SOUTH FLORIDA SHORT SALE ATTORNEYS
REAL ESTATE LAW
Short Sales, where the mortgage company agrees to accept a “short” payoff of their mortgage (less to pay off the mortgage then what is owed) are experiencing a comeback. Perhaps it is the fact that second lenders are filing foreclosure actions at higher speeds, or the statute of limitations is running on mortgages, whatever the cause, short sales are slowly increasing.
In a short sale, the homeowner lists the property for sale at a price lower then what is owed to the mortgage company. The balance to the mortgage company is then negotiated so that the lender accepts the sales price, pays the borrowers closing costs and the borrower’s mortgage debt or balance is forgiven.
A true short sale, done accurately and proficiently will erase the mortgage balance AND the lender will agree to waive or never collect the balance of the mortgage. This is true whether Property values and real estate sales in South Florida and across almost all parts of the country are thriving. However, for a select few, short sales still linger. Many lines of credits with ten-year and 5-year maturity dates are beginning to mature, causing homeowner mortgage payments to rise significantly, wherein the borrower/homeowner can no longer afford their mortgage payments.
Even if home values remain on the increase, if a homeowner can no longer afford their payment, they may try to short sale or modify their loan to see if they can save the home or exit gracefully.
At the Law Offices of Jacqueline A. Salcines, P.A., our lead attorney brings extensive knowledge and expertise in the field of negotiating short sales and loan modifications. We have an in-house short sale and loss mitigation department headed by managers with extensive experience. Jacqueline Salcines, Esq.is also an attorney, title agent and accountant, able to handle the full transaction without having to contract any outside services, saving the borrower money. We are here to help iron out issues and move the transaction from imminent default to resolution.
With prompt intervention to resolve disputes amicably, without the need to litigate, we are here to get borrowers the results they desire. Call us today to see what we can do for you.
For more than 18 years, Jacqueline Salcines has been practicing law with the need of her clients first. Upon calling the firm you get the feel of how the client is our first priority. We are here to help you with your purchase or sale and do so with hands-on legal experience.
Main office 305 | 669 | 5280. Or email the attorney directly: J.Salcines@Salcineslaw.com
TRUST | COMMITMENT | RESULTS
JACQUELINE A. SALCINES, ESQ.
706 S. DIXIE HIGHWAY
CORAL GABLES, FL 33146
TEL. 305 669 5280
In the current Florida housing market, many people hear the term short sale or even look at these properties when trying to purchase a home, but they do not understand what a short sale is. A short sale occurs when someone owes more on his or her home than it is worth, which also known as being underwater on your mortgage, and are no longer able to maintain the mortgage payments. The bank may then agree to accept an amount short of the balance due on the mortgage, thus allowing the owner to sell the home to a new owner who can afford to make payments.
In certain situations, short sales are a viable solution that can help avoid foreclosure. Although the amount of the loan does not change, the bank is now willing to accept less than the balance owed in return for allowing the home to be sold. It takes an experienced attorney to analyze whether a short sale is in the best interest for a homeowner and to steer through the complex procedures successfully in order for a bank to accept a short sale petition.
At The Law Offices of Jacqueline A. Salcines, PA we can help you explore your options if you can no longer afford the payments on your mortgage. We can help you fight foreclosure or stop a foreclosure by pursuing a short sale, based on what will put you on a path to a better emotional and financial future. We will carefully listen to your concerns and explain all of your options fully, so you can make an informed decision.
If you need help, start seeking answers from experienced Miami short sale attorneys today. Understand your rights, and contact us at 305-669-5280 to schedule a free consultation.
In order to have a short sale accepted, we will help you prove the following:
- You are no longer able to make the mortgage payments
- You must have a hardship such as an illness in the family, a job loss or other serious situation that affects your finances
- You must prove the current value of the home is substantially less that the balance owed
- The bank or lender agrees to accept a sale price that is less than what you owe
- You must have a qualified buyer offer to purchase the property
- The bank or lender must accept the buyer’s offer
There are tax implications and the possibility of a deficiency balance to a lender, which we can help you understand, negotiate and handle. Our personal, detailed service has helped thousands of people from all walks of life and income bracket and now we are ready to help you. Call us today!
TRUST | COMMITMENT | RESULTS
JACQUELINE SALCINES, P.A.
706 S. DIXIE HIGHWAY
CORAL GABLES, FLORIDA 33146
TEL. 305 669 5280
This week, the short sale arm of the Making Home Affordable Program, HAMP, known as HAFA, announced an increase to $10,00 in its payout relocation assistance to property owners. For short sales commenced after February 1, 2015, homeowners who qualify under the HAFA program, are eligible to receive a $10,000 check from their lenders. Additionally, under the HAFA short sale rules, the lender must waive the deficiency balance of the mortgage, and forgive the loan in full.
The regulations to qualify under HAFA are strict. Among them, the homeowner must reside in the home, must have a qualifiable hardship and must be financially unable to pay their mortgage. To find out if you qualify to short sale your home under HAFA and receive $10,000.00 contact us today.
