SHORT PAYOFF OF SECOND LOAN

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foreclosure_defense Many homeowners feel strapped due to a second mortgage on their property, which may cause a property to become “upside down”, owing more on mortgage balances than the property is worth.  “Often in the loss mitigation and loan modification industry I encounter homeowners and property owners that think that they can not do anything to negotiate their loan balance with their second mortgage company except to file for bankruptcy.  This is not the case.”  Jacqueline A. Salcines. Esq.

A second mortgage can easily be “wiped out” and settled for a short payoff.  What this means is that the lender that holds the second mortgage accepts an amount, or percentage of their loan, that is less than the amount owed to them and calls it a day.  Many times these percentages can be as little as  5% or 10%. Thereafter, the house can be kept with only the first mortgage on there, hopefully no longer upside down.  Or a regular sale can take place, where the closing is no longer a short sale.   The key ingredient however is hiring the right attorney to handle the negotiation for you.  If you agree to send the lender something and it is all verbal, with none of the terms in writing, you may be just giving the money away.  Too many times the lenders take the money as a down payment on the balance owed and do not issue a Satisfaction of Mortgage.  This equates to the loan not actually being settled but rather written off as a bad debt or uncollectable. However, when you go to sell the property, the balance is revived and must be paid off.

It is imperative that a real estate attorney familiar with the negotiation process and paperwork involved fight in your corner.  At The Law Offices of Jacqueline A. Salcines, PA, our attorney and staff work diligently not just to put an offer together but to look at the lender documents, closing documents, assignments, mortgages, etc. to see what leverage we can use to fight for the lowest settlement amounts possible.  And, most importantly, make sure that the lender prepares and records a Satisfaction of Mortgage.  This is a true Short Payoff.

Call us to discuss your options today!!!

JACQUELINE A. SALCINES, ESQ.

LAW OFFICES OF JACQUELINE A. SALCINES, PA.

706 S. DIXIE HIGHWAY

SECOND FLOOR

CORAL GABLES, FLORIDA 33146

TEL.  305  | 669  | 5280

TRUST    |   COMMITTMENT    |   RESULTS

 

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LARGEST PRINCIPAL REDUCTION ON A LOAN MODIFICATION TO DATE

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Loan Modification Green Road Sign with dramatic clouds and sky. MY FIRM HAS BEEN WORKING ON A LOAN MODIFICATION FOR A CLIENT FOR THREE MONTHS NOW. THE BORROWER WAS NOT YOUR TYPICAL BORROWER.  HE HAD LARGER THAN TYPICAL EARNINGS BUT THE HOUSE WAS JUST WAY UPSIDE DOWN AND NEEDED SOME REPAIRS.  THE MORTGAGE BALANCE WAS OVER $650,000.00.

TODAY WE RECEIVED THE GREAT NEWS THAT OUR CLIENT WILL RECEIVE A $393,461.85 PRINCIPAL REDUCTION THAT WILL BE COMPLETELY FORGIVEN BY THE LENDER AS LONG AS HE MAKES TIMELY PAYMENTS FOR 3 YEARS.  AND, HIS INTEREST RATE WAS LOWERED DRASTICALLY.

THROUGH PERSERVERANCE, DETERMINATION AND TRUST, WE WERE ABLE TO GET THIS RESULT AND MANY MORE FOR OUR CLIENTS.  MANY HAVE THE MEANS TO PAY AND ARE NOT INSOLVENT, BUT THE PROPERTY VALUES ARE JUST NOT THERE.  AND WHILE THESE LOAN MODIFICATIONS ARE REQUIRE MORE SKILLED NEGOTIATIONS AND TACTICS, SUCH AS PREPARING A REPORT ON VALUE AND REPAIRS, THE BANKS ARE LISTENING!  THIS CASE IS PROOF OF THAT.

IF YOU ARE IN  NEED OF A LOAN MODIFICATION, YOUR HOME IS UNDERWATER AND  YOU OWE MORE TO THE BANK THAN WHAT THE PROPERTY IS WORTH , CALL US. WE MAY BE ABLE TO GET YOU RESULTS LIKE THE ONE WE RECEIVED TODAY.

