The Era of Short Sales Amongst us!!



Maybe you were not a believer the first time you heard the era of short sales are amongst us. It is easy for you to believe that banks were acting unreasonable when it comes to the process of foreclosure but Lender Processing Services have just presented the most convincing numbers which state that short sales are not just a dream for distraught borrowers. For the first time in the US, there have been more short sales in one month than there were foreclosures.

In the month of January, short sales made up about 24 percent of homes for sale, while foreclosure sales made up approximately 20 percent of homes for sale. In the previous year these percentages were flip-flopped with approximately 16 percent of sales came from short sales and about 25 percent of sales came from foreclosures.

There are many reason why the banks now prefer short sales over foreclosure sales, one reason is that foreclosed homes sell for approximately 29 percent less than non-distraught houses and properties whereas shirt sales sold for about 23 percent less.

The banks are starting to realize that a short sale is better for them; the truth is the banks do not want to own the properties, the cost of maintaining these properties are expensive and in turn the properties sell for significantly less.

For any questions about short sales, foreclosures or how to defend your foreclosure case call Tina El Fadel, the head of the foreclosure division at KS Attorneys at Law. There are many mistakes people make when going through foreclosure, don’t make those mistakes, call now for a obligation free consultation.

Zombies Attack Foreclosures in South Florida



Do you know about Zombie foreclosure attacks?

 Zombie titles occur after a homeowner defaults, but when a lender never follows through with the foreclosure. Although a mortgage loan servicer may notify a borrower in default that foreclosure proceedings have begun, the lender is under no obligation to continue with the process. When homeowners are given a foreclosure notice, many leave their properties because they believe they will be evicted. During this time, however, the borrower in default is still liable for the property, even though he or she no longer lives there and is not aware of the fact that he or she still owns it. Homeowners are legally liable for their home which means they are responsible for property maintenance costs, utilities, and taxes — all for properties they don’t realize they still legally own.

Tanya Marchiol, CEO of Team Investments, a real estate firm, said foreclosed homeowners cannot leave their house in shambles and expect the bank to pick up the pieces.“It is your responsibility to know what is going on with your house,” she said. “The bank can cancel the foreclosure and never tell the homeowner.”Borrowers must remember that their property is their responsibility until the title has changed hands into the banks.

The wave after the foreclosure crisis is still reverberating. According to a March 26, 2013 report by RealtyTrac, nearly 1.5 million U.S. properties are actively in the foreclosure process or bank-owned (REO) during Q1 2013. This rate peaked at 2.2 million in December 2010. Although they are frequent, zombie titles are preventable. One way is to avoid foreclosure entirely. Marchiol said distressed homeowners should short-sale their home instead of allowing the bank to foreclose on it. In the case of a short-sale, banks enlist real estate agents who oversee the home and ensure that it is maintained. In a foreclosure, there is no outside protection.

South Florida Foreclosures Decrease since 2012

 

 

There has been a downturn in foreclosure filings in South Florida. Since January of 2013, new foreclosure filings in the tri-county region of Miami-Dade, Broward and Palm Beach Counties, has decreased by approximately 3 percent.

 

As of the start of 2013, fourteen percent of outstanding loans in Miami-Dade County were in foreclosure. However, declines from January resulted in a 3.79 percentage-point drop in Miami-Dade. Mortgages that have been in delinquency for 90 days or more have also decreased by about 4.53 parentage points.

 

Broward County had approximately 11.42 percent of mortgages in foreclosure in January. From January 2012, this is a drop of 2.31 percent. Mortgage delinquencies have been reduced by 3.29 percentage points since the start of 2013.

 

Foreclosures in Palm Beach County also decreased in January to 10.3 percent; this is a reduction of 2.3 percentage points from last year.  In Palm Beach County, a reduction of delinquency mortgage loans also dropped by 3.14 percentage points from 2013.

 

The real estate market of South Florida is on its way to getting back on its feet. However, should you be in either pre-foreclosure or foreclosure, it is vital that you know your rights. Should you be looking for information about foreclosure or should you need help getting out of foreclosure or a loan modification, please do not hesitate to contact Tina El Fadel, the head of the foreclosure division at KS-Attorneys at Law.