. The money will go to taking care of arrears, attorney’s fees, etc.

This makes selling your Gainesville short sale difficult or impossible and the bank has placed limitations on how much they will pay towards the back owed HOA fees and sometimes will not contribute at all. Sometimes if you have a cash buyer they may be willing to cover those fees. For additional information review >Florida Statutes Chapter 720 Part 1 General Provisions ss 720.3085

Other Articles to Read:

What is a Short Sale?

Short Sale Process – What to Expect

Short Sale Top 10 Questions

Do I Have to Pay for the Real Estate Agents Commission?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.

Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.

  

Gainesville Short Sales – What Happens in a Short Sale if I Have More Than 1 Mortgage?

Gainesville Short Sales – What happens in a short sale if I have more than 1 mortgage? During the Gainesville Florida Real Estate boom many new buyers bought a home and paid more than it is currently worth and even possibly closed with an unfavorable mortgage such as an interest only or 80/10, 80/20, or 90/10. Many Gainesville FL homeowners who had already owned their home may have taken out a second mortgage or a HELOC (Home Equity Line of Credit).

Gainesville short sellers typically have loans that are 80/10/10, 80/20 or 90/10. In a standard conventional loan the seller will borrow 80% of the purchase price while putting 20% down (80/20). For those who took out a HELOC, they may have used this money to buy another car, remodel their Gainesville home, pay down debt, send their kids to college or used for another purpose other than the purchase of their Gainesville home. Another addition to the monthly payment and party to the short sale is the PMI or private mortgage insurance. This applies if you did not have the 20% to put down when you purchased your Gainesville home.

In a traditional Gainesville short sale the short sale package is submitted to all lenders referencing the loan with that specific bank. In some instances the first and second mortgage are with the same short sale bank. It is important to process both at the same time; some short sale banks take longer than others. The short sale bank that is in second position and the primary must negotiate to an agreement of how much the second mortgage lien holder is to receive in order for the Gainesville short sale to be successful.

If the homeowner has elected to do a Gainesville short sale and qualifies for HAFA the second will only be allowed to receive up to $6000 towards the amount owed. The primary and secondary are both required to waive the deficiency.

In a traditional Gainesville FL short sale the second mortgage becomes an issue when a large amount is owed such as $50,000 or more. They typically do not want to accept a small amount from the first lien holder (first mortgage short sale bank). Some junior lien holders with an interest in the property may object to the amounts other lien holders are receiving. It is possible for any one lien holder to prevent a Gainesville short sale by refusing to agree to negotiate a reduction in their payoff to release their lien.

There are different ways to work out that amount such as a promissory note, cash to close or maybe even the buyer is willing to partake in helping out.

If the Jr. lien holder is a HELOC the lender can pull credit and see what the money was used for. Maybe you took out $75,000 and used it to buy a new vehicle and some to update your homes landscaping. You will have a car without the car payment and the short sale bank will not see it favorably and in most cases will want a promissory note or cash at closing. In essence you just gave yourself a car payment. If you did not have the money to use to purchase the new vehicle you would have car payment and that is how the short sale bank looks at it.

When you stop making those payments on the HELOC or the second mortgage the bank understands they cannot foreclose because they will not get anything in the Gainesville foreclosure sale. Instead what they are doing is letting go of the real estate security since there truly is not any and they are going to sue on the promissory note.

When you take out a loan you are signing a promissory note that you are going to pay the bank back. Then you are saying sorry Mr. bank I do not have any money or anything to offer you as collateral but my house and that becomes your mortgage instrument. So they do not focus on the mortgage since they are in second position and they in turn focus on the promissory note and sue you for and seek a judgment.

Then the Gainesville underwater homeowner will not have another alternative but to pay or file for bankruptcy, if they even qualify for it. This is why a Gainesville short sale may by your best option.

Other Articles to Read:

When can you obtain a mortgage again after Bankruptcy – Short Sale – Foreclosure?

My Gainesville Short Sale Appraisal Came in Low, Now What?

Distressed Sales Still Depress Home Prices

Short Selling and Renting from the New Owner

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.

  

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Why Don’t I Just Let the Bank Foreclose?