THERE IS NO FEE TO QUALIFY YOU. WE HAVE THE SAME GOVERNMENT PROGRAMS TO QUALIFY YOU THAT THE MAKING HOME AFFORDABLE PROGRAM USES AND WE CAN TELL YOU DURING THE CONSULTATION WHETHER YOU QUALIFY OR NOT.  THEN YOU CAN MAKE THE DECISION.

LAW OFFICES OF JACQUELINE A. SALCINES, P.A.

706 S. DIXIE HIGHWAY

SECOND FLOOR

CORAL GABLES, FL 33146

TEL.  305 | 669 | 5280

J.SALCINES@SALCINESLAW.COM

 

TRUST  |   COMMITMENT  |  RESULTS 

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BEWARE – FRAUDULENT DEEDS CONVEYING BANK OWNED REO ARE CIRCULATING IN FLORIDA

My underwriter, Old Republic National Title Insurance, Inc, through Attorneys Title Fund, LLC recently notified its agents that they were seeing a large number of claims in Hands - Holding HouseFlorida emerging from forged deeds on foreclosed or bank owned properties.  The deeds were almost always into trust and the transaction that was insured in the one from the trust to the new, innocent buyer.

How it works:

  1. The property is foreclosed on and the bank acquires it.
  2. A special warranty deed is recorded that looks to be from an officer in the lender/bank’s office
  3. The notary is almost always out of South Carolina
  4. The Grantee of the deed is a Trust.  Not a trustee of the trust.
  5. Minimal docs stamps are then paid on the transfer

While there is nothing wrong with this transaction and many legitimate deals occur like this, the red flag or scam is that the grantee is a trust not the trustee of the trust.  Moreover, only nominal stamps are paid for the transfer to the trust.

Lenders who are victimized by this type of fraud need to then file quiet title actions to re-establish and perfect title to the property.

Title agents and real estate attorneys are urged to check, and double check their closing documents and chain of title.  If fraud is suspected, then you may need to contact  your underwriter for the proper course of action.

If you suspect an REO deed in the chain of title is fraudulent, you will also need to check with the actual lender (not the one signing the deed) to confirm the validity of the deed.

This is a major problem for unsuspecting buyers and investors and lends itself to the importance of hiring a knowledgeable real estate attorney to be in your corner to protect you from this type of fraud.

At the Law Offices of Jacqueline A. Salcines, PA, the attorney Jacqueline A. Salcines, Esq., as an agent for Old Republic National Title Insurance, is keenly aware of this fraud and knows how to search for it and discover it.  It makes sense to hire a knowledgeable real estate attorney to stand in your corner and protect you.

The consultation is always free of charge.  Call us today to discuss your future investments.

Jacqueline A. Salcines, Esq.

Law Offices of Jacqueline A. Salcines, PA

706 S. Dixie Highway 2nd Floor

Coral Gables, FL 33146

Tel:  305  |  669  | 5280

 

TRUST   |   COMMITMENT  |   RESULTS

 

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SECOND MORTGAGES BEING WIPED OUT AND SETTLED FOR PENNIES ON THE DOLLAR

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Way Signs "Bailout - Collapse"My firm was recently successful in getting a rather large, second mortgage on a property wiped out completely.  No penalty.  No amounts owed the lender.  No deficiency. And the lender immediately sent over a Satisfaction of Mortgage to record.  How did we do it?  It was rather easy actually. We were able to negotiate with the lender and prove that the Fair Market Value of the property was well under the amounts owed the first and second lender and provided a thorough report as to value.

Once the lender received the report and was satisfied with our explanation of the borrower’s hardship, they agreed.  It was that easy.

Many times a second mortgage can thwart a short sale or a loan modification because it simply sends all values for either calculating the Borrower Financial Worksheet or NPV out of wack. Sometimes, it is the kill switch on a short sale because the second lender always retains the right, even under the Mortgage Debt Relief Act, to collect on the second post closing and maintain a deficiency.

The most important advice we can provide is hire the services of a knowledgeable attorney on your side.  One who can run the numbers, provide the proper reports to make the waiver of a second mortgage a possibility.

There are many individuals out there, some in fact attorneys, promising such results.  However, the satisfied client and our results speak for themselves.

Visit us on AVVO. COM and see what our clients are saying about our services.

