Wellington Short Sale Agents | Wellington FL short sales
Should I Short Sale My Wellington Home?
This is one of the most frequently asked questions and also one that receives the most judgmental responses. There are many reasons why a homeowner would choose or should choose to short sale their Wellington home. Some may be laid off from work and can no longer afford their payments while others are looking at their savings- having watched it all get depleted through loss of equity in their Wellington FL home. These homeowners can no longer accept throwing their money down the drain so to speak. These are all considered in the decision of short selling your Wellington home.
The first thing you need to ask yourself and go over in your family meeting is your budget. Are you laid off from your work? Are you unemployed? If so, what are your job options and how realistic is it that you will get a job or start a business where you will be able to keep making your mortgage payments or where you can catch up if you are late.
How far behind are you on your mortgage payments if you are behind? Have you been turned down for a loan modification with your lender? If you do short sale your home, where are you going to move? Sometimes we have helped a homeowner discover that paying rent to a landlord will cost them more and get less space then trying to figure out a way to keep their home. In that situation it is not in the homeowner’s best interest to sell their home as short sales.
Do you own properties that are your investment properties but the rents are not making the mortgage payments because of the real estate market crash?
Are you thinking about just walking away from your home or property and leaving the keys on the table?
These are many of the questions that are constantly being tossed around in a homeowner’s mind here in Wellington Florida and other places in Palm Beach County.
Most of the time doing a Wellington short sale is better than having a foreclosure against you and the judgment that the banks are entitled to after the foreclosure.
Did you know that there are some programs that you may qualify for where your lender will give you up to $20,000 in some cases and in many cases at least $3000 to help you relocate?
We can not promise that you will qualify for one of these incentive programs but the call to us is totally confidential. We will have a short sale intake evaluation with you over the phone and go over your foreclosure options with you. Call Nestor Gasset or Katerina Gasset at 561-753-0135 today to get your short sales questions answered.
What is a Wellington Short Sale?
We created this very short 2 minute video for you to answer the question: What is a short sale?
Short sales have been around since the origin of the mortgage and loans for homes- properties and other tangibles and non-tangibles. But most people had not really heard what a short sale is until the real estate bust in 2007. Most real estate agents did not know what a short sale was until recently either. Most homeowners did not know what a short sale was and many homeowners still don’t know that a short sale is a great option to foreclosure in many circumstances.
If you are looking for an easy way to explain what a short sale is this video is simple, fast and straight to the point.
Contact Nestor Gasset or Katerina Gasset for a confidential short sale interview to go over your short sale options and avoid foreclosure today.
Authored by Katerina Gasset
Wellington Short Sales- What you need to know before you sell your Wellington home.
There are many situations that you may be facing when the subject comes up in your house about whether a Wellington short sale is your best option or not.
The most common reason that a homeowner does a short sale is because they are facing foreclosure.
Because this is the most common reason people do short sales it may seem to many people that you have to be in some stage of foreclosure in order to do a short sale. This is not the case.
If you are in foreclosure in Wellington Florida then the bank does want to try to work things out with you in regards to resolving your serious delinquency. Most of the time, when we are negotiating short sales for Wellington homeowners the banks are more agreeable in negotiating terms with you than if you are current on your mortgage.
If you are behind in your Wellington Florida house payments but not in foreclosure yet the bank also wants to give you the option of doing a short sale in most cases. This is a great time for the bank to save some money by not pursuing the foreclosure filing in the state of Florida but also a good time for you to do a short sale to be able to negotiate the best outcome.
If you are current with your mortgage payments many real estate agents, attorneys and friends will tell you that you can not do a short sale if you are current on your mortgage payments. This is not true in most circumstances. A lot of this depends on your bank and who the note owner on your mortgage is. So it depends on a lot of factors. But for the most part, most Wellington homeowners who are contemplating doing a Wellington short sale and are current on their mortgage payments may pursue a short sale.
If you are current on your mortgage but are in danger of becoming delinquent you are also a good candidate for a short sale. If you are depleting all of your savings and are laid off from work this is a good case to make to your lender that you really don’t want to have a foreclosure on your credit report and you also don’t want to go late on your payments. This is a good time to pursue a short sale.
