IMPORTANCE OF HAVING NO BRIDGES TO BAY

20130201-182045.jpg The South Florida Luxury Real Estate Market  is in full swing again and for those purchasing waterfront homes, whether the prospective body of water has “bridges to bay” is of utmost importance.  While many fail to consider this distinction, it is an important role for your real estate attorney or real estate agent to investigate certain facts about bridges such as:

  • What are the height restrictions
  • What times the bridge(s) go(es) up and down
  • Is the bridge manned (i.e., will there be someone on duty at all times if you want to take your boat for a midnight stroll)
  • What other restrictions are in place

Having this information prior to placing an offer to purchase a property is vital, as it could seriously restrict the enjoyment of the water and your vessel.

An experienced real estate attorney and realtor can investigate such vital information and provide you with the most accurate details in order to make an informed decision before placing an offer to purchase.

At the Law Offices of Jacqueline A. Salcines, Esq., you have an experienced real estate attorney by your side, to take care of these and any other issues that arise when purchasing luxury real estate.

Don’t go it alone.

Office in Coral Gables.   305  |  669  |  5280

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HAFA SHORT SALE RULES LAX IN 2013

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THE TRADITIONAL SHORT SALE HAS BEEN REPLACED WITH THE SIMPLIFIED HAFA SHORT SALE, WHICH IS MAKING SELLERS AND BORROWERS’ CHANCE OF APPROVAL MUCH EASIER THESE DAYS.short_sale

The main differences under the HAFA short sale that affect borrowers is the following:

  • No Occupancy Requirements – The borrower need not prove that the residence is their “primary residence” as defined under the Making Home Affordable rules.  The only restriction is that the borroewer may not have purchased a primary residence in previous 12 months.
  • The 31% Ratio No longer Used –  Mortgage payments are now permitted to exceed the 31% of gross monthly income if the borrower is current on their mortgage
  • Second Mortgage Paid $8,500.00 – Secondary lienholders (depending on investor) must now be paid $8,500.00 from the first lien holder
  • Relocation Assistance –  Seller/Borrowers must receive relocation incentices up to $3,000.00 (depending on investor and type of loan, and if occupied by the Tenant may receive the incentive $3,000.00
  • Credit Bureau Reporting –  Short Sale lender will now report the paid off account as account status code “13” which is account paid or close/account zero balance or code “65” account paid in full.foreclosure stated” as applicable.

Rules are also more lenient regarding whether the Short Sale is a result of a divorce, downsizing, as well as requriements regarding income reporting.

Of equal importance, is how the short sale and capital gains are being forgiven in the eyes of the IRS when the 1099-C is reported.

For up to the minute Short Sale information and to have you qualified, call THE LAW OFFICES OF JACQUELINE SALCINES, ESQ.

TRUST     |    COMMITMENT    |    RESULTS            TELEPHONE:  305.669.5280

 

 

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JANUARY FORECLOSURE ACTIVITY MAKES FLORIDA NO. 1 IN NATION

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According to The Miami Herald, “Florida claimed first place in the nation in foreclosure activity in January – eclipsing much larger California, according to data in RealtyTrac.”  – The Miami Herald, Thursday, February 14, 2013. short_sales

The Realty Trac report shows:

The Florida foreclosure rate ranked highest among the states for the fifth  month in a row. One in every 300 Florida housing units had a foreclosure filing  in January — more than twice the national average. A  total of 29,800 Florida properties had a foreclosure filing during the month, up  12 percent from the previous month and up 20 percent from January  2012.

With one in every 344 housing units with a foreclosure filing in January,  Nevada posted the nation’s second highest foreclosure rate for the fourth consecutive month. Overall  Nevada foreclosure activity decreased 43 percent from a year ago, but  foreclosure starts (NODs) increased 19 percent from the previous month and were  up 87 percent from January 2012 to a 16-month high.

A 32 percent month-over-month jump in scheduled foreclosure auctions helped the Illinois foreclosure rate  rise to third highest among the states in January. One in every 375 Illinois  housing units had a foreclosure filing during the month.

