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Gainesville – Distressed Sales Still Depress Home Prices

Gainesville – Distressed Sales Still Depress Home Prices – According to CoreLogic’s December 2011 Home Price Index, prices of homes nationwide went down almost 5 percent from 2010 to 2011. The culprit, according to CoreLogic, is likely to be the high prevalence of distressed sales. Prices dropped only by 0.9 percent if you eliminate distressed sales in the picture.

Downward pressure on home prices is expected to continue until distressed sales go down, according also to CoreLogic. Prevalence of foreclosures,such as Gainesville foreclosures, continues to restrain home prices from going up.

The states highly affected by this decline since the peak of the housing boom are Arizona, Florida, Nevada, California, and Michigan. High occurrence of foreclosures have been recorded in these states as well, according to a study presented by AOL Real Estate in February this year.

It is reported that in 2012 and 2013, millions more homes are expected to be added to the 2 million homes bugged down by foreclosure in 2011.

Filings of foreclosure – Gainesville Foreclosure– significantly declined in 2011 and it has been believed by experts that this event was due to the government’s initiative to repress banks from foreclosure abuses which include “robo-signing” – bank employees sign foreclosure documents without careful review.

Other Articles to Read:

Gainesville Short Sale Buyer Advantages

Short Sale Process – What to Expect

Gainesville Short Sales Hiring Incompetent Short Sale Agent

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 Sale Agents

  

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Short Selling and Renting from the New Owner – Gainesville Short Sales

Short Selling and Renting from the New Owner – Gainesville Short Sales

Gainesville Short Sales Question: Can a homeowner short sell his home and rent from the new owner with the possibility of buying it back after his credit is paid?

This may be a good idea but too risky to try. It’s not wise to enter into something that is uncertain especially when it has legal aspects to it.

The banks have varying standards and regulations when it comes to short sales. Short sale approval letters vary from bank to bank. But normally, banks set a condition that the occupant/seller cannot continue living in the home once the sale has closed. This could be considered a mortgage fraud and you might get into trouble. To be sure, it’s best to seek legal advice from your Gainesville short sale attorneys.

Criminal charges may be filed against you if the bank found out that you violated the parameters provided in the short sale approval. If you are an underwater homeowner and could no longer sustain your mortgage payments, it’s best to simple do a short sale.

Other Articles to Read:

Gainesville Homes Short Sale Update | Freddie Mac LP Relief Program Can Save Your Home

Gainesville Short Sale Update | Banks Are Calling Homeowners To Solicit Short Sales

3 Questions to Ask Before Hiring Gainesville Short Sale Agent

Short Sale Agents in Gainesville | What Gainesville Underwater Homeowners Say

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 Sale Agents

  

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Choose the Best Short Sale Offer | Gainesville

How to Choose the Best Gainesville Short Sale Offer

 

It’s always hard to choose among many choices and this applies when choosing a buyer for Gainesville short sales since short sales attract many buyers. It’s best to seek professional advice from your agent. But to get you started, here are some insights in choosing the best offer to your home.

The first thing you should consider is the short sale buyer’s eligibility for financing. It’s enticing to always go for the highest price without digging deeper into financing. You should ensure that the buyer is highly eligible.

Normally, the lenders give a 30-day leeway time on short sale approval. Once the short sale approval expires, the short sale needs to be re-negotiated and may take 2-6 months more lead time. With this in mind, you have to make sure that buyer’s financing gets approved. A little less price could be a better choice backed up by stable financing. Request for a copy of the buyer’s pre-approval letter as a proof that he has been approved for financing.

The price is only one aspect of Gainesville short sales. You should also carefully review the terms given with each offer. Know whether the buyer is demanding for fixtures such as furnishings and window treatments. See if you can meet those demands.

Always do your research with every offer that comes. If the offer has the highest price and best qualifications at the same time, then go for it.

