For many property owners with a mortgage in negative equity, letting the home fall into foreclosure may seem like their only choice. But if you’re struggling to keep up with mortgage payments on a home that is worth less than what you owe, it’s important to know that you do have other options. Here are just a few ways to avoid a drawn out foreclosure process.
Refinance – Homeowners current on payments may be eligible for assistance through the government’s Making Home Affordable program, which allows qualified borrowers to refinance their loan.
Loan Modification – Though refinancing may be the best option, it is unlikely. The most common way homeowner’s avoid foreclosure is by renegotiating their loan terms to achieve a lower monthly payment.
Short Sale – In a short sale, your lender agrees to allow you to sell the property for less than the mortgage debt, though you may still be liable for the difference.
Deed-in-Lieu – A deed-in-lieu allows you to convey all interest in the property back to your lender, satisfying the loan and keeping you out of court. As with a short sale, your lender may still hold you liable for any deficiency left on the mortgage.
Most homeowners’ initial instinct is to fulfill their obligation and continue to pay the mortgage. But this isn’t always very fruitful. It could be many years before you break even and begin to build positive equity again. In this scenario it is best to part ways with the bad investment. Finding a viable alternative to what will inevitably end in foreclosure will save you a lot of grief and cause the least amount of damage to your credit.
Whatever your choice, it requires careful consideration. If you are thinking about walking away from your underwater mortgage, consult with a qualified Foreclosure Attorney to discuss the particulars of your case and explore your options in greater detail. An experienced attorney can negotiate the best terms for the resolution of your mortgage and ensure that your interests are well represented.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
If you discover that there is a surplus of proceeds from a foreclosure sale, according to Florida Statues 45.032 and 45.033, you have the opportunity to claim the extra money on a few conditions. The former property owner is entitled to the surplus money if he didn’t assign his rights to someone else between the time the lis pendens, a written notice that a lawsuit concerning real estate has been filed, was recorded and the time of the judicial sale.
The other stipulation is that there are no other “subordinate lienholders”, people and companies who are owed money, who have filed a claim for the funds. If there are no subordinate lienholders filing a claim the property owner receives the money, minus the court’s fees. The property owner is allowed to request the surplus fund within 60 days of the sale.
One question that can arise is what happens if someone who claims ownership after the lis pendens makes a claim for the surplus funds. An example of this is that a homeowner received a foreclosure notice and transferred ownership to someone else. In cases like this, the transfer must be deemed voluntary or involuntary.
A voluntary transfer would be one made in writing that that followed all of Florida Statue 45.044(3) guidelines. An involuntary transfer is one made by inheritance or guardianship. If the court discovers that the transfer does not meet all of the statutory requirements, they can still provide the surplus funds to the transferee if the transfer was made in “good faith”. If this is not the case, the court can give the surplus to the original owner and the transferee would be able to sue the owner for a refund.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
Per Florida law, property-owners must give tenants notice to vacate before carrying out an eviction. In Florida, the three-day Notice is the most commonly applied method of serving formal notice to evict when tenants have defaulted on their rent and Florida statute provides a strict format for what defines a legally sufficient three-day notice.
Any number of things can render a notice defective: if you are demanding an incorrect amount for rent; if the notice includes late fees, but your lease agreement makes no mention of such fees; or if the notice fails to give the tenant proper grace period, your three-day notice is defective. Many property-owners attempt to carry out evictions on their own and often fail to follow proper legal procedure when drafting the notice, which often results in a flawed document that renders their eviction suit legally insufficient.
Recent legislation states that in cases involving a defective notice, landlords may be granted leave to amend the notice and continue eviction proceedings once the notice is revised. All the same, because the burden falls to you (the property-owner), a faulty notice will delay your case and may still end in dismissal, which can result in additional costs exceeding three times the amount of the defaulted rent in damages and legal fees payable to your tenant.
If you are a landlord struggling with a tenant refusing to pay rent, it is wise to seek legal counsel prior to making any moves to evict the tenant on your own. Though it may seem simple, drafting a document which accurately protects your legal interests can be quite complex. Consulting with an experienced attorney will ensure that your three-day notice is legally precise and that your rights are adequately protected.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
Florida law dictates that your landlord cannot alter your lease before it expires without a valid reason. Your lease is a legal, binding contract and save for special circumstances, if that contract is valid and has not expired, your landlord generally cannot force you to sign an agreement changing its current terms. As an example, if utilities are included in your rent under the terms of your original lease agreement, your landlord cannot charge additional money to cover utilities while your lease is in effect.
Whether or not your landlord has standing to change your contract may also depend on the nature of your lease. Under a month-to-month agreement, for example, it may be possible for your landlord to amend the terms of your agreement; however, your landlord may not change the terms of your lease without first issuing at least 30 days’ notice. Whether annual or month-to-month, your landlord is unable to make any substantial changes to your lease agreement prior to the contract’s expiration date or without your express consent.
Though lease agreements are not always written, it is in always in your best interest to have an official written contract. Any alteration to your lease thereafter must be in writing and must be properly signed by both parties. Remember, both you and your landlord are bound by the lease agreement until its expiration date. If your landlord has unexpectedly altered the terms of your lease without notice or consent, consult an experienced real estate attorney in order to ensure that you’re being treated fairly and that your rights as a tenant are protected.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
A title company holding escrow cannot refuse to release your buyer’s deposit if the seller has agreed to release and cancel the contract, and under the terms of that contract it is clear that the buyer is entitled to retrieve it.
In real estate transactions, buyers are often expected to include an earnest money deposit with their purchase offer in order to affirm that they are serious about purchasing property. Once an offer is accepted and the purchase contract is signed, the money is deposited in escrow or held by a title company. If all goes well, the money is used for the down payment and closing costs of the sale. Should the deal fall through, however, the title company freezes the funds and then determines whether the buyer gets the earnest deposit back under the terms of the purchase agreement.
A buyer is able to rightfully back out of a sale if the seller fails to fulfill the terms of the purchase contract, be it an issue with the appraisal or due to a failed inspection. Additionally, the buyer may be unable to secure financing to finalize the sale which, unless otherwise stated in the contract, would also entitle them to a refund of the deposit.
Whatever the case, unless the buyer did not go through with the sale for a reason that was not explicitly written into the purchase contract, the buyer is entitled to get most (usually there is a cancellation fee), if not all of the earnest deposit back. If the title company is refusing to release your buyer’s funds, consult with a real estate attorney in order to take legal action and protect the interests of your buyer.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
A quitclaim deed allows for the quick and easy transfer of ownership interest of real property or land. While recording the quitclaim deed makes the transfer official in the public record, it does not require recordation in order for it to be valid. However, Florida statute does require notice of the transfer of ownership interest to be recorded in the public record to maintain a proper chain of title, otherwise you run the risk of forfeiting your rights and interests in the real property.
Quitclaim deeds do not require and generally do not involve exchange of money. Unlike a warranty deed, it offers no guarantee that the grantor owns the property outright or that she has the legal right to transfer ownership at all. That means that a quitclaim deed affords the grantee (buyer) very little legal protection. This is why quitclaim deeds are typically used for low-risk, simple transactions such as the transfer of property interests into a trust, inter-family ownership transfers, or to make a gift of property.
Though your quitclaim may be a valid legal document once executed and notarized, as a grantee it is in your best interest to file the deed with the appropriate recording office in your county sooner than later. Recording the quitclaim deed gives notice to the world that you are now the new owner and protects your ownership interests in the property from possible fraud. For more on Florida conveyance and recording rules, consult with an experienced Real Estate Attorney to review the facts of your case and ensure your interests are protected.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
