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For Immediate Release
Office of the Press Secretary
December 20, 2007
President Bush Signs H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007
"The bill I sign today will help this effort by ensuring that refinancing a mortgage does not result in a higher tax bill. Under current law, if the value of your house declines and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as money that can be taxed. And of course, this makes a difficult situation even worse. When you're worried about making your payments, higher taxes are the last thing you need to worry about. So this bill will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. And it's a really good piece of legislation. The provision will increase the incentive for borrowers and lenders to work together to refinance loans -- and it will allow American families to secure lower mortgage payments without facing higher taxes. "
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A short sale in real estate occurs when the outstanding loan balance (your mortgage) against a property is greater than what the property can be sold for at fair market value. If a borrower owes more than the home is worth, or has very little equity in the home, it may be time for a short sale in order to avoid a Foreclosure judgment. In a short sale the lender actually accepts less money than you owe to discharge the mortgege and sell your property.
From the bank or lender's perspective, short sales save many of the costs associated with a Foreclosure lawsuit, such as attorney fees, the eviction process, delays from the homeowner or borrower, delays from bankruptcy, damage to the property, as well as the cost associated with maintaining the property. Banks and lenders know they could lose a lot more money if the property goes all the way to auction, so it is sometimes better to sell the real estate now below fair market value and get rid of a non-performing asset. Therefore, a bank or lender may sometimes decide to accept less than the full amount of a borrower's loan balance in certain situations. In turn, this provides the homeowner and borrower an opportunity to avoid or minimize the damaging affects of a mortgage foreclosure lawsuit.
1) Hire an Agent with Short Sale Experience.
You need an experienced short sale agent. An agent with experience in short sales will help to expedite your transaction and protect your interests. You don't want to miss any important detail due to inexperience or find out your transaction is not going to close on time because no one has followed up in a timely manner. Finding a good real estate agent / broker is essential to enjoying a painless real estate transaction. The best agent for you doesn't necessarily work at the largest brokerage, close the most transactions or make the most money. The best agent for you is an experienced professional who will listen to you, conduct herself in an ethical manner and knows your market.
2) REALTORS® vs. Real Estate Agents. Both real estate agents and Realtors® are licensed to sell real estate as an agent or a broker. However, not all real estate agents are Realtors®. Realtors® belong to the National Association of Realtors and pledge to follow the Code of Ethics, a comprehensive list containing 17 articles and underlying standards of practice, which establish levels of conduct that are higher than ordinary business practices or those required by law. Only Realtors® can display the Realtor® logo. Less than half of all licensees are Realtors®.
3) Short Sale is an intricate transaction. A short sale can be a very intricate transaction. Concepts like market time, marketing and pricing must be done to your lenders specifications or they will not accept your offer. Mistakes add a lot of time and could cost you a foreclosure and deficiency judgment. |
This timeline is for informational purposes only. Every situation and timeline is different. Sometimes attempts to restructure or repay loans before the complaint is filed results in a longer timeline. As a generic rule count on 5-6 months for a sale to take place from the first 30 day late.
Florida mortgages must be foreclosed by filing a lawsuit in court. The Defendant (borrower) must be served with notice of the lawsuit and must be given an opportunity to appear and defend his or her rights. In a foreclosure there is not much to defend if the borrower is behind in payments. The lender will show that the borrower is in default, and that foreclosure is necessary under Florida equity law. By law a Defendant has the right to file a counterclaim. In Florida a counterclaim is adjudicated separately and does not stop foreclosure.
RULE #1 DO ANYTHING TO AVOID A FORECLOSURE SALE
Maybe not "ANYTHING".
In the current market there is absolutely no excuse for a mortgage foreclosure sale. Banks don't want to own property and nobody is paying market rate at auction. That means banks will take less NOW to avoid losing more money every month.
A sale also allows the lender to pursue a Deficiency Judgment against you for the difference. You are responsible for every penny the lender lost. All costs get added to your bill creating a deficiency judgment much larger than you ever expected. A judgment will destroy your credit and follow you for the rest of your life until you pay it.
Call us NOW 813-333-9930
RULE #2 TIME IS NOT ON YOUR SIDE ACT IMMEDIATELY
Lenders have strict time guidelines that they follow. These guidelines are computer driven without regard for your birthday, Christmas, job loss, separation, death in the family or any other possible reason. The only thing that can alter the timeline is action from you.
RULE #3 ACCEPT HELP FROM AN EXPERT
Don't fall prey to predators. There are a lot of people and companies with programs designed to take advantage of your misfortune. We are Licensed REALTORS® offering a legal, caring effective service. |