Welcome to your Pasco County Short Sale Attorneys, Pinellas County Short Sale Attorneys, Hernando County Short Sale Attorneys and Hillsborough County Short Sale Attorneys. We cover the areas of Trinity, New Port Richey, Spring Hill, Clearwater, Tarpon Springs, Holiday, Land O’Lakes, Tampa, St. Petersburg, Largo, Hudson, and more for Short Sale Mitigation.
Have you been considering “short selling” your home and are not sure of the process? Please call us for an immediate consultation. This process is very long and tedious and you want it handled by an experienced professional. We have realtors on hand that can help with the listing and marketing of your home, while our attorneys are negotiating with the bank to get the best deal for you. Please don’t try to negotiate your own short sale. Not having an attorney on your behalf, could result in the bank requiring you to sign a promissory note for any remaining balance or they could still come after you for a deficiency judgment. It’s imperative that upon bank approval for the short sale that a qualified attorney reviews their offer and you will receive the best deal you can.
Even if you are thinking about buying a short sale, call us immediately as we have several listings available to you. We have realtors on hand that can show you many of options and advise you on how to get the most house for your investment.
What is a “HAFA” Short Sale? – Prior to HAFA, homeowners often listed their home for sale without an idea of what the lender would accept. Under HAFA, borrowers receive preapproved short sale terms from the lender prior to putting the home on the market.
The HAFA guidelines apply to lenders who voluntarily participate in the HAMP program. The Department of Housing and Urban Development says more than 100 servicers have signed up to participate in HAMP, covering more than 89 percent of mortgage debt outstanding in the country. To be eligible for HAFA, homeowners must first apply for a loan modification through the Home Affordable Modification Program, or HAMP. Owners who do not qualify for a loan modification or miss payments during the initial loan modification period qualify for HAFA.
Other HAFA requirements include:
- Property is principal residence.
- Mortgage originated before Jan. 1, 2009.
- Mortgage is owned or guaranteed by Fannie Mae or Freddie Mac.
- Borrower is delinquent or default is foreseeable.
- Homeowner demonstrates hardship.
- Borrower’s total monthly housing payment exceeds 31 percent of gross income.
- Unpaid principal does not exceed $729,750.
HAFA rules also state that lenders must release borrowers from the obligation to repay the difference between the sales price and the loan amount. No deficiency judgments are allowed for a first or second loan.
In the past, short sales were especially difficult for homeowners with more than one loan on their home, since the home sale typically repaid only the first mortgage. HAFA’s financial incentives include a payment of up to $3,000 for second mortgage holders.
Other HAFA financial incentives include $1,000 to loan servicers to cover administrative fees, up to $1,000 for mortgage investors who agree to share short sale proceeds with second lien holders and $1,500 to the homeowners for relocation.
Entering in to any real estate transaction can be scary. The realtors, mortgage brokers and title companies can be very pushy and somewhat intimidating. Don’t get taken advantage of. Hire an attorney on your behalf to review your sales contract, title commitment, settlement statement, deed and other closing documents. Buying a home is a big investment and you want to make sure all of your bases have been covered. Make sure everything is done right, to your preferences, the first time. It’s a buyer’s market and you need to protect your investment as a buyer.
Hiring an attorney guarantees that you will receive an expert, unbiased explanation and evaluation of the contract. Your real estate attorney will work to negotiate fair and reasonable terms and will help you avoid pitfalls of which you may be unaware. You may think the contract is clear and easy to understand, but it contains provisions that are unenforceable or that create more liability than you realize. Litigating your rights after the fact can take years and cost thousands in legal fees.
If your short sale is accepted, Attorney Stacy Kemp owns Champion’s Title Services which can be used to close your home. Champion’s Title Services has the ability to make it a smooth transition for the seller and the buyer.