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Post Foreclosure - Real Estate is in
this phase is typically what Agents think of when they hear a property
labeled as a Foreclosure.
The bank has taken back the property from the
homeowner and now refers to the home as Real Estate Owned or REO.
An experienced Real Estate Agent will guide you through the process and
also locate real estate selling for bargain prices and not in
foreclosure.
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A pre-foreclosure sale is an agreement between a home,
business, or property owner and the lender to accept a lower payment on the
mortgage owed, if the property can be sold within a few months. The
pre-foreclosure sale is an alternative to a foreclosure, and will
potentially do less harm to a person's credit score than a foreclosure. When
pre-foreclosure sales are successful, the home's former owners will be
eligible to purchase a home or property within two or three years.
Considerations - Not all foreclosure threatened homeowners are eligible to
attempt a pre-foreclosure sale. In order for a homeowner to sell their home
through a pre-foreclosure sale they must meet one or more specifications.
One specification is that a home or property's value must have dropped.
Another sample specification is that the homeowner may not own any other
valuable properties that could be sold as collateral.
Homeowners in danger of a foreclosure may wonder if a pre-foreclosure short
sale is a better way to go. A short sale takes place before foreclosure
where the lender agrees to accept less than what is owned on the mortgage.
One of the major issues to consider when determining if a mortgage
foreclosure or a short sale is best for you is the affect on your credit
scores and your ability to buy a new home in the future.
What's the difference between a foreclosure and a pre-foreclosure short
sale?
While the mortgage foreclosure process may give you more time in your home
before you have to move, home foreclosures affect your credit scores
drastically. Industry experts state that a mortgage foreclosure or a
deed-in-lieu of foreclosure can drop a consumer's credit scores between
250-280 points. A short sale will still show on your credit; however, it
will show as "a pre-foreclosure in redemption status" and the affect on your
scores will be between 80-100 points.
Remember, the asking price on a short sale is not a
firm commitment to sell at that price. A short sale is a property that sells
for less than the seller's mortgage balance creating a loss for the seller's
lender. Most times asking prices will or will not, reflect a price that the
seller's lender is willing to accept. The listing real estate agent decides
how to price the property. Some advertise an unrealistic low price on the
real estate to attract buyers and to get a contract to submit. The lenders
give no advice on the price they'll accept, until after they have a contract
submitted. Many times they will when the lenders approval is given, it could
contain conditions that the seller can't or won't comply with, such as
repaying some of the lenders loss via a contract to repay.
The Mortgage Forgiveness Debt Relief Act
made it even cheaper for owners of primary homes. Before the legislation,
homeowners who persuaded a lender to accept a short sale had to pay income
tax on the loan amount forgiven by the lender. Under
the new law, they won't have to pay taxes on the forgiven amount, up to the
original mortgage amount on the purchase of the home.
Properties For Sale at Auctions. The amount of time before
auction varies ... but averages 3 to 6 months. A Florida real estate owner in
Pre-foreclosure can have a strong desire to sell
their way out of trouble. Foreclosure Statistic - Florida ranks in
the top 5 in the nation for short sales bank owned REO properties and
foreclosures
Nov. 29, 2010 – Fannie Mae and Freddie Mac gave the go-ahead to
restart sales of their foreclosed properties, which had been on hold since
September when it was revealed that flawed or fraudulent court documents may
have been used to repossess homes. Brokers received memos Wednesday from the
government-sponsored enterprises saying that the homes could once again be
marketed and sales finalized on properties already under contract. Fannie
Mae’s letter explains that evictions and lockouts are still suspended on its
properties. In South Florida, the move releases thousands of houses for sale
that were removed from the market earlier this fall, leaving buyers and
Realtors in limbo. Fannie Mae and Freddie Mac own or guarantee about half of
all U.S. mortgages, or 31 million home loans worth more than $5 trillion.
About 12 percent of Fannie Mae loans in Florida are delinquent, while
Freddie Mac has 17 percent of its Florida mortgages in arrears.
Oct 8, 2010 The country’s
largest bank, Bank of America is widening its investigation into the flaws
of the foreclosure procedures. As a result, foreclosure sales in all 50
states were put on hold. The bank previously froze foreclosure sales in
the 23 states where foreclosure must be approved by a court.
Bank of America, however, stresses that foreclosure process on delinquent
borrowers will still push through. The only procedures that they are
halting, according to their announcement, are the judgment and foreclosure
sales. We haven’t found any problems in the foreclosure process. What we are
trying to do is clear the air, ‘We will go back and check our work
one more time,’” says Bank of America President and CEO Brian Moynihan.
The review process being done by the bank will take a few weeks. In the
meantime, other banks are giving in to the pressure as well: PNC Financial
Services Group announced that it is also suspending foreclosure sales
for 30 days. Citigroup, however, refuses to make changes to its foreclosure
procedures saying the bank sees no reason to believe that employees are not
following proper policies. Ally Financial (previously GMAC Mortgage) and
JPMorgan Chase have also stopped foreclosure proceedings in 23 states. Ally,
though, have not yet commented as whether it will follow bank of America’s
expansion move.
Statewide existing condo sales in the first
quarter rose 19 percent compared to 1Q 2008. Sales of existing single-family
homes in Florida rose 25 percent in first quarter 2009 compared to the same
period a year earlier, according to Florida Association of Realtors.
