Palm Beach County Short Sales- Is Pressure Mounting For Homeowners Who Don't Pay Their Mortgage?

By
Real Estate Agent with International Properties and Investments LLC


Palm Beach County Short Sales- Is Pressure Mounting For Homeowners Who Don't Pay Their Mortgage? 


The biggest disconnect we believe in the short sale arena is the fact that the banks do not stop the foreclosure proceedings when you are trying to do a short sale. This creates so much stress on the homeowner, the buyer, the buyers' agents and the listing agent- always trying to get foreclosures postponed or slowed down. 

Most often, the best process to follow is to hire a qualified and reputable attorney who will defend against your foreclosure. 

We are seeing an increase of calls to collect payments, more aggressive conversations with homeowners and more negotiating being done with reps from the banks calling our sellers directly to offer deed in lieu(s)  while we are in the process of doing a short sale. 

Some sellers are surprised that they still get collection calls even after signing authorization forms giving us permission to talk to the lenders. 

Of course we tell our sellers that these calls will happen. We have some sellers who just don't answer their phone anymore when the bank calls but we also have other sellers who want to continue a dialogue. I don't believe they really understand the scope of what they are engaging in when they have the conversations. 

We have noticed an increase in the collection calls and an increase in trying to get the sellers to cancel their listings and do deed in lieu

Remember that a deed in lieu is a foreclosure without going to court. 

When you owe money to a bank and you do not pay your mortgage it is the bank's job to collect the money that you owe to them. You owe the money. So the bank is calling you to see what they can get out of you. When they start talking about how they are going to help you - keep in front of your mind- the bank is NOT there to help you. They are there to collect the payments you owe them. 

You have to stay the course. There will be by the banks to persuade you off your course, there will be good intending friends and family members who will tell you a different path to go down. But the choice is only up to you. Whatever your choices are, you need to understand what those are, choose your path and then stay your course. 




Don't Delay! Don't Wait Until The Sheriff Is Knocking On Your Door! Pick up your phone and call us to see if you can avoid foreclosure.

 

 

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Copyright © By Katerina Gasset 2010 * All Rights Reserved* Palm Beach County Short Sales- Is Pressure Mounting For Homeowners Who Don't Pay Their Mortgage?*







 

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Topic:
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Florida Palm Beach County Wellington
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Comments 18 New Comment

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Anonymous #1
Anonymous
Julia Huntsman

An important point for all borrowers to remember is that the bank has no fiduciary obligation to the borrower, the bank has a fiduciary obligation to its investors, and the investors are the ones they are most obliged to help, not the borrower.

June 04, 2010 06:05 PM
Ambassador
2,342,413
Lenn Harley
Real Estate Broker - Virginia & Maryland
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

You wrote:  "I don't believe they really understand the scope of what they are engaging in when they have the conversations"

The homeowner is so out-smarted, out-trained, out-witted, out-resourced by the banks, they simply don't have a clue what can happen to them if they continue to talk to the bank.

June 04, 2010 06:16 PM
Rainmaker
591,122
William J. Archambault, Jr.
The Real Estate Investment Institute

Katerina,

It's so simple, you borrow money you have to pay it back.

A deed in-lieu if it doesn't include the release of liability you're negotiating for in the short sale could be a costly mistake. A deed in-lieu after listing the property could obglate the sellers to a real estate commission!

"Most often, the best process to follow is to hire a qualified and reputable attorney who will defend against your foreclosure."  Is great advice, as far as it goes! It needs to be done before every thing else! Including defaulting!

Bill 

June 04, 2010 06:36 PM
Rainmaker
149,705
Michael J. Gallo
Florida Luxury Realty - Gulf Home Sales Team
Florida Luxury Realty

Katerina, This is most valuable advice for Homeowners who are either current or not on their note payments.  I have also seen Homeowners who have the lender "working" on a Loan Modification find themselves in Lis Pendens.  Homeowners Should Always Consult a Realtor(R) and Attorney

June 04, 2010 09:27 PM
Ambassador
1,327,466
Jon Zolsky, Daytona Beach, FL
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

Katerina,

I do not know how feasible is the advice to consult the attorney. Interestingly enough it is more often happening with strategic default, than with distressed situations.

With the latter there is often no money to spend on attorneys

June 04, 2010 11:33 PM
Ambassador
1,849,870
Nestor & Katerina Gasset
Realtors, Wellington Florida Homes For Sale
International Properties and Investments LLC

Jon- Oh Jon- Contrare! Here in our market, 9 out of 10 homeowners do have an attorney for defense against the foreclosure. The sad part is many of the attorneys are skipping town with the retainers, etc. I have a post about what just happened to one of our clients! Horrible! 

For a fee of $1700 you can live in your home for anywhere from one year to three years without making a mortgage payment. With most people around here, their mortgage payments average $2800 to $5600 a month. So $1700 is easy. 

June 05, 2010 12:23 AM
Ambassador
1,849,870
Nestor & Katerina Gasset
Realtors, Wellington Florida Homes For Sale
International Properties and Investments LLC

Bill- When the bank does a deed in lieu while we are in a listing agreement, the bank tells the homeowner they have to cancel their listing with us before they can do one. We have only had one client do a deed in lieu in the 15+ years we have been doing short sales. 

