News - Law Offices of Jacqueline A. Salcines, P.A.

WHY HIRE AN ATTORNEY WHEN SELLING PROPERTY

This is the first of an informational series to provide Seller and Buyers alike with the necessary tools and know-how to make their sale or purchase of real estate a smooth transaction. I hear it often from clients. This real estate business is so stressful. Should you sell now with prices rising? Should the contract be reviewed by a real estate after the realtor prepares it and prior to signing? What if I sign and then something was not correct in the contract. Is there a three day recission period?

All valid questions. And while we know that selling and buying real estate can be a daunting task, we at The Law Offices of Jacqueline A. Salcines dedicate our practice to real estate. We are here to take the stress out of the transaction for you so that you can rest, relax, close and get on with your life.

Sellers have the easy part. Sign up with a realtor. Name your price. Sign a contract. Wait for closing. Show up. Sign. Get paid.

Well, not so fast. Many sellers don’t know that when the buyers title company prepares title for the buyer and gets the seller side ready for closing, though they may charge the seller a fee, they do not represent the seller. Their interests and loyalty lies with the buyer. Therefore, I don’t know about you, but when this is such a big deal, I want someone in my corner looking out for and protecting my interests.

Sellers are not aware that while the title company is required to order a lien search, if they do not order one, or don’t review it adequately, the transaction may close but the seller will be on the hook years later if there are any open permits, violations or liens on the property. If the title company does a shoddy job, then the seller may walk into a lawsuit.

Secondly, many sellers don’t know that under the contract, there are certain costs that the buyer is required to pick up. Many a time, I have seen HUD-1 Settlement Statements on transactions that have closed wherein the seller was charged with a title search or other costs, that the buyer should have paid. Remember, the title company is looking out for the buyer. And quite frankly, with nobody in the seller’s corner, how do they know the difference.

Usual seller costs as closing consist of the following:

Documentary stamp taxes on the deed (.60 cents for every $100.00 of the sale price in Dade and .70 cents in Broward)
Lien Search/Lien Letters
Wire Fee
Title Search (a discount is usually provided when the prior policy is provided. Again, something that is not told).
Estoppel fees for any Homeowner or Condo Assn.
Prorated taxes from January 1st to date of closing
Past due HOA or Condo Dues

While many Sellers don’t know how to read a HUD, the title company may overcharge or charge items to the seller that do not pertain to the seller. Or, they may undercharge for taxes. How do you know if the right number was used for the proration. Any error may result in less money paid to the Seller at the time of closing.

Sellers are also required to provide a payoff statement of their mortgage. This is something that again, the title company for the buyer may request but WILL NOT review. So if your lender is overcharging you or not providing adequate credit for payments made, they will not alert you. You are on your own.

For these reasons, and many more, it makes sense to hire the services of a professional real estate lawyer.

A real estate lawyer will protect your interests, make sure that once you close, you are really done with the transaction. Not leave anything open that may result in the file being reopened or a lawsuit against you. And will make sure that the figures on the HUD are correct and you get monies that are rightfully yours.

For a small fee, usually less than the title company is charging you to prepare your seller documents, you can have the expertise and experience of a real estate attorney in your corner. For what is usually the larges purchase or sale one ever makes in their life, it makes no sense to go it alone.

Trust the Law Offices of Jacqueline A. Salcines, PA to protect you and your largest asset.

Visit us on the web: WWW.SalcinesLAw.com

Offices in Coral Gables.

706 S. Dixie Highway

Second Floor

Coral Gables, FL 33146

Telephone: (305) 669.5280

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Filed Under: Miami Real Estate Deals, Real Estate, Real Estate Investments, Uncategorized

PREAPPROVED SHORT SALE PROGRAM FOR FHA

By Jacqueline Salcines Leave a Comment

If you are like many out there that are struggling to make your mortgage payments and have an FHA loan, there is good news. The government has rolled out a new program that Pre-Approves Short Sale prices for homes where the loans are backed by FHA. In order to qualify, you will first need to make sure that your loan is an FHA loan. This is easily determined by either looking at your mortgage statement or your closing statement. If you are charged and pay PMI mortgage insurance, then you have an FHA loan. Otherwise, you can call your lender or servicer and they will indicate whether it is an FHA loan.