If you are a homeowner in distress, foreclosure should be the last option you consider. If you have closed a successful short sale you should receive a 1099 in the mail. Everyone who has sold short their home receives a 1099 for the difference of what they owed on their mortgage and what it sold for. However, if you lived in your home for 2 out of 5 years you may qualify for The Mortgage Forgiveness Debt Relief Act. This will allow for that debt to not be held against you for when you file your taxes.

The Mortgage Forgiveness Debt Relief Act is currently in place through 2012, meaning your Gainesville short sale must close prior to the end of 2012. Visit www.irs.gov or speak to your CPA to find out additional information. The act will allow for the debt to be forgiven and secondly, the bank will also forgive you for that loss and will not seek a deficiency. Florida is a deficiency state which means they can come after you for the loss you still owe them.

In 90% of our Gainesville short sales we have been able to negotiate the waiver of deficiency. This is not a guarantee and it is based on each seller’s own unique circumstances. If you qualify for HAFA, the program will give a release of deficiency as part of the program guidelines. It is easier to have a deficiency waiver if you financially insolvent or if you are unemployed. If you have money, many times the waiver of deficiency is subject to a cash settlement. You may be offered 2 different cash settlements. One will be for a lower amount, for example $5,000 cash to close, while the other may be $10,000 at 0% interest with payments of $55 over the course of 15 years.

These are much better reasons than to do a foreclosure in Gainesville. Take into consideration this scenario:

Let’s say you owe $250,000 on your Gainesville home, you bought it for $278,000 and it is now worth $150,000. A $100,000 difference in what you owe the short sale bank and what the home is worth. A buyer contracts on your home for $150,000 and the short sale bank agrees to the short sale, agrees to waive the deficiency but comes to you and asks for you to come to closing with $5000 or take a unsecured note for $10,000 at 0% interest payable over 15 years at $56 a month.

You say no and the home ends up in foreclosure, is resold after being carried by the bank for a year from the foreclosure date to resale. In the interim the Gainesville home deteriorates slightly from nobody living in it and causes the value to go down by 15% and the sales price is $127,500. The short sale bank incurred taxes of $2800, attorney’s fees of $12,000, Realtor commissions of $7,600, carrying costs of $3300 for utilities for the year and $3500 in miscellaneous expenses. The $100,000 difference in the short sale price to what was owed is now $151,700 that the bank may seek a judgment against you for that amount. This is a big difference between possible out of pocket costs and not to mention how your credit will be affected. Keep in mind if you foreclose and a judgment is sought, your wages may be garnished. Certain criteria must apply for this to happen. Please seek legal advice from an attorney.

Credit should be another consideration. With a Gainesville FL foreclosure it is listed on your credit report as such and you will have to wait 5 to 7 years to purchase another home. With a short sale, the bank will report paid in full as agreed or paid less than agreed and you will have the ability to purchase again with FHA in 2 years after the short sale.

 

Other Articles to Read:

Gainesville Homes For Sale Report On Short Sale Alternative Right Party Contact Program

3 Questions to Ask Before Hiring Gainesville Short Sale Agent

Options To Prevent Gainesville Foreclosure when Unemployed

Do I Have to Pay for the Real Estate Agents Commission?

 

Call Stephanie Anson today at 352-535-0620 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.

Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-535-0620 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

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Gainesville Short Sales – Do I have to pay for the Short Sale Real Estate Agents Commission?

Gainesville Short Sales – Do I have to pay for the Short Sale Real Estate Agents Commission? Question number 8 of the top 10 questions asked about Gainesville Short Sales is…Do I have to pay for the Short Sale Real Estate Agents Commission?

Technically the listing agreement is between the Gainesville seller and Gainesville listing broker.

The short sale bank does not sign the listing agreement because they do not own your property and do not retain title to the home. Florida is a judicial and deed state meaning the bank would have to go to court in order to force you to sign over title to them such as in a foreclosure.

The listing agreement does make the seller responsible for the commission, however, there are short sale addendums that Anson Properties uses that state the seller is experiencing financial a hardship and they will not be responsible for any commissions or fees to the listing brokerage and any commissions will be paid at closing without it being an out of pocket expense by the seller.

The short sale bank may negotiate down the commission in order to approve the short sale and both the listing agent and buyer’s agent sign an addendum agreeing to this up front.