Or call for a free evaluation of your case.  The consultation is always free of charge.  J.Salcines@Salcineslaw.com

Law Offices of Jacqueline A. Salcines, Esq.

706 S. Dixie Highway

Second Floor

Coral Gables, Fl  33146

T:  305  |  669  | 5280

TRUST    |    COMMITMENT   |   RESULTS

 

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FOREIGN INVESTORS IN REAL ESTATE AND THE EB-5 VISA

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The Miami Association of Realtors ranked Brazilians as the “top foreign consumer searching Miami properties in May 2013”.   Source:  Miami Association of Realtors, The Miami Herald  Sunday, July 7, 2013. Next in line were Canada, Colombia and Venezuela.  What this equates to is a large number of foreigners investing in Miami Real Estate and depleting inventory of homes in South Florida.

While the majority of foreigners are smart enough to hire real estate lawyers to assist them with their purchases, far too many fail to do so and this failure to plan can result in costly mistakes.  So how do foreigners avoid the pitfalls of foreign investing in the United States?  First, it is important to understand who is considered a foreigner.  A foreigner is any person that is neither a citizen nor a green card holder in the United States.

For a foreign buyer, there are no special rules or regulations that must be carried out to purchase property.  They simply put in a contract, produce the funds and close.   If rent is collected, they must file income tax returns, a 1040NR, to declare the income and expenses as well a pay any applicable income tax.

The implications arrive at the time the foreigner is ready to sell!  Foreign nationals that sell real estate in the United States face heavy tax implications and are subject to FIRPTA.  If there was no legal guidance prior to buying, then there is little that a lawyer or tax professional can do to safeguard the foreigner.  The damage is done.

However, with the assistance of a real estate lawyer and accountant, and a little planning, many of the taxes can be avoided entirely.  As a real estate and business lawyer, as well as an accountant, I see it far too often. The closing takes place and a year later, when its time to sell, the damage is done.  At this point, shock takes over when these foreign sellers are told what they will have to pay the Internal Revenue Service.”  -Jacqueline A. Salcines, Esq., Attorney at Law, Accountant.  Therefore, the smart and savvy investor will hire an attorney to lay the foundation to structure the investment so as to avoid taxes and penalties.

The following are just a few of the items we can provide advice on that foreigners should consider prior to investing:

  1. How to take title –   As a foreign investor without either U.S. Citizenship status or residency status, foreign property buyers face quite a hefty tax upon the sale of their property. This can be avoided by either purchasing in the name of an LLC or structuring the purchase in a different manner.  While the capital gain is may only be taxed at 15%, if the foreigner dies while owning the real estate, the entire value in excess of $60,000 may be taxed at rates as high as  45%.
  2. FIRPTA Considerations.  The Foreign Investment Real Property Tax Act also requires settlement and closing agents to withhold 10% of the gross sale proceeds of foreigner, held at the time of closing,  and send to the Internal Revenue Service.  This insures that the IRS collects an amount if the foreign property owner fails to file an income tax return.  Properties under $300,000 may be exempt altogether if certain conditions are met
  3. EB-5 Visa.  The EB-5 category was created by Congress in the Immigration Act of 1990 to encourage the flow of foreign capitalStacks of One Hundred Dollar Bills with Small House. into the United States in order to create jobs for U.S. workers.  Under this Visa, the foreigner that invests a minimum of $500,000.00 can immediately obtain green cards for himself and his immediate qualifying family members.  This is also a consideration that foreigners can consider.

Although there are many rules and regulations to consider when purchasing and disposing of real property by foreigners in the United States, they do not have to be confusing.  Whether you are buying or selling, consult with a real estate lawyer and tax professional to ensure that you do not make any mistakes, and your investment is a sound one.

At the Law Offices of Jacqueline A. Salcines, PA, attorney Jacqueline A. Salcines is both a real estate lawyer, investment consultant, as well as an Accountant.  We stand able to assist foreigners to navigate the maze of foreign investing.  Call us today for a free consultation, or email us with any questions you may have. J.Salcines@salcineslaw.com

Jacqueline A. Salcines, Esq.

305  |   669    |   5280

TRUST    |    COMMITMENT    |  RESULTS

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