Found this excellent article from a peer here in Florida. I must agree, now that Foreclosures will be coming to a screeching halt, the Banks will turn to short sales and focus on unclogging that drain. These are trying time for Sellers and a properly executed Short Sale is an outstanding solution.
Hi folks. If you have been paying attention to the news over the last couple of weeks then you know that Chase, GMAC and Bank of America have suspended foreclosures in 23 States, including Florida. This is all related to employees signing documents and submitting them to the courts even though they never read them.
On top of this, the Attorney General in Florida is investigating 4 law firms for filing fraudulent foreclosure documents. And we have Title Companies refusing to issue policies on some of the foreclosures due to title risk. Richard Zaretsky wrote a great article about this yesterday.
To make matters even worse today I opened up my daily newsletter from the Florida Association of Realtors and found these two articles:
- POMPANO BEACH, Fla. – Oct. 6, 2010 – After winning a lawsuit against Wells Fargo that claimed the bank purposely delayed foreclosure proceedings on a condominium unit for more than a year, a Pompano Beach condo association has been awarded title to the unit without owing a dime on the original $184,400 mortgage. READ THE ARTICLE
- TAMPA, Fla. – Oct. 5, 2010 – On Florida’s west coast, where the housing bust has flooded courts with foreclosure filings, the chief judge of the 6th Judicial Circuit has little sympathy for lenders who have routinely submitted flawed and possibly fraudulent foreclosure cases. READ THE ARTICLE
Folks, we are in dire straights!!! As I expected lawsuits are starting to fly. People are getting pissed off at lenders who have been abusing the system for years and are starting to take action.
Foreclosures are no longer the property for buyers looking for a deal. They may get a deal but they will have no assurances that the property won't be taken away from them because the courts have rescinded the foreclosure. A foreclosure is a hostile take over and now these former homeowners have the legal ammunition to not only fight but to win the battle.
So what does all this mean for sellers looking to do a Short Sale? In my opinion Short Sales have just become easier to do. Lenders, not being able to foreclose, are going to be much more receptive to negotiating a Short Sale or settlement with the borrower. And since a Short Sale is a voluntary action on the part of both parties (lender and borrower) they will be a much safer bet for a new buyer. Chances are the Short Sale will not be rescinded and Title Companies will be able to issue a policy. A Short Sale has definitely become more attractive.
Of course this is just my opinion. What's yours?
Are you facing foreclosure in Florida?
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
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