If you are current on your mortgage, have tenants in your property but the rent does not cover enough to make your mortgage payments- you can do an investor short sale. We work with Wellington property owners and Wellington investors who have lost so much equity in their properties and can not get re-financed. If you are in this situation we have a lot of experience in helping investors get their Wellington short sales approved.
If you are current on your mortgage and do have enough money to keep making your mortgage payments you may be able to do a ‘Strategic Short Sale’. In Wellington there are many homeowners who have lost equity in their property- some to the tune of 50% of their equity evaporated in the mortgage melt down and real estate bust in South Florida. Most of the time with strategic short sales you will get your best offer from your lender if you do go late on your payments. That is when the bank is going to make a move in looking at your short sale seriously. If you keep current on your payments your bank may require a larger cash contribution than if you are late or default. Again, it all depends on who your servicer is and who owns your note. They all have different guidelines.
The best thing to do is to call us- Nestor Gasset and Katerina Gasset at 561-753-0135 to have a confidential phone interview about your situation and we will go over your foreclosure options and Wellington Short Sale options. This way when you are having your next sit down meeting at your house you will have some actual facts to go over instead of just hear-say from good intentions of friends and family members.
Are you living in southern California in a house that is upside down? Is your home worth less than what you own on your mortgage?
If you owe our mortgage lender more money than you can sell your house today for, you are upside down in your mortgage. This is never a good place to be in.
Maybe you need to relocate or sell in order to retire. What to do?
We recommend you contact Sidney Kutchuk at Realty Works in Temecula California. His number is 951-217-6745.
Sidney has been helping homeowners such as yourself negotiate terms with their lenders in order to get homeowners out from under their upside down situations. This is called a “short sale”.
In order to do a short sale, your house will need to be put on the market, listed for sale.
After your house gets an offer Sidney sends that offer to your mortgage lender along with your short sale package.
Find out the paperwork you need to put together prior to meeting with Sidney.
This was create a smoother and easier transition.
This is not something you will be able to do on your own.
If you have two mortgages on your property or maybe you have a mortgage and a HELOC, home equity line of credit, these take extra time to negotiate as now there are two lenders to deal with on getting them each to take less than what you owe them.
We have been working with Sidney Kutchuk for many years now. He will not let you down. Him and his team are very efficient, no wasted time or resources.
Selling your house as a short sale tends to bring people around who think they can buy your house dirt cheap. This is not the case. The banks know how much they are going to want to get for the property.
You will want to stage your home, putting it in the best light possible and get it ready for showings.
You can find out more about Temecula short sales and selling your house as a short sale by clicking here.
You can tell him you learned about him from our blog!
Florida Foreclosures- How Long Does My Lender Have To File Deficiency Judgement?
Statute of Limitations for Post Foreclosure Deficiency Judgements
In the state of Florida AFTER your home or property has been foreclosed on, your lender or the mortgage note owner has a specific time period in which they can file a judgement against you.
What happens when you lose your property in a foreclosure is that your property will be sold and most often it will be sold for less than what you owe your lender.
When there is not enough money to pay off the balance of your mortgage- that is called a “deficiency”.
The creditor ( your bank- note owner- servicer in behalf of your note owner- etc) has a right in the state of Florida to file a claim against you for that deficiency amount.
So if you owe the bank $500,000 on your loan for your property but the foreclosure sale goes for $400,000; you owe your lender $100,000. Your lender has the right to get a judgement against you for that amount.
BUT there is a statute of limitations in Florida for how long they have to make this claim against you.
The rules have also recently changes with the new updates to foreclosure rules in Florida.
The rules used to say that the bank has 5 years to file a deficiency judgement against you.
With the new rules- the creditor in a foreclosure only has 1 year to make a claim against you.
If your foreclosure took place on or after July 1, 2013 the creditor has to file their deficiency judgement against you within 1 year.
