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.
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.
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.
Wellington Short Sale Market Updates
The Wellington short sale inventory- homes listed for sale that are short sales has dwindled to a very few. There are currently only 18 short sales listed for sale in Wellington Florida.
The highest priced short sale is listed at $875,000 in the Equestrian Club on World Cup drive.
The lowest priced is an investor special on White Pine listed at $135,000. If the bank wants that much for that section of the rental area in Wellington- they should not hold their breath. Most of the townhomes located on this street are not even close to that so I don’t know what comps they are using.
The second to lowest priced short sale is a lot located in the Binks commercial area that is listed and short sale approved for $150,000.
There is a gorgeous former model home listed as a short sale in Buena Vida – a very popular 55+ community in Wellington. This home is listed at $280,000.
The majority of the short sales for sale in Wellington are in our median price ranges of $350,000 to $500,000. For a complete list of short sales for sale in Wellington Florida click here.
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.
Wellington Short Sale Market Report – September 2012
Currently there are only 38 short sales for sale in Wellington.
The highest priced short sale is a single family home with a 6 stall barn listed at $1,649,000.
There is one short sale for sale in the Aero Club of Wellington listed at $975,000 located right on the taxi-way.
There is one home for sale in Paddock Park listed at $742,100 but his property is getting put on an auction and requires a 5% buyer premium.
The next home for sale in Wellington as a short sale is in the Olympia community in the luxury section and is the sought after Casa Della Scala model listed at $665,000.
The lowest priced short sale for sale in Wellington is a small condo on Shaker Circle listed at $60,000.
If you want to make an offer on a Wellington short sale or sell your Wellington home as a short sale contact Nestor Gasset and Katerina Gasset at 561-753-0135. We have over 20 years of short sale experience to help you manuever the tedious and often frustrating journey of completing a successful short sale.
Wellington Short Sales Market Report – August 2012
In Wellington Florida currently there are 200 homes on the market. The inventory is down from last month by over 100 homes for sale.
The market in most price ranges in Wellington has certainly turned into a sellers’ market.
There are 47 homes listed as short sales in Wellington right now. So these homes, most of them will get multiple offers on them.
If you were waiting for the right time to buy or were waiting for the market to hit bottom, well, the bottom of the market is when you can see it in your rear view mirror. That time has gone.
Buying a home now is the best time to buy because there is only one place for home prices to go now and that is up. The law of supply and demand.
If you need to sell your home as a Wellington short sale now may just be the perfect time to do so. This is because you will be getting the highest and best price for your home which means your lender is more apt to work with you on your short sale.
The debt relief act is running out in December of this year also. You will want to get your home on the market and close before December 31st of 2012.
Contact Nestor Gasset and Katerina Gasset at 561- 753-0135 to list your home as a short sale in Wellington.
Wellington Short Sale Agents- How We Help Homeowners Through The Process
When we get a call from a homeowner who is facing foreclosure or is just tired of being upside down in their mortgage we have a process that is put in place to assist in discovering their options.
1. We get the call from the homeowner through our website, our blog or a referral source.
2. We let the homeowner know that their call is confidential. We also make it clear that we are not attorneys and we don’t work for their lender.
3. Then we ask the homeowner to tell us their story. As they tell their story we can ascertain many points that will either help or hinder their short sale success. We listen for important details that may be between the lines. Some homeowners are ashamed of their circumstances so they may not realize that they do have an underlying hardship.
4. Then our office manager pulls up the tax appraiser’s report on the property being discussed to find out how far away from a foreclosure they may be. Sometimes homeowners don’t even know that they have been served with the lis pendens. Sometimes they turned over this part of their life to an attorney who may no longer even be in business.
5. Then our office manager pulls up any past or current listing history from the MLS.
6. The office manager puts together a package to give to Nestor who will then go through the package in finite detail to uncover any thing that will help us negotiate for the sellers.
7. Nestor calls the homeowner back to go over what the plan of action could be, the facts in the short sale process and then emails the seller a short sale package.
8. Our office policy is that a short sale listing is not put into the MLS without the seller turning in a completed short sale package along with all necessary disclosures to our office.
9. Most of the time in our area, the homeowner may have already relocated or it is a second home for someone who lives away from Florida. Most of the communication is by email, phone and texting.
10. Once we have the short sale package returned, Nestor looks over the short sale package to make sure he feels it is a scenario that we can get approved by their short sale third party lender.
11. Our office manager sends out the listing agreement through Docusign or E-sign to the sellers. The sellers execute the listing agreement and get it back to our office.
12. Cheska, our receptionist then contacts the seller to set up all the showing instructions.
13. Cheska then uploads the showing instructions to Showing Time – who handles our showing scheduling.
14. Cheska creates a sellers calendar and short sale document in google documents and goes over all of this with the seller. Cheska shows the seller how to use his seller calendar. Each time there is a marketing action for the property it is noted on the seller calendar.
15. Nestor or the office manager arrange for the lock box to be placed on the property. If a sign is allowed by the HOA then the company real estate for sale sign is placed on the property.
