Foreclosure Alternatives in Jupiter Florida

by Rodney Forbes on November 6, 2012

West Palm Beach Short Sale RealtorVarious homeowners have been facing ugly foreclosures ever since the real estate meltdown. Generally, a foreclosure means the possibility of losing one’s home, and one of the things in this sad truth is the ongoing economic slump in Jupiter that has resulted in massive unemployment rates. In addition to this is the rise in the mortgage loan payments or an increase in expenses due to unexpected costs and expenditures.

For those who are going to deal with the certainty of a foreclosure, their fundamental concern is how to refrain from this ugly circumstance. And for them, help in any way is the best solution to their financial situation.

Below are the five ways to avoid a foreclosure, which any homeowner can choose so that they don’t lose their home completely without something in return.

Mortgage Relief

The first option to avoiding a foreclosure is a mortgage relief. If the homeowner is positive that he can’t pay the mortgage on time, this should be carried on to the lender for quick solution. For instance, the lender may agree to expand the period of time that they would normally foreclose a home. Typically, lenders provide homeowners in Jupiter, FL three months before they would foreclose a home yet by talking to the lender, a homeowner may be given a mortgage relief and thus, extend the time frame before the house is foreclosed; perhaps more than the usual three months.

The drawback to this option in avoiding a foreclosure is that the homeowner is merely delaying the foreclosure of his house. If their financial situation is the same throughout the extension the lender gives them, the certainty of losing their house to a foreclosure will eventually come to pass.

Loan Modification

Following in the five ways to avoid a foreclosure is loan modification. Even though the main goal of this option is to modify the loan so that the unpaid amortizations are cleared off and merge them with the principal, a homeowner in Jupiter may ask for a change in terms of his mortgage, rate type (from fixed to adjustable or vice versa), and interest rate as well.

Nevertheless, this option may only be available for homeowners who have good credit score, steady income, and only one to three months late with their payments. If these requirements are met, one can just call his bank (current mortgage holder) and ask for a loan modification.

The only setback to this method in avoiding foreclosure is the usual homeowners’ inability of juggling different types of credits and debts; a situation where most homeowners facing foreclosure are in.

Refinance

Another way to avoid foreclosure is going through the traditional refinance method. Usually this option is for homeowners in Jupiter who would like to take advantage of lower market rates and who are updated with their monthly amortization. Yet, many lenders are now accepting refinancing for homes facing a foreclosure, provided that the homeowner meets several requirements.

West Palm Beach Short Sale RealtorA worried homeowner can make the most of a refinance by going to another or different lender. This new lender will then be the one who will bear the existing home loan and change it into another/new home loan. In conclusion, the homeowner will carry a new loan with different terms and one where the monthly amortizations are just about to begin.

One of the benefits to this alternative in avoiding a foreclosure is that the homeowner can take advantage of a lower interest rate if current market rates are low. Moreover, this may also grant the owner the chance for term adjustment; an originally shorter term loan of 15 years can be changed into a long term loan of 30 years.

Usually, the requirement that a homeowner should meet in order to utilize a refinancing is a substantial equity on the property.

Forbearance

If the ugly truth of a foreclosure is ahead, one of the five ways to avoid a foreclosure is by searching for forbearance from the lender. In forbearance, the lender will be able to stop or reduce the amount of payments that comes due every month so the homeowner can bring his financial health back.

The advantage of this option in avoiding a foreclosure is that during the time the forbearance is in effect, the homeowner can use his money to clear off other bills or debts. This will also provide the homeowner the chance to pursue a better high-paying job so he can resume paying the mortgage.

In a cursory look, it appears to be that the homeowner is free from paying his mortgage; forbearance does not flow like this. The homeowner may be free from paying his loan for some time but he still is responsible for paying the unpaid amortizations plus interest as soon as the forbearance is over.

Short Sale

When all options to avoid a foreclosure have been considered and given thought and yet, a foreclosure is still sure to happen, the last resort and option for the homeowner to do is to go for the short sale option. In this alternative, the bank in Jupiter or lender will rather allow you to sell your house for less than what you owe them as rather than dealing with foreclosure procedures themselves. The distinction between the selling price and the loan amount is the reason why it is named “short” sale.

In the government-sponsored short-sale alternative under Home Affordable Foreclosure Alternatives, homeowners are subsidized up to $ 3,000 for relocation by the government. However, you must meet the requirements set by HAFA to apply for this subsidy.

West Palm Beach Short Sale RealtorIn conclusion, these are the five methods to avoiding a foreclosure. Every choice presented here has its own ups and downs. And the best way to sort these out and choose the best option is for the homeowner to consider his situation/overall financial standing and see which of these five ways to avoiding foreclosure meets his needs most.

**Rodney Forbes is a Realtor® and registered broker with Forbes Realty of South Florida, based in West Palm Beach Florida. Rodney and his team work in Palm Beach, Broward, Martin and St. Lucie Counties. As a recognized expert on short sales, Rodney has been featured on radio and national web conferences for agents. Rodney has also authored the book “Should I Short Sale My Home?”

Forbes Realty of South Florida also specializes in REO asset disposition. Rodney works with several banks and asset managers in the Palm Beach County area. Rodney is the main author for the popular real estate blog South Florida Real Estate Report. You can find a wealth of information regarding bank foreclosures, short sales, real estate news and local real estate trends.