Here is how this process works:

When the offer comes in it should be reasonable and not too far below Gainesville fair market value. Low ball offers will only delay the Gainesville short sale process because they ultimately are not accepted by the seller’s short sale lender and only causes a delay in the short sale itself. The home is also taken off the market for a specified period of time only to come back on again for a more serious buyer. Anson Properties will encourage the seller to only accept and work with a reasonable offer that should be submitted to the short sale bank.

The short sale bank will want to know what the associated fees and costs of the transaction are. This includes Gainesville real estate commissions, attorney’s fees (if they pay them at all), Gainesville taxes, closing costs, seller contribution to buyer’s closing costs (if any), and any HOA fees, etc. They request what is called a HUD1 or closing statement in order to see the breakdown of costs.

Working backwards, the short sale bank will determine the net they require for the Gainesville short sale payoff and will add on the associated costs mentioned above onto the HUD to determine the approved short sale value and approval of offer. Sometimes they will require a reduction in commission or reduction (maybe even exclude) any of the associated fees, a cash contribution by the seller or request the seller to sign a promisory note at closing in order to provide the approval letter.

With the HAFA program the Gainesville Short Sale value is pre-determined for the listing price and the home is advertised with accordingly. On a traditional Gainesville short sale the listing agent does a market analysis using recent sales of like kind properties in order to recommend a list price to the seller.

The price will be slightly more aggressive than a traditional listing in order to get the home under contract fairly quickly. It should not be priced too low because the bank will deny the Gainesville short sale. They do their homework and will hire a third party to provide them a market evaluation such as a BPO (Brokers Price Opinion) or appraisal.

For the seller, this means the Real Estate commission is paid at closing and will not be coming out of their pocket at the closing table.

Other Articles to Read:

Short Sale vs. Foreclosure

How Long is a Short Sale?

What Happens in a Short Sale if I Have More Than 1 Mortgage?

Freddie Mac LP Relief Program Can Save Your Home

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.

Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.

  

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How to Avoid Short Sale Scams

How to Avoid Short Sale Scams

As a homeowner in distress and looking for answers, the first question you want answered is what is a short sale, Can I short sale and then you want to know how to short sale, who to speak to and what Gainesville short sale information is reliable.

Here are a few recommendations to pay attention to when wanting to know how to short sale in Gainesville. If a short sale company calls you and guarantees you a short sale be very skeptical. There are too many variables and unique circumstances of every homeowner for a Gainesville short sale to be guaranteed.

If a short sale company or Gainesville short sale agent wants to charge you money up front then you need to call the state Attorney General’s office because it is illegal in the state of Florida for any company to charge you an upfront fee to short sale your Gainesville home. Attorneys can charge a retainer fee and are the only exception to this.

As an agent when answering how to short sale a common question I get pertains to companies or investors that say they will buy your home and process the short sale and whether or not they are a legitimate avenue in how to short sale. If they want you to sign over the deed to your Gainesville home; do not in any circumstance enter into this type of transaction until you have done your homework. While there may be some legitimate companies out there most are not.

You should never sign over the deed in any circumstance; this third party may persuade you to do so because they will now have control over what happens with the sale of your home. The companies that advertise they buy ugly houses or we will pay cash for your home no matter how much you owe should be held at arm’s length

You need to first to know the answer to Can I Short Sale my Gainesville home. Attorneys can charge you a retainer fee and they can also process a short sale for you. There is not guarantee that your short sale will close. Short sale banks are not required to do short sales and they are constantly changing their policies and procedures.

Be very careful who you share your personal information with. We will do an intake evaluation interview with you over the phone and our conversation is confidential. We then will do another consultation where we will cover the short sale process, explain our staff’s responsibility as it pertains to you and answer any questions you may have.

Other Articles to Read:

How Long is a Short Sale?

Why Don’t I Just Let the Bank Foreclose?

What Can a Short Sale Agent do for Me?

3 Questions You Should Ask Before Hiring a Gainesville Short Sale Agent

Call Stephanie Anson today at 352-535-0620 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.

  

Gainesville Short Sales – How Long is a Short Sale?

Gainesville Short Sales – How Long is a Short Sale? How long is a short sale in Gainesville is a very common question. This really depends on the short sale bank, their processes, seller motivation, proper buyer expectations and understanding how to market property.

