Tuesday, January 3, 2012
Blog Updates on Hold
There will be no new blogs for the immediate future. I will be concentrating on my websites.
Tuesday, November 29, 2011
Q&A: Step-by-step guide to foreclosure
WEST PALM BEACH, Fla. – Nov. 29, 2011 – Question: I read in the paper that the banks are starting the foreclosures again. I just got served with a foreclosure lawsuit. Can you explain the process in layman’s terms?
Tony
Answer: Each state has different versions of the foreclosure process. In Florida and some other states, a lender must get permission from a judge before it can repossess your home.
When you are served with a foreclosure lawsuit, your lender files a “complaint” against you, laying out the facts as it sees it. It’s basically telling a story as to why it thinks that it should get your house as payment toward the debt that you owe.
Along with the complaint, it serves several other documents, such as the “summons,” which gives the court power over you, and the “lis pendens,” which is a document filed in the public records to let everyone know that the property is the subject of a lawsuit.
When you are served with a lawsuit, you typically have 20 days to respond or you will be in “default,” which means that you have waived all of your defenses to the lawsuit, allowing the bank to proceed with the foreclosure. This is not a good idea. At this point, your attorney will respond to the suit with a “motion to dismiss” or an “answer.” If your attorney feels that the bank has no chance to win based on everything that it alleged in the complaint, he or she will file a motion to dismiss the suit.
If, however, the suit is not defective as filed, your attorney will file an answer, in which he or she admits or denies each of the bank’s statements from the complaint. The answer also will also set forth your “affirmative defenses.”
An affirmative defense explains why the bank should not get your home even though you may not be making your mortgage payments.
At this point in the lawsuit, several months or more will have gone by and the attorneys will begin “discovery.” That’s the process of getting to the truth by asking each other questions and getting documents from the other side for review.
During the discovery phase, you and your lender will probably go to a “mediation.” In a mediation, both you and your lender will lay out your side of the story before an unbiased third party, the mediator, who will encourage you both to voluntarily settle the case. At a mediation, no one is forced to settle the case. Both sides need to agree.
The discovery process can take six months or more. Once it is complete, you or your lender may make a “motion for summary judgment,” which is basically saying to the court that your side of the case is so strong that there is no possible way for you to lose. Most foreclosure cases end at the summary judgment hearing because the judge rules for the lender. But if the judge thinks there are still some questions to be answered, there will be a trial. At trial, the judge (or jury) will determine the truth and decide who wins the case.
If you win, the lender has failed and you keep your house. If the lender wins, which is much more likely, the judge will set a date for your home to be sold, with the proceeds from the sale going toward paying your lender back for the money that you borrowed.
If the fair market value of your home is not enough to pay your loan back in full, your lender may ask for a “deficiency judgment.” That gives the lender the right to come after you for the difference between the market value of your home and the amount that you owe your lender.
If the sale brings more money than you owe your bank, you get back what’s left over. (Check with an attorney about the process for receiving any refund.)
If you hire an attorney, the entire process typically will take about two years, during which time you can be working with your lender toward a loan modification, short sale or deed in lieu of foreclosure. Of course, if all else fails, there is always bankruptcy, but that’s a different topic for another column.
About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program. Send him questions online at http://sunsent.nl/mR20t7 or follow him on Twitter @GarySingerLaw.
The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.
© 2011 the Sun Sentinel (Fort Lauderdale, Fla.), Gary M. Singer. Distributed by McClatc
Tony
Answer: Each state has different versions of the foreclosure process. In Florida and some other states, a lender must get permission from a judge before it can repossess your home.
When you are served with a foreclosure lawsuit, your lender files a “complaint” against you, laying out the facts as it sees it. It’s basically telling a story as to why it thinks that it should get your house as payment toward the debt that you owe.
Along with the complaint, it serves several other documents, such as the “summons,” which gives the court power over you, and the “lis pendens,” which is a document filed in the public records to let everyone know that the property is the subject of a lawsuit.
When you are served with a lawsuit, you typically have 20 days to respond or you will be in “default,” which means that you have waived all of your defenses to the lawsuit, allowing the bank to proceed with the foreclosure. This is not a good idea. At this point, your attorney will respond to the suit with a “motion to dismiss” or an “answer.” If your attorney feels that the bank has no chance to win based on everything that it alleged in the complaint, he or she will file a motion to dismiss the suit.
If, however, the suit is not defective as filed, your attorney will file an answer, in which he or she admits or denies each of the bank’s statements from the complaint. The answer also will also set forth your “affirmative defenses.”
An affirmative defense explains why the bank should not get your home even though you may not be making your mortgage payments.
At this point in the lawsuit, several months or more will have gone by and the attorneys will begin “discovery.” That’s the process of getting to the truth by asking each other questions and getting documents from the other side for review.
During the discovery phase, you and your lender will probably go to a “mediation.” In a mediation, both you and your lender will lay out your side of the story before an unbiased third party, the mediator, who will encourage you both to voluntarily settle the case. At a mediation, no one is forced to settle the case. Both sides need to agree.
