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Florida Short Sales

Information relevent to the State of Florida, and how short sales may be specifically affected by Florida Laws. Florida short sale news.

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FHA VARIANCE

Started by Kathi. Last reply by Kathi Feb 7, 2017. 4 Replies

at what point in a short sale does the Lender order the FHA variance? Is it in the beginning process or when all docs are received and approved by the lender?Continue

Are loss mit options still available to homeowners after the Summary Judgment

Started by Allan Robinson. Last reply by Terry McCarley Dec 4, 2016. 1 Reply

I have a friend who is in foreclosure in Largo FL.  The final summary judgment is entered and the foreclosure sale is over 30 days away.  Can he still short sale the property??Thank you, AllanContinue

Closing disclosure

Started by Kathi. Last reply by Kathi Jun 13, 2016. 3 Replies

I'm running into a problem with a short sale lender who wants me to send him a Closing disclosure rather than the old HUD,  Problem is, only the lender is allowed to complete the CD.  Since the…Continue

Frustrated with inability to find a GOOD Short Sale Closing Attorney that is consistent

Started by Stephanie Lim. Last reply by Carl R. Krauss Oct 4, 2013. 5 Replies

I have had the hardest time trying to find a good, CONSISTENT short sale attorney to close the files (and assist on issues when they are needed).  Every time I think I have found a superstar and give…Continue

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Comment by Wendy Rulnick on March 25, 2010 at 3:32am
Paul - Thank you. Is it also true that if a seller signs a promissory note to do a short sale, then files bankruptcy, they could be accused of fraud? One of my sellers was so advised by her attorney. I had not heard of that.
Comment by Paul J. Sardon, Esq. on March 25, 2010 at 3:24am
Correct. There is no transfer of title but rather a discharge of liability for the note. That is why some have used bankruptcy as a foreclosure stall tactic. I do not recommend filing for this purpose only, but the lender must obtain relief from the automatic stay and then continue with the foreclosure case. When the client just wants to be rid of the property, I usually advocate the short sale then CH 7 BK approach.
Comment by Wendy Rulnick on March 25, 2010 at 3:06am
Paul - Isn't it true that properties are not automatically surrendered in the BK, since they have no value? One would still have to have a foreclosure, deed-in-lieu or short sale?
Comment by Paul J. Sardon, Esq. on March 24, 2010 at 10:38am
The important thing to remember is that the Ch 7 BK is going to discharge the borrower's liability under the note which is where the deficiency judgment possibility is eliminated, but the mortgage remains on the property in this situation where the property is surrendered with no equity. The bank must still go through the regular foreclosure process to obtain title.
Comment by Katerina Gasset on March 18, 2010 at 8:36am
Stephanie- We do short sales for sellers who are in bankruptcy also. And you are right about what you found out. There are certain liens and such that survive bankruptcy also, child support, alimony, IRS taxes, and the like.
Some of our sellers do the short sale then file bankruptcy on their other debt, their promissory notes and their deficiency possibilities.
Comment by Stephanie Lim on March 18, 2010 at 6:44am
Okay...e-mailed a bankruptcy attorney here in FL this morning, this is the summary...

The liability for the loan(s) goes away in bankruptcy once it is discharged. BUT the seller is still on title until a foreclosure sale or some other signing over of ownership happens, the bankruptcy itself doesn't change this. Here is the kicker!!! This attorney told me that bankruptcy code says that any post-petition HOA dues are the responsibility of the seller still (so not sure if this means other things would be as well). He also said "some" judges won't allow HOAs to collect this. But a seller coming out of bankruptcy is trying to repair their credit...not continue to wreck it.

I think a lot of people filing think that all liability is off of them just because they filed bankruptcy. But if the bank sits around and does not take the house back...it sounds like the seller will be liable for related expenses going forward?

In cases where a bank does not want to take back the house quickly...how much could a seller end up owing for fees going forward...

Yes, I'd love for an attorney to pipe up...say it isn't so!
Comment by Wendy Rulnick on March 18, 2010 at 3:41am
EL - We really need an attorney to pipe in here.
Comment by EL E on March 18, 2010 at 3:31am
Wendy - Wow... so the bankruptcy doesn't help the owner... he/she's still on the hook for the mortgage? How/when does he/she ever get that resolved?
Comment by Wendy Rulnick on March 18, 2010 at 3:09am
EL - That is not what the trustee told me. He said it goes back with the mortgage, because the court cannot sell it for any profit. He said they would only sell a property if there was a gain - to pay the creditors.
Comment by EL E on March 18, 2010 at 3:00am
Wendy - If the house goes back to the owner after bankruptcy, does the underlying mortgage go away? Would the owner end up owning the house free and clear?
 

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