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)
Wellington Short Sale Market Report for September 2013
The inventory of short sales for sale in Wellington had dwindled down into the teens this past 9 months. However, this month, there was an increase of short sale listings on the market.
While for many months the number of active short sale listings for sale in Wellington hovered around 14 that number changed suddenly to a total of 22 properties listed for sale as short sales in Wellington.
While some of the properties are newer on the market the real reason the number of listings increased is mostly from Fannie Mae owned mortgages going through the short sale process being kicked back into the market due to over the market value counter offers regarding what Fannie Mae is willing to accept as a short fall on a short sale.
We have a listing where the market value is only $175,000 but Fannie Mae kicked the full price offer back with a counter of $279,000. There is no way the house will appraise for that outragious amount of money.
This is the kind of issue that short sales are having if Fannie Mae is the investor on the file. So if homes that were under contract are countered at values that buyers in their right minds will not pay- those properties have to go back on the market. They will then sit there on the market. As they sit on the market other short sale properties get put on the market and this increases the number of Wellington short sales currently active on the market.
If you own a home in Wellington or Palm Beach county areas, Broward and Dade county areas, Martin and St Lucie county areas- contact Nestor Gasset at 561-753-0135 today to schedule a phone conference call to go over your short sale and foreclosure options.
Is It Time To Shut Down Fannie Mae and Freddie Mac?
Fannie Mae and Freddie Mac have been government backed far too long.
They have already cost the taxpayers $187 Billion in their bailout.
There are members of Congress who are calling for the phasing out of Fannie and Freddie. They are saying that the private sector should be the ones involved with mortgage loans for homebuyers. I agree. And surprisingly, President Obama agrees.
President Obama said: “For too long, these companies were allowed to make huge profits buying mortgages, knowing that if their bets went bad, taxpayers would be left holding the bag,” Obama said of Fannie and Freddie. “Private capital should take a bigger role in the mortgage market — I know that sounds confusing to folks who call me a socialist.”
Of course many in the mortgage industry and I am sure that special interest groups in the housing industry are not in agreement. Even though we are in the business of real estate there are principles that are more important to us than our special interests. The main principle of free markets and free enterprise is paramount to a healthy economic environment. I vote first as an American before I vote as a REALTOR®.
Many people on both sides of the isle agree that the mortgage industry should be in the hands of the private sector and that government should not be involved with making loans or guaranteeing mortgage loans and that Freddie and Fannie expose great risk to taxpayers.
Last month a bill was passed that would end Fannie Mae and Freddie Mac. A committee spokesman from Congress said Tuesday that their bill would end “the largest bailout in history”, This would also phase out the government’s role in housing finance, thereby giving consumers more choices when shopping for mortgage products.
It is time for Fannie and Freddie to be phased out over the next five years.
21st Century Glass- Steagall Act Proposed by Senator tweeting that “Banks should be boring.”
She wants to force deposit-taking financial institutions out of the investment business.
The National Review reported:
Senators John McCain and Elizabeth Warren are giving it a shot. The Arizona Republican and Massachusetts Democrat last week unveiled their “21st-Century Glass-Steagall Act,” which would restore the barrier between commercial banking and investment banking first established by the Banking Act of 1933. That prohibition, known as the Glass-Steagall “wall” after congressional sponsors Senator Carter Glass of Virginia and Representative Henry Steagall of Alabama, was repealed by the Financial Services Modernization Act of 1999, legislation signed by President Bill Clinton.
The premise being that banks can be in the investment business but they won’t be able to be FDIC insured if they are.
Of course, when she was asked if this would end the “too big to fail” issue- she admitted that there is not much that can do that.
The investment bankers say that the Dodd-Frank regulations have pretty much taken care of investment banking issues. But that is their opinion. Dodd-Frank has done more to hurt buyers who want to buy houses and tougher and the Patriot Act makes it tougher for foreigners to buy real estate here. Many people don’t think that Dodd-Frank has stopped the “too big to fail” either.
Since 2010 when the Dodd- Frank bill was enacted-
“The four biggest banks are now 30% larger than they were just five years ago and they have continued to engage in dangerous, high-risk practices,” Warren said during a Senate Banking Committee hearing.
The lobbyists got a hold of the bill and it was so watered down by the time it was passed, that it is a “toothless” bill at the expense of Americans.
The problem with all of these bills, is that this happens time and time again. What starts off as sounding reasonable ends up being a pile of papers good only for the rubbish and that no one reads.
Sens. Sherrod Brown, D-Ohio and David Vitter, R-La., introduced a bill that would force “Too Big to Fail” institutions to hold more capital, which would reduce their leverage power and protect against significant losses. But again, what will end up happening?
Also, the Glass- Steagall act was from the 1930’s. Things are different now and when Glass-Steagall was the law of the land, we still had severe financial shocks like the savings and loan crisis, the Latin-American debt crisis, the collapse of the hedge fund Long-Term Capital and the 1987 stock-market crash.
As long as you have lobbyists paying all kinds of favors to politician and as long as you have politicians who accept those favors you will have laws with either no teeth or laws that hurt one sector in favor of another.
As long as you have cronyism: banks, corporations and big pharma sleeping in bed with the government you will not have any bills that favor the people of the United States of America.
Only when you truly have free market systems where failing is a part of business and is not bailed out, where free competition arises by consumers who make the decision to buy or not to buy and where the government takes its’ rightful place of protecting the rights of the “contract” and private property will this kind of behavior subside.