It is important to have a pre-approval letter that has gone through desktop underwriting to prevent issues from arising. We have one short sale where the buyer’s lender was acting as the short sale buyer’s agent and the short sale loan mortgage broker.

In the state of Florida this is illegal, the real estate agent and mortgage broker cannot be the same person or within the same company. This agent almost cost us the sale altogether. Her communication was non-existent, the buyers called me for updates and she lied about who the loan officer truly was.

After 3 short sale lender extensions, I finally put my foot down and told her she either used one of the mainstream lenders or the seller would not extend any longer. Under no circumstances should a loan approval extension need to happen over the course of 30 days. The agent finally admitted she did not know what she was doing! Real estate licenses should not be so easy to get!

Other Articles to Read:

Gainesville Short Sales – Know Your Options

Real Estate Agents In Gainesville: Understanding FICO Scores

Foreclosure News Reports On More Loan Transferring

Gainesville FL Foreclosure News – Loan Modification Failures Are Rising

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 Sale Agents

  

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Gainesville Florida Lease Deposits During Foreclosure

Gainesville Florida Foreclosure News – Lease Deposits During Foreclosure – Delays on mortgage payments by the landlord result to a foreclosure. A judicial process for foreclosures is required in Florida; therefore, the lender must file a foreclosure case by court.

A notice of lawsuit is posted on the home. The landlord has the option to either negotiate with the lender or make full payment on the home in order for the foreclosure not to proceed. The tenants are also notified and this is through a notice posted on the home once the schedule for the foreclosure sale has been set.

To ensure recovery of lease deposits – for security, pets, etc. – from the landlord, Gainesville Florida renters should respond quickly as soon as the notice comes. Delay to act lessens their chance to get a refund. Renters should also inquire about the foreclosure in order to be guided on what to do.

Renters can file a lawsuit

Gainesville Florida renters who will be pressured to move out from the foreclosed home, according to Foreclosure news, can file lawsuits in state court for the damages. A breach of contract case may be filed in court for early termination cases. Claims of fraud may also be filed in court if the landlord continued collecting rent even after the home was foreclosed. The renter may be able to go to Small Claims Court for these charges depending upon the amount of lease.

Other Articles to Read:

Gainesville Homes Short Sale Update – Freddie Mac LP Relief Program Can Save Your Home

Gainesville Short Sale Update – Banks Are Calling Homeowners To Solicit Short Sales

3 Questions to Ask Before Hiring Gainesville Short Sale Agent

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 Sale Agents

  

Gainesville Short Sales – Know Your Options

Gainesville Short Sales – Know Your Options To save your home from being foreclosed, Short Sale Agents in Gainesville provide you with options. Review these options to know if they apply to your situation.

1. You may apply for the federal HARP program to know if you are eligible and to your lender’s preferred loan modification program. To know if there are any state programs available to you, go to this federal site. Also, you may apply to the Home Save program under the NACA.

2. You may try getting a second job. This will help greatly in saving your home although it is not often practiced since most people can’t even find a first job in this market. But for some who can, you should grab the opportunity.

3. You should cancel/pay off your credit card debt. Your credit card debt could be a big factor why you couldn’t afford your home. It’s time for you to consider getting heads on with your credit card debt. You may contact your creditors to make a settlement on your debt. You may also offer a lump sum payment, perhaps 50% lower than your balance. Although this will have tax and credit history consequences but it could be one of your best options in saving your home from being foreclosed.

4. You may start a small home business.

5. You may consider renting a room. Try advertising in Craigslist or Trulia for long term rental periods. Check on higher rental rates you can get by renting out your room to individuals who only need short term leases. This is a good option to raise funds quickly.

6. You may short-sell your home. On an average in Gainesville Florida, it takes 684 days for banks to foreclose on and repossess a home. You may have a chance to wait for a loan modification and do a short sale and be eligible for the Mortgage Debt Relief Act that is an income tax exemption which will expire on Dec. 31, 2012. In order to short sale you will first need to list your home for sale with an expert Short Sale Agent in Gainesville.

