Footwork & Foreclosures

By
Real Estate Broker/Owner with St.Cloud Homes

positions of dance Doing the footwork, applies to virtually anything you do. Taking the steps necessary to achieve the desired result. Sometimes we glide smoothly, other times we stumble hopelessly but it is a skill which will improve with practice. With a rising number of foreclosures, gas prices skyrocketing, and home owners struggling to make ends meet, until property tax reforms are voted on and implimented it will be a long tango for some. This precarious dance between consumers and lenders has many of them stepping on each other trying to get to the finish.  The Difference between Shrewed and Screwed we examined what happens when life changes and consumers find themselves behind the curve on mortgage payments.  But if there is more than one lender involved...watch your toes.  You may get stepped on in a big way. You will be taking a few steps backward and from side to side and the shuffle begins.

  First position has its advantages, they will eventually get their money if they foreclose. Second position ( a home equity line, or second mortgage) has less of a chance of recovering the full amount owed, especially after penalties, late fees, attorney costs, and interest tacked on by the primary lender.  These costs can mount up to thirty or forty thousand dollars over the original loan amount easily and quickly eliminate any equity the may have had left. If a consumer is in dire straights, they may not disclose the little unpaid bills also piling up against the property. These can include homeowners insurance,home owners association dues which have not been paid, construction or repair costs which could lead to a mechanics lien, and of course unpaid property taxes. It can get ugly fast and in a big way.

We re seeing it all over here in Florida. If you are thinking of exploring the short sale market-give serious thought, take the necessary steps to evaluate the property, look into having a title search done, and be aware as a consumer you may be responsible for other unsatisfied liens- always consult a Real Estate Attorney before making a purchase of this type.

Posted by

St.Cloud Homes

Allison Stewart Broker, SFR, CDPE 

407-616-9904www.kissimmee-stcloudflhomes.com

                                                                                                       

    St. Cloud Homes YOUR Local Real Estate Experts serving Home Buyers/Sellers in Kissimee, St. Cloud Fl, Harmony, Lake Nona, Anthem Park, Bay Lake Ranch, Lake Lizzie, Reunion, Celebration, Lakepointe, Steven Plantation, Acadia Estates, East Lake, Windermere, Bay Hill. Our unparalleled service begins with YOU.

   For a free consultation call us 407-616-9904 or visit our website or  email us

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Tags:
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Rainmaker
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Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
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Allison, This is very true & good advise.  Everyone involved in a real estate transaction that is a foreclosure or short sale needs to be aware of the risks.  Our local board is grappling with how to educate our membership.  There is no guarantee that the best buyer will get the house or that a Realtor who does a great job will get paid.  Now that's amazing...but it's the sorry, sad reality if you don't do your homework & understand what you are doing.
May 04, 2007 04:05 PM #1
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Fran Gatti
RE/MAX Integrity - Medford, OR
Managing Principal Broker - RE/MAX Integrity

Allison,

Thanks for bringing this up.  Your last sentence in your post is very true. 

Fran

May 04, 2007 05:02 PM #2
Rainmaker
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Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904
No Matter how careful we are, Foreclosures are going to affect the economy as a whole. Realtors will be affected in the trockle down process, by the banks not paying (if there is more than one lien holder) or poorly paying at severely discounted commissions. This could impact the way we do business for years to come. It will also effect values in some harder hit regions already suffering from slower market sales.
May 05, 2007 11:42 PM #3
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Rainmaker
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Allison Stewart

St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904
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