May 2009 – Bank of America, one of the country’s largest mortgage
lenders, says it is loosening its policies on short sales in response to the
U.S. Treasury Department’s announcement last week that it would increase
incentives for lenders to work out short sale deals. In the past, the bank
followed Fannie Mae’s policy of giving second lien holders about 10 percent
of the second mortgage balance in a short sale. Now when it holds the second
lien, BofA will accept 5 percent of the net proceeds of the short sale,
Sunline says. When it is the first lien holder, it will offer 5 percent to
the holder of the second lien. Sunline says homeowners considering short
sales should contact the bank within five days of getting an offer on the
home and expect its cooperation as long as the offer is within the range of
other sales in the area and the borrower can demonstrate financial hardship.
The Mortgage Forgiveness Debt Relief Act of 2007
made it even cheaper for owners of primary homes. Before the legislation,
homeowners who persuaded a lender to accept a short sale had to pay income
tax on the loan amount forgiven by the lender. Under
the new law, they won't have to pay taxes on the forgiven amount, up to the
original mortgage amount on the purchase of the home.
Foreclosures - Florida ranks second in
the nation in foreclosures with 286,285, according to data collected by
RealtyTrac, a company that tracks foreclosures. The top five foreclosure
states are: California with 627,440; Florida with 286,285; Ohio with
115,954; Michigan with 112,969; and New Jersey with 64,636. Florida has
reported 178,850 new foreclosures since Jan. 1, with 15,877 in June. The
average sales price of a foreclose is $169,235. The top five Florida
counties reporting foreclosures in June are: Broward: 7,104; Lee: 5,132;
Miami-Dade: 5,087; Orange: 3,087; and Pinellas: 2,061.
4th quarter 2008- The credit markets were not settled yet, although the
mortgage market stabilized with the government takeover of Fannie Mae and
Freddie Mac. Inventory remained high, and price declines pressured owners. Additional housing stimulus would stabilize prices, which in turn would bring faster stability to Wall Street. Removing
the repayment feature on the first-time buyer tax credit and permanently
raising loan limits would bring more buyers into the market and further
reduce inventory.
Sellers who are forced out of
their homes are usually not pleasant to work with. The bank employees who
are just doing their jobs follow procedures that many times keep the buyer
in suspense. Because of the large amount of foreclosures, banks are
loaded with work and their response time could be lengthy. Even though
they want to sell a home, they will push to get the best price. They might not play by your rules, they have their own
paperwork and time frames. Unlike real home sellers, they’re not
really attached to the properties they sell. They could take 1-3 months just to
respond to your offer, and it could take sometimes 6 to 9 months to close a
transaction. In most of the cases, their counter-offer to the buyer will be
the actual appraised value which could be much more than the asking price
you saw in the (MLS) Multiple Listing System.
There is no guarantee that a lender who accepts the short sale will not
legally pursue a borrower for the difference between what is owed to them
and the amount that was paid to them. A real estate attorney should
determine if your loan qualifies for a deficiency claim or judgment. Whether they call it a foreclosure, pre
foreclosure, bank owned, short sale or a distressed sale, a pre-foreclosure
is the keyword for searching the best deal. West Coast Florida Real Estate continues to offer homes and condos for sale at prices
that buyers are
benefitting from.
July 30, 2008 The Senate passed
and the President signed a landmark housing bill to shore up the nation's
housing finance system. The bill contains billions of dollars in loan
guarantees, a tax break for first-time home buyers and many other
provisions. The rescue plan extends an unlimited line of credit to the two
mortgage-finance giants Fannie Mae and Freddie Mac for 18 months and gives
the Treasury the authority - also for 18 months - to buy Fannie and Freddie
shares if the Treasury deems the companies’ capital to be inadequate.
Borrowers may be able to cancel their loans when their lenders violate
a federal lending disclosure law
Real Estate Mortgage
Lenders Lawsuits
From 2003 thru 2006 the Florida real
estate market in particular was hot. Some people were getting loans that were very risky
and in many cases they were not qualified for. Many were not for homes as a permanent residence, but for condos to rent out as a
secondary residence while waiting to flip it for a much higher price...like
so many were doing back then. So called Teaser Rate Loans
and 100% stated products were sold to condo investors and people that were not
qualified financially to pay for a traditional loan. The real estate market
was growing so fast that these people would take out a home equity line of
credit, when they needed more money. They assumed that since their current
home had gone up in value...so would their investments. As time went
on...the real estate market came tumbling down because of sub prime and
exotic loans to poor credit risks.
Florida Hurricane Info
Tampa Bay Condo Rentals
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A pre foreclosure or foreclosure
are keywords for searching the best deal.
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Real Estate Short Sales Foreclosures Bank Owned Loans Reverse Mortgages |
Real Estate Owned by the Bank or Lender is called an REO.
The foreclosure process was completed.
They have taken back the property and now have it for sale, usually at a huge
discount.
Along with your offer you must include a letter from your bank or a
lender that you are qualified to make the offer. These are the best
real estate deals.
Short sales take longer.
An experienced Real Estate Agent will guide you through the process and
can also locate real estate selling for bargain prices and not currently in foreclosure.