Read more:  Great Foreclosure News, Except for Florida and California — RealtyTrac – 24/7 Wall St. http://247wallst.com/2013/02/14/great-foreclosure-news-except-for-florida-and-california-realtytrac/#ixzz2KtMJ2d8R

The burning question is… will this affect our incredible recovery here in South Florida? Will prices take a hit once the  thousands of expected foreclosures are filed in the coming months?  Only time will tell.  Obviously, by placing more distressed homes into the market, inventory of homes will go up, and values are destined to decline. But, short sales and distressed property sales rely on BPO’s , or market appraisals.  Market appraisals take into consideration what is selling, what has sold, distressed or not.  So, while this may be bad news for the investors looking to pick up some more distressed properties, it is good news for sellers of non-distressed properties.

“My prediction…values will take a small dive, but our upward climb will continue and we will once again be at 2004 and 2005 values, in a short time”.  – Jacqueline A. Salcines. Esq.

Don’t go it alone.  Rely on the services of a qualified Real Estate Lawyer to analyze your current situation and provide you with the best knowledge available to make an informed decision.

Call for a free consultation.     305  |  669  | 5280

 

 

 

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SHORT SALES HELD HOSTAGE BY SECOND MORTGAGE HOLDER

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You’ve all heard the story before, months and months of laboring to get the short sale approval, you finally get it and the second lien holder or mortgage company will not accept what the first lien holder is agreeing to pay them.  Result:  Now your short sale is held hostage.  The first will not pay more, the second will not accept less.  What are the alternatives to get this approved after so much hard work?short_sale

Well, first of all, anyone negotiating or selling their home in a short sale must be familiar with their rights. Under the HAFA (Home Affordable Foreclosure Alternative) Program, the first lien holder MUST, not may, MUST, pay the 2nd lien holder $8,500.00. There are rules that regulate this payout and therefore the 1st lien holder can not wiggle its way out of this.  And the 2nd lien holders are keenly aware of these regulations.

Now, if the short sale falls outside of the HAFA Program, then you have a dilemma.  For the most part, the 1st lien holder will request a payoff statement of the first and typically (I say typically because in short sales there is nothing typical), they will pay 10% or a maximum of $6,000.00

“I have been negotiating short sales for quite some time and they (the lenders), for the most part, do adhere to the 10% rule.  But, in the event they pay less and the 2nd lien holder demands more, this is NOT necessarily the end of the line.  There are still options.  If the borrower is receiving an incentive at closing from the 1st lien holder, the 1st bank will allow the borrower/seller to contribute that money towards paying off the 2nd.  They will also permit you to enter into a promissory note, usually at 0% interest, ten (10) years, in order to reach that number.  Or, in the alternative, all the other parties in the game can make some contributions. Often times, realtors as well as the buyer are agreeable to making certain concession in order for the great deal to go through.  After all, if the closing falls through, the nobody gets paid and the buyer doesnt get their property.”  –  Jacqueline A. Salcines, Esq.

So, while the 2nd lien holder can certainly hold a short sale hostage and there are no laws you can use to force them to agree to a payout, there are still some alternatives to make the short sale go through to closing.

Short sales are crafty games played by crafty players.  Everyone has to have some skin in the game to make the process work smoothly.

And, if it goes smoothly, then as in any games, there will be many winners, and perhaps a few losers (the banks).

Dont go it alone. Consult a professional real estate lawyer to handle your mortgage problems.  We are a phone call away.

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

JACQUELINE A. SALCINES, ESQ.     TELEPHONE:  305  | 669 | 5280

 

 

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BILL TO HELP UNDERWATER HOMEOWNERS

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The Responsible Homeowner Refinancing Act of 2013 was reintroduced this week for approval by Congress. Home floating on a life preserver.

This bill, if passed, will benefit responsible homeowners who have stayed afloat and maintained their mortgage payments current, despite their home values being upside down.  Responsible for the introduction of this bill are U.S. Senators Robert Menendez (NJ) and Barbara Boxer (CA).  First introduced in the 112th Congress but not passed, the bill is now gaining momentum again.  Perhaps more relevant now that the housing market is experiencing a recovery, though not quick enough for underwater homeowners  who have been unable to modify for too much income, and unable to refinance for too little equity.  This bill will also affect the impending wave of new foreclosures predicted for 2013, removing some homeowners from foreclosures all together.

Under the proposed bill, hardworking, responsible homeowners who entered into high interest, or interest only loans, will be able to refinance,  and reap the reward of current interest rates which are at 3.53 percent.  Responsible homeowners will be able to avoid foreclosure and have some money in their pockets.

The bill, which will enchance the current HARP program, seeks to eliminate the requirements that borrowers verify income or employment, as under the current HARP rules. The bill will also affect that manner in which appraisals are approved and handled, and reduce the cost and time for borrowers and lenders alike.  It will also extend the HARP program by one more year, through the end of 2014.

