Short Sale Loan Modification and Foreclosure Blog Articles A Periodic Listing of Articles

by Richard P. Zaretsky, Esq.

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Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make.  This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660  RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide!  Shortsales@Florida-Counsel.com  New Website http://www.florida-counsel.com/

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SHORT SALE STANDARDIZATION INCLUDED IN FORECLOSURE SETTLEMENT

UNDERWATER MORTGAGE SETTLEMENT ANNOUNCED BY ATTORNEY GENERALS - WHAT IT MEANS

PRINCIPAL REDUCTIONS - WILL THE BANK GUARANTEE THE VALUE OF YOUR HOME?

TAX RELIEF FOR SHORT SALES EXPIRES IN 356 DAYS

HERE IT IS - THE FIXED FREDDIE MAC SHORT SALE AFFIDAVIT

FREDDIE MAC SHORT SALE AFFIDAVIT CHANGES TAKE EFFECT?

CAN YOU AVOID ASSOCIATION FEES THROUGH BANKRUPTCY PROTECTION

ASSOCIATION ASSESSMENTS AND HOW THEY CAN SURVIVE A FORECLOSURE SALE

FLIPPING FORECLOSURE DECEPTION - FLORIDA FIRM BUSTED

WHAT DOES BEING “IN FORECLOSURE” MEAN?

SHORT SALE RESCUE FRAUD ON DESPERATE HOMEOWNERS

MORTGAGE INSURANCE SUBROGATION AND WHY IT DRIVES THE SHORT SALE DEAL

BANK OF AMERICA PAYING $20,000 FOR FLORIDA SHORT SALE RELOCATIONS

HAFA SHORT SALES START WITHOUT A CONTRACT

CAN A BANK SUE TWICE ON THE PROMISSORY NOTE AND MORTGAGE?

SHORT SALE ARMS LENGTH AFFIDAVIT MAJOR REVISION NEGOTIATED TODAY

STAND-OFF WITH FREDDIE MAC OVER SHORT SALE ADDENDUM - ALTA GETS INVOLVED

Freddie Mac Short Sale Addendum - Item #13 - I DON'T THINK SO!!

FORECLOSURE BUYERS GET INTO BIG TROUBLE!

MASS TORT SCAM HITS DISTRESSED HOMEOWNERS

THERE IS NO RIGHT OF REDEMPTION AFTER FORECLOSURE SALE IN FLORIDA - CONTRARY TO FLORIDA REALTORS ARTICLE

I HAVE TO STOP PAYING MY MORTGAGE TO GET THE LENDER TO TALK TO ME

HOW LONG DOES A FORECLOSURE TAKE?

FEELS LIKE BACK IN 1938? WHEN ARE BANKS GOING TO LEND?

SHORT SALE SUMMIT REVELATIONS BY BANK OF AMERICA

WHY FLORIDA IS A GREAT STATE FOR DEBTORS AND LOUSY FOR CREDITORS

NEW AND CONFUSING BANK OF AMERICA SHORT SALE "APPROVAL" LANGUAGE

A HOME WITHOUT EQUITY IS JUST A RENTAL WITH DEBT

BANK FORECLOSURE FILINGS DOUBLE

PAY YOUR ASSOCIATION EVEN IF YOU DON'T PAY YOUR MORTGAGE

SOLUTION DESCRIBED - AGENT 100% LIABLE FOR 30% PAYMENT TO IRS BY COLLECTING RENTS FOR A FOREIGN OWNER - follow up article to the preceding article

AGENT 100% LIABLE BY COLLECTING RENTS FOR A FOREIGN OWNER TO PAY 30% TO THE IRS

FRIVOLOUS DEFENSE TO FORECLOSURE CAN COST BORROWER $$$

CAN YOU RUN AWAY FROM A MONEY JUDGMENT?

COMMUNITY ASSOCIATION AS LANDLORD - WHO GETS THE RENT?

SHORT SALE OPPORTUNITIES LOST - THE PROCRASTINATING CLIENT 

DOES FILING BANKRUPTCY GET YOU FIRED FROM YOUR JOB?

FREE ATTORNEY REPRESENTATION IN SHORT SALE OR LOAN MODIFICATION

Today I got an email from a real estate broker involved with a short sale we are handling and when looking at his website I saw the statement, "You get FREE attorney services with us! Not all companies that do short sales for clients provide this."