In a short sale, a homeowner lists their property for sale. Once a contract is obtained, the contract is submitted to the lender with the borrowers financial information in order to qualify for a short sale. Once the lender verifies value with a BPO, the contract is approved and a closing takes place. At closing, the borrower/homeowner signs all docs and is forever relieved of the mortgage debt owed to the lender. A true short makes sure that the balance is forgiven. In a HAFA short sale, this is guaranteed.
We can qualify you, free of charge, and advise if you are eligible for the $10,000.00 relocation assistance.
The first consultation is always free of charge.
TRUST | COMMITMENT | RESULTS
Jacqueline A. Salcines, PA
706 S. Dixie Highway
Coral Gables, FL 33146
Tel: 305 669 5280
You’ve all heard the story before, months and months of laboring to get the short sale approval, you finally get it and the second lien holder or mortgage company will not accept what the first lien holder is agreeing to pay them. Result: Now your short sale is held hostage. The first will not pay more, the second will not accept less. What are the alternatives to get this approved after so much hard work?
Well, first of all, anyone negotiating or selling their home in a short sale must be familiar with their rights. Under the HAFA (Home Affordable Foreclosure Alternative) Program, the first lien holder MUST, not may, MUST, pay the 2nd lien holder $8,500.00. There are rules that regulate this payout and therefore the 1st lien holder can not wiggle its way out of this. And the 2nd lien holders are keenly aware of these regulations.
Now, if the short sale falls outside of the HAFA Program, then you have a dilemma. For the most part, the 1st lien holder will request a payoff statement of the first and typically (I say typically because in short sales there is nothing typical), they will pay 10% or a maximum of $6,000.00
“I have been negotiating short sales for quite some time and they (the lenders), for the most part, do adhere to the 10% rule. But, in the event they pay less and the 2nd lien holder demands more, this is NOT necessarily the end of the line. There are still options. If the borrower is receiving an incentive at closing from the 1st lien holder, the 1st bank will allow the borrower/seller to contribute that money towards paying off the 2nd. They will also permit you to enter into a promissory note, usually at 0% interest, ten (10) years, in order to reach that number. Or, in the alternative, all the other parties in the game can make some contributions. Often times, realtors as well as the buyer are agreeable to making certain concession in order for the great deal to go through. After all, if the closing falls through, the nobody gets paid and the buyer doesnt get their property.” – Jacqueline A. Salcines, Esq.
So, while the 2nd lien holder can certainly hold a short sale hostage and there are no laws you can use to force them to agree to a payout, there are still some alternatives to make the short sale go through to closing.
Short sales are crafty games played by crafty players. Everyone has to have some skin in the game to make the process work smoothly.
And, if it goes smoothly, then as in any games, there will be many winners, and perhaps a few losers (the banks).
Dont go it alone. Consult a professional real estate lawyer to handle your mortgage problems. We are a phone call away.
LAW OFFICES OF JACQUELINE A. SALCINES, P.A.
JACQUELINE A. SALCINES, ESQ. TELEPHONE: 305 | 669 | 5280
On Friday, January 18, 2013, Fannie Mae and Freddie Mac announced changes to their servicing requirements for short sales. These changes apply to all Fannie Mae and Freddie Mac short sales, with an offer and without an offer.
• Title Transfer requirement change:
o The buyer is prohibited from selling the property for any sales price for a period of 30 days from the date of the deed.
o After a 30 day period, and until 90 days from the date of the deed, the buyer is further prohibited from selling the property for a sales price greater than 120% of the short sale price.
This restriction runs with the land, meaning that it is not personal to the seller and will transfer to the new buyer.
Below is an example on how to calculate the 120%:
o Purchase Price is $100,000.00
o 120% of the purchase price would be $100,000.00 X 1.2 = $120,000.00
• Relocation Assistance:
o The borrower may be entitled to an incentive payment of $3,000 from Fannie Mae / Freddie Mac to assist with relocation expenses following successful completion of a short sale unless:
1. The borrower is required to contribute funds or execute a promissory note.
2. The borrower has Permanent Change of Station (PCS) orders and receives a Dislocation Allowance (DLA) or other government relocation assistance.
3. The servicer has knowledge that the borrower is receiving relocation assistance from another source other than the servicer.
Note: If the borrower receives relocation assistance from a source other than Fannie Mae / Freddie Mac or the Servicer, the difference in the relocation assistance amount up to the $3,000 incentive maximum may be provided. If the borrower will receive relocation assistance from a source other than Fannie Mae / Freddie Mac or the Servicer and the amount is equal to or greater than $3,000, no relocation incentive will be provided.
With all these changes, now more than ever, it is crucial to have an attorney negotiate and close your short sale. THE LAW OFFICES OF JACQUELINE A. SALCINES, P.A. is dedicated to negotiating short sales, and providing both title work and title closing services for all closings. Call us for a free consultation. Tel: 305.669.5280. or visit us on the web WWW.SALCINESLAW.COM
As a Real Estate Attorney in Miami Florida, and especially in the last few years I’ve seen some people struggle with the concept of a “short sale”.
They are unhappy with their financial situation sure, but in addition to that many question whether a short sale is the right thing to do from a moral stand point.
