In some states it may be rare, but here in Florida the majority of my short sales seem to be with multiple mortgage companies. 

I see home owners with 1, 2, 3, and even 4 mortgages on a property. I see 80/20s, 85/15s, 90/10s, 95/5s, and all those varieties with Home Equity Lines of Credit on the house as well. 

How do you short sale with more than one mortgage? 

How do you short sale with a Home Equity Line of Credit (HELOC)?

The answer is simple:  The same way you short sale with just 1 mortgage.  All documents get submitted to all lenders involved.  The 2nd or 3rd lien holders are typically offered a "token" amount to release their lien against the property, which they almost always take, and we get the approval. 

Now it's not always that…

1112 Views, 0 Comments

Read Full Post

Our team has been running wide open for months now!

The summer buying season hit and it has been another great summer as Jacksonville home prices are so affordable and rates are at historic lows.  It's been the perfect storm for those who can purchase and those who can sell.

In Jacksonville we are still seeing about half the market as distressed sales, which is made up of short sales and bank owned sales.  This is a trend I don't see letting up anytime soon. 

Despite all the positive real estate news, the fact remains the values of properties dropped in Jacksonville by some 30-40%+.  It will take a long time before many of those home owners are back to even.  Add the high unemployment above 9% and I believe we will continue to see distressed…

918 Views, 0 Comments

Read Full Post

IRS Mortgage Debt Forgiveness 2012 for Short Sales

One big problem in short selling or foreclosures is the tax burden.

If your home is foreclosed, deed in lieu, or short sold, the debt forgiven is taxable income.  For example:

You owe = $200,000

You short sale the house and the bank agrees to take fair market value = $120,000.

$80,000 was the amount forgiven, which is now classified as taxable income to you. 

You currently make $40,000 annual income that you pay taxes on. 

Now add the $80,000 for the year, and you just made $120,000 for the year, which you owe taxes on at the higher tax rate. 

BUT - Since 2007, we have had the Mortgage Forgiveness Debt Relief Act of 2007 - takes you to IRS.gov for quick info.  Under this Act, if…

1032 Views, 0 Comments

Read Full Post

I've seen too many homes for sale that have garages piled with junk. 

Boxes, give away items, garage sale items, and just your normal messy garage items. It's of my opinion that you can draw a conclusion how a home has been cared for based on the garage.  Messy garage = deferred maintenance house.  Clean and organized garage = well cared for home.  It's not scientific, but I bet you can think of friends and family members that support the theory. 

Further reasons to care about the garage:  If momma buys because of kitchen and baths, what turns on daddy?  Garage, yard, and office/man room.  Knowing this, home sellers should pay more attention to the garage. 

Clean it.  Organize it.  Paint the floors.  It is after all, part of your home. …

947 Views, 0 Comments

Read Full Post

Spring is here for the Real Estate market in Jacksonville Florida!

Traditionally, Spring brings a lot of new listings followed by a flood of home shoppers.  Sellers are anxious to get their home on the market as one of the hottest home buying seasons is just around the corner. 

This Spring follows the traditional trend, however a few interesting facts about the Jacksonville Real Estate market thus far:

  • New listings have been hitting the market, BUT overall available inventory is WAY DOWN!  I'm talking half compared to 4 years ago.  
    • Will this trigger a Seller's market in the months to come? 
    • Could the coming wave of bank owned properties finally be released on the market for sale?
  • Multiple offers on Investment condos in the $50k…

980 Views, 0 Comments

Read Full Post

What do you do if you are behind on mortgage payments?

Bad news first:  It is so difficult to catch up on late mortgage payments.

The good news:  If you have the income, your mortgage company may work with you to help you catch up on the payments.

More bad news:  It's not that easy to get your lender to help....even if they have the ability to help.

Good News:  There is no "did not pay mortgage jail".  All they can do is hound you via non-stop phone calls, people knocking on your door, and eventually foreclosure.  The worst that could happen is being sued for the deficiency after the foreclosure....which in Florida, they can do and many bank will do. 

Over 6 million home owners are behind on payments.  That is a HUGE number!  Because of…

999 Views, 0 Comments

Read Full Post

Based on the recent RealtyTrac year end report, it appears short sales are up and bank owned real estate sales are down.  Statewide, short sales were up 3 percent in the fourth quarter of 2011 compared with the same time in 2010, while bank-owned sales were down 32 percent.  REO down 32%!

One big explanation for the heavy slow down in foreclosures is the robo-signing hangover from 2010.  The system is currently overloaded with homes in some stage of foreclosure but just stalled out in the process.  Estimates of homes late on payments, homes in a stage of foreclosure, and homes already owned by the banks but not released for sale run in the 4-6 million range. That's 4-6 million homes!  Think garden hose with a basketball stuck in it. 

Another…

936 Views, 0 Comments

Read Full Post

Short Answer is YES!

Top 8 Reasons to Buy Florida Real Estate in 2012:

  1. Be like Buffett:  Buy when others are fearful.  In a recent interview, Warren said he'd like to buy up a "Couple Hundred Thousand" single family homes!  Warren Buffett CNBC interview for buying up single family homes.
  2. Prices are Fragile:  Floridians are usually very proud of what they have.  We know real estate in Florida is always in demand, but right now the prices are a little more fragile.  Is the bottom here or not?
  3. Sellers are Anxious:  Sellers are anxious to sell and move on.  They are anxious to know their return from selling the home.  They may be willing to take lower offers to just cut the losses.
  4. Money is Cheap:  Rates are hovering around 4%!  This may be…

1286 Views, 0 Comments

Read Full Post

Average time a Foreclosure takes in Florida:  600+ days!  That's a snails pace!

Proposal SB 1890 is one step closer to becoming law in Florida.  And it's a good thing in my opinion.

Two Major Changes this Bill aims to Change:

  1. Speed up Foreclosures:  Any lien holder, 1st mortgage, 2nd, HELOC, etc., could file for a "hastened" foreclosure in cases where the home is abandoned or the mortgage is delinquent.  In these cases a judge can side with the lien holder and file an immediate final judgement notice, which gives only days before a house is taken back by the bank.  This has the ability to go retroactive to ALL home owners currently in foreclosure in Florida.  Some 368,000 home owners. 
  2. Reduced time limit for Deficiency Judgements:  The bill…

963 Views, 0 Comments

Read Full Post

I constantly scan the market in the hottest areas of town and hottest private communities in Jacksonville and Ponte Vedra.  I'm looking for the best deals and the best houses.  It's an easy process.  Either the home is attractive inside and out and it's priced well enough that I want to see it.....or it's not. I believe home buyers do the same search.

One thing I dislike seeing in this buyer's market:  Overpriced Short Sales!

There is only 1 thing worse than seeing an overpriced short sale:  A bank owned home that was a short sale listing!

Truth be told, I've had my close calls with banks either purposely or accidentally attempting to foreclose on a home while we are trying to get a short sale contract approved.  Occasionally, I've sold the same…

988 Views, 0 Comments

Read Full Post