ELIGIBITLY

The difference between this Pre-Approved FHA SHORT SALE and a traditional short sale, is that the borrower is not required to have a contract for Sale and Purchase in order for the lender to start working the file. Rather, the borrower can contact us to apply for the short sale, we will request from the borrower and submit financial documents to substantiate the financial hardship. Once the lender has the borrower’s financial information, they will order an appraisal by and FHA certified appraiser that will determine price. Once the fair market value is determine and the lender further determines what they need to net from the short sale, an approval letter is sent out to us with the listing price, or minimum they will accept. ITS THAT EASY!

TIMELINE

From beginning to end, the process is taking between 30 to 40 days and is hassle free. Moreover, it takes the work away from the realtors of having to play with the numbers and comparables, since the bank will advise what number they need to net from the short sale closing.

MONEY GIVEN TO BORROWER

And even greater news is that the borrowers usually obtain a $1,000.00 incentive check for their own moving expenses.

There are other qualifications that are required of the borrowers. We invite you to call our office to discuss your options and allow us to negotiate your short sale for you.

The Law Offices of Jacqueline A. Salcines, PA,

706 South Dixie Highway, Second Floor, Coral Gables, FL 33146

Telephone 305 . 669 . 5280 Email: J.Salcines@Salcineslaw.com

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Filed Under: Miami Real Estate Deals, Real Estate, Short Sales, Uncategorized

INDEPENDENT FORECLOSURE REVIEW AND FORECLOSURE SETTLEMENT CHECKS OFFER LITTLE RELIEF TO AILING BORROWERS

By Jacqueline Salcines 2 Comments

As the third round of foreclosure review checks went out Friday, my office is inundated with calls as to what these checks represent, and more importantly, will depositing them waive the borrowers rights to pursue banking and lending violations by the lender?

As of April 25, 2013, 1,150,328 recipients have cashed or deposited $1.1 billion in checks from the settlement reached in January between 13 servicers and federal regulators. The servicers include Aurora Bank, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank and Wells Fargo.

This new agreement, which replaces the poorly structured and obsolete “Independent Foreclosure Review process”, which required consent by the borrower, automatically calculates the amount of funds owed the borrower based on the amount of the loan, and arbitrarily remits checks by mail to the borrower. Unlike the Independent Foreclosure Review, the new settlement is based on the “unpaid balance of the loan” and not the amount of assistance provided to the borrower. This shifts the focus to assist higher priced homes with larger unpaid balances. About 2.3 million borrowers will receive $300.00.

The payments will range between $300.00 and $125,000.00, depending on how much harm a borrower potentially suffered as a result of actions by the mortgage servicer. The vast majority of the recipients of the $300.00 check, include borrowers who had a loan modification request approved but still ended up in foreclosure. They also include more than 800,000 borrowers whose servicers did not participate in the loan modification or failed to offer any help, when their loan clearly merited it.

It is estimated that up to 1082 borrowers who lost homes in foreclosure even though they were protected by the military services may get up to $125,000.00 as well as those who lost homes in foreclosure and were not even in default. As crazy as that sounds, it has occurred.

Borrowers who were in an active bankruptcy and the foreclosure sale went through anyhow, may be eligible to receive between $62,500.00 and $31,250.00 .

Overall, borrowers will only get a fraction of the amount they are truly entitled to based on bad banking practice and violation of law.

The banks that did not join the settlement include OneWest, EverBank and GMAC Mortgage.

The new agreement also does not require banks to fix a borrowers credit, specially if it was reported erroneously. The borrowers would need to go after the bank independently to get any erroneous information removed or corrected.

The settlement will do little to repair the long standing effects of wrongly filed foreclosures, or sales of properties in foreclosure that should have never been sold. However, it is a start.

The final million dollar question remains …” will depositing the check result in a waiver and release of claims by the borrower against the servicer”. As with all legal settlements, you are urged to consult with an attorney to review the specific terms of your particular settlement in advance of depositing any check, to see what, if any rights, are being waived.

Call us for a free consultation regarding your eligibility.

