I Leased a Property and It Is Being Sold as a Short Sale or Foreclosed…What should I do?
March 23rd, 2010 categories: General RE Info, Rentals, Tips for Sellers, short sales
- Image by Getty Images via Daylife
The Answer is: Consult an Attorney…
From several conversations with attorneys I have gathered the following information. You particular circumstances may differ so please do your due diligence before making any decision.
Is the Property being sold as a Short Sale or being Foreclosed?
If the Property is being sold as a Short Sale and the Lease is current the new owner must honor the lease term. Very often, by the time the Short Sale is approved, the original lease has expired and the tenant is living in the property with on a month to month lease. Beware of oral agreement since they are harder to enforce than written contracts. In some cases the Tenant lives in the property until the amount given as advanced rent and security deposit is exhausted. It is advised to have a written agreement with the owner because the owner’s default in paying his mortgage doesn’t give the tenant the right to default in his rental payments. One of the most common complaints from tenants when they keep paying their rent is either the lack of maintenance to the property. Attorneys always advice their clients to keep paying the Association/Condo dues while the Short Sale is being processed.
A good landlord/tenant relationship is key to ensure a smooth transition. Being it to grant access to prospective buyers and be able to commit with a closing date or transferring the lease to the new buyer.
If the Property is Foreclosed the new owner has the right to request the Tenant to vacate the property. Tenant is normally aware that a foreclosure is taking place well in advance. The new owner can provide the Tenant with a “3 Day Notice” and if the tenant doesn’t leave most likely an eviction will take place. Under some circumstances the new owner offers incentives to ensure the property is left in good conditions and the tenant vacates without the need of being evicted.
If the Property is a Fannie Mae Foreclosure you may get some Help!
Some Qualified renters may be offered month to month Leases and even help to relocate. For additional information:
Fannie Mae Support for Renters
To receive my blog posts directly to your inbox subscribe here.
Thinking of selling your home? Now might be a good time to put it on the market when the inventory of great properties for sale is low. For a FREE market analysis of your property call me at (954) 588-7260 or contact me.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=509809a4-17b8-4ff1-a7bc-0129aad0a217)
| Discussion: 3 Comments »
Weston Short Sales Market Update-Single Family Homes
March 10th, 2010 categories: General RE Info, Market Update, short sales
Weston Short Sale Inventory is Leveled
Weston Single Family Homes Short Sales available for Sale have been decreasing by a couple of points as time goes by. It’s not a significant number but the good news is that the percentage has not increased.
Regarding Short Sale Properties there are Pending Sales input as under contract as far back as April 2008. We never know if the information is totally accurate because not always the information is updated in the MLS in a timely manner as it should.
There are as of Today 8 Active Short Sale Listings in the MLS over $1,000,000.
Thinking of selling your home? Now might be a good time to put it on the market when the inventory of great properties for sale is low. For a FREE market analysis of your property contact me.
To stay updated with what’s going on in Weston and receive my blog posts directly to your inbox subscribe here.
| Discussion: No Comments »
Banks & HAFA-Home Affordable Foreclosure Alternative Program
February 24th, 2010 categories: General RE Info, Tips For Buyers, Tips for Sellers
Encouraging Short Sales as an Alternative to Foreclosure
In an effort to help distressed homeowners the Treasury Department released in November Guidelines to reduce the number of Foreclosures and ease the Short Sale Process. The program should be in effect on April 5th, 2010. Short Sales have been streamlined by Banks as time goes by it’s still a lengthy and painful process. In average a successful Short Sale Transaction had 2 or 3 Buyers during the process. The first one either tired or waiting or not interested in the price the Bank countered at opened the door for second or third Buyers.
Bank of America, is particularly known for its lengthy Short Sale Time line specially with Countrywide Loans. The process will be streamlined through the use of an interactive website easing communication and document uploading. Their goal is to offer pre-approved short sale solicitations and provide approvals within 2 weeks from the time an offer is submitted.
If you are a Bank of America borrower and you are considering a short sale, contact Bank of America Short Sale Team at 1-866-880-1232.