The discovery process can take six months or more. Once it is complete, you or your lender may make a “motion for summary judgment,” which is basically saying to the court that your side of the case is so strong that there is no possible way for you to lose. Most foreclosure cases end at the summary judgment hearing because the judge rules for the lender. But if the judge thinks there are still some questions to be answered, there will be a trial. At trial, the judge (or jury) will determine the truth and decide who wins the case.
If you win, the lender has failed and you keep your house. If the lender wins, which is much more likely, the judge will set a date for your home to be sold, with the proceeds from the sale going toward paying your lender back for the money that you borrowed.
If the fair market value of your home is not enough to pay your loan back in full, your lender may ask for a “deficiency judgment.” That gives the lender the right to come after you for the difference between the market value of your home and the amount that you owe your lender.
If the sale brings more money than you owe your bank, you get back what’s left over. (Check with an attorney about the process for receiving any refund.)
If you hire an attorney, the entire process typically will take about two years, during which time you can be working with your lender toward a loan modification, short sale or deed in lieu of foreclosure. Of course, if all else fails, there is always bankruptcy, but that’s a different topic for another column.
About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program. Send him questions online at http://sunsent.nl/mR20t7 or follow him on Twitter @GarySingerLaw.
The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.
© 2011 the Sun Sentinel (Fort Lauderdale, Fla.), Gary M. Singer. Distributed by McClatc
Thursday, October 27, 2011
Baby Boomers: Home is where grandkids are
Click on title to see full article. This poll of baby-boomers has important implications for Florida real estate.
NEW YORK – Oct. 27, 2011 – According to a new poll from the Associated Press (AP) and LifeGoesStrong.com, 73 percent of baby boomers would rather live close to children or family rather than “friends of your own age,” and 50 percent ranked nearby family as “deeply important.”
However 27 percent prefer to live near peers, a huge potential market niche.
About a quarter (23 percent) of boomers say it’s very likely they’ll move out of their current area or community in retirement. However, that doesn’t mean boomers imagine that their retirement home will be their last purchase. Only 40 percent of boomers expect to stay in the home permanently.
“It’s easy to understand why mid-lifers are interested in being near family and staying close to home during retirement,” said Barbara Corcoran, a prominent real estate entrepreneur. “It’s also important to note that most boomers currently live in a suburb, and that group is more likely to have lost money on real estate since the economic downturn began. But whether or not someone was directly impacted, the recession makes all of us more aware of the importance and comfort of a close family circle, and the value of strong home roots.”
Even so, three in 10 boomers say that there is at least somewhat of a chance that they will purchase a new home for their retirement years. While 67 percent consider it unlikely that they’ll leave their home state if they do, 13 percent say there is a good chance they’ll move across state lines.
In addition to family, 39 percent of boomers rated “being close to medical offices or hospitals” as very important, and a similar number, 38 percent, want to be “close to shops and services.”
Boomers who plan to move noted the following preferences:
• smaller home (43%)
• area with a different climate (30%)
• more affordable home (25%)
• closer to family (15%)
• in a retirement community (12%)
When marketing to boomers, it’s worth noting that three out of the top five reasons given have nothing to do with the home itself and more to do with weather, family proximity, and community elements.
NEW YORK – Oct. 27, 2011 – According to a new poll from the Associated Press (AP) and LifeGoesStrong.com, 73 percent of baby boomers would rather live close to children or family rather than “friends of your own age,” and 50 percent ranked nearby family as “deeply important.”
However 27 percent prefer to live near peers, a huge potential market niche.
About a quarter (23 percent) of boomers say it’s very likely they’ll move out of their current area or community in retirement. However, that doesn’t mean boomers imagine that their retirement home will be their last purchase. Only 40 percent of boomers expect to stay in the home permanently.
“It’s easy to understand why mid-lifers are interested in being near family and staying close to home during retirement,” said Barbara Corcoran, a prominent real estate entrepreneur. “It’s also important to note that most boomers currently live in a suburb, and that group is more likely to have lost money on real estate since the economic downturn began. But whether or not someone was directly impacted, the recession makes all of us more aware of the importance and comfort of a close family circle, and the value of strong home roots.”
Even so, three in 10 boomers say that there is at least somewhat of a chance that they will purchase a new home for their retirement years. While 67 percent consider it unlikely that they’ll leave their home state if they do, 13 percent say there is a good chance they’ll move across state lines.
In addition to family, 39 percent of boomers rated “being close to medical offices or hospitals” as very important, and a similar number, 38 percent, want to be “close to shops and services.”
Boomers who plan to move noted the following preferences:
• smaller home (43%)
• area with a different climate (30%)
• more affordable home (25%)
• closer to family (15%)
• in a retirement community (12%)
When marketing to boomers, it’s worth noting that three out of the top five reasons given have nothing to do with the home itself and more to do with weather, family proximity, and community elements.