DEFICIENCY JUDGMENT AND LOAN DEFICIENCY COLLECTION SLICE AND DICE  

A lot of speculation about deficiencies and what happens to them keep popping up in conversations I have.

FORECLOSURE EXPRESS vs THE LITTLE ENGINE THAT COULD - IN COURT SHORT SALE SUCCESS!

In another prime example of the FORECLOSURE EXPRESS vs. THE LITTLE ENGINE THAT COULD, this past week I defeated a lender's counter argument as to why the foreclosure sale scheduled for that day should proceed...

DO LENDERS MAKE SHORT SALE DEMANDS THAT ARE ILLEGAL?

I am very troubled by the actions of lenders in their encouragement of surreptitious dealing, especially by second lenders, regarding the distribution of proceeds of a short sale to the detriment of first lenders.

MORTGAGE IS NOT AN OBLIGATION TO PAY - COMMON MISTAKEN ADVICE BY AGENTS

Today I received a question from a trusted broker about the result of a foreclosure of a first mortgage upon the second mortgage. 

 WHAT IF I DECIDE TO DO NOTHING AND JUST LET THE BANK FORECLOSE?

Thinking of walking away from your mortgage? Think again...

THE FTC AND MARS - ARE REAL ESTATE AGENTS INVOLVED?

The Question - Are Real Estate Agents Furnishing MARS?

SHORT SALE CONTRACT ADDENDUM FOR 2010 - THE GOOD AND THE UGLY  

In June and December 2010 we saw major changes in the short sale forms used by the majority of Florida brokers.  This article will discuss the good, the bad and the ugly.

CLEARING BUYER FUNDS - "CAN'T YOU USE OTHER MONEY IN YOUR ESCROW ACCOUNT FROM OTHER DEALS?"

ROBO SIGNING - LENDERS DELAYING FORECLOSURES ?

Robo sigining foreclosure affidavits and other documents has been in the news for months - forcing lenders to suspend foreclosures in process.  

IRS LIENS ON SHORT SALE PROPERTY - RESOLVING PHANTOM VALUE CLAIMS

One of the weirder roadblocks we have been seeing is the clearing of IRS liens against a taxpayer (property seller) when the taxpayer is trying to short sell a property. 

CONGRESS HEARS OF "FORECLOSURE EXPRESS VS LITTLE ENGINE THAT COULD" FORECLOSURE VS MODIFICATION SCHEME

Congress heard this week about the dual track "Foreclosure Express vs. Little Engine that Could" scenario that lenders use to simultaneously foreclose on a home and attempt modification - all at the same time.

ITS NOT THE JUDGE'S JOB TO BE THE DEFENDANT'S ATTORNEY

"If the defendant doesn't hire counsel or doesn't defend themselves then it's not the judge's job to be the defendant's attorney". 

FORECLOSURE PROCESS FINISHED IN 100 DAYS?

Recently several borrowers have stated to me that the foreclosure process in Florida is going to take two years.  The long foreclosure process was caused by a combination of overloaded plaintiff attorneys, overloaded lenders, and overwhelmed court system.

TITLE AGENT AND MORTGAGE BROKERS CAUGHT IN LOAN FRAUD = 30 YEARS  

In a mortgage / sale scheme that was not unfamiliar during the hot Florida real estate market to many real estate professionals, a local title agency and mortgage brokers are being prosecuted Federally for lender fraud / mortgage fraud.

BANK OF AMERICA SHORT SALE APPROVAL LETTER CHANGES

You may have been reading about Bank of America short sale approval letters and some changes that have occurred.  The Bank of America Short Sale Approval Letter has had various versions dealing with deficiency of the promissory note.  This article will look at the BoA short sale letter recent changes.

NO DEPOSIT CONTRACT - IS IT A CONTRACT?

Do brokers encourage buyers to make "no deposit contracts"?  Why are they so pervasive?  Are they legally binding?

DIVORCE, SHORT SALES, LOAN MODIFICATION, DEED IN LIEU AND FORECLOSURE - PLANNING AND SOLUTIONS

Although we are years into a dramatic period of real estate deflation, divorce lawyers and judges have not been able to move from traditional solutions to new solutions that work in this recessionary economic environment.  The traditional ways of dealing with real estate in a divorce setting has changed. 