For more information, please call Rodney at 561-337-4810 or email Rodney@ForbesRealtyOnline.com

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West Palm Beach Short Sale RealtorGetting fired from your job usually means getting cut from the main source of income, and one of the first things to be sidelined when this occurs are mortgage payments. Paying for a house to live in might appear to be a little costly especially if you can just opt to rent an apartment. While it is easier to just walk away from your monthly mortgage payments and let the bank take your home, you might want to contemplate a short sale. So, what is the difference in the benefits of a short sale VS a foreclosure?

Benefits of a Foreclosure – the art of walking away

Foreclosure is the easy way out. Basically, foreclosure is simply walking away from your property until the bank decides to foreclose on it. This is a little known fact, but foreclosure could possibly be the worst thing that you can do. Think it over – after the bank forces you to turn over your property, they get to clean it up, put it on sale for a cheaper price and whoever gets the property will either: (a) renovate it and try to sell it at a very high premium; (b) sell it as is and the seller can still get a respectable profit out of it or; (c) whomever gets the property can just live in it, still getting the better end of the deal because of the bargain price that he or she bought it for.

Foreclosed properties can sell pretty quickly as compared to a short sale. While this sounds pretty good on paper, keep in mind that it is the bank that already owns the foreclosed property, they are the ones who profit the most from a fast transaction, so please, take this time to read further into avoiding or preventing foreclosure.

Also, while it may sound really easy to just walk away from your property and let the bank acquire it, you may want to consider the following repercussions:

• It shows up on your credit records – taking care of your credit rating and record should by far be more critical than anything else you should consider before taking the easy way out. It is noted that your credit rating can go to as low as 160 to 105 points depending on the manner of foreclosure or on your credit history. This is especially important to consider if you have an active business or you are looking into bank loans for business or other concerns. A foreclosure can sometimes be read as a severe negligence on the part of the person. It is crucial to note that banks do not consider any kind of personal issues that you are enduring at the time of foreclosure: it’s either you make your payments on time or you don’t.

• A foreclosure record can leave a lasting impression – records of a previously foreclosed property may show up on your personal credit for up to 7 years. That is a lot of time to consider especially if you want to apply for something that is bank or credit related in the next seven years. While most people will think that they wouldn’t mind this kind of record because they are not planning on doing anything bank related, consider this: any type of foreclosed property records can severely affect your job applications. Why? Some employers look into your credit background to see if you are responsible in your credit, and a foreclosure blemish may cause them to conclude that you are irresponsible if you have a foreclosure on your record.

• Waiting period before you can buy – records of foreclosure can affect even the period when you can purchase your next home. Typically, banks choose more responsible and trustworthy people without any form of negative records to approve a home loan application. The current waiting timeframe for anybody to be granted by a bank or an institution to mortgage a home again is usually 5 years. Also, do you think a bank will let you purchase a home if records show that you already failed in maintaining a previous mortgage?

• It affects your loan applications – similar to most of the reasons above: why would you think any bank will permit a loan to you if your records reveal that you had trouble paying for one before? Even if the intention might be very different from that of a home purchase, like a school loan, car loan or business loan, it is still the same thing.

• You get evicted immediately – unlike if you put your home up for a short sale; eviction usually is very quick if your property is being foreclosed on. Generally, a notice period of 30 days is given to the person with a foreclosed property, but any other extensions might not be considered by the lending institution.

Benefits of a Short-sale – doing something about it

West Palm Beach Short Sale RealtorA short sale home specialist defines a short-sale as the lesser of the two evils. If you are concerned on how to Short Sale a home, then the first thing you need to be aware of is it allows you a lot of options that foreclosure doesn’t give you, such as:

• Control over the price – in opposition to foreclosures, short-sales allow you to control the price of the sale because you still altogether own your home as the bank has not seized ownership of it yet. Granted, short-sale prices are still a lot lower at market value than the property value, you’d much rather be selling at a loss than letting the bank do all the selling for you. Even though the bank must have the final say so in a short sale offer, prices typically are higher than foreclosed homes. This will do your neighbors a favor by helping to preserve community property values.

• Leave when you want to leave – opting a short sale lets you stay in your home longer, as the bank will give you notice when the short sale deal is approved for close. A short sale waiting period can last from up to 2 to 3 months.

• A clean slate – while generally your personal credit and bank records are your own responsibility, a short sale does not impact your credit in the same way as a foreclosure. That means you can do a lot of things that you wouldn’t be capable of if you had a foreclosure showing up on your credit. Not only to mention a clean slate, but on top of this and upon a successful completion of your short sale you may qualify for the HAFA Program. A program that could offer up to $ 3,000.00 CASH BACK towards your relocation! A borrower can be eligible to purchase a property in only two years after a foreclosure.

So, which is the better option? A short sale or a foreclosure?

Considering a short sale over foreclosure may be the best option by far. The mere fact that you have control over the price and the time when you can sell your home is a better alternative than being forced to give up your house and being ordered to leave the premises as soon as possible.

While it is ultimately up to the person to select either a short sale or a foreclosure, what is valuable is that options are weighed first and consider how it may affect your ability to buy a home in the future and affect your credit rating. Doing your research is a job well done. Now, your next step is to contact one of our extremely trained Short Sale Specialists, so they can get your short sale on the go and successfully completed!