7. You should work with professionals such as expert real estate agents in Gainesville, Real Estate attorneys, CPA firms or expert certified public accountants if you are trying to apply for a short sale or loan modification. These professionals will provide options available to you.

The downturn in the housing market is now being perceived as the norm and many homeowners are getting pessimistic about their mortgages. Short Sale Agents in Gainesville encourage you not to give up. Your options in avoiding foreclosure are not limited.

Other Articles to Read:

What is a Short Sale?

Short Selling and Renting from the New Owner

Gainesville – Short Sale Banks are Offering Incentives

Are Gainesville Homes for Sale More Affordable?

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.

  

Short Sale Agents in Gainesville Encourage Homeowners To Take Action

Short Sale Agents in Gainesville Encourage Homeowners To Take Action – Are you a homeowner who has or had a financed or refinanced mortgage with OneWest, GMAC, JPMorgan, Washington Mutual, Chase, IndyMac, Citi, Wachovia, Wells Fargo, Bank of America, Litton, Saxon, or Ocwen? Or are you a homeowner who had transferred to another servicing agent within 2001-2009? If you are, then you may be qualified to apply for a settlement with the above-mentioned lenders.

Short Sale Agents in Gainesville believe that these lenders have intentionally falsified property value with inflated appraisals, shredded documents, and financed no income- no job- no assets loans, and allotted billions of dollars for settlements; although they do not acknowledge to be accountable. In the years 2001-2009, the creditors/lenders have generated billions in profit from homeowners and they have already foreseen this day. Short sale agents in Gainesville have discovered that many homeowners will be eligible for a settlement.

A lot of homeowners are experiencing foreclosure or have been dispossessed with large equity. To know your options and establish settlement intentions, Short Sale Agents in Gainesville encourage you to seek the guidance of an attorney specializing in mass joinders. Please check the following links:

Government Sues Banks for Selling Bad Mortgages
60 Minutes: Title companies forged title documents
‘In Progress’ Mortgage Litigation cases across the USA
Bank of America Settling Claims Stemming From Mortgage Crisis

A pre-trial demand/QWR is a means for these types of legal firms to make claim settlements.
They look for cash settlement, rate reduction, and a sizable principal reduction. These firms specializing in mass joinders opt for settlement instead of pleading the case in front of a jury, which is beneficial to homeowners.

So, do not procrastinate. It’s time for you to take action!

Other Articles to Read:

Gainesville Florida Lease Deposits During Foreclosure

Gainesville Florida Renter Rights During Foreclosure

Choosing the Best Offer for Gainesville Short Sales

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 – Why do Short Sales Not Close?

Gainesville Short Sales – Why do Short Sales Not Close?  How many times have you heard about that bank short sales do not close? When I speak with clients who are interested in getting a great deal through buying short sales, they are consistent in saying that short sales either do not close or take over a year to short sale.  I also hear this from Gainesville Real Estate Attorneys who refuse to handle short sales. Additionally, there are agents that act as if they understand short sales and make demands about timelines and statements without understanding how the timelines work and short sale process actually works.

What is the main reason you are not closing your Gainesville short sales?  Do you truly understand how to short sale?

  • If your ratio of closing short sales is not over 90% then you should not be listing short sales and you should refer them to a Gainesville Short Sale Agent that achieves this success rate or better.
  • Are you completing an evaluation with each seller prior to listing their home for a bank short sale.  This critical first step will provide you the information whether the home will close or not.

The last thing anyone should do is sacrifice a homeowner by getting a listing without taking into consideration you are gambling with their home and livlihood.  Not every homeowner will qualify for a short sale or are willing to dedicate themselves to the process.