TITLE INSURANCE STOPPED ON REO AND FORECLOSURE SALES

GMAC SUSPENDS FORECLOSURE OPERATIONS - JUDGMENTS MAY BE VOIDABLE

WHY IS THE BANK FORECLOSING IF I AM DOING A SHORT SALE (OR LOAN MODIFICATION)?

Why does the bank file and aggressively continue a foreclosure suit even though you are negotiating a short sale or modification of the loan? 

COLLECTION OF DELINQUENT ASSESSMENTS THRU RENT - POWERFUL TOOL FOR FLORIDA ASSOCIATIONS

The Man Who Really Knows Short Sales...

DEED IN LIEU - PRESERVATION COMPANY FRAUDULENT BILLS - WATCH OUT!

Foreclosure Deficiency Judgment Compared to Deed In Lieu and Short Sale Scenarios

BUY AND BAIL - DISTRESSED HOMEOWNER FEELS REALTORS ARE TO BLAME

BANKS BEGIN TO GO AFTER DEFICIENCY JUDGMENTS - FANNIE MAE POINTS THE WAY

Earlier this week I wrote about lenders taking the next step after a foreclosure.  Foreclosures happen from borrowers that "walk away" from their upside down valued properties, whether because of job loss, other expenses more important than the mortgage payment, or just a strategic default.  You can find the other article at MOTION FOR DEFICIENCY JUDGMENT - FORECLOSURE CONSEQUENCES.

MOTION FOR DEFICIENCY JUDGMENT - FORECLOSURE CONSEQUENCES

Today I received a call from one of my blog readers asking me for help with a pleading he received months ago, that is now being scheduled for a hearing in August.  This is a prime example of why Stategic Defaults or just walking away from a property can be so dangerous. 

Strategic Defaults UP - Loan Modifications Down

C-Span is a wonderful thing.  Just listen or watch - The House Oversight and Government Reform Committee hearings going on tonight brought in some interesting statements from CEO's and Presidents of Bank of America, JP Morgan/Chase and others. As I reported in my article WALK AWAY FROM THE PROPERTY - STRATEGIC MORTGAGE DEFAULTS GROW TO 26%, that figure is now updated by the University of Chicago and Northwestern University researchers for the previous figures - a year later the strategic default rate is up another 10%!

IS SHORT SALE FLIPPING CRIMINAL ACTIVITY?

Short sale flipping is again a hot topic because Sergio Natera and Anna McElaney, two Connecticut real estate brokers, are scheduled to be sentenced in Hartford's federal court in August after pleading guilty to fraud. Their crime involved persuading lenders to approve short sales of homes -- without disclosing that there were better offers -- and then flipping the houses for a profit.

NEW FLORIDA FORECLOSURE DEFENSE RULE FROM FLORIDA SUPREME COURT

A new method to dismiss a Foreclosure Complaint in Florida that is just catching is to apply an amended rule put into effect by the Florida Supreme Court on February 11, 2010.  This can be an important tool to delay the foreclosure and get that short sale done and the "window of opportunity" is right now.

FORECLOSURE EXPRESS VS. LITTLE ENGINE THAT COULD

 I recently saw a blog where the statement was made that, "Most banks will not stop the foreclosure process and start the short sale process until you have an offer on your home."  Our experience is that this is inaccurate advice - let me explain.

SHORT SALE PRIMER - LAWYER DISCUSSION OF THE SHORT SALE EVOLUTION  

Since I wrote the Short Sale Primer(2009) and Back To Basics (2008) articles, the short sale methodology used by lenders has morphed several times and most recently even the United States Government has gotten involved by creating "Regulations" through the Home Affordable Foreclosure Alternatives(HAFA) Program. 

FLORIDA SUPREME COURT ADDRESSES FORECLOSURE SALE CANCELLATIONS

The Florida Supreme Court last week published its decision bringing to task lenders that - at the last minute - cancel foreclosure sales.  The court had been petitioned primarily by condominium associations, homeowner associations and property owner associations for something to prevent lenders from dragging on foreclosure proceedings in an effort to delay payment of association fees and assessments. 

EQUATOR SYSTEM - ARE BORROWERS THAT COMPUTER LITERATE?

The "Equator System" is now in use by Bank of America and GMAC. Touted as a simplistic system to get short sales moving though the lender's system, is it really just an automation method that removes the human decision making element and makes our clients just a jumble of numbers?  Also, how many of your clients are trainable to learn the computer system so they can enter pages of data and create Adobe PDF files of their financial backup material and then upload it to the Equator System?