**Rodney Forbes is a Realtor® and registered broker with Forbes Realty of South Florida, based in West Palm Beach Florida. Rodney and his team work in Palm Beach, Broward, Martin and St. Lucie Counties. As a recognized expert on short sales, Rodney has been featured on radio and national web conferences for agents. Rodney has also authored the book “Should I Short Sale My Home?”

Forbes Realty of South Florida also specializes in REO asset disposition. Rodney works with several banks and asset managers in the Palm Beach County area. Rodney is the main author for the popular real estate blog South Florida Real Estate Report. You can find a wealth of information regarding bank foreclosures, short sales, real estate news and local real estate trends.

For more information, please call Rodney at 561-337-4810 or email Rodney@ForbesRealtyOnline.com

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West Palm Beach Short Sale RealtorWhile the short sale process is known for its lengthy timing and paperwork, but it is also known for assisting homeowners dodging foreclosure. Homeowners will generally ask if they can do their own short sale or if they have to do the short sale alone. The answer is that yes, you can do your own short sale and no, you do not have to do it alone. The short sale process takes patience and determination, without the two the results could be horrible.

A short sale will typically have multiple steps and a fun waiting game. It is known that many lenders will have their own set of guidelines when coming to a short sale; documents may differ. A short sale package is needed to basically validate the short sale. The short sale package will need to contain financial documents as well as a hardship letter that will explain to the lender how the hardship came about all the steps that were taken to try to get out of it.

It is not unachievable to do a short sale on your own but without the proper knowledge of a short sale; you could still end up facing foreclosure. The old saying “nothing in life is ever free” is a solid statement, but not when it comes to receiving help in a short sale. Short sale specialists work on behalf of homeowners in their short sale, negotiating and keeping contact with the lender while also keeping the homeowner up to date and knowledgeable about each step in the short sale process.

The services of a professional and experienced short sale Realtor are free to the homeowner; commission will be paid by the lender. Although it is ok to do your own short sale, but with a short sale specialist, who is offering free short sale services to you, why would you choose to be alone? Let the professionals handle it and help get you back on your feet.

 

**Rodney Forbes is a Realtor® and registered broker with Forbes Realty of South Florida, based in West Palm Beach Florida. Rodney and his team work in Palm Beach, Broward, Martin and St. Lucie Counties. As a recognized expert on short sales, Rodney has been featured on radio and national web conferences for agents. Rodney has also authored the book “Should I Short Sale My Home?”

Forbes Realty of South Florida also specializes in REO asset disposition. Rodney works with several banks and asset managers in the Palm Beach County area. Rodney is the main author for the popular real estate blog South Florida Real Estate Report. You can find a wealth of information regarding bank foreclosures, short sales, real estate news and local real estate trends.

For more information, please call Rodney at 561-337-4810 or email Rodney@ForbesRealtyOnline.com

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Wrongful possibilities of a short sale in Jupiter, Florida

by Rodney Forbes on November 2, 2012

West Palm Beach Short Sale RealtorLet’s be honest, some short sale sellers are finding it challenging to sell a home as a short sale. Short sales can be a long complicating process if you lack the right professional and not handled carefully. Short sales that are cared for by inexperienced Realtors can typically end up as foreclosures, which is an even more devastating moment for the homeowner who has already gone through a hardship and hoped a short sale could be their answer.

The short sale process can be an easy transition as long as the homeowner is fully up to speed with the process and has an experienced, knowledgeable, and skillful short sale specialist with them. Homeowners should also know that short sale services should always be free!

One of the most common short sale mistakes is the pricing of the home. At times the price is too high, too low, or just right. When it comes to pricing the home for a short sale, certain parties need to agree with it like the lender, the buyer, the buyer’s agent, the seller, and the seller’s lender. It probably seems like a lot of people to impress, but the truth is that it is achievable and it does occur.

A critical short sale selling mistake is having an unorganized short sale package. This package will contain proof of the homeowner’s financial hardship and give the lender an idea of how long the hardship has been going on and what the homeowner has done to try to escape the situation.

Another short sale mistake is settling with an inexperienced listing agent for the short sale home. It is highly important as a homeowner who has opted for a short sale to find an experienced and knowledgeable short sale specialist. These agents specialize in short sales and know the process very well. When seeking out the right short sale Realtor, it is important to obtain validity of their short sale completions and how long they have been in business. Do not be afraid to allow your short sale specialist search be lengthy.

**Rodney Forbes is a Realtor® and registered broker with Forbes Realty of South Florida, based in West Palm Beach Florida. Rodney and his team work in Palm Beach, Broward, Martin and St. Lucie Counties. As a recognized expert on short sales, Rodney has been featured on radio and national web conferences for agents. Rodney has also authored the book “Should I Short Sale My Home?”

Forbes Realty of South Florida also specializes in REO asset disposition. Rodney works with several banks and asset managers in the Palm Beach County area. Rodney is the main author for the popular real estate blog South Florida Real Estate Report. You can find a wealth of information regarding bank foreclosures, short sales, real estate news and local real estate trends.

