short sale attorney: AGENT LIABLE FOR FIRPTA RENTS FOR FOREIGN OWNER TO PAY 30% TO THE IRS
- 06/18/11 03:15 AM
As a realtor, do you manage any rental properties where the owner is a foreign person? If you do, are you collecting from the GROSS receipts 30% and sending that money to the IRS? If you aren't, you very well may be PERSONALLY and PRIMARILY liable to the IRS for that money, and there is almost no statute of limitations!. I wrote about this in an extensive article in December 2008 (FIRPTA and SHORT SALES - DANGEROUS LIABILITY TO BUYER AND CLOSING AGENT), but now the IRS is reminding real estate agents and property managers of their massive liability for their … (34 comments)
short sale attorney: COMMUNITY ASSOCIATION AS LANDLORD - WHO GETS THE RENT?
- 06/01/11 04:41 PM
Can a community association declare itself the "landlord" of a rented unit or home if it is not getting paid its assessments? In Florida it can and it may keep 100% of the rents to apply against all the delinquent assessments on that unit /home. This is a clarification of the prior 2010 law that opened up a statutory method for associations to stop providing services to delinquent owners when the owner is collecting rent yet not paying the association.
July 1st Effective Date: The 2011 Legislature passed HB 1195 in May (which will go into effect on July 1st … (13 comments)
short sale attorney: SHORT SALE OPPORTUNITIES LOST - THE PROCRASTINATING CLIENT
- 05/14/11 04:40 AM
Short sale sellers and owners seeking a loan modification need legal representation sooner rather than later in the process. I have used the example of the sand filled hour glass, with each grain of sand being an opportunity for financial planning, tax planning, strategy creation and fulfillment, and a solution to the financial distress of the seller. As time goes on, the sand drops to the bottom, and is lost forever. Often people come to see me with all the sand gone - and I just cannot help them - it's too late. GET A REAL ESTATE AGENT! With very few … (4 comments)
short sale attorney: FREE ATTORNEY REPRESENTATION IN SHORT SALE OR LOAN MODIFICATION
- 05/13/11 01:20 AM
I still see real estate brokers and even some title companies and "case workers" advertising that if you use THEM, they will supply for free an attorney to represent YOU for your short sale or loan modification. I wrote about this issue once before (see No-Conflict Considerations in Short Sale Fees), but 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." FREE WORK ? HARDLY … (26 comments)
short sale attorney: TOP SECRET SHORT SALE APPROVAL DOCUMENTATION LEAKED - READ IT HERE
- 05/01/11 08:55 AM
It is not too often we "in the trenches" of short sale negotiations get to understand why lenders act the way they do through "behind the scenes" documentation. However a couple of months ago we did get some "lender to servicer" documentation that I thought was interesting enough to pass on to my ActiveRain readers. Note: the documentation you are about to read states in BOLD CAPITALS, "YOU MAY NOT GIVE A COPY OF THIS COVER LETTER TO THE BORROWER, THE CLOSING ATTORNEY/SETTLEMENT AGENT, REAL ESTATE BROKER, OR ANY OTHER PARTY". I would add that I am not sure how we … (25 comments)
short sale attorney: DO LENDERS MAKE SHORT SALE DEMANDS THAT ARE ILLEGAL?
- 03/13/11 02:48 PM
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. Below is a Suntrust Mortgage document recently received from Suntrust that is being provided and required to be signed by the BUYER of the property. The transaction demanded by Suntrust is as follows (the numbers have been changed somewhat to mask the actual transaction): Purchase Price as stated on the contract is $625,000; Required addendum to the Contract that Buyer will pay to Suntrust in addition to the Purchase Price, … (17 comments)
short sale attorney: 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)
short sale attorney: THE FTC AND MARS – ARE REAL ESTATE AGENTS INVOLVED?
- 01/30/11 11:14 AM
The Question - Are Real Estate Agents Furnishing MARS? The issue regarding real estate agents and the new FTC MARS Rule (as in Mortgage Assistance Relief Services) is that there is no clear cut rule. The Commission states in footnote 126 of the Rule that an exemption for real estate agents is not necessary because real estate agents customarily assist consumers in selling or buying homes and perform functions such as listing homes for sale, showing homes, and finding desirable homes for consumers. Although the Commission realized that these services may be performed when a home is in foreclosure or will be a … (27 comments)
short sale attorney: SHORT SALE CONTRACT ADDENDUM FOR 2010 - THE GOOD AND THE UGLY
- 01/08/11 03:14 PM
I last addressed the common Florida short sale addenda in WHAT'S WRONG WITH THE FAR SHORT SALE LISTING AND CONTRACT ADDENDA - AND HOW YOU CAN FIX IT in November 2008. Since that time several real estate brokerage agencies have recognized the FAR "oversights" and created their own short sale addenda. In June and December 2010 we saw major changes in the forms used by the majority of Florida brokers. This article will discuss the good, the bad and the ugly. The FAR 2007 Exclusive Listing Agreement will not be discussed - it is the same as discussed in the above … (25 comments)
short sale attorney: IRS LIENS ON SHORT SALE PROPERTY - RESOLVING PHANTOM VALUE CLAIMS
- 12/02/10 03:28 PM
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. Typically if an IRS lien is on a property the attorney or accountant will present to the IRS a waiver of lien request with requisite proposed settlement statement, recent appraisal of the property, and reason for the lien waiver request. But the IRS started interpreting a rule that caused the IRS to demand the monies that were to pay the transfer (in Florida the "documentary stamps") tax to instead be paid to … (25 comments)
short sale attorney: CONGRESS HEARS OF "FORECLOSURE EXPRESS VS LITTLE ENGINE THAT COULD" FORECLOSURE VS MODIFICATION SCHEME
- 12/02/10 02:16 AM
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. This causes huge confusion issues with the borrower with often the end result of a foreclosure where one was not necessary - or could have been avoided if the borrower was not mis-lead. I wrote about this dual track system here on ActiveRain at WHY IS THE BANK FORECLOSING IF I AM DOING A SHORT SALE (OR LOAN MODIFICATION)? The Washington Post today published an article stating Fannie and … (6 comments)
short sale attorney: ITS NOT THE JUDGE'S JOB TO BE THE DEFENDANT'S ATTORNEY
- 11/30/10 12:50 AM
"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". This quote from an editorial in the Palm Beach Post on November 30, 2010 says volumes to those in the foreclosure process without an attorney. Read it carefully as it says volumes more than the 21 words it contains. I have written about this in the past and realizing that not everyone reads my articles and further, those that do read an article may not take action based on the knowledge offered in the article, I am still frustrated when … (4 comments)
short sale attorney: TITLE AGENT AND MORTGAGE BROKERS CAUGHT IN LOAN FRAUD = 30 YEARS
- 11/16/10 01:59 PM
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. According to the the American Land Title Association (ALTA - whose initials I love because it reminds me of my favorite ski mountain), as reported by a press release from the Justice Department, the scheme involved more than one-half million dollars in fraudulent loans. The press release states, in part: "Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael K. Fithen, … (8 comments)
short sale attorney: NO DEPOSIT CONTRACT - IS IT A CONTRACT?
