Short sales in Florida are still booming, thanks to ever changing shifts in the real estate market. Thinking about short selling? Now is a good time!
A large number of cash buyers flooded into the real estate market in Florida in late 2012, and some thought that the lessened inventory meant short sales would become a thing of the past. However, according to Equator, the lender online processing service, in the 1st quarter of 2013, Miami Dade County, Florida had the highest initiation of short sales of any county in the United States. Since then, a whopping 33% of the 2013 Florida real etsate market has remained short sales.
In June 2013, HAFA (the Home Affordable Foreclosure Alternatives program) was extended to until 2015, giving primary homeowners more time to take advantage of the mortgage assistance in conjunction with the eased foreclosure regulations.
At this point, short sales in the state of Florida are expected to remain strong, motivating primary homeowners to list properties for sale with short sale specialists and continued profitable short selling well into 2014 with the HAFA benefits.
Florida law can make it very hard for homeowners who go into foreclosure. Lenders can go to court in what is known as a judicial foreclosure proceeding where the court must issue a final judgment of foreclosure, after which the property is sold as part of a publicly noticed sale.
A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage secures, which means that the borrower still owes the lender for the difference between what the property sold for at auction and the amount of the original loan.
A short sale with HAFA ensures that the seller is not responsible for the difference between what was owed and what the home sells for. No matter what you qualify for, you should have your short sale specialist ensure that debt forgiveness is part of your short sale agreement. You may even be able to get out of paying taxes on the forgiven amount of debt.