Law Offices of Jacqueline A. Salcines, PA

706 S. Dixie Highway

Second Floor

Coral Gables, FL 33146

305 | 669 | 5280

Filed Under: Foreclosure, Loan Modifications, Mortgage Relief, Uncategorized

STATUTE OF LIMITATIONS FOR PROMISSORY NOTES AND DEFICIENCY BALANCES

By Jacqueline Salcines Leave a Comment

Frequently in my practice I am asked by borrowers seeking foreclosure defense and mortgage modifications, what the Statute of Limitations is with regard to mortgages and notes entered into by borrowers who have now stopped making mortgage payments. The new word on the street that is quickly penetrating neighborhoods and water coolers alike is Statute of Limitations, and those that have had the good fortune of being advised by their attorney that their lender or note holder has not sued within the period of time required by law and they may now own the house free and clear, are spreading the news like wildfire.

If a lender fails to bring suit within the prescribed “statute of limitations, the borrower may technically keep the house free and clear of any mortgage encumbrance. Perhaps a word seldom used by many in this community except lawyers or those in banking and business sectors, now the word Statute of Limitations has become a household word that everyone is curious about.

The Statute of Limitations in Florida, which means the time the bank has to take you to court after nonpayment of your mortgage note, is FIVE YEARS (5) from the time you stopped making mortgage payments and went into default. For further clarification, if you made your last mortgage payment on January 1, 2008… if the lender has not filed suit against you by January 1, 2013, then the lender may be forever barred from pursuing that debt against you. This is where the skill and expertise of a knowledgeable real estate attorney is absolutely crucial to analyze every detail of the loan and payments and make sure that the bank is forever barred from pursuing that mortgage debit against you.

Deficiency balances are a separate matter. A deficiency balance is the amount of mortgage left over (unsatisfied) or unpaid AFTER the property is either sold at the foreclosure auction or in a short sale and property closing. If a property sells at auction for $150,000.00 but the bank had obtained a judgment against you, the borrower, for $200,000.00, the a $50,000.00 “deficiency balance” remains unsatisfied and collectible.

If your property has been foreclosed, then the Statute of Limitations starts the date of the foreclosure sale.

if your property was sold in short sale or other closing, the Statute of Limitations begins to toll as soon as the lender obtains their money from the proceeds of the sale.

If the property was returned to the lender through a deed in lieu of foreclosure, the Statute of Limitations will start from the date the Quit Claim Deed is recorded.

As with all matters dealing with Florida Statutes and governing law, homeowners are encouraged to seek the advice of a qualified real estate attorney to analyze your mortgage documents and provide the best possible advise for your situation.

Contact the Law Offices of Jacqueline A. Salcines, PA for a thorough review of your mortgage, note and closing documents to see what you may be eligible for.

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Filed Under: Uncategorized

FHFA ANNOUNCES NEW STREAMLINED MODIFICATION PROGRAM INITIATIVE

By Jacqueline Salcines Leave a Comment

In a push to simplify mortgage modifications and assist homeowners that could not previously qualify under the traditional modification and Making Home Affordable Program, the FHFA (Federal Housing Finance Agency) announced on March 27, 2014, a new simplified modification program. Called the Streamlined Modification Initiative, the program was created for all Fannie Mae/Freddie Mac backed loans, to assist borrowers in maintaining homeownership. Many borrowers who were ineligible or disqualified on the traditional HAMP plans, may now qualify since certain requirements, such are documenting hardship, are now waived under this new initiative. This will encourage borrowers that have ceased making mortgage payments on their homes, to seek modifications, avoid foreclosures and stay in their homes. And as with HAMP modifications, principal reduction of the mortgage balance may be possible.

The program involves Fannie Mae and Freddie Mac mortgages and in order to qualify, preliminarily, the following criteria must be met:

Must be at least 90 days to 24 months delinquent on the mortgage payment
Loan must be guaranteed by Fannie Mae or Freddie Mac
First loan must be at least 12 months old
May not have modified more than two times previously

“The key difference is that borrowers will not be required to document their hardship or financial situation, but will be able to accept a Streamlined Modification Offer by simply making the trial period payments and agreeing to the terms of the modification.”

Source: Federal Housing Finance Agency News Release March 27, 2013.

The Streamlined Modification Initiative Program is set to begin on July 1, 2013. As of that date, servicers whose loans fall under the above parameters must identify the loans/borrowers that qualify and send them an “OFFER LETTER” which will include the “modified proposed payment“.

As with HAMP Modifications, principal reductions may be available depending on ratios and values determined by the lender.

Unfortunately, those borrowers that are more than 24 months past due on their mortgages will not qualify. The FHFA has determined that with such a high deficiency/arrearages, the loan to value ratios will eliminate them from the program.