After all they bought a home which they are now barely able to keep payments and are upside down on the debt.
Not in my clients’ experience, but in some cases Banks have gone as far as to threaten people by taking a moral stance on the issue. Guilt is a powerful incentive when you have a conscience, and they know many people feel bad about that aspect of the situation.
It’s easy to feel trapped when you think there are no options. The good news is that every problem has a solution!
It’s all Business my Friend!
For most hard working people this wasn’t part of their plan. They are in a low point in their personal and even professional aspects of their lives and need a fresh start and a clean slate.
The last thing they need is to feel guilty about a business decision they need to make.
And that’s exactly what it is:
A business decision!
As an Attorney I provide legal advice and find the best possible legal solution to my client’s predicament. My role is both supportive and educational, then I aid in the transactional aspect which is problem solving in its very nature.
In order to ease these feelings of remorse when they are obvious, my approach is as I mentioned, educational.
It’s a Contract
I focus their attention on the fact that a Home/House/Property is an investment held together by a contract between them and the bank.
This contract explains the terms and options for both Bank and home owner. You as the home owner have the right to stop making payments at any time if you choose to, and the bank has the right to take the property back.
It’s a business decision no different than any other where the circumstances were unexpected, have changed, or where it no longer makes sense to hold to a bad investment.
Sometimes defaults and short sales are done in a strategic manner, to protect the client from further economic loss and stop the bleeding. If the circumstances are unfavorable to you, something has to be done about it. If they are unfavorable to the bank, they will do something about it.
Insurance companies change their rates on us yearly, especially if the wind blows too hard down here in South Florida. When they change their rates, they change their contract and they did so because their circumstances apparently changed… like weather patterns!
Win-Win Outcomes For All Parties!
So there are options for everyone. You can stop making payments at which point the bank will take the property back. Yet there is one more option for both which is to renegotiate the contract,
…which is precisely what a short sale is!
You as the seller go to the bank and say I’d like to renegotiate the terms of our contract based on your current situation.
The Bank will weigh your offer against the other alternative which is to foreclose on the property, and then make a decision one way or another.
I then negotiate on your behalf with the bank to find the best possible solution for both parties.
But as “your attorney” remember I always represent your interests first.
In many cases, we are able to negotiate the lender providing the seller with additional incentives:
- Ultimately, the losses are not only stopped, but the client can be paid up to $35,000 from the lender at closing, with
- all closing costs paid by their lender as well the balance of the mortgage (referred to as the deficiency balance) waived and forever forgiven.
As such, the short sale results in a well thought out exit strategy with the client winning at the end. This may ease the immorality of it all.
So you see there is no morality clause in any contract. If there was it wouldn’t be a contract, it would be a promise… and it would carry a lot less weight and certainly no exchange of money!
A short sale is a business decision based on the need to renegotiate a real estate contract, and we should be glad that it exists as an option to find an alternative to what comes as close to a win-win scenario for everyone.
I’d like to rephrase that to: “With great value comes great responsibility and the good kind of risk”
So many properties coming on the market today are distressed properties, foreclosed, at massive discounts to market, selling “as is” and often times in questionable condition.
BusinessDictionary.com defines “distressed property” as:
The opportunities are obvious, and sure, you can buy a properties for pennies on the dollar “as is” but here are some points to consider:
- the worse the condition the harder it is to assess value
- the more the costs of improvement
- the longer the time to either rent or re-sell
- Value not subject to local comparables
- Not finding a bank to finance the sale because of the condition
On this last bullet it’s necessary to point out that Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) recently developed a classification system for housing condition ranging from C1 (the best) to C6 (the worst), but only C6 is unacceptable to the agencies in “as is” condition. Nonetheless, many lenders require a C4 or better.
But what should your purchase strategy for distressed properties be?
Here are a few interesting items to consider:
- An inspection report from a licensed expert will help in the decision as to whether to buy the house but will not eliminate uncertainty regarding how an appraiser will classify the condition of the house. If the house is classified C5 or C6, a loan may not be available.
- If the sales contract has a mortgage contingency clause, which is a standard provision in some states, the buyer who can’t get a mortgage because the property is classified C6 or C5 will get his earnest deposit back and the deal is canceled. However, the thwarted buyer will not be reimbursed for the cost of the inspection or the appraisal, which might total about $700.
- If a property is being sold “as is” and the standard sales contract does not have a mortgage contingency clause, I would pass unless the seller agreed to return my earnest deposit if the property is classified C6 by the appraiser. You could be more conservative and require the return of the deposit with a C5, which would avoid a mortgage problem because most lenders will accept a C4 or better, but it may substantially reduce the number of sellers who will deal with you.
- While accepting a C5 will give you access to more houses, you must find one or more lenders who will accept a C5. You would be well advised to do this in advance of purchase.
As with all investment categories and types, there are always elements of risk at hand, real estate is no different. We’ve all been able to witness first hand what a downturn in a particular sector of a market can do.
But fear of risk itself should never be a reason to avoid good buying or selling opportunities when it comes to Real Estate, and education and research is the cure for doubt, what’s left after that is just indecision. I wonder if there is a cure for that?