If your foreclosure happened before July 1, 2013 then your creditor has 5 years to file that deficiency judgement against you or prior to July 1, 2014: whichever comes first.
If your lender has violated these new rules we suggest you seek the advice of a good attorney.
We are NOT attorneys and we are NOT giving you legal advice. Please contact your attorney for specific legal advice pertaining to your own situation.
If you want to avoid your foreclosure- a Florida Short Sale may be a better option for you. Call Nestor Gasset or Katerina Gasset right away at 561-753-0135 for a confidential phone interview about your situation.
Don’t Lie About Your HOA Fees- Your Agent, Bank and Title Company Will Find Out
When you are selling your home in Florida as a short sale you still have to pass clear title to your new buyer.
The title company is going to do a search for any defects on your title such as liens from your HOA ( Homeowners Association) or Condo Association.
The title company also has to order an “estoppel letter” from your HOA. This is a document that contains the verified information from your HOA about what you owe and whether you are current or not. It will contain the amount of money that is going to have to paid to the HOA before they will issue a clearance.
When you list your property with a Wellington short sale agent come clean with us on what you owe and to whom you owe it to. If you say that you are current on all of your HOA fees we are passing that information along to the title company who is then going to need to verify if this is true. So why lie? It won’t help you- in fact, in many instances it can come back to hurt you.
In the state of Florida your mortgage servicers are only required to pay up to a certain amount of your delinquent HOA fees. So that leaves the rest on who?
Telling the buyers at the last minute that they are going to have to pay your HOA fees is a great way to kill your short sale.
You are the one that is responsible for your HOA fees. Make sure that you are at least being honest in what you owe and for how long you have not been making your HOA fees.
Remember also, that in the state of Florida, the HOA can foreclose on your house WAY before the bank does!
Contact Nestor Gasset and Katerina Gasset at 561-753-0135 for a confidential phone interview about your option to do a Florida short sale.
Wellington Short Sales are Far and Few Between These Days
Over the past year or so the number of short sales available for sale has dwindled to just a very small amount.
Foreclosures in Wellington? Very few! And if you do find one most of the time they will have multiple offers from all cash buyers.
There are still a lot of homes in the process of foreclosure that have not actually gone back into the possession of the banks.
If your home is in foreclosure your time is almost up. Call Nestor Gasset on his mobile at 561-541-9936 for a confidential discussion about your situation and what your options are. You may find that doing a short sale now may be the right thing to do.
Home Equity Line RESETS Are Coming Due!!! Homeowners with HELOCS may get a BIG surprise in the coming months as their loan payment skyrocket when the payments reset.
The Housing bubble and bust- we are not out of the woods yet. Residual effects are still in the making.
Home Equity Lines of Credit- HELOCS are when you take a loan out for things like college, vacations, buying another property, remodeling, etc.
During the boom years these HELOCS were very popular because the prices of the houses kept going up.
The states of Florida, California, Nevada and Arizona had the BIGGEST surges in home prices.
These are also the same states that saw the biggest number of defaults, foreclosures and short sales.
The HELOCS were offered with payments of interest only for 10 years. Guess what, 10 years is coming up and for those who took out HELOCS in 2004 are already getting their new payments and surprise, surprise, they are MUCH higher than the interest only payments were.
For instance, if you took out a HELOC on your house of $100,000 at 3.5% interest rate your payment is $292 per month but once it resets it will jump to a whopping $715!!!!
Are you ready for your new payments?
I must say, I am SOOO happy we did not get one of those HELOCS as tempting as it was.
There is an estimated 817,000 people this year alone who will be faced paying the piper to the tune of $23 BILLION in HELOCS– this is more than double of what it was last year.
Then during the next 5 years another $50 BILLION in HELOCS will be reset.
All of this is going to contribute to a more sluggish U.S. economic recovery because that $500 per month is not going to be going to buy new cars, spend on vacations, etc. It is going to be used to pay back these HELOCS from things you already spent the money on. This is money not going into the economy in goods and services. This money is being sucked out of consumer spending and that sound is not attractive to say the least.
Most people who have HELOCS can not refinance because they don’t qualify or they were behind on their upside mortgages and the like.