Monday, October 17, 2011
Sarasota sales for September 2011 outpace last year
Click on title to see full article with statistical charts.
September 2011 property sales in the Sarasota real estate market were ahead of last September, with 570 this year compared to only 547 at the same time last year. This represents a small drop in transactions compared to August 2011, when 601 sales were recorded. But historically, the early fall is one of the slower sales seasons.
A recent article in Realtor® Magazine Daily News noted that of the top 15 U.S. cities showing signs of year-over-year increases in list prices, ten are in Florida, and the Sarasota-Bradenton area came in 6th, with list prices up 15.9 percent. Listing price increases generally reflect optimism among sellers that a market is ready to head upwards.
The inventory of available properties for sale in Sarasota has been dropping for the past nine months, and was up only slightly in September to 4,430 after hitting a 10-year low of 4,408 the previous month.
The latest monthly figures in September showed a median price of $165,000 for single family homes, the same as August, and $140,000 for condos. The condo figure has been fluctuating for several months, hitting $185,000 in June, then dropping to $145,000 in July before climbing back up to $165,000 in August. These variations can be explained by the fact that certain months have seen the buying public focusing on smaller, bargain priced units, while other months have seen a higher concentration of luxury condo sales.
"In 2011, we've seen an acceleration of the market recovery, but we still have a distressed market that is weighing down on the median sales prices," said SAR President Michael Bruno. "Overall, we had distressed sales at 43 percent of the total, which was a little higher than in August, but is still far below the 51 percent total in November 2010, almost a year ago. So we're hopeful that the worst is over for foreclosures and short sales."
The months of inventory rose slightly to 6.7 months for single family homes, from last month's figure of 6.3 months. For condos, the months of inventory also rose to 11.1 months from 10.2 months in August. In September 2010, the figures were 9.9 months and 15.1 months, respectively. Both figures again remained far below the highs of 25.3 months for single family (in early 2009) and 41.7 months for condos (in late 2008). This statistic represents the time it would take to sell the existing inventory at the current month's rate of sales. The 6 month level is traditionally a point which represents equilibrium in the market between buyers and sellers.
In September 2011, pending sales were down slightly from last September - 723 to 744 - and also down from August, when there were 813 pending sales. Last month there were 547 single family homes and 176 condos that went under contract.
"The September market is normally a slower time of the year, so there were no real surprises this year," said Bruno. "The word of mouth among agents and brokers has been very positive, and I'm expecting a good season surge as we welcome back our winter residents and visitors. When it cools off up north, the market usually heats up in Sarasota."
September 2011 property sales in the Sarasota real estate market were ahead of last September, with 570 this year compared to only 547 at the same time last year. This represents a small drop in transactions compared to August 2011, when 601 sales were recorded. But historically, the early fall is one of the slower sales seasons.
A recent article in Realtor® Magazine Daily News noted that of the top 15 U.S. cities showing signs of year-over-year increases in list prices, ten are in Florida, and the Sarasota-Bradenton area came in 6th, with list prices up 15.9 percent. Listing price increases generally reflect optimism among sellers that a market is ready to head upwards.
The inventory of available properties for sale in Sarasota has been dropping for the past nine months, and was up only slightly in September to 4,430 after hitting a 10-year low of 4,408 the previous month.
The latest monthly figures in September showed a median price of $165,000 for single family homes, the same as August, and $140,000 for condos. The condo figure has been fluctuating for several months, hitting $185,000 in June, then dropping to $145,000 in July before climbing back up to $165,000 in August. These variations can be explained by the fact that certain months have seen the buying public focusing on smaller, bargain priced units, while other months have seen a higher concentration of luxury condo sales.
"In 2011, we've seen an acceleration of the market recovery, but we still have a distressed market that is weighing down on the median sales prices," said SAR President Michael Bruno. "Overall, we had distressed sales at 43 percent of the total, which was a little higher than in August, but is still far below the 51 percent total in November 2010, almost a year ago. So we're hopeful that the worst is over for foreclosures and short sales."
The months of inventory rose slightly to 6.7 months for single family homes, from last month's figure of 6.3 months. For condos, the months of inventory also rose to 11.1 months from 10.2 months in August. In September 2010, the figures were 9.9 months and 15.1 months, respectively. Both figures again remained far below the highs of 25.3 months for single family (in early 2009) and 41.7 months for condos (in late 2008). This statistic represents the time it would take to sell the existing inventory at the current month's rate of sales. The 6 month level is traditionally a point which represents equilibrium in the market between buyers and sellers.
In September 2011, pending sales were down slightly from last September - 723 to 744 - and also down from August, when there were 813 pending sales. Last month there were 547 single family homes and 176 condos that went under contract.
"The September market is normally a slower time of the year, so there were no real surprises this year," said Bruno. "The word of mouth among agents and brokers has been very positive, and I'm expecting a good season surge as we welcome back our winter residents and visitors. When it cools off up north, the market usually heats up in Sarasota."
Subscribe to:
Posts (Atom)
Posts