CHINESE DRYWALL - CANCER CLUSTER - UNEXPLODED ORDINANCE - WHEN THERE IS NO BUYER AT ANY PRICE

What happens when there is no buyer for your property at ANY price because a literal buyer disaster has occurred in your neighborhood?  In the past 2 years, mortgage crisis and real estate value meltdown notwithstanding, three events keep showing up in my Florida office

SHORT SALE MARKET EVOLUTION - GMAC SOLUTION TO FALSE BUYERS

AGENT PAYS FOR ATTORNEY - THE CONTINGENT SHORT SALE ATTORNEY FEE AND CONFLICT OF INTEREST

Realtors, attorneys and sellers should be aware of the "greed side" of our human nature and guard against being put into these unfortunate situations. 

YOU LOST YOUR HOUSE - BUT YOU STILL HAVE TO PAY - CNN MONEY AND ACTIVERAIN

SHORT SALE APPROVAL LETTER MISREPRESENTATIONS - PROMISSORY NOTE RELEASED?

My law practice entails a significant number of clients that come from other "short sale experts" - both attorneys, title companies and experts come lately.  Sometimes (ok, many times) the client has arrived because of a troubling experience.

WHEN A BUYER BROKER CHANGES THE MLS LISTING PRICE - A FLIP SCENARIO CAUGHT

This week a real estate broker came in to retain me on a complaint filed by a buyer on a flip and it is important enough to understand why the Department of Professional Regulation is going to prosecute this broker.

SHORT SALE LENDER CANNOT REDUCE COMMISSION TO BROKER

One of the great drawbacks to a broker taking on a short sale listing is the fear and often the reality that the short sale lender will demand a reduction in the broker commissions.  This has created all sorts of contraptions to make the broker whole.

MORTGAGE FRAUD and SELLER FRAUD = WE PAY THE BILL

DISTRESSED HOMEOWNERS DEFRAUDED BY ATTORNEYS - EXPOSED IN CALIFORNIA

I have previously written about how attorneys can be great and how they can be bad in the field of helping distressed homeowners.  Now the California Bar Association has published the preliminary results of an investigation into those attorneys supposedly offering services to help distressed homeowners in one of the hardest hit states

TENANT PROTECTION LAW AND FORECLOSURE PROBLEMS

In March I wrote about the problems tenants faced when the landlord was in foreclosure. See TENANT RIGHTS AND FORECLOSURE - A DISCUSSION OF SAFEGUARDS.  Some, but not all, issues have been addressed in new legislation that went into effect May 20, 2009 called the Protecting Tenants at Foreclosure Act of 2009. There is still the advance rent and security deposit issue as the ACT does not address how the tenant can protect itself from the loss of those monies.

Foreclosure is NOT a Remedy - 2nd in a Series

In the preceding blog article I addressed the issues when a borrower waits until they get before a judge to determine that they may want an attorney to represent them.  Foreclosure is NOT a Remedy deals with the issues when a borrower has been served with a foreclosure complaint(sometimes mistakenly called a "lis pendens") and more than the time allowed for a response to be filed with the court has come and gone, and no attorney is involved on the borrower's behalf to pursue any available defenses to the foreclosure proceeding. 

Foreclosure? When is the Best Time to See an Attorney?

First in a series:My law practice encompasses assisting and guiding many borrowers that are in financial distress and we take the position that Foreclosure is NOT a Solution.  There is a significant trend this third quarter of the year where we are seeing many more people coming to us with foreclosure suits that were filed many months ago, and now it may be too late to discuss all of the solutions that may have been available to the borrower had they come into the office for a consultation before or at least at the beginning of the process. 

LOAN AUDITS - FORECLOSURE DEFENSE FALLACY?

The concepts of foreclosure defense preparation have started a cottage industry, unregulated as with most of the home saving concepts, called "loan audits".

WALK AWAY FROM THE PROPERTY - STRATEGIC MORTGAGE DEFAULTS GROW TO 26%

A mortgaged homeowner is likely to "walk from the property" or "give it back to the bank" based more on loss of equity than the ability to make the mortgage payments, a recent research paper emanating from the University of Chicago says. The paper researches and analyzes when American homeowners are likely to "walk away from their mortgages"  These actions by mortgaged homeowners when the indebtedness substantially exceeds the equity value of the property, is called a "strategic default". 

