Your Guide to DeLand Real Estate & Volusia County Properties
FORECLOSURE HELP CENTER
Let’s get the legal stuff out of the way first! I am not an attorney. I am not licensed by the State of Florida to practice law and my Florida Real Estate license does not give me the authority to give legal advice. Before making difficult decisions about your home, finances or personal situation you should seek the advice from a professional in the applicable field regarding the law, taxes, bankruptcy, or insurance. We also proudly support our federal, state and local government help centers and organizations. We even include their links below so you may benefit from their services. So let’s get started.
These are difficult times for many Americans, but we want you to know that we have relationships with reputable professionals who can help. You have probably heard many words, in the last few years, that most people never should, like foreclosure...short sale...deed-in-lieu of foreclosure...loan modification...subject-to...lease-option...and more.
Understand that we know all about these and there is a solution to your current problem. If you are in danger of losing your home, contact us immediately. Sooner is always better than later in these circumstances. You may not have to lose your home. There may be a solution available to help you keep your home. We won't know until we can make a confidential analysis of your situation and your property. Many people, due to events not in their control, are losing their homes these days. The first thing to understand about this is, YOU DO NOT WANT TO LOSE YOUR HOME TO FORECLOSURE!
IF YOU ARE LOOKING TO PURCHASE A FORECLOSURE HOME, CLICK HERE!
CAN YOU SELL YOUR HOME TODAY TO PAY OFF THE MORTGAGE?
You may be able to sell your home quickly if the home’s market value will cover the existing note(s). We can offer you competitive brokerage fees to allow you to sell in this complicated marketplace. This is probably the best option if you are not yet behind on payments and have minimal equity. Contact us immediately for a comprehensive market analysis of your property to see if this option can work for you.
HAVE YOU CONSIDERED RENTING YOUR HOME?
If you have other living accommodations or a possible new job somewhere else, you may be able to rent your property and stay above water. Rentals are becoming more and more competitive, but if your monthly payment is fixed and the rental rate for your area will cover your mortgage, plus taxes and insurance, renting will postpone any foreclosure action until the market makes a moderate recovery. This option does have it’s own inherent risks, because if you can’t find a tenant for some time or the current tenant vanishes, you may find yourself right back in the same predicament. Contact us today for an analysis of rental rates in your area and stop that foreclosure.
LOAN MODIFICATIONS, SMP, FOREBEARANCE ETC.?
There is alot of talk about loan modifications, government bailout packages, stimulus packages and fantastic plans that will allow you to keep your home with a simple flick of a banker's pen to lower your interest rate, restructure your loan and simply forgive a huge portion of debt. While the road behind us is complex, filled with speculation about mortgage fraud and sub-prime mortgages, the road before us is even more so. Banks will not want to help you unless the solution is more beneficial to them than a forclosure. Even though it seems like the banks are really taking a beating this year, just remember that banks AND their investors are in it for the money. The banking world had a really good run on American homeowners for decades. It seems like everyone should just get a do-over, but there are investors out there who counted on these large investment banks to provide them a certain amount of return. No return and the investors vanish! No more money to lend and the economy screeches to a halt.
In the case of a loan modification, you must have experienced (and be able to prove it) a TEMPORARY hardship. This means that you will likely return to a stable position in the near future and can make the payment IF the bank works with you. If you play the fiddle strings too hard, the bank would rather let you go. It wouldn't look good if the bank went through all the trouble of helping you out, just to have to foreclose anyway. In contrast, when requesting a short sale, you will need to prove a PERMANENT hardship, likely to last many years. The following link is a news release reviewing the Streamlined Modification Program or SMP, and options for homeowners including extensions, forebearance, reductions and the requirements needed for each. http://www.fanniemae.com/newsreleases/2008/4557.jhtml?p=Media
WHAT IS A DEED-IN-LIEU OF FORECLOSURE (DIL)?
To avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt; whereby title to real property from a delinquent mortgagor is given to the mortgagee, given to satisfy or offset the balance due on a defaulted loan. This process doesn't allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with foreclosure. For a bank, it shortens the acquisition of a non-performing asset and allows the bank to avoid any obstacles should the borrower decide to file bankruptcy.
DILs are completed outside of court and are generally settlements of the entire debt owed. Banks may not entertain DILs if significant liens exist, because accepting a voluntary transfer of deed does not extinguish inferior liens the way foreclosures do. DILs can remain derogatory marks on credit reports for up to 7 years and are generally not suggested or accepted by banks, but have been sound solutions to some homeowners' difficulties.
WILL A SHORT-SALE WORK FOR ME?
If you purchased your home between 2004 and 2006 in any one of the many boom areas, you are almost guaranteed to have lost significant value. You are very likely upside down financially, unless you put a large cash downpayment when you bought it. With adjustable rate mortgages (ARM) adjusting, and Americans losing jobs by the hundred-thousands, it is also likely that you are in a permanent financial hardship like many other Americans. There is no shame in dealing financially with what we have no control over. Short-sales, or asking the lender(s) to accept a lower payoff than what is owed, is the very best option for many people today. Completing a short sale can be a long and frustrating process at times, but can be the best way to get out of a bad situation with the least amount of long-term damage to your credit, reputation and net worth. Contact us right away if you are facing an uncomfortable adjustment or have fallen behind on your payments. Sooner is better than later.
