The US Foreclosure Fiasco And What It Means For The Market

The recent stalling of foreclosure actions stems from procedural problems.

Affidavits lenders file in regards to summary judgment foreclosures states certain facts that the signer indicates personal knowledge of. An example would be the amount owed on the mortgage. The affidavits are submitted as fact with respect to the summary judgment process.

The problem arose when depositions taken by lawyers for homeowners showed GMAC and Chase Bank did not have adequate time to review and certify all the facts. A review by these attorneys showed the lenders signed more than 10,000 affidavits in regards to foreclosure action in one month.

The issue will most likely slow down the eviction process just when lenders started to make progress in getting through their respective "distressed property" backlog. In August 2010 lenders started 283,000 foreclosures, which is up from 220,000 in April 2010.

Karl Case of the famed Case-Shiller Housing Index is quoted as saying the foreclosure document flaws might, "actually get the lenders to the table and encourage them to work out deals that are to the benefit of everybody." The theory is that if foreclosures are delayed or never happen, the housing market might hit a floor.

We think the uncertainty this might have would make the US housing market more unstable. The stock market, for instance, does not like uncertainty-- I doubt those looking to make a large investment in a home would like additional confusion.

The US housing market will reach a bottom when the majority of "distressed properties" have been flushed out of the market, in our view. Whether through natural sales and/or with the assistance of investors, the housing supply and demand must come back to an equilibrium in order to acheive balance, in our view.

As a Certified Distressed Property Expert (CDPE), I can help both distressed homeowners navigate the process of a short sale. In addition, my expertise will help those who are seeking to take advantage of distressed properties that are currently in the marketplace.

Please feel free to post an opinion or question and we will try to address them in future posts.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Those Who "Walk Away" in Foreclosure May Face Lawsuits Later On

As a Realtor in Florida with a Certified Distressed Property Expert (CDPE) designation, and given the current state of the real estate market, I get asked questions about foreclosure. A general theme centers around-- why not just walk away? One reason is the potential for unexpected lawsuits that may sneak up on you years after the process is complete.

When done in the proper manner and under certain circumstances, a "short sale" may indeed relieve the former homeowner from debt owed from a shortfall in the sale proceeds and the amount owed. However, there are instances when a foreclosure or a "short sale" may lead to lawsuits.

Experts believe lenders will file a tidal wave of lawsuits against homeowners in the coming years as a way to recoup losses when home sales and foreclosures do not result in enough proceeds to pay the mortgage in full.

In Florida, lenders have up to five years from the date of sale to file "deficiency judgments" and up to 20 years to collect monies owed from mortgage notes that have gone unsatisfied.

Distressed homeowners should consider a "short sale" even if they are in the process of a foreclosure. Real estate sales agents with the knowledge can handle the whole process for the distressed homeowner, from listing the home to negotiating with the bank to forgive mortgate debt.

Many lenders will not pursue deficiency judgements and provide full release of liability when homeowners pursue a "short sale" in good faith and default on their mortgage because of legitimate hardship, such as job loss or other unforeseen hardships.

In order to avoid the possiblity of having wages garnished or claims made against borrowers' assets, one should consult with a professional who can help.

When using a real estate professional, the sales agent's fees will most likely be paid for by the lender. Many times part of the "short sale" process is to have the property listed with a real estate sales agent. So finding the right real estate professional might make the uneasy task of a "short sale" more convenient and less costly than other alternatives.

Please feel free to contact me about potential "short sales" in the South Florida area.

Michael Friedman
Realtor, CDPE
Lang Realty
561-989-2100