As you zoom down the Boulevard and start slowing down to enter your municipality, your friend's delightful neighborhood or community, you cannot help noticing the empty houses, the homes where the grass is very tall with overgrown hedges, the residential property with the broken windows or the home that stares back at you saying, I need a powerwash and "please paint me" !
Welcome to South Florida and the landmarks global investors love. There is a significant number of vacant pre-foreclosure homes and another great amount of distressed homeowners living in these homes they can no longer afford. Now as short sale home seller, you can zoom through a short sale at a much quicker pace. Yes, the lenders have finally stepped up to the plate and are much quicker in approving short sales.
This dignified exit strategy in 2012 where this financial burden of home ownership has your home worth less than the amount remaining on the mortgage is a short sale. Did you know the government programs HAFA ( Homes Affordable Foreclosure Alternative) and Mortgage Debt Relief Act expires on 12/31/2012. So what are you waiting for? In 2009, the Treasury Department introduced the HAFA program for homeowners who were unable to keep their homes even though they tried to modify their mortgages.
HAFA is for:
1) Your primary residence. ( Your home)
2) You purchased your house on or before January 1, 2009.
3) You are no longer making mortgage payments or have fallen behind in your loan payments.
4) Your current unpaid principal balance may not exceed $729,750.
5) Your total monthly payment must exceed 31% of borrower’s gross income .
6) You have called your lender and requested HAFA or you have tried HAMP and it did not work in your situation.
7) If you qualify for HAFA, you may receive $3,000 for moving expenses.
8) If you qualify for HAFA, your deficiency judgment is usually waived. Being Florida is a deficiency state where the lender can pursue the deficency, this is an amazing opportunity.
The Mortgage Debt Relief Act of 2007 usually allows the home owner who has an approved short sale to exclude income from the discharge of debt on their principal residence. When that obligation is forgiven, the amount you receive as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender reports the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.
Short sales in South Florida are now outnumbering foreclosures. Here is an article from the Sun-Sentinel from Paul Owens
http://www.sun-sentinel.com/business/realestate/fl-short-sales-20120422,0,21957.story. So now your next reaction is to call or email Susan Penn, PA, EWM Realtor who has been approving short sales the last four years - 954-557-5993, firstname.lastname@example.org. Let's give you back your life.