Another problem that all this creates it that the banks know that most of these kinds of HELOCS are uncollectable as there is not enough equity to foreclose on the second to any benefit to the HELOC bank since the first note holder needs to get paid first.
The other issue is that the banks will tighten up extending mortgage loans to all but the most credit worthy buyers because of the losses they will have to suck up due to people who won’t be able to make that reset payment.
Some banks are being proactive and reaching out to their customers two years before the resets come due to warn the borrowers as well as trying to work with them on getting these HELOCS paid off or refinanced.
Look at your paperwork from when you took out your HELOC. Make sure you know your interest rate and when your payments are going to reset. Then make sure you plan to meet those payments or call us to see if there is enough equity in your house. If you have enough equity in your house, we may be able to list your house for sale and you can move on.
Contact Broker Nestor Gasset at 561-541-9936 to discuss your options confidentially now.
Wellington President of Little League Endorses Broker Nestor Gasset of International Properties and Investments LLC – here is J.C. de los Reyes’ review ( testimonial) for Nestor after Nestor helped him and his family to buy a new home and sell their current home. I will leave it to J.C.’s own words:
Attn: prospective clients
RE: Testimony about the services of Nestor Gasset
I am writing this letter as a testimony to the wonderful experience my family had with Nestor Gassett and the services he provided to me and my family during the whole process of buying and selling our home. He not only provided the obvious services needed, but went far and above his duties to counsel and guide us through the entire process, especially when times got tough.
As a family we had long desired to move into the Wellington area. My wife grew up in Delray Beach, but as a couple we had lived in Delray Beach since 2004. Our son was born in 2005 and we were blessed with a daughter in 2009. With my working in Wellington and my wife nearby, in addition to the far superior school district and overall positive family neighborhood structure, we have wanted to make the move to Wellington for quite some time. I had come to befriend Nestor through recreation baseball four years ago and he knew about our situation. We finally got around to summoning up the courage to start the process last August (2013).
So … with Nestor’s help, we began looking. Any purchase of a new home for us was going to be contingent on us selling our residence at the time, a 2/2 villa in Delray Beach. Nestor knew the challenges that lay ahead in selling our place because it was situated in a unique area without many comparisons and there had been some foreclosures, making the final asking price a challenge to obtain. But with a direct marketing approach and word of mouth, we had multiple showings every week for months. After some bumps in the road with multiple potential buyers and some stressful months, Nestor was able to get two cash buyers competing to buy our place and was able secure a deal.
On the flipside, the home we were contracted to purchase in Wellington was not a walk in the park either. The previous owners agreed to have us under contract contingent on us selling our place. They waited for us to do so for a long time (we were under contract from September to January). Nestor’s hard work and due diligence kept these people from deciding not to void the contract.
Even when there were bumps in the road with some buyers falling through the cracks, Nestor was there to encourage us and lift our heads up, and for that we will be forever grateful. Even in the short time we have lived here in Wellington (two months), it has turned out to be everything we had dreamed it would be; great schools, great families, great recreation and activities, great location close to work, great house and everything else we thought it would be.
And, to be honest, we owe that all to Nestor. I can’t imagine anyone working harder than he did for us and now my family will be the beneficiaries of that hard work, persistence and dedication.
J.C. de los Reyes, CPRP
President, Wellington Recreation Little League
Senior Programs Coordinator
Village of Wellington
(below the image is the actual screenshot of the letter from J.C. de los Reyes)
In a Florida short sale, the bank is already accepting a big loss on the difference between the unpaid mortgage and the selling price of the short sale home. Banks have more incentive to do a short sale than a foreclosure since they lose more money in a foreclosure.
Because of this, banks will most likely squeeze anything they can out of the seller and not the buyer, since the seller is the one who owes them money.
There are other reasons why banks might demand a seller contribution:
1. The seller has other assets or disposable income. Banks review a seller’s financial statement to determine the seller’s monthly income and expenses . If they see that the seller has some money left over after expenses, or other liquid assets, savings, or disposable income, they will ask for it.