SHOULD I PAY MY MORTGAGE? WHEN SHOULD I STOP PAYING MY MORTGAGE?

This seems to be THE NUMBER ONE question I get.  Unfortunately there are several answers and which  is correct for you depends on the Circumstances.  I will address the common scenarios in this article.

Your Property is Underwater - What is the solution?

The Distressed Property Owner's "Goal" is an interesting situation for each individual and for each individual experiencing this event, it is different.  I like to help my client visualize creating a solution or "goal" by telling a visualization story.

SHORT SALE FLIPS - TITLE INSURANCE PROHIBITED 

BUYING A FORECLOSURE - DUE DILIGENCE AND STATUS OF TITLE 

More and more I have been receiving telephone calls and emails wanting me to discuss issues relating to buyer foreclosures and short sales and REO properties.  Everyone (both qualified but usually unqualified) seems is writing or buying books on the process, so I figured it may be time to put in my two cents and talk about title issues and due diligence

MOTION FOR SUMMARY JUDGMENT OF FORECLOSURE - DEFEATED! AND HOW I DID IT

Today I used a new technical defense to successfully defeat a motion for summary judgment for foreclosure and I wanted to pass it on to other attorneys (or those who know attorneys) helping homeowners in foreclosure.

SHORT SALE BUYER CANCELLED CONTRACT EPIDEMIC - DIAGNOSIS AND CURE

This past week my office had 5 short sale buyer's walk from their contracts!  Although I use an exclamation mark, it is not an unusual occurrence.  In fact it seems that it takes 4 contact buyers to make a short sale finally happen.  If that was an average for a traditional sale situation, Realtors and title agencies would be climbing the walls. 

MORTGAGE FORECLOSURE RESCUE - THE BAD GUYS DON'T WEAR BLACK!

In last week's New York Times an article focuses on how Home Savers Consulting is accused of committing fraud and profited handsomely at the expense of the former homeowner. Worse, the former homeowner thought she still owned the home - she did not.

FORECLOSURE RESCUE AND MORTGAGE MODIFICATION FRAUD - ALERT ISSUED

This week the Florida Bar made public the outlandish and misleading representations that have recently plagued the mortgage modification industry in this state and probably nationwide.  The mortgage modification industry has sprung up faster than mushrooms - mostly through mortgage brokers that have seen their ability to make loans dry up in this recession and are applying net office sales techniques to the mortgage modification boom. 

SHORT SALES PRIMER - BACK TO BASICS UPDATED

Since I wrote the Short Sale Primer the short sale methodology used by lenders has morphed several times.  It is a different animal than it was almost 10 months ago.  The passage of time requires that the original article, which was very popular (thank you) be revised to reflect new policies by the lenders.  I have also added several pertinent links to more detailed discussions on the various subjects in this article.

SHORT SALE AND FIRPTA TAX WITHHOLDING - IRS ISSUES PRIVATE GUIDANCE

Back around Christmas, 2008 I co-authored a blog with Miami tax attorney Shawn Wolf, Esq. on the issue of a FIRPTA transaction coupled with a short sale.  The analysis showed that there were no specific IRS regulations and no rulings regarding a short sale transaction that was subject to FIRPTA. 

TENANT RIGHTS AND FORECLOSURE - A DISCUSSION OF SAFEGUARDS

The unintended victims of the foreclosure process are often the occupant of the home that is a tenant.  The landlord is a borrower under a mortgage that has gone into default and is now being foreclosed.  What is going to happen to the tenant as a result of the foreclosure?  How can a tenant or future tenant be protected from the ill effects of a foreclosure? 

MORTGAGE MODIFICATIONS TEND TO FAIL

Here is an interesting article from the Washington Post that describes the difficultiy many homeowners have with modified mortgages.

LENDER SHORT SALE ACCEPTANCE LETTER EXAMPLES - READ WITH CAUTION!

What is a short sale?  When giving lectures I like to use the definition as follows:  The sale of a real estate property for a price that is less than the total amount necessary to fully satisfy the actual present encumbrance (mortgage) indebtedness on the real estate property. 

MULTIPLE SHORT SALE CONTRACTS AND HOW TO AVOID THEM

Why does it take 3.8 contracts to sell a short sale property?  Why do Realtors insist on spinning their wheels and getting nowhere selling short sale properties?