For more information, please call Rodney at 561-337-4810 or email Rodney@ForbesRealtyOnline.com

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Avoiding Foreclosures in Palm Beach Gardens, Florida

by Rodney Forbes on November 2, 2012

West Palm Beach Short Sale RealtorFor homeowners who have a financial trial, any alternative to foreclosure is gladly received. Nevertheless, deciding on your suited alternative can be challenging. There are many factors that can affect a homeowner’s decision: their short term financial circumstance, their long term income prospects, their assets, interest rates, the interest rates, the internal policies of their property, even ethical and moral values may come into practice.

To make matters even more crucial, a great deal of the advice on foreclosure alternatives are from self-interested parties with a “dog in the race”, so to speak. These people could be lenders who profit off of loan modifications, 3rd parties that charge homeowners fees for guidance through strategic default, and individuals that claim themselves as specialists in short sales or foreclosure avoidance, when the truth is that they may have little experience or training on the subject matter.

With many various factors to consider and so much conflicting information out there while having to initiate such a critical decision, how is it possible for a homeowner to recover from a foreclosure and choose the best foreclosure alternative for their situation? Here below, we examine the ups and downs of a few of the major alternatives to foreclosure.
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Short Sale

When a foreclosure is a possible disaster that is on your plate, a short sale is a wise choice because the homeowner receives the approval from the lender to sell their home for beneath the value of their debt. In some states, non-recourse laws prevent the lender from legally pursuing a judgment against the borrower for the debt remaining after the secured properly is purchased, meaning the homeowner in Palm Beach Gardens, Florida is excused. In those states without non-recourse laws, the homeowner may clarify a short sale with the assistance of a short sale specialist and negotiate a written agreement from their lending institution, forfeiting their right to sue for the deficiency( the remaining debt owed by the homeowner after the home is sold). In return, the lender receives the proceeds of the sale on the home without the legal and administrative costs associated with foreclosure process.

West Palm Beach Short Sale RealtorThe drawback to a short sale is that if you are living in a recourse state and you still have significant assets, you will most likely still be held accountable for the deficiency when the home sells for less than the value of the outstanding debt. In addition, there are few Realtors in Palm Beach Gardens with the necessary experience to maintain the complexities of a short sale. The homeowner must be very diligent in screening Realtors in experienced short sale specialist, a short sale may permit the homeowner to salvage their credit, have their debt forgiven, and also avoid the public humiliation and spectacle of a foreclosure.

Loan Modifications

Loan modifications are frequently acclaimed as a technique to refraining from foreclosure. Homeowners dealing with potential foreclosure are often recommended to contact their lenders and work out a loan modification, where the lender alters the terms of the mortgage in order to help the homeowner in Palm Beach Gardens remain in their home. As for the lender, it can be reasonable to accept smaller payments over a longer amortization period, temporarily freezing interest rates, or delayed payment rather than accept the losses they would face with a foreclosure, particularly where the property value of the home has severely declined.

While loan modification programs may be profitable for the lender, for most distressed homeowners, loan modifications are a short solution that benefit the lender as opposed to the homeowner. If the property value of the borrower’s home has decreased to a point where it is significantly inferior than the value of the mortgage, the homeowner in Palm Beach Gardens will still be making Realtor mortgage payments for a home worth significantly reduced income, the it is not likely that they will capable of continuing to make mortgage payments in the long run. In this manner, a loan modification may only prolong the inevitable.

West Palm Beach Short Sale RealtorOn the other hand, loan modifications may be suitable in other circumstances where the reason bring for the homeowners financial distress is a short term one, in difference to the long term financial problems that come with sharply declining property values and significantly reduced income.

Deed In Lieu of Foreclosure

There is one more foreclosure alternative to remember, the deed in lieu of foreclosure. A deed in lieu of foreclosure is similar in concept to a short sale, except on behalf of selling the home, you hard back the home to the lender and in exchange, the foreclosure proceedings. Like with a short sale, it is critical to negotiate a forgiveness of the deficiency after the bank receives the deed.

The in convenient part to a deed in lieu of foreclosure is that it can be rather challenging to get the lender to admit a deed in lieu. It is significantly easier to get a lender to agree to a short sale. As a matter of fact, many lenders will require you to put your home on the market for a certain time frame before they will take into consideration a deed in lieu of foreclosure. With a short sale you come to the lender with an offer and a buyer ready to pay, while a deed in lieu of foreclosure you’re asking the lender to accept the deed to the property.

Which Foreclosure Alternative Is Right For You?

Even having data regarding ways for to prevent foreclosure and choose a preferable alternative to foreclosure, it can be confusing to know which option suites best for your specific case.

Typically speaking, a loan modification is the best solution when the reason for the missed mortgage payments of financial hardship is simply a short term cash flow issue. This could possibly be medical emergencies, sudden major repairs to the property, a car accident, or another long term financial crisis. Unluckily for the majority of homeowners, the cause of their agony isn’t a short term cash flow problem. If the root of the predicament is due to a significantly reduced income or a sudden decline in property values in Palm Beach Gardens, then a loan modification will typically be inadequate as a long term solution. In fact, it may be a higher cost for the homeowner in the long run, as they battle with keeping up loan payments, only to inevitably end up back where they started seeking other options to foreclosure.

