preforeclosure: IS THE FORECLOSURE FINAL? - AND HOW DOES IT AFFECT MARKETING A SHORT SALE? - 11/30/08 03:19 AM
Actual question from a Realtor in Miami, Florida:  I am trying to figure out for my clients who are still in the home and have actually had a foreclosure judgment awarded against their property while working on a short sale.  At that point, they don't know if they should just give up as the "Foreclosure" has been awarded against them and not even pursue the short sale any longer, OR is there is hope that if they have the short sale approved that they are then "damaged less" than if they allow the auction sale to take place.  I guess that … (7 comments)

preforeclosure: THE BANK CHANGED THE LOCKS! - 05/04/08 06:25 AM
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".  The exact phrase from the Fannie Mae Single Family mortgage form says,
9.  Protection of Lender's Interest in the Property and Rights Under this Security Instrument.  If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in … (27 comments)

preforeclosure: SHORT SALE FLIP - QUESTIONABLE METHODS - 03/18/08 02:11 PM
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.
I am representing an ultimate buyer on a short sale "flip" that raised some eyebrows and got me to looking carefully on how it is put together.  The ultimate buyer came to me to assist in legal representation and I was very surprised on how it was structured to the utter disadvantage to the ultimate buyer.  In this example, the ultimate buyer is my client; the seller is the flipping … (50 comments)

preforeclosure: SALES FIGURES FOR JANUARY IN SOUTH FLORIDA - DOWN DOWN DOWN - 02/25/08 01:47 PM
Today's South Florida Business Journal published an article today showing the across the board declines in sales activity in the South Florida and near South Florida geographic area.
One bright spot - for what it is worth - is an increase in prices for condo sales in Miami.
Presently I can find no published data on the volume of short sales or pre-foreclosure sales and that information is, to my knowledge, not available since each lender keeps its own data and most of the information would not correlate to public record or courthouse filings.
Has the bottom of the market been reached?  Apparently not yet, … (1 comments)

preforeclosure: FORM RELEASED BY IRS FOR DEBT RELIEF ACT FILING - 02/21/08 05:49 PM
New IRS Form for Filing for Debt Relief
The form for filing for tax relief under the Mortgage Forgeiveness Debt Relief Act of 2007 has been released and is available online.  Click HERE for the form.
Information about the relief available - which is available only to primary residences that incurred the tax event - was set forth in my article.  Consult your tax professional when filing this form!
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 … (3 comments)

preforeclosure: TOO MUCH MONEY IN THE BANK TO DO A SHORT SALE? - ECONOMIC LOGIC - 02/09/08 04:31 AM
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.
The "short sale" phenomenon is giving some upside down investors the belief that they can get out of the mortgage by getting the property sold for less than the mortgage indebtedness and the bank will share in that loss.
I have spoken in the past about … (40 comments)

preforeclosure: TOO RICH TO DO A SHORT SALE? - ECONOMIC LOGIC APPLIES - 02/09/08 04:28 AM
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.
The "short sale" phenomenon is giving some upside down investors the belief that they can get out of the mortgage by getting the property sold for less than the mortgage indebtedness and the bank will share in that loss.
I have spoken in the past about the theory … (6 comments)

preforeclosure: Mortgage Forgiveness Debt Relief Act of 2007- Another Look - 01/01/08 04:14 AM
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.
Before the Act was passed, one of the rewards for a homeowner helping the lender keep the home out of foreclosure and minimizing the enevitable monetary loss to the lender, was that the homeowner at the end of the process was saddled with a huge income tax bill compliments of a Form 1099 unearned income statement.
For detailed information and the text of the … (7 comments)

preforeclosure: Underwater - The Cycle Repeats Itself - 12/02/07 03:11 AM
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.  Many people that own real estate today were just pre-teens when the last deep cycle occurred.  Or if they are older, they were not in the real estate market at that previous time.
People come to me every day about short sales and the "bad deal" they got themselves into because the mortgage is greater than the current value - thus they are "underwater".  Usually they want some way out since they don't want the … (2 comments)

preforeclosure: Short Sales and Title Insurance - Critical Look at Hybrid Closing Schemes - 11/27/07 07:46 AM
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.  At best, the agreement amongst the blog commentors has been to agree to disagree.
First American Title Insurance Company, one of the nation's largest title insurers, distributed a comprehensive instruction memorandum to its title agents in late September and again re-distributed it today (in South Florida).  I have received permission to re-print it in this blog.
If First American's memorandum can … (6 comments)

preforeclosure: WHO CONTROLS THE SHORT SALE? - 11/13/07 01:59 PM
WHO CONTROLS THE SHORT SALE?
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.  The seller owns the house.  The seller must sign the contract.  The seller must sign the deed.  Of course, if the seller can't sell and the bank forecloses, then the bank will likely have the REO and the sale is now with them - as the new owner.  The issue is that the bank is the "reluctant" owner.  … (3 comments)

preforeclosure: Who Controls the Short Sale? - 11/11/07 11:38 AM
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.  The seller owns the house.  The seller must sign the contract.  The seller must sign the deed.  Of course, if the seller can't sell and the bank forecloses, then the bank will likely have the REO and the sale is now with them - as the new owner.  The issue is that the bank is the "reluctant" owner.  The bank has already determined (by working with the seller … (7 comments)

preforeclosure: Recent news article from South Florida on Short Sales - 11/03/07 08:14 AM
 
Here is a recent South Florida news article link - on short sales:
 http://www.dailybusinessreview.com/news.html?news_id=45571
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
 
(1 comments)

preforeclosure: ECONOMICS 101 - SHORT SALES - WILL THE LENDER SHARE THE LOSS - 10/31/07 03:18 PM
I had just too many borrowers that "should have known better" in the office this week - so I feel very conservative just now - just to the right of Bill O'Reilly.
We do a lot of short sales in my law and title agency offices.  They come in from all sources - Realtors, referrals, lenders, friends, developers.  Some borrowers have one investment property and some have eleven, and all the numbers in between. Most are upside down and don't want to put more good money (if they have any left) into a bad investment.
When they ask us to negotiate with the lender to … (2 comments)

 
Richard Zaretsky, Florida Real Estate Attorney (THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY) Rainmaker large

Richard Zaretsky

Florida Real Estate Attorney

West Palm Beach, FL

More about me…

THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY

Address: 1615 Forum Place, Suite 3A, West Palm Beach, Fl, 33401

Office: 5616896660 x 107

Mobile: (561) 329-2279

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