FORECLOSURE DEFICIENCY JUDGMENT or SHORT SALE PROMISSORY NOTE or BANKRUPTCY - REVISITED

Whether to agree to a negotiated promissory note in a short sale or allow the house to go to foreclosure is one of the most discussed topics around.  It deserves a simple comparison

FLORIDA REAL ESTATE MARKET CONDITIONS RELEASED TODAY

Today one of the state's largest title insurance underwriters release its 2009 Real Estate Forecast and Southeast Florida focus.  To those of us that live here it is no surprise that the numbers are grim. To those outside of Florida the numbers are shocking!  The report, issued by Attorneys Title Insurance Fund, makes several projections and findings.

FIRPTA and SHORT SALES - DANGEROUS LIABILITY TO BUYER AND CLOSING AGENT

It is critical for Realtors, Buyers, Closing Agents and Lenders to understand the important issues of the short sale when applied to the Internal Revenue Code's Foreign Investment in Real Property Tax Act of 1980 or FIRPTAtransaction because disregard for following the FIRPTA rules will make the Buyer and Closing Agent and possibly the Lender liable to the IRS for the Seller's Tax Liability!!!!!

Hope For Homeowners Act a Failure

I have many desperate homeowners coming to my office begging for ways to save their homes.  Often times the homeowners qualify under the published criteria for the hyped Hope For Homeowners program also called H4H by the FHA.  The program, passed by Congress in July 2008 was to save the homes of 400,000 homeowners.  So far only 300 or so have applied!  Why?

A LAWYER'S EXPLANATION OF THE FORECLOSURE PROCESS

As an attorney I often consult with homeowners that are in distress along with the Realtors that represent them in trying to accomplish a short sale.  Often a detailed explanation of the foreclosure process would be very worth while for my client to have a thorough understanding of what they may be facing as the lender seeks to enforce the promissory note and mortgage. 

IS THE FORECLOSURE FINAL? - AND HOW DOES IT AFFECT MARKETING A SHORT SALE?

As an attorney involved in the procedure of foreclosures and short sales I have been asked this question an increasing number of times - which tells me the legal process is confusing when it comes to the full run of the foreclosure process. 

WHAT'S WRONG WITH THE FAR SHORT SALE LISTING AND CONTRACT ADDENDA - AND HOW YOU CAN FIX IT

The Florida Association of Realtors took the lead in making some semblance of consistency, order, and standardized forms for use by Realtors for Short Sale transactions.

FORECLOSURE DEFENSE FALLACY

What in fact are foreclosure defenses?

SHORT SALE DEFICIENCY DEMANDS AND DEFENSES - The Interstate Highway Analogy

 "What chance is there that the bank is going to make me pay the difference (or deficiency) when we are through?"  This is the most often asked question I get as an attorney that specializes in residential mortgage loan workouts and (avoiding foreclosure through short sales or modification). 

BAILOUT BOGDOWN

BANK REJECTS SHORT SALE OPPORTUNITY AND MAKES BIGGER LOSS

BAILOUT MISREPRESENTATIONS AND MISCONCEPTIONS

The government bail out of the housing crisis has created wonderfully conceived programs to keep homeowners in their homes with re-negotiated mortgages or refinanced mortgages.  The specific programs for the home saving legislation are the HOPE for Homeowners(H4H) and FHASecure programs.

I THOUGHT IT OUTRAGEOUS THAT ANYBODY HAS TO STEP IN TO BAIL OUT A BUNCH OF 29 YEAR OLDS DRIVING MASERATIS

Sometimes you get a frank speaking knowledgable person that sums up the day's thought succintly and in one sentence.  Speaking on the Financial Crisis, legenday investor Jim Rogers, in an interview reported on CNBC this morning said the irresponsible people need to go bankrupt if necessary. 

ARE WE IN SHUT DOWN MODE?

The stock market is at equivalent lows to times dating back to the Great Depression (which for those of you needed date measurements is almost 75 years ago).

TOP TEN LIST OF SHORT SALE OBSERVATIONS  

For all you short sale Realtors - Here is my list of the top ten short sale rules when dealing with sellers and buyers.  What is your top ten list for YOUR favorite category involved in the short sale process (lender, buyer, seller, buyer Realtor, Seller Realtor, processor, loss mitigator and servicing agent, etc.)?

