Foreclosures Are Here! Jacksonville Real Estate

Foreclosures are here!

The current market comprised of foreclosure properties is an unfortunate situation for all parties involved, and is increasing daily. HomeTeam Real Estate has positioned itself with local and national banking institutions including national REO asset management companies, which allows us to understand the process more thoroughly, have access to more inventory and work more efficiently for our buyers.

What is a foreclosure?
Foreclosure is the legal process by which a bank seeks to recover the amount owed on a mortgage typically due to default. There are several stages in the foreclosure process:

• Pre-Foreclosure / Short Sale: Basically, when the proceeds of a home "fall short" of what is still owed on a mortgage. During this time, the owner may possibly have the option to sell to a third party for less than what is owed on the mortgage and the bank may potentially avoid a costly and lengthy foreclosure process by accepting this lesser amount.
• Auction: If the property is not sold during the pre-foreclosure period (if there is one), a public auction is then typically held to sell the property to the highest bidder. Foreclosure sales may include a minimum bid amount along with accrued interest, attorney fees and possibly other foreclosure fees. Typically, the property is purchased "as-is."
• Bank-Owned / REO (Real Estate Owned): If the property fails to sell in the pre-foreclosure stage or at auction, ownership reverts back to the lender.

Short Sales

• Mortgage servicers have 10 days to accept or deny a short sale request. After a sale is completed, the borrower could be completely released from debt.
• Borrowers are eligible to receive a $1,500 moving allowance, if they sell their home through a short sale.
• Mortgage servicers will receive $1,000 for each completed short sale.
• Investors who hold first mortgages can get as much as $1,000 for allowing second lienholders to release their liens.
• Second lienholders can get only as much as $3,000 in proceeds from short sale to release their liens.
• The property must be the homeowner's principal residence.
• The homeowner is delinquent on the mortgage or default looks likely.
• The loan was made before Jan. 1 this year and is less than $729,750
• The borrowers' total monthly mortgage payment exceeds 31 percent of their before-tax income.
Source: Keeping Current Matters 3/2010, HAFA Guidelines

Avoid Foreclosure Checklist -- Homeowners' Options

• Bring your loan current and maintain regular payments in a timely manner.
• Work out a repayment plan.
• Refinance your home with better rates and terms.
• Modify your current loan with your lender.
• Rent your home and make the mortgage payments to your lender.
• Sell your home and pay off the loan amount due.
• Borrow money from a relative or friend to bring your payments current.
• Get protection under the Service Members Civil Relief Act (SMCRA).
• Enter into a Deed In Lieu of Foreclosure or "friendly foreclosure."
• File for bankruptcy protection to stall the foreclosure process.
• Sell your home in a "short sale" if the lender will accept a discounted payoff for the outstanding mortgage due.
• For more information about foreclosure laws in your state visit http://www.foreclosurelaw.org

For homeowners struggling to make ends meet or who can no longer afford to keep their mortgage current, there are options!  A qualified REALTOR® can help you realize those options, whether it be a loan modification, short sale, or other type of government relief.  I would love to discuss your options with you, or if you know someone that could benefit from a consultation, please let me know!  

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