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Archive Monthly Archives: October 2012

Do I Have to Put a Deposit In With My Offer to Buy a Property?

Do I Have to Put a Deposit in With my Offer to Buy a Property? 

There is no law that says you have to put deposit money down with your offer to purchase a property. But there is a law in Florida called the Statutes of Fraud. Part of that law says that in order to enforce a contract there has to be some time of consideration. That can be in the form of cash, check, money order or bank check. It could also be gold, silver or whatever else of value. 

Now, with saying all that…. you know the answer to so many questions, it all depends:) 

Why are you buying a home? The reasons you are buying a home should become part of your reasoning as to what type of deposit to attach to your offer. 

If you fall in love with your dream home it is highly likely other buyers may also be of the same opinion as you. That creates competition. Here in Wellington many listings get multiple offers. The stronger you make your offer, the better your chances are that the seller will accept your offer and not someone else’s. 

Many buyers don’t learn this lesson until after they have lost the chance at buying a home they fell in love with. 

The bigger deposit you put with your offer, the more serious you appear to be in going through with the sale of the property. 

A seller has to take their home off of the active market once they accept an offer. So they are looking at what is going to be the offer that is most likely going to close. The highest and best offer and terms is usually the one a seller will accept. 

The seller has to take his/her house off the market they in turn want you, the buyer, to not be actively searching for another home. Some buyers want to place offers on multiple properties. 

Many buyers’s agents don’t want to have the buyer’s money at risk. What if you decide you don’t want the property next week? 

There are contingencies you can add to your offer, such as your offer is subject to you accepting the home inspection report on the property. If you don’t like the inspection report you can cancel your contract. If you cancel your contract within the terms of the contract, you get your deposit money back within the time specified. 

If you don’t show the seller you are a serious buyer the seller will likely accept another offer. 

No matter what the opinion of anyone else is, you must always ask yourself, do you really want this house? Are you willing to show that you are a serious buyer? 

 

Home Affordable Foreclosure Alternatives HAFA Program

Home Affordable Foreclosure Alternatives HAFA Program 

The U.S. government created the HAFA program for homeowners in danger of losing their homes to foreclosure. 

The HAFA program is known as the Home Affordable Foreclosure Alternatives Program. HAFA is the acronym for this program. 

If you can no longer afford to make the mortgage payments on your home this  program might help you. The good part about the HAFA program is that IF your mortgage lender participates in the HAFA program you MAY be eligible for up to $3,000 in relocation money given to you at the closing of your short sale or deed in lieu. 

Please note that NOT all lenders participate in HAFA  nor do they have to. It is a voluntary program for lenders. All the major big lenders to participate as part of an agreement they made with the government when they got their bail out money. 

If you have more than one mortgage on your home both of your lenders must agree to participate in HAFA. Many times your second lien holder is not going to be so amiable but that depends on how much you owe them. 

Doing a Florida short sale is a way to participate in the HAFA program. Another benefit of the HAFA program is that you will no longer be responsible for the remaining amount that you would owe your lender. When you do a short sale you still owe the difference between what your mortgage amount is and what you sell the house for. HAFA terms require your lender to release you from any obligation to repay that amount of money and also relieves you of them coming after you later for a judgment. 

Doing a short sale has less impact on your credit score than a foreclosure. Very seldom is a foreclosure a better option than a short sale. 

The bad part is there is government red tape involved which can drag out the process. If you do not turn in one document within their time frame they can and do many times turn down your HAFA eligibility. This is very important to understand. This is also why it is very important for you to choose a Realtor® who is experienced in listing and negotiating short sales. 

You can learn more about the HAFA program on the Making Homes Affordable .gov website. 

The HAFA Home Affordable Foreclosure Alternatives Program. 

This website is : http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/hafa.aspx

Contact Nestor Gasset and Katerina Gasset for further information about the HAFA program and if it the right fit for you at 561-753-0135. This is a free confidential call. The call is not recorded. We will go over your foreclosure options so you can decide the best course of action to take for your own individual situation. 

Florida Supreme Courts Rules On Homestead Exemption Case

Florida Supreme Courts Rules On Homestead Exemption Case

This case will affect thousands of families in the international arena that purchase homes in South Florida. 

The court ruled that a Hondurian couple living in Key Biscayne Florida with their children is entitled to their homestead exemption. 