YOUR Ticket to Normalcy? THE BAILOUT BILL  

EMERGENCY ECONOMIC STABILIZATION ACT - WHAT IT MEANS FOR YOU

My wife asked a very important question this morning - so what does this new Act do for the housing market?

NUTSHELL VERSION - EMERGENCY ECONOMIC STABILIZATION ACT

The BIG news this week is the passage on Friday of the Emergency Economic Stabilization Act of 2008 - or more formally called "Secure Rural Schools and Community Self-Determination Act of 2000".  Yes, that is how it started and it is known as H.R. 1424.  What it says will change our economic horizon for decades and this article will discuss its major imports for the real estate buyer and seller and homeowners.

BAILOUT FOR HOMEOWNERS - WITHOUT WALL STREET

149 years ago today, Abraham Lincoln stated an important fact for today's financial crisis.  But first a word of hope.  It is human to think that when times are good, they will stay good. And when times are bad we all hope for good times. 

FLORIDA FORECLOSURE FRAUD BILL - UPDATE

Government can react positively when enough people raise their voice - and the law is clearly against public policy.  This post updates my article on the Florida Foreclosure Fraud Bill

Second Mortgage Short Sale - Holding Up the Railroad Loot

The Second Mortgage Dilemma can ruin your short sale - Like the old West, the stagecoach holding the railroad's payroll was always getting held up by the bad guys - at least in the movies. 

BANKS CREATE BILLIONS (MORE) IN LOSSES -

Short Sale Buyers are increasingly investors seeking to buy and flip or buy and rent for positive cash flow.  Missing from the field are homebuyers seeking a place to live.  Why?

Foreclosure Deficiency Judgment Compared to Deed In Lieu and Short Sale Scenarios -

Basic Primer - the Mechanics of a Mortgage Foreclosure Deficiency Judgment Compared to Deed In Lieu and Short Sale Scenarios -

Back to Basics - a Review of Short Sales

Short Sale Primer - Back Room Lender Decisions - Short sales are nothing new. 

THE BANK CHANGED THE LOCKS! -

There is discussion on Active Rain from time to time on whether in a short sale it is advisable to move out of the house. The real issue is the clause in the mortgage that says the bank can change the locks on the house if it is "abandoned". 

A-T-T-O-R-N-E-Y Spells T-R-O-U-B-L-E in Short Sale  -

Sad Facts about Attorney Misconduct in a Short Sale

FLORIDA FORECLOSURE FRAUD BILL - MY LETTER TO GOV. CRIST  

See UPDATE to this blog and how it was resolved - at FLORIDA FORECLOSURE FRAUD BILL - UPDATE

SHORT SELLER STILL MUST DECLARE INCOME ON SALE!  -

The Mystery of income you can't spend - but do you have to declare it?  When DON'T you have to report forgiven debt (from a short sale, deed in lieu or foreclosure with release from the lender) as income?

CALLING ALL ETHICAL LOAN OFFICERS - HELLO? ANYONE THERE?

CREDIT REPORTING AND SHORT SALES / FORECLOSURES - REVISITED -

I received an email on my quest to find the real answers to the incessant question of how a foreclosure vs. short sale vs. deed in lieu all affect the credit report of the borrower.

1099 REPORTING - IT'S THE LAW! - OR IS IT???  -

1099 SHORT SALE REPORTING - IT'S THE LAW! - OR IS IT???  Since I have developed my SHORT SALE law practice I have a lot of clients that are in foreclosure or close to it.  They all ask me about 1099 reporting and if the bank can forgive the debt and not issue a 1099.  Now let's see what the law really says.

DIVORCE - CHAINS TO THE UPSIDE DOWN HOUSE VALUE CAN BE BROKEN!!!  -

Chained to your home and can't get a divorce?  You are not alone! 

SHORT SALE FLIP - QUESTIONABLE METHODS  -

SHORT SALE FLIP - QUESTIONABLE METHODS - This article is a follow up to an issue discussed in December titled Short Sales and Title Insurance - Critical Look at Hybrid Closing Schemes.

FORECLOSURE DEFICIENCY ORDER VS SHORT SALE NEGOTIATED PAYBACK  -

  I was negotiating on a very large problem mortgage today with a high-up executive at the servicing firm.  He made a comment that I thought peculiar and I called him to task on the matter. The comment was that "after the foreclosure sale, lenders seldom bother to get a court ordered deficiency judgment".  I knew this to be false,  I will tell you why.

