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33141 : Real Estate Advice

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  • Home Buying85
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Activity 119
Thu Apr 30, 2009
Grace Hanamoto answered:
Hello R, and thanks for your question.

First, I am so sorry that you have found yourself in this situation, and hope that you might find some help with my response.

If the lender is foreclosing on your home, most of the time, the delinquent property taxes and the homeowners association fees would be wiped out in the foreclosure action. The property taxes are a property specific lien, so the debt follows the property and not you if you no longer own the home. However, the homeowners association there is one circumstance under which the delinquent HOA assessments would not be wiped out. If the homeowners association filed a lien, commenced a court action and won a judgment against you for the delinquent homeowners association assessment and court or collection fees, this debt could become your personal obligation to the Association and would not be wiped out in a foreclosure action. In some states, homeowners associations have been granted "super lien" powers, meaning that their debt must be paid BEFORE the lender's mortgage, and, in those cases, the delinquent sum may paid by the mortgage company to the Association, only to boomerang and be reassessed to you as a nonmortgage-related cost.

Personal judgments and personal liens may become liens against assets that you own, so, if you're asking if the homeoners association can take your car, the answer is possibly yes.

However, I'd like to back track a little on your question. First, am I correct in assuming that if you got a renter to live in the home with you, you jus might be able to pay your loan, property taxes and homeowners association fees? If this is the case, might I suggest immediately talking to your Association Manager and homeowners Board of Directors now to see if they would "waive" the rental restriction in order to give you a chance to keep the home, pay their bill and avoid foreclosure? Because the Association chances the possibility of never recovering their assessments in a foreclosure, it makes sense to have them work with you in helping you retain your home and preserve your financial investment.

Talk with them first and see if they are willing to allow you to rent extra rooms in your home. Regarding your loan modification, you might consider talking with an attorney about a modification. In some cases, attorneys have been very successful in getting a loan modification AND a loan balance reduction to help homeowners keep their homes. If you've only worked with the loan company to modify the loan, and have not spoken with a professional loan modfication company that uses the services of attorneys, I would strongly suggest talking with one soon.

Good luck!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
... more
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Thu Apr 30, 2009
Oliver Wright answered:
Make your other home your primary once you lose this one so Florida's homestead exemption will insulate you from a potential deficiency judgment.
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Wed Apr 29, 2009
Keith Manson- Metro Milwaukee Wisconsin answered:
You can ask for a deed in leiu but typically that is the last work out banks will accept. There are some issues with a deed in leiu before banks will accept it: property needs to have no other liens except the first mortgage, vacant and no damage to property and must be in broom swept condition.

So there can not be any outstanding condo dues or proeprty taxes. Credit wise a foreclosure and a deed in leiu are treated the same. Your credit report will be reduced by 2-300 points. There should not be no issue with federal irs tax because of the 2007 debt forgiveness act. However, there could be state tax for the short fall between value and mortgage balance. You should check this will your tax advisor to ensure this would hold true. When I worked for a mortgage company a 1099 A was filed and not a 1099C was not filed on a deed in leiu so even before theis 2007 act the forgiven income was not taxable at least with the companies ?I worked for the mortgagors completing dil's.

Good Luck!

Keith Manson
First Weber Group
Certifed Distressed Property Expert
GreenField, Wisconsin
... more
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Tue Apr 28, 2009
R. Davis asked:
more
income. I won't even try a shortsale as there are 75 shortsales or more in my building. Plus 110 foreclosures.
Nobody has bought anything since 2008.
I am behind with hoa and mortgage…
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Mon Apr 27, 2009
Luis A. Tonos, P.A. answered:
Hello Davis,

According to the public records, there are 15 active lis pendens in the building. Lis pendens basically is when the bank gives notice to the borrower that he is in default with the payments, and that they are going to start the foreclosure process.

This notices go as far back as May 2008, until today.

Let me know if you have any other questions.

Regards,

Luis
... more
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Thu Apr 23, 2009
Mott Marvin Kornicki answered:
Your story sounds very familiar. I have yet to see a condominium "shut-down". There are many associations that are running on shoe-string budgets- but somehow stay afloat. Obtaining financing has become a huge challenge in buildings with percentages of delinquency, short-sale and REO's.

I am still very bullish on Miami Beach and know that things will improve over time. The units in YOUR building will eventually sell and owners will become more current in the dues.

Mott Marvin Kornicki, Broker | Associate
Real Estate In Miami Beach, Florida
... more
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Thu Apr 23, 2009
Mott Marvin Kornicki answered:
semia~

Another option may be to offer the lender the Deed In Lieu of Foreclosure. The details could be complicated and the consequences not to your liking. Typically, lenders are not going after peoples cars or other persoanl property. It is best to level with the lender and ask for any and all options that they are willing to consider.

Mott Marvin Kornicki, Broker | Associate
Real Estate In Miami Beach, Florida

http://waterwayrealty.com
... more
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Tue Apr 21, 2009
blaison samuel answered:
semia,

I'm not sure whether you are working with any realtor or not. If not you really need an experienced short sale agent who knows how to do short sale. If it doesnt sell then it will foreclose, the bank takes your house but they will not take your car or other personal items. But, you need to check your state law and also whether your loan is recourse or non recourse loan.