Second home loans owned and/or serviced by Fannie Mae and Freddie Mac are also eligible under the Program as well as investment properties.

To find out more, visit our website at WWW.SALCINESLAW.COM or call attorney Jacqueline A. Salcines, Esq. at (305) 669-5280 for a no cost consultation, to see whether your loan is owned/serviced or guaranteed by Fannie Mae/Freddie Mac and whether you qualify.

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Filed Under: Foreclosure, Loan Modifications, Real Estate

THE RETURN OF 97 PERCENT FINANCING IN MIAMI

By Jacqueline Salcines Leave a Comment

Recall the days back in 2005, 2006 and 2007 when financing was given away, no questions asked? Verification of Employment and Verification of Income unheard of. And banks were offering 97 percent to home buyers? Well, as much as we all lamented the bubble bursting and values plunging, the shortage of inventory in South Florida has caused property values to once again experience a dramatic increase, and developers are banking on that.

MIDTOWN MIAMI, a new high-rise condo complex in Midtown Miami is boasting the return of 97 percent financing and offering its buyers a 3% down payment, through a low down payment loan program aimed at emerging neighborhoods. While financing is stricter than in the days of “no questions asked”, with values rising, and good collateral, buyers should have no problem securing loans. This means that a unit offered at $300,000.00 would only require a down payment of $9,000.00. First time home buyers, with limited cash, can enjoy these minimum down payment requirements and are now able to purchase a home with very little down whereas two or three years ago, this was not the case.

Recently, a report by TRULIA also proved that in this day and age, with interest rates at historical lows, “owning costs 44 percent less than renting”. Source: DSNews.com March 20, 2013. “After factoring all cost coponents including transaction costs, taxes, and opportunity costs, Trulia found buying a home is 44 percent cheaper than renting, down slightly from 46 percent last yer.” DSNews.com

People who didn’t buy a home last year may have missed the bottom of the market but they havent completely missed the boat” states Jed Kolko, Trulia’s chief economist. Source: DSNews.com

So we can once again boast in South Florida that property values have taken a turn for the better, and that financing for home buying is once again within reach. Obviously, it goes without saying to choose your real estate attorney, realtor and mortgage carefully. This one decision may mark the difference between closing and never getting to the closing table. Or worse, closing on a not so great a deal.

For all your real estate needs, call on us. Jacqueline A. Salcines, PA
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Filed Under: Luxury Real Estate Market, Mortgage Interest, Mortgage Relief

1.7 MILLION HOMES MOVED ABOVE WATER IN 2012

By Jacqueline Salcines 1 Comment

CoreLogic reports that in the 4th Quarter of 2012, over 200,000 properties came up from being “underwater” and a total of 1.7 Million homes in all of 2012. Source: DS News.com To read the full article go to www.dsnews.com/articles/corelogic-17m-homes-moved-into-positive-territoy-in-2012.

What does this mean for those selling… that it is once again a sellers market. That asking price once again retrieves dozens of contracts, over asking price, many from cash buyers.

What does this mean for those buying… that the market is once again competetive and will weed out those looking for distressed bargains.

What does this mean for those looking to modify… that the lenders will most likely make less and less principal reductions, as appraisals show that mortgages are once again not so far apart from fair market value and will not pass the NPV test. Many that refinanced or took out second mortgages or HELOC’s may still experience negative equity, but it may be harder and harder to modify. Proper, uninflated values must be closely calculated and provided to the lenders.

What does this mean for those short selling… that once a BPO is ordered, a bank may likely counteroffer on price as the buyers are coming in too low for fair market value sustained prices.

Whether you are looking to sell or buy, now is the time to once again use increased scrutiny when placing an offer or accepting an offer. It appears that we are once again riding another bubble that may likely burst if inventory is set loose.

Stay tuned for 2013 1st Quarter results.

LAW OFFICES OF JACQUELINE SALCINES, PA

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Filed Under: Equity, Miami Real Estate Deals, Mortgage Interest, Mortgage Relief, Real Estate, Short Sales

WHAT YOU NEED TO KNOW BEFORE BUYING A PROPERTY

By Jacqueline Salcines Leave a Comment

Many things need to be considered when buying a property, regardless of whether your plans are to live in it or whether it is an investment. 2013 marked a year of many changes in the tax code by the Internal Revenue Service, including changes as to how mortgage interest income can be deducted and reported on tax returns, as well as Capital Gains taxes and limits, and numerous others are planned and will take effect upon property purchased in 2013.