West Palm Beach Short Sale RealtorThe deed in lieu of foreclosure provides multiple benefits over loan modification. It enables the homeowner to get a potential fresh start while avoiding many of the psychological and financial consequences of a foreclosure. However, it can be challenge to obtain a deed in lieu as lenders typically would prefer cash over the deed. This leaves the short sale as the most sufficient alternative to foreclosure where the cause of the homeowner’s financial hardship is because of unemployment, significantly reduced income, or where the value of the property in Palm Beach Gardens has dropped significantly. As previously mentioned, if you decide to take advantage of a short sale as an alternative to foreclosure, it is extremely important to find an experienced short sale Realtor who can manage the complexities of a short sale transaction. But with the proper representation, a short sale could be the alternative to foreclosure you’re seeking after.

**Rodney Forbes is a Realtor® and registered broker with Forbes Realty of South Florida, based in West Palm Beach Florida. Rodney and his team work in Palm Beach, Broward, Martin and St. Lucie Counties. As a recognized expert on short sales, Rodney has been featured on radio and national web conferences for agents. Rodney has also authored the book “Should I Short Sale My Home?”

Forbes Realty of South Florida also specializes in REO asset disposition. Rodney works with several banks and asset managers in the Palm Beach County area. Rodney is the main author for the popular real estate blog South Florida Real Estate Report. You can find a wealth of information regarding bank foreclosures, short sales, real estate news and local real estate trends.

For more information, please call Rodney at 561-337-4810 or email Rodney@ForbesRealtyOnline.com

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Palm Beach Gardens Florida Short Sale Helper.  Is there potential for a homeowner with a flawless mortgage payment history to get approved for a short sale? All of us are informed that short sale, a substitute to foreclosure, is a practicable opinion in West Palm Beach among defaulting homeowners. But for those who have kept their home loan payments, is there a way for them to give up their loan without having to go on default?

Typically, the answer to this question is yes! Mortgage lenders want to work with borrowers whose payment records are outstanding and are attempting to apply for a short sale. In recent years, an increasing number of borrowers who are on track with their mortgage payments have applied for a short sale on their homes. The majority of these cases are even approved by lenders immediately.

There are various reasons as for why borrowers with no late payments would want to short sale. There are homeowners who feel that residential property is underwater while some feel that the appraised value of their in Palm Beach Gardens homes has greatly decreased a few years after its purchase. There are responsible homeowners who believe that they should be given the chance to short sale on their property as it is the best financial decision to make. Borrowers who are on track with their mortgage payments may have the means to pay for their mortgage today, but predict issues that may affect their ability to pay on time in the future. This is what the real-estate market calls as imminent default.

The reasons listed above may not be enough for lenders to approve a short sale for good paying homeowners. The reason for wanting to short sale should be valuable and solid for mortgage companies to even consider you for loan modification alternatives.

Listed below are valid reasons from good paying homeowners who were approved a short sale:

. Job Relocation

Homeowners who must walk away from their homes because of job relocation are provided a chance to short sale their primary residence. Since keeping two homes in two different locations almost and always leads to distress, lenders will most likely agree to a short sale instead.

. Loss of employment

There are unemployed homeowners who still have the ability to make mortgage payments on time. However, they may only be pulling their money from personal savings and not from income. At some point in time in Palm Beach Gardens, will lose enough financial resources to cover their mortgage. Some borrowers do not wait for their resources to go to waste before they request for a short sale. Since default is already at hand, a mortgage lender will grant a short sale to borrowers with great mortgage payment history.

. Loss of employment or decreased income

Many homeowners are walking through financial difficulties because of hard economic times. Reduced working hours, lowered income, or getting laid off from work are common reasons why good paying borrowers are requesting for a short sale proceeding to ensure. As opposed to anticipating for these unlucky conditions to occur, homeowners who anticipate considerable losses will typically discuss the short sale process to their respective lenders.

.Divorce

Divorce always leads to one of the former spouses moving out of the home. A single parent who needs to solely manage the finances and pay for children needs will sooner or later face financial difficulties in the long run. As a substitute to foreclosure, a homeowner may choose to short sale on the property to avoid late charges and delinquency fees.

Why will Mortgage Lenders approve of Short Sales among Good-Paying Borrowers?

Palm Beach Gardens Short Sale Helper. Short sales get approved when a bank or mortgage company realizes that it is a more beneficial in Palm Beach Gardens financial route not to foreclosure. Short sale is a better alternative to mortgage lenders if their losses are kept to a minimum. In addition, foreclosure proceedings generally have a longer process when it comes to furnishing and completing. This means that foreclosure affiliated costs are bigger; more complicated, and time consuming. Instead of dealing with all the hassles and troubles that are involved with foreclosure, lenders will simply approve of a short sale immediately. Short sales are easier to complete and are less expensive to service as well.

Imminent Default Requirements

.A homeowner is up to date on his or her mortgage payments

. Proof of burden-documentations that can display expected financial hardships in the future

.A homeowner is for less than 30 days on his or her mortgage loan

.Financial worksheets

. Hardship letter

. Statement of account that can verify current and potential financial difficulties

. Income tax return

. Disclosure of assets

The greatest benefit to short selling a property despite being current on mortgage payments is the fact that these sellers will only have to wait for a shorter period of time before applying for a home loan in the future. In addition, the FICO score only lessens by a couple of notches, making it relatively easy in Palm Beach Gardens for homeowners to get right back on track after a year or so. Depending on how an individual manages his or her finances, re-establishment of credit can be accomplished a year after closing.

