Foreclosure is the legal process by which your lender asks the court for permission to sell your house at a judicial sale, usually due to an alleged loan default. In Florida, once you are served with a lawsuit, you only have 20 days to file a response. If you fail to respond to your lawsuit within this time period, your lender has the right to obtain a default. After your lender obtains a default, it can then obtain a final judgment which provides the lender with the right to sell your home at a foreclosure sale.
Some say that foreclosed homes are loans gone wrong. Foreclosure occurs when the borrower has failed to keep up mortgage payments and becomes at risk of losing his or her home. Lending institutions initiate the foreclosure process to reclaim mortgaged property due to the homeowner’s alleged default in payment.
Despite the recent surge of Florida real estate markets, Florida continues to have one of the highest foreclosure rates in the United States. Recent statistics show that as of July 2013, one in every forty-three homes is in some form of distress. And it turns out that Florida is one of the five states with the highest number of foreclosures in the past year, weighing in at about one hundred thousand foreclosed homes.
This is dire news not only for the homeowner or the borrower, but for the financial lending institution as well. It does not matter which role you take part in the process, foreclosures bear negative impacts on the borrower, lender, bank, real estate developer, property owner, or contractor. Fortunately, there is a way to save a property from foreclosure in the form of a short sale or loan modification.
Short Sale Negotiation
Many homeowners have found themselves in trouble with depressed real estate prices and exorbitant home loans. Many homeowners cannot sell their homes because they owe the bank more than what their home is worth in a sale. In this situation, selling would result in a negative difference between the mortgage amount and the sale price of the home. This is a called a deficiency and means that the seller will walk away from the home sale still owing money to their former lender.
How you can benefit from a short sale
The goal of a short sale is to have the homeowner walk away from his or her predicament without a deficiency. During a foreclosure, the bank can sue the property owner for the deficiency. But in a short sale, the owner can sell the property at a mutually acceptable price and then negotiate with the bank to waive the deficiency. That is the primary benefit of a short sale.
For more information, please contact us and we will work with the bank to allow a sale at a mutually accepted price. Our real estate agency will also negotiate a waiver in the deficiency, which is the primary benefit and goal of our skilled team. This means no foreclosure, no bankruptcy, and all mortgage debts are satisfied!
Our real estate team has the ability to work with an attorney in-house to settle your matters as fast and with no stress to you!