UNITED SHORT SALE NEGOTIATORS is a local firm with a history of successfully closing short sale properties. If you want a free, no-cost assessment of your particular situation, please visit their website or call me to arrange a personal introduction 386-473-6600.
Homeowner Affordability and Stability PlanYou can also see a brief outline of this plan that was announced on February 18th, 2009 by looking at the FDIC website under consumer protection, then loans and mortgages.
HOPE For Homeowners (H4H)Effective from October 1st, 2008 to September 30th, 2011, The HOPE for Homeowners (H4H) program was created by Congress to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. H4H is an additional mortgage option designed to keep borrowers in their homes.
FORECLOSURE IN FLORIDA
Each state has its own ways of dealing with foreclosures. Florida is a lien theory state where the real property acts as security, or collateral, for the loan(note). The document that places a lien on the property is called a mortgage. There are many types of liens and all have different priority, but simply stated, all liens must be satisfied before a property can be transferred with clear and marketable title. The mortgage document prevents an owner of property from selling without first paying what is owed to the lender. A lender may also force a sale to collect what is owed on the note. This is allowed due to the acceleration clause in mortgage documents that demand payment in full when the property deed is transferred or the borrowed fails to make their scheduled payments.
Once a borrower falls behind, a notice of default is sent to the homeowner. A complaint is filed in the Ciruit Court along with a public notice of a lawsuit pending, Lis Pendens. In our courts, it is understood that a lis pendens applies to matters of real property. The bank will then foreclose on the mortgage and sue on the note. To force the sale of real property in Florida, lenders must go through a judicial foreclosure proceeding where the court will issue a final judgment of foreclosure. A sale date is set and the property will be sold at a publicly noticed sale in that county’s designated location.
It’s not over until it’s over! Florida has a Statutory Right of Redemption period, allowing the homeowner suffering foreclosure to reclaim the property by making payment in full on the amount owed plus costs and fees. This redemption period generally ends at the foreclosure sale. See more here: http://www.foreclosurelaw.org/Florida_Foreclosure_Law.htm Another major pitfall associated with foreclosure is the dreaded Deficiency Judgment. A lender who sells the property at public auction and receives less than the amount owed may sue to obtain a judgment for the difference between the sale price and total amount due. Many times, this can be avoided with a short sale, where the lender VOLUNTARILY takes less than what is owed.
HOW WILL ALL THIS AFFECT MY CREDIT AND MY ABILITY TO BUY AGAIN?
Foreclosure:
Credit scores can be reduced from 200 to 300 points.
Increased taxes. A lender who loses money from the sale of a foreclosed home must report the loss to the IRS. Subsequently, the IRS may require you to report the lender's loss as income on your next tax return and you may be required to pay taxes on it.
Inability to borrow money in the future. A foreclosure can destroy your credit profile almost overnight. This derogatory mark on your credit report will label you as a bad credit risk for at least 7 years. This can result in declined applications for credit, the inability to rent an apartment, limited employment opportunities, and a host of other implications that can follow you for a long time.
Lawsuits. The mortgage company can go after you for damages.
Loss of employment. Some employers require their employees to maintain good credit histories. Notification of a foreclosure may be grounds for dismissal or loss of a chance for advancement and better pay.
Loss of self-esteem and self-worth. Emotionally the stress of foreclosure can have serious effects on your well-being. The stress that foreclosure brings can lead to depression, feelings of worthlessness, lack of motivation, embarrassment around family and friends, and the list goes on.
Short Sale:
Credit scores can be reduced from 80 to 120 points. (or more depending on details)
Taxes. The Mortgage Relief Act lifts the taxes that would normally be paid on the "gift" the lender give you when they forgive the difference between sale price and amount owed. This is good from calendar years 2007 through 2012. Maybe we can extend it after that. For now, we're in the clear.
Inability to borrow for a reduced amount of time. In the terms of a short sale, you can request that the lender NOT put any further derogatory remarks on your credit, which can mean your file might only show the few late payments before selling. Current restrictions may allow you to buy a home again in as little as two years.
Lawsuits. The mortgage company can go after you for damages, but this is generally not the case in today's short sales. It is one of the key differences between short sales and foreclosures.
Generally, satisfying your debt via short sale will not affect your job. If you have work that requires top-secret clearances, or demands financial stability, you will have to reference your employment guidelines.
Loss of self-esteem and self-worth. The silver lining in a successful short sale is that you can help minimize the loss that you and the bank suffers. By taking care of the property and doing your best by the obligation you made when you borrowed the money, you have some active part in stabilizing the economy. The better the bank fairs through this process, the faster they can make good loans again. It is a win-win-win!