REAL QUESTIONS - HOW DOES A SHORT SALE AFFECT CREDIT SCORES???  

In a discussion today with a client we addressed the question of credit scores and short sales.  This is a hot topic and there is information everywhere on what happens and when and for how long. 

FORM RELEASED BY IRS FOR DEBT RELIEF ACT FILING -

New IRS Form for Filing for Debt Relief

No-Conflict Considerations in Short Sale Fees

As short sales and pre-foreclosure assistance servicers proliferate, the type, style and amount of fees that these individuals and companies charge has become ingenious and varied. 

TOO MUCH MONEY IN THE BANK TO DO A SHORT SALE? - ECONOMIC LOGIC  - 

This week I spoke with several people that wanted to do a short sale of investment property that is upside down in value.  They are sick and tired of the short fall on rental income (if they are lucky to have a renter that actually pays rent) vs the mortgage payment, taxes, insurance and maintenance costs.

Who Says Owner Doesn't Have Time To Do a Short Sale? -

Some writers to my blogs have commented that "they don't have time to do a short sale". 

WHAT DO I DO? -- I'M UNABLE TO PAY MY MORTGAGE  -

As an attorney, I receive plenty of telephone calls and visits from people that are no longer able to pay their mortgage on their home or investment property.  They all have endless questions and usually tell me they are getting all sorts of advice that they don't like.  They come to me to find their BEST solution.

SHORT SALE TRILOGY  -

It is really amazing how many people - professionals as well as potential sellers - do not even know what the term "short sale" means.  This blog assumes you have actually worked a short sale already -- if you have -- or if you are curious -- read on!

Mortgage Forgiveness Debt Relief Act of 2007- Another Look -

I have been getting a lot of calls and emails about the Mortgage Forgiveness Debt Relief Act of 2007.  The new law became effective today, and applies to 1099's on short sales or foreclosures retroactive to January 1, 2007.

MORTGAGE RELIEF ACT - CHRISTMAS PRESENT TO PRIMARY HOMEOWNERS -

On Thursday the President signed into law - effective New Years Day, the Mortgage Forgiveness Debt Relief Act of 2007.

Underwater - The Cycle Repeats Itself -

I cannot be surprised at the stories in the newspapers about homeowners, investors and even commercial property owners being "Underwater" with today's depressed real estate market values. 

Short Sales and Title Insurance - Critical Look at Hybrid Closing Schemes -

Recently I have seen various schemes for streamlining the short sale process for the buyer/investor.  Some discussions have been somewhat heated and involved concepts like dual contracts or even insolvent borrower creating a Land Trust for use by the investor/buyer. 

WHO CONTROLS THE SHORT SALE? -

In this environment of the short sale it seems apparent that the bank controls the sale.  Some might say the buyer controls the sale.  My opinion is that both statements are primarily incorrect. 

TAX DEEDS - COURT DEVELOPMENTS NIX SALE! -

Tax Deed purchases are popular in many states as a way to acquire real estate at truly rock bottom prices.  Generally a tax deed purchase is first in line after just a few significant "super" lienholders: (1) God, and (2) Code Enforcement Liens. 

LOW BALL SHORT SALES - PLAYING THE ODDS? -

Short Sales are the buyer road to riches - if you believe the promo advertising that is all over the place.  But the road is not a short one nor is it a smooth one. It is best covered with professional help and guidance.

BORROWERS FACING FORECLOSURE OFTEN OVERPAY - STUDY FINDS

Is our system of foreclosure out of control?  Are the banks acting fiduciarily to their borrowers in the loan management process - are they requred to?

Beware the White Knight! -

Apparently there are lots of "White Knight Claims" being made against title insurance policies.  Here are some of the fact patterns:

SHORT SALES AND IRS LIENS -

TRUE STORY - Renter forges deed, then conspires to sell house and pocket mortgage proceeds -

 scary TRUE story

Some Sellers Think They Are ENTITLED To A SHORT SALE -

I had just too many borrowers that "should have known better" in the office this week - so I feel very conservative just now.

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Copyright 2007, 2008, 2009, 2010, 2011 and 2012, Richard P. Zaretsky, Esq.