June 05, 2010 12:24 AM
Ambassador
1,849,870
Nestor & Katerina Gasset
Realtors, Wellington Florida Homes For Sale
International Properties and Investments LLC

Julia- perfect words. You are right. For some reason the homeowners assume some sort of fiduciary from the banks, this is not the case. You are so right. 

June 05, 2010 12:25 AM
Ambassador
1,849,870
Nestor & Katerina Gasset
Realtors, Wellington Florida Homes For Sale
International Properties and Investments LLC

Lenn- Tell me about it! We see their despicable tactics. Sometimes my warnings just fall on deaf ears. 

June 05, 2010 12:26 AM
Ambassador
1,849,870
Nestor & Katerina Gasset
Realtors, Wellington Florida Homes For Sale
International Properties and Investments LLC

Mike- Oh, we get a lot of listings after the homeowner has tried loan mod and told NOT to make any payments by their lender only to find themselves denied on the loan mod and in foreclosure even though they wanted to make payments during the process! 

June 05, 2010 12:27 AM
Ambassador
876,211
Larry Bettag
Regional Vice-President
Larry Bettag - Cherry Creek Mortgage

I've seen a lot of this in my hometown area as well.  It's too bad that this situation exists.....

June 05, 2010 12:32 AM
Rainmaker
73,049
Marie Bumback
Helping people build their dreams.
RSVP Real Estate - Greater Seattle Area

What does the attorney do in the defense against foreclosure in your state?  I'm assuming it's very different from negotiating the short sales, since your clients are doing both.  Is it a necessary step to delay foreclosure, or can listing the home for short sale be enough?

June 05, 2010 02:46 PM
Rainmaker
680,225
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605

Oh - MAN they skip town the the retainers - Why am I NOT surprised??? That's the sad part.

June 05, 2010 05:22 PM
Rainmaker
591,122
William J. Archambault, Jr.
The Real Estate Investment Institute

Katerina,

If they talk to the Bank about a deed in lieu and the bank tells them to first cancel your listing that's the start of negations. It doesn't cancel the protection clause! If it did every would be buyer would tell home owners to cancel your listing and I'll make an offer! Many people mistakenly think Board rules supersede contract law.

Come to think of it I've won in court when REALTORS have tried the same thing! But that's a long story.

Now you or your deciples are not going to add to the client's pain! But not all sellers use Gasset REALTORS.

Bill

June 05, 2010 08:44 PM
Ambassador
1,849,870
Nestor & Katerina Gasset
Realtors, Wellington Florida Homes For Sale
International Properties and Investments LLC

Bill- Thanks! You are correct. 

Marie- We are a judicial state so it is much different than CA. Here once the lender files their lis pendens and the summons and complaint is served on the homeowners, then the homeowner has 20 calendar days to respond. We urge them all to respond because if you respond, you are exercising your judicial rights to your day in court. If they hire an attorney to do this for them, their attorney will file an answer and a counter complaint and will require evidences, interrogatories, producing the original note, etc. This will create a bottleneck in the opposing counsel's factory operations ( the foreclosure attorney for the lenders run these foreclosure mills here) so that usually will put off a date to be seen by the judge by months and even years. The reason is that they will handle all the cases that go uncontested first. If you get to a date and in front of a judge, our goal is to have an offer in your hand to show the judge that you do have an offer and need more time because the banks are so slow. Judges don't like banks right now and most often will look for any reason to legally allow the homeowner more time. 

There are cases here in FL where the homeowners were actually awarded their homes free and clear or seriously discount to punish the banks for violations of law. This is why the banksters lobbyists are working so hard here to get rid of our rights to a judicial process. Katerina 

June 05, 2010 11:17 PM
Rainmaker
73,049
Marie Bumback
Helping people build their dreams.
RSVP Real Estate - Greater Seattle Area

Katerina, the system is so convoluted.  Short sales are an important tool, and in spirit, they exist to give home owners a chance to make financial ammends when personal financial situations get beyond their control, and it's a way to help their situation from getting worse.  However, in practice, it's not always eqitable, or fair, or logical.  Tough to get through, and so important to have the right advice and counsel when navigating that obstacle course.

June 06, 2010 12:20 PM
Rainmaker
321,586
Yolanda Hoversten
Broker - O Fallon, IL Real Estate
Prudential One Realty Centre

It's probably a good time to be an attorney.  Too bad I don't even play one on AR.  :)  Seriously, it's sad that some attorneys would skip town with the retainer.  That is so wrong.

June 08, 2010 12:42 AM
Ambassador
1,849,870
Nestor & Katerina Gasset
Realtors, Wellington Florida Homes For Sale
International Properties and Investments LLC

Ruthmarie: I should write some posts about some of the great first hand experiences we have had with attorneys that rip their clients off. But I don't want to offend the good ones. We have attorneys who hire us to do their own personal short sales on their homes. And we do have 2 really good ones here. 

June 08, 2010 01:33 AM
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Nestor & Katerina Gasset

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