You already missed 2 payments so it's better you work with an experienced short sale agent who can help you. Consult with CPA or attorney for your situation, you will not a clear answer over here.

If you don't have any other credit balance other than mortgage then you don't have to file bankruptcy. Again consult with an attorney because I'm not a CPA or attorney.

Blaison Samuel
Certified Short Sale Specialist
... more
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Mon Apr 20, 2009
The Hagley Group answered:
your best bet is to consult a ,local attorney or tax professional and diwscuss the pros and cons of bk with them
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Mon Apr 20, 2009
Totorino answered:
Sun Apr 19, 2009
Keith Manson- Metro Milwaukee Wisconsin answered:
Things are changing and it is hard to say how your credit will be impacted in the future. I know you indicate that you will not buy a property again, but it is hard to say because things change. The decision you make will one you will be stuck with good or bad. All the options effect your credit and thus the interest rates you will pay for credit cards, car loans, insurance and other things will be effected by your credit score. Compaines are starting to tie charges to credit ratings and your should take that into considereation. Talking to a lawyer or a credit advisor some other expert to walk through this with you so you know what you are doing.

Keith Manson
First Weber Realtor
Certified Distressed Property Expert
Greenfield , Wisconsin
... more
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Sat Apr 18, 2009
Michael Young answered:
The short answer is yes, but it depends on your bank. All creditors have the right to pursue the money owed to them, but these days some banks will let the money go, so to speak. If your bank is one of those, then you can "walk away" without having to file bankruptcy. Unfortunately, finding out whether your bank will or will not is not as easy as simply asking them. There really is no way to find out for certain.

You mentioned that you were refused a modification. Banks will only consider a loan mod if the loan modification is packaged and presented in a manner that they accept. Of course, the content is important, e.g. your financial information, the property value, etc., but since banks are literally working on hundreds of thousands of files, they will simply reject a file if it is not structured properly, no matter how valid the contents.

If you can no longer afford the payments and your job prospects are dire, then you absolutely must put the house on the market and find a buyer.
... more
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Sat Apr 18, 2009
Michael Young answered:
If you're only one month late on your payments, even if you list your condo as a short-sale and you get an offer, it is unlikely the bank will accept the offer anyway. You need to demonstrate to the bank two things:

1. The value of your home is lower than what you owe
2. You can no longer afford the payments

Otherwise, in the bank's view, it appears that you can continue making the payments and they have little reason to take a loss on your loan, which is generally in good-standing.

As others have said, you need to work with an experienced Realtor who knows how to organize a proper financial package for submission to the bank to secure an "approved short sale".
... more
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Fri Apr 17, 2009
Mott Marvin Kornicki answered:
I have yet to see an entire building "close down" because many owners are not paying the maintenance fees. More often than not, the paying unit owners will be assessed to cover the shortage.

Mott Marvin Kornicki, Associate | Broker
Real Estate In Miami | Miami Beach
... more
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Tue Apr 14, 2009
Janie Coffey answered:
Hi Vernon

Often when properties are late in payment, they send a bank representative by to see the condition of the property. With single family homes this is often just a drive-by, but with condos that is not possible. I would call the number they likely gave to ask them the purpose of the inspection, but I am betting that is what it is. They need to make sure it is being taken care of and maintained. Many owners in default abandon their properties and then the lender ends up with a potentially vandalized or stripped property and they would want to take precautions to protect it. Since I am guessing you are living there it will likely be no big deal. Make sure most importantly if you get to the point you are receiving documents from the court, to respond if they give you a deadline, ie 20 or 30 days as you need to do so to keep you in the loop of the process. Good luck with selling it and the inspection. ... more
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Sat Apr 11, 2009
R. Davis asked:
We know people that want to buy there but not sure because of shortsale listings and more......
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Mon Apr 6, 2009
Nicholas Jones answered:
Vernon

If you want to contact me, I may be able to help. My email is nljinvestments@gmail.com.

Thanks,
Nicholas Jones
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Sun Apr 5, 2009
Mott Marvin Kornicki answered:
Vernon~

401 BLU has been mentioned here on trulia® recently. There are indeed, many foreclosures and short-sales throughout Miami Beach and in the entire country for that matter. Things will get better- I believe that the worst is over. By walking away without trying- you may damage your credit. Getting financing is difficult enough. 401 is located in a very decent part of Miami Beach- eventually things will improve.

At the right price- there are buyers for everything.
... more
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Sun Apr 5, 2009
Jeff K answered:
Hi Vernon,

You need to IMMEDIATELY have a free consult with a foreclosure attorney. If you simply go and talk with your bank, they will probably turn around behind your back and foreclose on you, rather than "working with you on a short sale". The attorney has all sorts of tricks that can drag out a foreclosure for many many months.

Make sure your communication with your bank is in writing. In the meantime, I'd highly recommend that you both swallow your pride and get ANY kind of job that you can - both of you - Two jobs if you can.
... more
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Sun Mar 22, 2009
Mott Marvin Kornicki answered:
Typically, the lender pays the property taxes in order to avoid tax certificates at high interest rates being bought. The amount of taxes, past due association or HOA fees get added to the property when determining the net loss. ... more
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