2. The seller refinanced and pulled cash out of their home equity. If the seller pulled out cash from the home to buy an expensive boat or take a luxury cruise, then this is considered by the bank as a temporary setback and the bank may ask the seller to contribute. If the selling price of the home is not enough to satisfy the bank’s required net, the bank may require the seller to pay the difference.
3. The seller does not have a financial hardship. Some banks will agree to do a short sale if the seller has proof of a valid hardship which is permanent but not necessarily financial in nature. However, if the bank sees that the seller still has a strong cash flow, the bank may ask for a seller contribution.
4. Deficiency judgment. In the state of Florida, the banks have a right to pursue the seller for the difference between the sales price of the short sale and the unpaid mortgage balance.
Although banks have the right to ask for a seller contribution, they acknowledge that most short sale sellers do not have that kind of money, or they wouldn’t be doing a Florida short sale in the first place. Banks may accept an unsecured promissory note if the seller does not have sufficient cash to pay for the deficiency or seller contribution. Banks will often agree to non-interest bearing terms and a 3 to 15-year payback of principal.
If you are planning on buying a Florida short sale, take note of these new loan requirements for getting a mortgage. With the start of the new year, lenders have set in place new requirements for getting a mortgage loan.
Since the housing crisis was brought about by borrowing catastrophes, these new lender guidelines being implemented under The Consumer Financial Protection Bureau’s Qualified Mortgage (QM) are being put in place to avoid the housing meltdown from happening again.
Some of these requirements are as follows:
A maximum debt-to-income ratio of 43. This new rule will not allow for any circumstances to offset the DT like a big down payment or huge cash reserves. A borrower with a DTI over 43% will not qualify for a loan.
Ability to repay. Self-employed borrowers must prove they have sufficient cash flow to pay their loan. This can be challenging since most self-employed people’s income tend to fluctuate. These borrowers usually have cash reserves set aside to compensate for months where their income is low. Even with a huge cash reserve, self-employed individuals may still have a difficult time in getting a loan approved.
No-doc or low-doc loans not allowed. Lenders are required to submit and verify borrowers’ complete financial information
Lower fees. Origination fees should not go beyond 3% for a loan of more than $100,000.
No risky loans. No interest-only payments, no negative amortization payments where principal increases, and terms should not exceed 30 years.
Contact within 36 days of missed payments. Lenders should contact borrowers within 36 days of a missed payment. Lenders must also provide available payment options not later than 45 days after the due date.
Clearer monthly billing statements. Lenders must provide clear monthly statements indicating the amount of your payment that went to escrow and principal, balance owed, and service or transactional fees.
Early warning for ARM: Lenders must notify borrowers of increased rates 210-240 days before the next payment and follow up with an additional notice 60-120 days before the new payment is due.
The lender’s incentives in following these guidelines are huge. If mortgage loans fail to meet the QM, the lender can hold the loan instead of selling it to Fannie Mae or Freddie Mac.
The QM requirements may have lower loan limits for conventional conforming loans. The Federal Housing Finance Agency (which regulated Fannie Mae and Freddie Mac) will delay its normal adjustment of loan limits from 1 January 2013 to sometime later this year, after seeing what kind of impact the new QM guidelines will have on the housing industry. The current limits for most housing markets are $417,000 or as much as $625,000 in high-cost areas. These figures will change later this year.
Getting a smaller loan will be more difficult under the new QM requirements since origination fees will be limited to no more than 3% of the loan amount. This means lenders are less likely to offer smaller loans since they may not be able to recover their costs and make a profit with the smaller origination fees.
Florida short sale home buyers could expect to see these changes in the mortgage loan approval process this year and more changes later in the year.
The process involved in a short sale can be very demanding and here are some helpful tips for Florida short sale sellers to prepare you along the way.
Short sales can be very helpful; however, it can lead to critical consequences when not properly done. Let us walk you through the process, give you all the information you need, and provide you with all the necessary tools with our Florida short sale services.
Call Katerina Gasset at (561) 502-1577 today to get your Florida short sale question answered.