There are also some drawbacks for homeowners who decide to short sale despite their stellar payment history. For cases where being in financial distress is not the primary account as of why to apply for short sale, it is generally in Palm Beach Gardens mandatory to contribute cash to the lender at closing. The lender will request a promissory not to be signed upon short sale approval. Finally, lenders will have due rights to collect for deficiency judgment after closing of a short sale. It is due to these factors that borrowers with good payment history should evaluate if the profits outweigh the drawbacks when asking for a short sale on their respective homes.

Palm Beach Gardens Short Sale Helper. Whether you are the homeowner who has kept a clean mortgage record with your lender or you are the homeowner who has found themselves in financial distress, contact one of our highly experienced short sale experts to assist you in avoiding debt and move into the right direction of your future.

**Rodney Forbes is a Realtor® and registered broker with Forbes Realty of South Florida, based in West Palm Beach Florida. Rodney and his team work in Palm Beach, Broward, Martin and St. Lucie Counties. As a recognized expert on short sales, Rodney has been featured on radio and national web conferences for agents. Rodney has also authored the book “Should I Short Sale My Home?”

Forbes Realty of South Florida also specializes in REO asset disposition. Rodney works with several banks and asset managers in the Palm Beach County area. Rodney is the main author for the popular real estate blog South Florida Real Estate Report. You can find a wealth of information regarding bank foreclosures, short sales, real estate news and local real estate trends.

For more information, please call Rodney at 561-337-4810 or email Rodney@ForbesRealtyOnline.com

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Avoiding Foreclosures in Jupiter Florida

by Rodney Forbes on October 12, 2012

West Palm Beach Short Sale RealtorFor homeowners who have a financial trial, any alternative to foreclosure is gladly received. Nevertheless, deciding on your suited alternative can be challenging. There are many factors that can affect a homeowner’s decision: their short term financial circumstance, their long term income prospects, their assets, interest rates, the interest rates, the internal policies of their property, even ethical and moral values may come into practice.

To make matters even more crucial, a great deal of the advice on foreclosure alternatives are from self-interested parties with a “dog in the race”, so to speak. These people could be lenders who profit off of loan modifications, 3rd parties that charge homeowners fees for guidance through strategic default, and individuals that claim themselves as specialists in short sales or foreclosure avoidance, when the truth is that they may have little experience or training on the subject matter.

With many various factors to consider and so much conflicting information out there while having to initiate such a critical decision, how is it possible for a homeowner to recover from a foreclosure and choose the best foreclosure alternative for their situation? Here below, we examine the ups and downs of a few of the major alternatives to foreclosure.
.

Short Sale

When a foreclosure is a possible disaster that is on your plate, a short sale is a wise choice because the homeowner receives the approval from the lender to sell their home for beneath the value of their debt. In some states, non-recourse laws prevent the lender from legally pursuing a judgment against the borrower for the debt remaining after the secured properly is purchased, meaning in Jupiter Florida, the homeowner is excused. In those states without non-recourse laws, the homeowner may clarify a short sale with the assistance of a short sale specialist and negotiate a written agreement from their lending institution, forfeiting their right to sue for the deficiency( the remaining debt owed by the homeowner after the home is sold). In return, the lender receives the proceeds of the sale on the home without the legal and administrative costs associated with foreclosure process.

West Palm Beach Short Sale RealtorThe drawback to a short sale is that if you are living in a recourse state and you still have significant assets, you will most likely still be held accountable for the deficiency when the home sells for less than the value of the outstanding debt. In addition, there are few Realtors in Jupiter FL with the necessary experience to maintain the complexities of a short sale. The homeowner must be very diligent in screening Realtors in experienced short sale specialist, a short sale may permit the homeowner to salvage their credit, have their debt forgiven, and also avoid the public humiliation and spectacle of a foreclosure.

Loan Modifications

Loan modifications are frequently acclaimed as a technique to refraining from foreclosure. Homeowners dealing with potential foreclosure are often recommended to contact their lenders and work out a loan modification, where the lender alters the terms of the mortgage in order to help the homeowner in Jupiter remain in their home. As for the lender, it can be reasonable to accept smaller payments over a longer amortization period, temporarily freezing interest rates, or delayed payment rather than accept the losses they would face with a foreclosure, particularly where the property value of the home has severely declined.

While loan modification programs may be profitable for the lender, for most distressed homeowners, loan modifications are a short solution that benefit the lender as opposed to the homeowner. If the property value of the borrower’s home has decreased to a point where it is significantly inferior than in Jupiter the value of the mortgage, the homeowner will still be making Realtor mortgage payments for a home worth significantly reduced income, the it is not likely that they will capable of continuing to make mortgage payments in the long run. In this manner, a loan modification may only prolong the inevitable.

West Palm Beach Short Sale RealtorOn the other hand, loan modifications may be suitable in other circumstances where the reason bring for the homeowners financial distress is a short term one, in difference to the long term financial problems that come with sharply declining property values and significantly reduced income.

Deed In Lieu of Foreclosure

There is one more foreclosure alternative to remember, the deed in lieu of foreclosure. A deed in lieu of foreclosure is similar in concept to a short sale, except on behalf of selling the home, you hard back the home to the lender and in exchange, the foreclosure proceedings. Like with a short sale, it is critical to negotiate a forgiveness of the deficiency after the bank receives the deed.