Each short sale bank has its own policies and procedures on how to work through and process a short sale. To understand how long is a short sale; we need to first understand the when the traditional short sale process starts. Once the home is listed and receives a contract is when the Gainesville short sale process truly starts. The short sale offer is then submitted to the bank along with any short sale bank addendums, financials and additional required paperwork. The short sale banks are notorious for losing paperwork and requesting documents to be uploaded or faxed. The seller(s) and buyer(s) also need to be very motivated in returning paperwork in a timely fashion. Many short sale banks are now placing deadlines on files for completing requests or they will close the file and the short sale process will have to start all over again. You may already be familiar with this if you have tried completing a loan modification. This will add time to how long is a short sale and always stalls the short sale process.

Another factor affecting how long is a short sale is when the short sale bank switches or hires new personnel or negotiators or dealing with untrained staff that do not know the answers. Each short sale bank has a short sale department with customer service representatives who may be able to view and access the file but rarely have the answers to important questions or any authority to move the file forward. Another delay is when the short sale is being processed by a short sale bank that never assigns any one specific person to the file and it is managed through a centralized HUB, this means the left hand does not know what the right hand is doing.

Once the file comes out of document review it is assigned to a negotiator who will then order what is called a BPO (Brokers Price Opinion). The seller will need to make accommodations for this inspection to take place and this can take up to 2 weeks. If the offer and BPO are favorable to each other terms are provided to the seller and an acceptance or counter of price is provided to the listing agent to correspond with the buyer’s agent. If all are in agreement the file moves to the investor for final review and approval. Once approved the approval letter is provided.

As simple as this process may seem it takes on average 4 – 6 months from offer contract to closing to process a short sale. Many can be short sales can be completed in 60 days but all parties must be motivated and on board with turnaround time. This can be a very emotional process for sellers.

In reducing the time of how long is a short sale, Anson Properties LLC maintains call and email records for accountability purposes and for use of escalating files as necessary if there are roadblocks or mishandling of a file by the short sale bank. Anson Properties LLC has a team that works on your file. Each member of our team handles specific actions in order to expedite your Gainesville short sale from time of listing to the successful closing.

Some tips in reducing the “how long is a short sale” time frame, keep either a physical or digital folder that you place your pay stubs, bank statements and all other financial paperwork in because the short sale bank will request updates and you will be able to turn that around in a timely fashion.

Other Articles to Read:

Gainesville Short Sale Myths

Do I have to pay for the Short Sale Real Estate Agents Commission?

What Happens in a Short Sale if I Have More Than 1 Mortgage?

What Can a Short Sale Agent do for Me?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.

  

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3 Questions You Should Ask Before Hiring a Gainesville Short Sale Agent

Gainesville Short Sales – 3 Questions You Should Ask Before Hiring a Gainesville Short Sale Agent

It is imperative that as a Gainesville homeowner you do your research prior to choosing an agent to work with when considering to short sale your home. Choosing the right agent can make the difference between the success or the failure on your short sale. There is much at risk and you have much to lose if you do not do your due diligence. The short sale can be denied and the home foreclosed resulting in a deficiency that can lead to wage garnishment. It will have a huge impact on your credit and you will not be able to buy another home for over 5 years or more. If you hold a financial position or security clearance you may lose your job and or clearance.

It is just as important that your agent knows how to evaluate the buyer and buyer’s agent to ensure the proper expectations are set. Nothing worse than getting close to the approval letter for the buyer to walk or only be half interested and find this out after spending many hours and time working through the short sale process.

So here are the questions I would ask an agent before hiring any agent!

Question #1: How many short sales have you listed and sold in the past 6 months?
Banks are consistently changing their policies and procedures and you will want an agent that is familiar and experienced in managing these updates.

Question #2: In the past, what lenders have you negotiated short sales with?
There are many small short sale bank lenders, however, your agent should be familiar with the largest banks policies and procedures. Lenders such as Bank of America, Chase, Wells Fargo and SunTrust are the most prominent with short sales

Question #3: What is your success rate on getting short sales approved? Look at the agent’s track record and ask for specifics about how the transaction was processed, the challenges and how they were able to overcome them. Hard work is shown through diligence and persistence.

Other Articles to Read:

What is a Short Sale?

Short Sale Process – What to Expect

Short Sale Top 10 Questions

Do I Have to Pay for the Real Estate Agents Commission?

 

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.

Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.

  

  

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