Wells Fargo created Field Short Sale Teams to provide local assistance to homeowners and their Real Estate Agents. Each case is reviewed by a Short Sale Specialist on site. Their goal is to obtain approvals within 7-10 Days and close in 37 days (from start to finish). For a limited time they are offering seller’s incentives to help with moving costs (your local short sale field rep will confirm availability).
If you need a market evaluation of your home to determine if you are facing a Short Sale scenario, please call me at (954) 588-7260 or e-mail me garcia.i@ewm.com
Make sure you list your property with a Real Estate Agent that will treat the Sale of your home with the same care and diligence as a non-distressed sale.
| Discussion: No Comments »
Guidelines on Short Sales Released
December 3rd, 2009 categories: Market Update, Tips for Sellers
Is This too Good to be True?
Over the last 4 years we have struggling to get Short Sales Approved. Every transaction becomes a session of gambling. We never know if and/or when it will get approved.
We have seen Short Sales that took over one year to get approved. An standardized and streamlined process will take a lot of the frustrations associated with Short Sales transactions away.
My question is: Do Banks have the man power to approve the short sales before it’s too late? As per the guidelines (see link at the bottom of the article) the approval of the short sale will take place prior of listing the property and the sale must take place in less than 4 months.
To stay updated with what’s going on in Weston and receive my blog posts directly to your inbox subscribe here.
If you are interested on learning more about short sales, please call me at (954) 588-7260 or contact me.
| Discussion: No Comments »
How West Broward Real Estate Markets Compare?
June 18th, 2009 categories: General RE Info, Tips For Buyers, Tips for Sellers
West Broward Real Estate Market Comparison
The Real Estate Market in West Broward is definitely leaning towards being a balanced market. The long term trend is still uncertain. The summer is the most active time of the year for these neighborhoods but the performance year-to date sets a very positive trend. Compared to many other neighborhoods West Broward is doing very well.
Interestingly in Pembroke Pines West Months of Inventory based on the last 30 days Closed sales shows signs of being a Buyer’s Market. I know it sounds an overstatement but the numbers don’t lie. The percentage of Short sales Listings in all the area is still very high running from 34% to 50%. In most areas, except Weston, Short Sales represent more than 50% of the active inventory. Challenging as Short Sales are, whoever is looking to buy specially in the Lower prices will have to seriously consider going through the pains of a Short Sale Process.
| Discussion: No Comments »
Who is the Seller? And Why it is so Important to know!
March 9th, 2009 categories: Tips For Buyers, Tips for Sellers
The answers might sound obvious but that little??? detail is one of the main elements of a contract. You have no idea how many times owners get stubborn with this concept. Incredible???
In a Regular Sale:
The owner(s) of Record! It is critical to have all parties sign the Listing Agreement and the Sales Contract to make sure we will not have surprises at the last minute. If the property is under a Corporation or a Trust it is important to ask for the paperwork showing who has the authority to sign on behalf of the owner. If it is signed by someone with a Power of Attorney it’s safe to ask for a copy of it. Sometimes we have a hard time obtaining the information from owners or listings agents…it’s incredible that some people do not understand how important this is!!!
In a Short Sale:
The owner(s) of Record! BUT, Technically since Short Sale Contracts include a contingency on the Lender(s) approving it, until the Bank(s) signs, there is “nothing”. Any other Lien Holders, second mortgages, construction liens, homeowners or condo associations…become “ghosts” that can ruin a transaction if they are not addressed from the beginning.
In a REO:
The owner(s) of Record! REO goes for Real Estate Owned/Bank Owned Real Estate Property. Once a property is foreclosed the Bank takes possession, even thou it is not reflected immediately in the Tax Records and in that case the seller will show as Owner of Record and a bank’s officer will sign the contract.
Each one of this transactions has a different way to handle it, a time frame for responses/closing and challenges the buyer and seller might be facing.
After everything is said and done, if anyone with an interest on the property doesn’t agree with the sale, there will be no resource for the Buyer if there is not a fully executed contract.
| Discussion: 2 Comments »