If the property you are considering purchasing is distressed, you will have a wide array of considerations. For instance, if the seller purchased in a foreclosure auction or as an REO, was the foreclosure accurately handled and/or dismissed. As a buyer, you will need to make sure that the title is clean and that no other interest holders have rights, that may haunt you after you have signed on the dotted line. This is the important, often overlooked role of the real estate attorney/title agent who will make sure that all this is reviewed prior to closing. Moreover, whether the property and the loans associated with it are being audited by the Department of Justice is also a huge impacting consideration, as it may force titles that were issued to property owners and bona fide purchasers to be reversed, causing siginificant economic damages.

Real estate taxes also have a huge impact on whether a property should be considered or not. In the advent of another real estate bubble, and with home values increasing by dramatic amounts, October may cause us to witness increased assessed values by the Property Appraiser causing once lower valued property taxes to double.

Return on Investment is also a big consideration. If the property you are purchasing will be improved for rental, the rental values permitted in the particular market need to be assessed. What amounts will you be paying yearly in maintenance, insurance, taxes versus what the market will allow you to charge in rent. Attorney Jacqueline A. Salcines states: ”At my firm, we use state of the art realty programs and tools that allow us to calculate up to the minute rental values for the most accurate assessment of what our client can rent the properties they are considering purchasing for. This allows our investors to calculate their return on investment and make a sound decision as to whether to embark on the investment or walk away.” There are countless other considerations that must be evaluated before you sign on the dotted line.

For many, buying a home is the single most costliest investment ever made. It makes sense to have the right professionals by your side to guide you every step of the way.

At The Law Offices of Jacqueline A. Salcines, P.A., attorney Jacqueline A. Salcines is not only a real estate attorney and title agent with Attorney’s Title Insurance Fund, Inc. and Old Republic National Title Insurance, but also an Accountant and Realtor. Of equal importance, our firm has partnered up with Tax Accountants and real estate professionals to provide the best guidance and advice to make sure your decision is a sound one.

Dont got it alone. Hire the services of a professional to assist in making that one decision that may affect the rest of your life.

We are located in Coral Gables and the first consultation is always at no charge.

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Filed Under: Luxury Real Estate Market, Miami Real Estate Deals, Mortgage Interest, Real Estate, Real Estate Investments, Taxes, Uncategorized Tagged With: home buying, Property, tax

MOST EXPENSIVE PENTHOUSE IN MIAMI HISTORY SOLD FOR $34 MILLION

By admin 1 Comment

William P. D. Pierce of Coldwell Banker Residential Real Estate has successfuly sold the highest most expensive condominium in Miami’s History. The sales price of the Penthouse located at 1601 and 1602 The Residences at The Miami Beach EDITION has sold for $34 Million. Designed by famed architect John Pawson, the units boast a 360 degree view of the Ocean, the Bay and the City and the two units combined total 16,271 square feet.

With the sale of this luxury condominium and others setting a record high for the Miami condominium and luxury market, South Florida is poised to ride a great recovery wave in 2013. In fact, One Sothebys International Realty noted in February, 2013 that sales of property over $10,000.000.00 experienced a 115% increase from 2011 versus 2012. Source: One Sothebys International Realty – The Miami Herald – Business Monday Section February 18, 2013.

Coral Gables real estate lawyer Jacqueline A. Salcines, Esq. states “with all the new luxury projects and towers going up around Miami, the ultra-luxury home buying market is soaring once again.” “We are in the midst of a real recovery with new projects offering foreigners and investors amenities and services well beyond their wildest dreams”.

Visit us at WWW.SALCINESLAW.COM to view other high end luxury properties, find out what is going on around the community and subscribe to our informational mailings.

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Filed Under: Uncategorized

SONY OPEN TENNIS MARCH 18-31

By admin Leave a Comment

One of the most prestigious sporting events in Florida is set to begin. The SONY ERICSSON OPEN Tennis Tournament, held every year in Crandon Park, Key Biscayne runs this year from March 18 to March 31, 2013. This tournament boasts the likes of numerous celebrities and the rich and famous, all down in South Florida to enjoy the sun, the waves and great championship tennis.

Packages are still available for sale.

Visit www.sonyopentennis.com for additional information.

Filed Under: Uncategorized Tagged With: community news