Short Sales and Chapter 7 Bankruptcy
Let’s face it bankruptcy complicates everything, Right?
Well, not really. Let’s say you list a home for a short sale. Many times, the homeowner has other financial problems besides the mortgage on his or her home. The homeowner may decide to file for bankruptcy. That’s OK. Your chance to complete the sale is not dead, but it is on hold. Read the rest of this entry
Can my mortgage company foreclose during my short sale?
The answer is yes, they can start foreclosure, but why would they do it? This is normally a situation where one hand doesn’t know what the other is doing. The bank/ mortgage company/mortgage servicer can start a foreclosure proceeding at any time once the homeowner goes into default. Normally, a homeowner starts the short sale process once they have already defaulted, so the foreclosure process can begin at any time. Read the rest of this entry
Condo Associations Million Dollar Windfall!
NOT SO FAST
Recently I read an article about a foreclosure in Aventura, Florida. Actually there were two foreclosures. The first one was a foreclosure by the condominium association. This foreclosure came about because the owner stopped paying his homeowners fees on his million dollar condo. Naturally, the condo association foreclosed, obtained title to the property and proceeded to rent the condo out. Read the rest of this entry
What is the “Best Result” of a Short Sale? – Part II
If a Short Sale transaction is properly negotiated, the formal approval shall contain provisions that upon receipt of the proceeds from the closing of the short sale transaction, the Mortgage shall be satisfied and the Promissory Note cancelled/satisfied. If the Promissory Note or remaining indebtedness is addressed in the approval letter as being canceled or satisfied, the Short Sale Lender should issue a 1099C in the amount of the remaining outstanding indebtedness. If the remaining outstanding indebtedness is cancelled, there is no further obligation upon which a deficiency money judgment can be pursued. Whether the subject property is a primary residence or investment property, full and final settlements are possible. Read the rest of this entry
What is the “Best Result” of a Short Sale? – Part I
Mitigating the Borrower(s)’ damages is the ultimate objective of a Short Sale. Are you aware each individual that signed the Promissory Note is responsible for the entire financial obligation. Actively pursuing and successfully closing a Short Sale does not mean the financial obligation has been canceled or the Borrower(s) is released from the obligation. An improperly facilitated Short Sale has the potential to create additional and continuing financial obligations for the Borrower(s) which is contradictive to the intentions of participating and pursuing the loss mitigation option. Read the rest of this entry