GOVERNMENT AGENCIES AND ORGANIZATIONS THAT CAN HELP
FDIC UPDATES- Get Informed, stay informed, make good decisions.
Home foreclosures bring out the scams-Volusia County Sheriff's Department
One thing is certain: There always will be some con artist who wants to take your money. Unfortunately, those already facing financial hardships are even more vulnerable to scams.
Foreclosure is prime territory for a scam. Residents facing the threat of losing a home quite often are flooded with overtures from individuals or companies offering to help. Now, there's absolutely nothing wrong with spending money in exchange for a worthwhile service. But in many cases, the services offered to people in foreclosure are nothing more than worthless scams looking to exploit your hardship. Instead of helping, they will only compound your financial problems.
Foreclosure scams target people whose home mortgages are in trouble. Scam operators advertise over the Internet and in local publications, distribute fliers and even contact people whose homes are listed in foreclosure notices. There are many different approaches to these scams. They may promise to take care of your problems by offering to negotiate with your mortgage lender in exchange for a fee. They may offer to obtain refinancing for you. Sometimes they ask you to make your mortgage payments directly to the scam operator. They may even ask you to hand over your property deed and then offer to lease the residence back to you so you can stay in your home.
Any of these pitches should send up warning flags! And here's the reason why: Instead of contacting your lender or refinancing your loan, scam operators will pocket all of the money that you pay to them. They may file a bankruptcy case in your name to give the elusion that they are taking action to clear up your problems. But this is only a temporary device, since bankruptcy doesn't stop foreclosure, but merely puts it on hold. When the scam artist walks away after the filing, the bankruptcy petition will be dismissed and the foreclosure proceeding will continue. If this happens, you could end up losing your home as well as any money paid to the scam operator.
Many companies, some reputable and some not, will offer to negotiate or consolidate your debt to help you out of a mortgage jam. The catch is that you will be asked to pre-pay for these services. The truth is that in many cases, the services don't offer anything that you can't do on your own. And there are many non-profit debt counseling agencies that will provide the same services free of charge.
If you can't pay your mortgage, the best advice is to contact the mortgage lender or a lawyer for help. Don't fall for a pitch or a solicitation. Instead, take the time to find a reputable source that can help you make good decisions. In the meantime, be extremely cautious if any individual or company:
Calls itself a mortgage consultant, foreclosure service, pre-foreclosure specialist, debt manager, tax advisor or some other similar name.
Contacts or advertises to people whose homes are listed for foreclosure.
Collects an up-front fee before providing a service.
Tells you to make your mortgage payments directly to them.
Tells you to transfer your property deed or title directly to them.
Always check with your tax professional and/or attorney for immediate, sound advice.
I will never share your personal information with any outside sources!
Your Guide to DeLand Real Estate and Volusia County Properties around Central Florida including these areas: DeLand, Orange City, Glenwood in DeLand, Victoria Park in DeLand, Victoria Commons in DeLand, Victoria Hills in DeLand, Brandywine in DeLand, Bent Oaks in DeLand, The Reserve at Bent Oaks in DeLand, Tomoka Woods in DeLeon Springs , Barberville, Beresford Lakes Terrace in DeLand, Hontoon Peninsula in DeLand, St. Johns River along Volusia County, Lake Beresford in DeLand, River Ridge in DeLand, Hontoon Marina in DeLand, Quail Hollow in DeLand, Blue Springs in Orange City, Daytona Park Estates in DeLand, Enterprise, Enterprise in Orange City, Saxon Woods in Orange City, Longleaf Plantation in DeLand, DeBary, DeBary Golf & Country Club, DeBary Plantation, Deltona, Lake Helen, Cassadaga, Osteen, DeLeon Springs, Astor, Pierson, Seville, Lake Lindley, Lake Winnemissette, Samsula, Sanford, Lake Mack, Lake County, Whisperwood Mobile Homes, Meadowlea Estates Manufactured Homes, The Oaks, North Ridge in DeLand, Stetson University, Port Orange, Ormond Beach, Countryside, Holly Hill, Samsula, Forest Trace in DeLand, Mallory Square in DeLand, Port Orange Landings, Daytona Beach, Daytona Beach Shores, Seminole County real estate, Sanford, Orlando, Orange County real estate, DeLand Mobile Homes, A Better Place, Shops of DeLand, The Trails, Trails West in DeLand, Glenwood Springs in DeLand, Berry's Ridge in DeLand, Northridge in DeLand, Riviera Bella in DeBary, Blue Lake in DeLand, Glenwood Reserve in DeLand, Stone Island in Deltona, Glenn Abby in DeBary, and more!
Put the Power of Total Realty, The Jennifer Clark Team and Technology to work for you!
Michael Halpin, Realtor®, e-PRO and Volusia Property Showcase.com
Total Realty 2683 S. Woodland Blvd. DeLand, FL 32720
Our professionals will provide you the required tools and techniques necessary to avoid foreclosure. Here's the first secret...the banks don't really want to foreclose either...if they are presented with a sound financial option. Let us help you make the very best decision for you and your family. 