Here are a few steps each Gainesville Short Sale Agent needs to verify and clarify prior to taking a listing:

  • Review the short sale package the seller turns into you – this should be completed prior to listing their property for a short sale and it will reveal whether there will be any issues that need to be addressed before listing the home.
  • Make sure the seller understandts the short sale process – You will know upfront if they are motivated to provide you the information necessary for you to help them through the process and if they are committed to participate, if you complete the intake properly there should be no reason for the short sale not to close.
  • Do not give up on the lender, do not give up on your seller (remember this is a very emotional process), do not act like a debt collector. This means you need to be the advocate, the one that brings the parties together for a successful close, the short sale agent that is dilligent, consistent, honest and assertive.
IF the seller is going to get foreclosed on next week- you don’t LIST the short sale! 
The odds are in your favor if you know how to negotiate a short sale that you will get your short sales closed. 

If you do not then you need to take a good negotiating course and short sale course such as the one offered by Katerina Gassett who has authored Short Sale Success. Do not take the listing if you lack the experience.  Additionally, you can work with an experienced agent and help them with their bank short sale listings. Yes they are time consuming and can be tough.  There may be days you speak to over 10 people at one short sale bank to get the right answer or to speak with someone who knows what they are doing!

Other Articles to Read:

What Gainesville Underwater Homeowners Say

Gainesville Short Sales – Know Your Options

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 is HAFA?

Gainesville Short Sales – What is HAFA? HAFA Program…an alternative option to foreclosure. Foreclosure is a very difficult experience for a homeowner to endure. If you are a homeowner facing foreclosure we understand that exploring all alternative options is very important. We are fortunate that there are alternatives out there when facing foreclosure.

A short sale on your home is normally the best alternative for foreclosure for most homeowners. If you are in the process of doing a short sale or deed in lieu on your home, and have been turned down for a loan modification, there is a program out there offered by the government called the HAFA Program.

HAFA stands for “Home Affordable Foreclosure Alternatives”. The Treasury Department introduced the HAFA Program in 2009, as an option for homeowners that were not able to keep their home through the existing HAMP Program, which stands for “Home Affordable Modification Program”. The HAFA Program took effect on April 5th 2010 and will continue through December 31, 2012.

The HAFA Program was designed to compliment the already existing HAMP Program or “Home Affordable Modification Program”. This program was set up to provide an alternative option for current homeowners who are HAMP eligible however, still for whatever circumstance is not able to keep their home. HAFA uses the homeowners financial and hardship information that was already collected when the borrower applied for a loan modification.

HAFA allows the homeowner to receive pre-approved short sale terms before listing their home and allows the homeowner to be released from liability down the road on their first mortgage note.

HAFA Program provides the borrower (homeowner) financial incentives, if they qualify for this program. A few of the incentives include a relocation assistance package of $3,000, administrative and processing costs of $1,500 to the servicers handling the short sale and up to $2,000 for investors who give a total of up to $6,000 in short sale proceeds. These proceeds are to be given to subordinate lien holders.

The HAFA program has requirements for all servicers that participate in the HAMP Program. HAMP program participants will need to implement HAFA in accordance with their own written policy. This will also need to be consistent with the investors guidelines. In short policies and guidelines may vary per financial institution.Each financial institution is given the opportunity to make their own interpretation of the HAFA guideline book.

HAFA Program guidelines have changed twice since January and there is always a possibility for more change. We cannot stress the importance in making sure that you do your homework, and choose an experienced and knowledgeable licenced real estate agent. This is important because not just any agent will be able to maneuver you through the process of a successful short sale, and other foreclosure options.

When dealing with government programs there is a lot of red tape to get through, and time lines to meet. To find out more about the HAFA Program and other alternatives to foreclosure contact our office with any and all questions that you may have. Our agents are experience and knowledgeable in short sales and programs like HAFA.

Other Articles to Read:

Loan Modifications For Gainesville Short Sale

Banks Are Calling Homeowners To Solicit Short Sales

What Gainesville Underwater Homeowners Say

Short Sale Agents in Gainesville Encourage Homeowners To Take Action

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