The in convenient part to a deed in lieu of foreclosure is that it can be rather challenging to get the lender to admit a deed in lieu. It is significantly easier to get a lender to agree to a short sale. As a matter of fact, many lenders will require you to put your home on the market for a certain time frame before they will take into consideration a deed in lieu of foreclosure. With a short sale you come to the lender with an offer and a buyer ready to pay, while a deed in lieu of foreclosure you’re asking the lender to accept the deed to the property.

Which Foreclosure Alternative Is Right For You?

Even having data regarding ways for to prevent foreclosure and choose a preferable alternative to foreclosure, it can be confusing to know which option suites best for your specific case.

Typically speaking, a loan modification is the best solution when the reason for the missed mortgage payments of financial hardship is simply a short term cash flow issue. This could possibly be medical emergencies, sudden major repairs to the property, a car accident, or another long term financial crisis. Unluckily for the majority of homeowners, the cause of their agony isn’t a short term cash flow problem. If the root of the predicament is due to a significantly reduced income or in Jupiter a sudden decline in property values, then a loan modification will typically be inadequate as a long term solution. In fact, it may be a higher cost for the homeowner in the long run, as they battle with keeping up loan payments, only to inevitably end up back where they started seeking other options to foreclosure.

West Palm Beach Short Sale RealtorThe deed in lieu of foreclosure provides multiple benefits over loan modification. It enables the homeowner to get a potential fresh start while avoiding many of the psychological and financial consequences of a foreclosure. However, it can be challenge to obtain a deed in lieu as lenders typically would prefer cash over the deed. This leaves the short sale as the most sufficient alternative to foreclosure where the cause of the homeowner’s financial hardship is because of unemployment, significantly reduced income, or where the value in Jupiter of the property has dropped significantly. As previously mentioned, if you decide to take advantage of a short sale as an alternative to foreclosure, it is extremely important to find an experienced short sale Realtor who can manage the complexities of a short sale transaction. But with the proper representation, a short sale could be the alternative to foreclosure you’re seeking after.

**Rodney Forbes is a Realtor® and registered broker with Forbes Realty of South Florida, based in West Palm Beach Florida. Rodney and his team work in Palm Beach, Broward, Martin and St. Lucie Counties. As a recognized expert on short sales, Rodney has been featured on radio and national web conferences for agents. Rodney has also authored the book “Should I Short Sale My Home?”

Forbes Realty of South Florida also specializes in REO asset disposition. Rodney works with several banks and asset managers in the Palm Beach County area. Rodney is the main author for the popular real estate blog South Florida Real Estate Report. You can find a wealth of information regarding bank foreclosures, short sales, real estate news and local real estate trends.

For more information, please call Rodney at 561-337-4810 or email Rodney@ForbesRealtyOnline.com

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Short Sale Lead MachineOnce a homeowner receives a foreclosure notice, they’re usually already in dire states. The homeowner’s first reaction is usually to try to save the house. If the homeowner can’t muster the financial resources to accomplish this, the objective switches to minimizing losses. For homeowners facing an inevitable foreclosure, the primary goal is minimize damages and seeking a fresh start. Thus when a homeowner hears about the benefits of a short sale vs. foreclosure, their reaction isn’t one of pleasant surprise, but rather it usually comes in the form of an asked question: “If I do a short sale, will the deficiency be forgiven?”

This is an important question for a homeowner when he/she is contemplating a short sale. Despite the many benefits a short sale has on the homeowner’s credit, their ability to purchase a home again in the near future, and their psychological well-being, a short sale would ultimately be of little value to the homeowner seeking a fresh start if it didn’t discharge them of their debt burden to the mortgage lender. The short answer to the question is that yes, under the right conditions a short sale specialist can help you negotiate a short sale that will include forgiveness of the short sale deficiency.

But in order to answer this question in depth, first we need to understand the basic financial and legal underpinnings of a real estate short sale.

Short Sale Definition

So what does “short sale” really mean in terms of the legal obligations of the parties? A short sale in real estate is defined as a transaction where the proceeds of the sale of a property are less than the debt owed by the property owner to the lien holder. While the lien holder agrees to release their lean on the property for the short sale to occur, the borrower is not necessarily released from their debt obligations for the deficiency of the loan.

Short Sale Deficiency

A short sale deficiency is – as the term suggests – the deficiency between the proceeds of sale of and the total debt owed by the borrower. While the lender may have released the lean on the property, in most states the borrower still owes a personal debt for the unpaid balance. The bank may seek a short sale deficiency judgment in order to collect on this debt, unless the borrower can negotiate a “no-recourse” clause in the short sale agreement, forgiving the borrower for the deficiency. This is the most important part of the agreement for the homeowner, which is why we highly recommend that the homeowner seek the services of an experienced short sale specialist to negotiate their short sale agreement.

