Blog Archives

Bankruptcy, Foreclosure & Short-Sale Guidelines

lend-borrowBankruptcy, Foreclosure & Short-Sale Guidelines

As a Senior Loan Officer, I think the biggest challenge in today’s economic and mortgage lending environment has to do with the amount of people that have had a bankruptcy, foreclosure, or short-sale; and sometimes all of the above. It is important to understand what the current lending guidelines are when trying to get pre-approved to purchase a home. While they are always subject to change, here are the current ones. Read the rest of this entry

Short Sales and Chapter 13 Bankruptcy

Short Sales and Chapter 13 Bankruptcy

Chapter 13 bankruptcies are much different than a Chapter 7, and a professional will need to obtain approval from the court if they want to perform work for the bankruptcy estate. In a Chapter 13, normally debtors are surrendering underwater homes. Read the rest of this entry

Foreclosures and Short Sales

Foreclosures and Short Sales

Unfortunately, foreclosures and short sales go hand in hand. Very rarely will the mortgage companies not file the foreclosure suit when the mortgage is six or seven months past due (completing the foreclosure in another matter entirely). Read the rest of this entry

Is a Short Sale better than a Foreclosure and why? – Part III

Is a Short Sale better than a Foreclosure and why? – Part III

What can one do to try to avoid having to experience this nightmare? Short Sale the property! A successful Short Sale can result in a win-win scenario for all parties involved. A Short Sale is an opportunity for the Mortgagor to try to prevent any version of the foreclosure nightmare while trying to actively mitigate the losses for all involved. A successful Short Sale handled by a Real Estate Attorney may result in the Bank or Lender releasing the lien of the Mortgage and also canceling (forgiving or writing off) the Promissory Note and providing a full release of their deficiency judgment rights. The best outcome of a Short Sale is the issuance of a 1099C which concept shall be left on the table for future discussion. Read the rest of this entry

Is a Short Sale better than a Foreclosure and why? – Part II

Is a Short Sale better than a Foreclosure and why? – Part II

Florida is considered a “deficiency state”. This means the Mortgagee has a legal right to pursue the Mortgagor and obtain a deficiency judgment against them for the remaining amount of indebtedness existing after the application of the proceeds from the sale of the collateral. The Mortgagee has a time period set forth in the Florida Statutes to pursue the deficiency judgment and this money judgment can not only be good for up to 20 years, but can also attach to other real property owned by the Mortgagor. Read the rest of this entry