real estate lawyer: FORECLOSURE EXPRESS vs THE LITTLE ENGINE THAT COULD - IN COURT SHORT SALE SUCCESS! - 03/27/11 07:11 AM
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, even though the lender issued its short sale approval letter.
The issue was that the lender issued the short sale approval letter with a typo in the loan number.  No big deal you would think, but after 5 business days of waiting to get it fixed so the short sale could immediately close, the lender couldn't get it done - maybe they ran out of ink … (46 comments)

real estate lawyer: MORTGAGE IS NOT AN OBLIGATION TO PAY - COMMON MISTAKEN ADVICE BY AGENTS - 03/08/11 01:46 AM
Today I received a question from a trusted broker about the result of a foreclosure of a first mortgage upon the second mortgage.  He told me that many brokers / agents provide advice to their clients (and non-clients) that if the first mortgage forecloses, the second mortgage gets nothing and is wiped out.
Without getting into the discussion of whether giving that advice is legal advice or not - the first thing to realize is that the advice is absolutely correct.  The second thing to consider is that the advice is totally incorrect.
Let me explain.
A mortgage is actually two … (55 comments)

real estate lawyer: ROBO SIGNING - LENDERS DELAYING FORECLOSURES INTO FEBRUARY 2011? - 12/24/10 09:16 AM
Robo sigining foreclosure affidavits and other documents has been in the news for months - forcing lenders to suspend foreclosures in process.  Recently many banks reported that their self imposed moratorium on foreclosure prosecution was over and foreclosures were back on track. JP Morgan is not one of them and they commented that the Christmas holiday freeze on foreclosures would not be imposed since they are not proceeding with foreclosures anyway. Here is evidence of a longer wait before this is over.
This week my office received a pleading from attorneys for JP Morgan Chase Bank regarding a trial that is scheduled to … (14 comments)

real estate lawyer: Second Mortgage Short Sale - Holding Up the Railroad Loot - 09/08/08 03:47 PM
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.  Has much changed in the Wild West environment of short sales and the fight between primary and secondary mortgage holders?
Remember the old adage, "the tail that wags the dog"?  Second mortgage lenders are experiencing percentage losses probably beyond the losses of first lenders.  In mortgage foreclosure proceedings the second mortgage typically ends up with little if any dollars from an overbid on the first mortgage judgment, and … (7 comments)

real estate lawyer: SHORT SELLER STILL MUST DECLARE INCOME ON SALE! - 04/18/08 12:25 AM
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?
One of the biggest issues that potential short sellers and those in foreclosure ask me is whether they have to get a 1099 for any forgiven debt from their lender.  Without a single exception so far, every debtor (borrower) has assumed that if they can avoid a report from their lender that they are being forgiven a portion of the mortgage debt, … (7 comments)

real estate lawyer: OBSERVATIONS ON A WEEK AT WORK - A RAMBLE - 03/28/08 02:01 PM
What a week!
Mortgage foreclosure White Knights targeted by the Florida Attorney General (no surprise there - just why did it take so long?!!!)
CNN special report on the Mortgage Meltdown and it being second only to the Great Depression.
Record foreclosures expected to continue to break records through 2008 and into 2009.
But heck - its Friday night and after working 5 - 19 hour days in a row I'm going to take Saturday off!
From the perch here in West Palm Beach things look like the stock market - volatility galore.  Usually this means that there is a big change on the horizon. The … (0 comments)

real estate lawyer: 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)

real estate lawyer: 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)

real estate lawyer: 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)

real estate lawyer: FILING FORM RELEASED BY IRS FOR DEBT RELIEF ACT - 02/21/08 05:47 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 about the legislation that went into effect on January 1, 2008.
Consult your tax professional when filing this form!
Remember - the Act gives no relief to investors and the relief is limited to losses under the amount of the funds borrowed for the initial … (4 comments)

real estate lawyer: No-Conflict Considerations in Short Sale Fees - 02/17/08 02:53 AM
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.  This article discusses the rights and wrongs regarding the most popular of the charging methods.
A short sale and pre-foreclosure servicer for our definitional purposes will be called the Short Sale Servicer.  The services offered usually include some mixture of collecting financial information from the "financially stricken borrower", getting current valuations on the mortgaged property, finding a realtor or working with a realtor to find a buyer, and finally … (18 comments)

real estate lawyer: 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)

real estate lawyer: 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)

real estate lawyer: WHAT DO I DO? -- I'M UNABLE TO PAY MY MORTGAGE - 01/12/08 01:46 PM
Most Common Question: "What do I do? - I can't 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, and I suppose they hope I am some sort of magician that can create an answer that they like.
The analysis of the problem is the first order of business.  These questions revolve … (12 comments)

real estate lawyer: 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)

real estate lawyer: Mortgage Forgiveness Debt Relief Act of 2007- Another Look - 01/01/08 04:13 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 … (2 comments)

real estate lawyer: Mortgage Forgiveness Debt Relief Act of 2007- Another Look - 01/01/08 04:11 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 … (2 comments)

real estate lawyer: 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)

real estate lawyer: 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)

real estate lawyer: 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)

 
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

Email Me

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