Short Sale Deficiency – California & Other Non- Recourse States

In some states, referred to as “non-recourse” states, borrowers are not held personally liable for the deficiency. Once the home is sold, the lender cannot seek a short sale deficiency judgment against the borrower for the balance of the debt owed. The specific anti-deficiency statutes will vary from state to state. In some non-recourse states, the lender can still collect some of the deficiency from the borrower, while in others the non-resource laws do not apply to refinanced mortgages. Below are some of the major recourse states at the time of this writing:

• Alaska
• Arizona
• California
• Connecticut
• Florida
• Idaho
• Minnesota
• North Carolina
• North Dakota
• Texas
• Utah
• Washington

Because the specifics of the non-recourse laws will vary from state to state, it is important to consult with a local short sale specialist about the non-recourse laws in your state. Your short sale specialist can refer your question to the appropriate lawyer, or he/she may be qualified to address your concerns directly.

Why Would A Lender Forgive The Short Sale Deficiency?

Some owners question why a mortgage lender would be willing to forgive a short sale deficiency. Wouldn’t the mortgage lender be losing money? This is a valid question, and the answer is yes, they will absolutely lose money on a short sale when they forgive the short sale deficiency balance. However, they will lose even more money if they are forced to foreclose on certain homeowners.

While foreclosures are an extremely unfortunate occurrence for the owner, foreclosures aren’t cost-free for the banks either. There are numerous legal and administrative costs borne by the bank if they have to proceed with the legal action and paperwork necessary for a foreclosure. Earlier while discussing the definition of a short sale, we mentioned that a lender could technically permit a short sale by releasing their lean on the property, but then later seeking a short sale deficiency judgment against the borrower. However, if the lender knows they will be unable to collect from the borrower, then the borrower or the borrower’s agent will have the leverage necessary to negotiate a debt forgiveness clause into the short sale. Even if the lender fore goes their right to pursue the borrower for the deficiency, a short sale would still be significantly cheaper for the lender in such a case than having to foreclose on the home. Even if a borrower has some assets remaining, collecting on a deficiency judgment can be expensive due to the legal costs, and in many cases involving homeowners facing foreclosure, asset recovery may be difficult or impossible.

This is where the experience and expertise of a short sale specialist will be beneficial. An experienced short sale negotiator can prepare the appropriate real estate short sale package, hardship letter for short sale, and negotiate a no-recourse clause into the final short sale agreement, giving you legal assurance that the lender will forgive the deficiency.

It’s important that you select a Realtor with a wealth of experience in short sales to negotiate your short sale agreement. As you are now aware, short sale deficiency forgiveness is not guaranteed in most states, but a Realtor with a wealth of experience and expertise in short sales may be able to negotiate deficiency forgiveness in many cases.

Rodney Forbes is a Realtor® and registered broker with Forbes Realty of South Florida, based in West Palm Beach Florida. Rodney and his team work in Palm Beach, Broward, Martin and St. Lucie Counties. As a recognized expert on short sales, Rodney has been featured on radio and national web conferences for agents. Rodney has also authored the book “Should I Short Sale My Home?”

Forbes Realty of South Florida also specializes in REO asset disposition. Rodney works with several banks and asset managers in the Palm Beach County area. Rodney is the main author for the popular real estate blog South Florida Real Estate Report. You can find a wealth of information regarding bank foreclosures, short sales, real estate news and local real estate trends.

For more information, please call Rodney at 561-337-4810 or email Rodney@ForbesRealtyOnline.com

 

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Short Sale Lead MachineLet’s be honest, some short sale sellers are finding it difficult to sell a home as a short sale. Short sales can be a long complicating process without the right professional and not handled carefully. Short sales that are handled by inexperienced Realtors can typically end up as foreclosures, which is an even more devastating moment for the homeowner who has already been through a hardship and hoped a short sale could be their solution.

The short sale process can be an easy transition as long as the homeowner is fully up to speed with the process and has an experienced, knowledgeable, and skillful short sale specialist with them. Homeowners should also know that short sale services should always be free!

One of the most common short sale mistakes is the pricing of the home. Sometimes the price is too high, too low, or just right. When it comes to pricing the home for a short sale, certain parties need to agree with it like the lender, the buyer, the buyer’s agent, the seller, and the seller’s lender. It probably seems like a lot of people to impress, but the truth is that it is possible and it does happen.

A crucial short sale selling mistake is having an unorganized short sale package. This package will contain proof of the homeowner’s financial hardship and give the lender an idea of how long the hardship has been going on and what the homeowner has done to try to get out of the situation.

Another short sale mistake is choosing an inexperienced listing agent for the short sale home. It is extremely important as a homeowner who has opted for a short sale to find an experienced and knowledgeable short sale specialist. These agents specialize in short sales and know the process very well. When searching for the right short sale Realtor, it is important to obtain validity of their short sale completions and how long they have been in business. Do not be afraid to let your short sale specialist search be lengthy.

Rodney Forbes is a Realtor® and registered broker with Forbes Realty of South Florida, based in West Palm Beach Florida. Rodney and his team work in Palm Beach, Broward, Martin and St. Lucie Counties. As a recognized expert on short sales, Rodney has been featured on radio and national web conferences for agents. Rodney has also authored the book “Should I Short Sale My Home?”

Forbes Realty of South Florida also specializes in REO asset disposition. Rodney works with several banks and asset managers in the Palm Beach County area. Rodney is the main author for the popular real estate blog South Florida Real Estate Report. You can find a wealth of information regarding bank foreclosures, short sales, real estate news and local real estate trends.

For more information, please call Rodney at 561-337-4810 or email Rodney@ForbesRealtyOnline.com

 

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