- 11/01/10 02:14 AM
Do brokers encourage buyers to make "no deposit contracts"? Why are they so pervasive? Are they legally binding? A contract to be a mutually binding obligation on the buyer and the seller must have "consideration". A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. A consideration is something (such as an act, a forbearance, or a return promise) bargained for and received by a promisor from a promisee; which motivates a person to do something. So … (13 comments)
short sale attorney: DIVORCE, SHORT SALES, LOAN MODIFICATION, DEED IN LIEU AND FORECLOSURE - PLANNING AND SOLUTIONS
- 10/28/10 03:45 PM
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. Existing divorcees and those in the planning stages all are potentially affected. Existing handling of divorces usually cause havoc with attempts for Short Sale, Loan Modification or Deed in Lieu solutions. What's the Problem? Traditionally, the property that husband and wife accumulated during the marriage is divided by some mutual agreement or by … (11 comments)
short sale attorney: DEED IN LIEU - PRESERVATION COMPANY FRAUDULENT BILLS - WATCH OUT!
- 07/17/10 06:19 AM
I just can't get a day of rest! One of my clients had a rotten experieince this week with a home inspector. REDC, the California company that does default solutions and auctions for lenders, has gotten a nice niche for doing home inspections for lenders just prior to the lender accepting and filing a deed in lieu of foreclosure. They hire local inspectors and contractors to review the interior and exterior of the home and make necessary remedial actions if necessary. The problem is that some of these inspectors are criminally fraudulent - and they are not only ripping off the … (44 comments)
short sale attorney: $8,000 Homebuyer Credit Extended to September 30th
- 07/01/10 08:31 AM
The Senate approved the House's bill to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring. The House approved the measure on Tuesday. Obama is expected to sign it shortly. The legislation extends the deadline to close on purchase contracts signed by April 30 2010, to September 30, 2010. The bill only allows people who already have signed contracts to finish at the later date. Congress also approved the National Flood Insurance Program, which had expired and was delaying closings for a home located in a flood zone. Copyright 2010 Richard … (4 comments)
short sale attorney: MOTION FOR DEFICIENCY JUDGMENT - FORECLOSURE CONSEQUENCES
- 06/30/10 10:24 AM
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 Strategic Defaults or just walking away from a property can be so dangerous. The pleading is a Motion for Deficiency Judgment from a foreclosure judgment and sale that occurred but was (like most other foreclosure sales) acquired by the lender for a nominal bid. I and many others have been writing about this forgotten liability of borrowers. Now here is an example of … (13 comments)
short sale attorney: IS SHORT SALE FLIPPING CRIMINAL ACTIVITY?
- 06/12/10 02:44 AM
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. I last wrote about this problem 2 years ago in SHORT SALE FLIP - QUESTIONABLE METHODS. In the Connecticut case, Regions Bank in April 2008 agreed to a short sale of a Bridgeport house for $102,375, unaware that … (21 comments)
short sale attorney: SHORT SALES PRIMER - LAWYER DISCUSSION OF THE SHORT SALE EVOLUTION
- 04/18/10 12:54 PM
Short Sale Primer For Brokers, Sellers and Buyers SPECIAL NOTE: THIS ARTICLE HAS BEEN UPDATED IN 2012 AT SHORT SALE PRIMER - PART I - THE "NEW STANDARD SHORT SALE" 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. The passage of time requires that the original article and its revision, which was very popular (thank you!), be extensively updated to reflect new … (12 comments)
Legal true life experiences, general observations and commentaries for Realtors, Lawyers and Mortgage Brokers - also see our Palm Beach County Short Sales group blog.
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As a realtor, do you manage any rental properties where the owner is a foreign person? If you do, are you collecting from the GROSS receipts 30% and sending that money to the IRS? If you aren't, you very well may be PERSONALLY and PRIMARILY liable to the IRS for that money, and there is almost no statute of limitations!. I wrote about this in an extensive article in December 2008 (FIRPTA and SHORT SALES - DANGEROUS LIABILITY TO BUYER AND CLOSING AGENT), but now the IRS is reminding real estate agents and property managers of their massive liability for their … (34 comments)
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