16. Nestor or the office manager arrange to get photos taken of the property.
17. Katerina prepares the marketing strategy for the property.
18. Katerina delegates the internet marketing action plans to our virtual assistants who are trained in syndicating the listings and place the online ads.
19. The office manager uploads the listing photos and gets the listing put into the MLS.
20. Most often, in this market, we will get multiple offers on the listing in a short period of time.
This is just from the point of the phone call to getting the listing put into the MLS. There are here, at least 20 tasks that much be accomplished to this point.
After the listing is in the MLS and after the listing is being marketed we will get an offer on the property. Many times we will have multiple offers on a property. We will go over each of the offers with the sellers.
Once an offer is accepted by the seller we move into the negotiating stage of the short sale processing. The next steps are determined by the processing rules of each particular lender. If the sellers are applying for HAFA the tasks will be different than the person applying for a regular short sale. The process is also different for people who have one mortgage on their home versus people who have two or more mortgages on their property.
Once all sides have completed the required steps we put together the short sale package to send to the lender or upload to the lender.
We order the preliminary HUD1 from Infiniti Title. Tina prepares the title documents along with any liens, permitting fees, encumbrances or any other title defects that may create an issue for title.
Nestor applies his charm to the cover letter:)
Once the short sale package is sent we must confirm it was received by the lender. This can be a full time job all by itself. The lenders are infamous for lost files.
But one day it will all be confirmed that the short sale package has been received and is going through the processing department and then assigned a negotiator.
Then we go into negotiating mode. This part of the process can take from a few hours to days or weeks.
When we received the approval letter from the seller’s lender we read the letter making sure it meets with our office requirements. Then we forward the letter on to the seller. The seller than can bring this letter to his attorney or decide if this is a letter he or she is willing to take along with the terms and conditions.
If the seller gives us the green light, we notify the buyer agent that we can now schedule a closing date and time.
Wellington Short Sale Update: Deutsche Bank In Hot Water
How did a bank from Germany become an owner of foreclosed properties here in South Florida? Deutsche bank holds title to more than 1,400 homes in Miami/Dade, Broward and Palm Beach Counties.
What is the problem with that?
According to local municipalities Deutsche Bank lets the houses become the blight of neighborhoods. The local towns levy fines, code violations and other fees against the bank. But how do they enforce anything on a bank overseas?
When the cities and towns try to collect and pressure Deutsche Bank they say they are just the “trustee”. That it is the responsibility of the servicers to take care of the foreclosed properties. The bank refuses to take responsibility of taking care of the homes they foreclose on. Yet, the towns, villages and cities all say that the title records list Deutsche Bank as the owner or record and therefore they are the ones responsible for keeping up and maintaining the properties.
In Ft Lauderdale, the city has fines of over $6 MILLION dollars pending against ONE property Deutsche Bank owns for failure to maintain this property. The property is located at 1032 NW Fourth Avenue. It is only 867 square feet and probably worth less than 20,000. It is boarded up.
South Florida code enforcement officials site Deutsche Bank with failure to:
These can pose health problems to the neighbors and ruins the value of other homes in the area.
Deutsche Bank does not do that in Germany. In fact, in Germany it is not so easy to get a loan to buy a home. Deutsche Bank requires 20% to 40% down on a property and they really scrutinize your employment and make sure there is little risk in giving a loan for a property. Rarely is there a foreclosure. They also don’t bundle mortages very often to sell as securities.
But here, Deutsche Bank got involved with selling mortgage backed securities from high risk loans. They are being investigated by the U.S. . Deutsche Bank did not directly give loans to borrowers here in the U.S. Instead, it bought MortgageIT who made reckless loans risky borrowers. When the interest rates went up many of those borrowers defaulted in large numbers.
The U.S government alleges that they lied about MortgageIT’s internal controls in order to qualify for FHA insurance. Being able to say that your securities were insured by the Federal Housing Administration made those investments highly marketable to investors.
Deutsche Bank settled this lawsuit in May to the tune of $203.3 Million dollars. There are other investigations under way.
Deutsche Bank is one of the world’s largest banks. It’s assets total $2.6 Trillion dollars. Deutsche Bank is 140 years old and had more than 1,000 branches in large cities and small towns in Germany.
Contrary to popular opinion, Wellington Florida short sale Realtors can work with both buyers and sellers. Granted, short sale agents usually work with homeowners wishing to short sell their properties. Nevertheless, there’s still no reason why homebuyers can’t ask for help from this kind of agent if they want to.
What Can Wellington Florida Short Sale Realtors Do for Homeowners?
Let’s start with the easy question and one most readers probably have an idea about its answer. If you have a home you wish to short sell, a Realtor that specializes in this type of real estate transaction can help you with the following.
What Can Wellington Florida Short Sale Realtors Do for Homebuyers?
As mentioned earlier on, it’s uncommon but not impossible for homebuyers to seek the assistance of a short sale specialist. They usually do so for the following reasons.
Whether you have a home to sell or buy, if it is a short sale you are after then you will ultimately have an easier time achieving your objective with a Wellington Florida Realtor at your side.