The Miami property appraiser denied the homestead exemption because he said the couple did not adequately show that they live in the condo in Key Biscayne full time as their permanent home. 

The Supreme court ruled that what the property appraiser claimed is not necessary to get the homestead exemption. They overruled the appraiser stating the the Florida constitution allows for dependents to live in the property even when the owner is not there. 

This couple’s children were all born in the United States. The children have never been residents or citizens of Honduras or anywhere else outside of Florida. 

Miami is the financial hub for Central and South American businesses. Thousands of investors from South America and Central America and foreign officials purchase homes here in South Florida. Their children all attend public and private schools in Florida. Many of the children have claim to U.S citizenship because they were born here. 

If you are moving to South Florida from South America or Central America contact us and we can not only help you find a great investment here but also connect you with immigration attorneys, tax attorneys who specialize in foreign purchases as well as accountants who understand your foreign purchases. We are available via skype for your convenience. 

 

What Are Short Sale Video Tutorials?

What Are Short Sale Video Tutorials?

Short sale video tutorials can be any number of things, but they basically vary according to the purpose for which they’ve been created.

Short Sale Video Tutorials for Homeowners

This type of video tutorial is especially designed for homeowners who are hoping to short sell their home. In this kind of video, you will learn about the differences between short sales and foreclosures as well as their respective pros and cons.

If you choose to proceed with a short sale, such videos may also discuss what you can do to choose the best agent for your needs. It will also share information about the most common qualifications for homeowners to have their short sale applications approved.

Some of these videos are also great to watch when you’ve been playing the waiting game with your creditor and you’re driving yourself mad wondering if your short sale application will get the green light or not. These videos will teach you why patience and persistence will eventually win you the game.

Short Sale Video Tutorials for Homebuyers

At first glance, it may seem like short sale homes are only to the advantage of homeowners but never to the homebuyers. These videos, however, can show you otherwise. There are lots of benefits for homebuyers to enjoy as well when buying a short sale house.

A homeowner who pays his mortgage on time and is financially stable will probably have no problems waiting for as long as it takes for a buyer to purchase his home at the price he wants. With short sale homes, however, there’s always a matter of urgency that will be to the homebuyer’s advantage.

The homeowner would want to sell his house quickly to avoid foreclosure. The same thing goes for the creditor since foreclosures cost more money than processing short sales. If you make a reasonable bid, they’re unlikely to quibble about it.

Short Sale Video Tutorials for Agents

Once in a while, you will also see scattered in the Internet short sale videos for agents. These videos have been specifically created to teach newly qualified agents the most important dos and don’ts when going after short sales.

Although the country’s real estate market is slowly on the rise, there are still millions of homeowners facing foreclosure – and these same millions are the ones in need of an agent’s help with short sales. Agents who want to earn more and help more will definitely find these short sale video tutorials quite helpful.

 

Buyers Beware! Real Estate Auctions- Did You Read the Fine Print????

Buyers Beware! Real Estate Auctions- Did You Read the Fine Print???

Do you know what you are really buying? Do you know what foreclosure you are buying and from whom? 

There is a growing problem here in Florida of buyers buying foreclosures at auctions that are HOA foreclosures. After they buy the property the new buyer gets foreclosed on by the mortgage lender. 

The biggest reason this is going on is because Palm Beach county, Broward county and other Florida counties have moved all their foreclosure auctions from the courthouse to the internet and opened the bidding up to people all over the world. 

When people get excited about buying a home so cheap most of the time they don’t have an agent to guide them. Perhaps they read a book about buying real estate on the cheap or watched late night tv paid programming about buying real estate at basement prices or with other people’s money. 

They also rarely know what they are bidding on because they fail to read the fine print, they fail to do their due diligence before making an offer to purchase in the auction. They are not doing title searches on the properties they are bidding on. 

Novice investors BEWARE! You will get burned. 

If it sounds TOO good to be true- it most likely is! 

If you really could get a million dollar property for $30,000 everyone would own one!!!!  When you see a million dollar property at an auction for $ 20,000 to $30,000 that is not all that there is to deal with to own that property! When you see this, it is most likely an HOA foreclosure! The HOA forecloses here in Florida for non-payment of HOA fees. But that does not wipe out the mortgage on the property or two mortgages or three! You have to clear all those lienholders! 

Unless you have a lot of real estate investing experience DON’T BID ONLINE!!!