“This is great news for the underwater homeowner.  The HARP program has been fantastic in throwing a life preserver to the homeowner that is current on their mortgage and we have seen many mortgages reduced through principal reductions.  I am glad that Congress is taking note of the homeowners and how they are suffering in the current state of our real estate market.” Jacqueline A. Salcines, Esq.

So, this is more good news for underwater homeowners!  Now, if only the real estate market will continue to improve, we sseem to be almost out of the woods!!

DONT GO IT ALONE.  For more information on whether you qualify for a HARP Refinance, modificaiton, short sale or other relief, call me anytime.

Jacqueline A. Salcines, Esq.

Jacqueline A. Salcines, PA

A law firm dedicated to all of your real estate needs.

305 |  669  |  5280

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HOW TO BUY AND SELL IN THE 2013 REAL ESTATE MARKET

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Many buyers and sellers are on pins and needles… not knowing whether to take the plunge and buy a property or place their homes on the market and take a chance that they are making the best profit.  Certainly no one expected the housing market, paricularly the Miami, Coral Gables and Pinecrest areas, to go up so dramatically since the bubble exploded.  However, the wave of recent sales and the return to the 10 contract deals, has certainly put the market back in the sellers hands. 20130201-182045.jpg

So, to invest or not to invest?  That is the question.  TrustED market researchers and forecasters predict a steady 1% to 3 % increase in home prices in 2013, but is this accurate? Afterall, Miami, Florida is certainly not the norm, and in some areas, prices are inching back to 2003 and 2004 levels.  Certainly, the market has turned the corner and the chances of the bubble burting again, are very slender.

There is also the issues of the Mortgage Interest Tax Deduction that will impact recovery. While most tax specialists expect a “cap” rather than a full elimination, for the LUXURY HOME BUYER and higher income folks, this is something that needs to be considered as it may affect their benefits from the tax deduction.

Sales are also being helped by record low mortgage rates, lower unemployment and a decrease in distressed home sales.  This is causing an improved demand for homes, specifically in the South Florida area, where inventory is so diminshed.

The National Association of Realtors reported that while December sales were just slighly below November, sales for the full year (2011) were the best we’ve seen since 2007.  Source: National Association of Realtors.

“As a real estate professional in the business for more than 15 years, the best advice I can give for navigating the 2013 real estate market is to hire the right team of professionals, including a knowledgeable attorney to check title and a realtor who can assess home values, comparables in the area, as well as determine the best price to come in at or list at.  This will remove your competition and provide you with peace of mind that you are buying or selling at the best price, a price supported by our presend day real estate market.”  Jacqueline A. Salcines, Esq.

JACQUELINE A. SALCINES, ESQ.  WE ARE A LAW FIRM DEDICATED TO ALL OF YOUR REAL ESTATE NEEDS.

TRUST  |  COMMITMENT  |  RESULTS

CALL THE REAL ESTATE LAW FIRM OF JACQUELINE A. SALCINES, P.A. FOR A FREE CONSULTATION:  305 | 669 | 5280

 

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FANNIE MAE AND FREDDIE MAC REPORT SHORT SALES HIT RECORD HIGH

Short sales for the third and fourth quarter of 2012 reported a record high, according to a report by the Federal Housing Agency.  In fact, short sales and deed in lieus were up 23 percent from the prior year 2011 while REO inventories were down by 36 percent, from their peak in 2010.  Source:  Inman News short_sales

So… to what do we owe this increase in short sales?  Are the banks being more cooperative or have they finally come to their senses? Well, the culprit could be the length of time it is taking to negotiate and close a short sale.  Whereas before the banks had few trained experts and representatives to streamline the process, or the majority seemed they were “in training”, today, “as soon as a short sale is submitted to the lender, almost instantly assigned Short Sale Specialist reaches out to us” says Jacqueline A. Salcines, Esq, an attorney who devotes half of her real estate law practice to selling and negotiating the short sales on behalf of her clients.  “There is no longer that short sale abyss we witnessed in 2011 and the beginning of 2012. The banks finally got their act together and we are seeing them close as soon as 45 to 60 days from submission”.

Most of the credit also must be given to sweeping change in legislature and regulations. On November 1, 2012, Fannie Mae and Freddie Mac instilled new directives that streamlined short sales including

  • Mortgage servicers had to make a decision on the short sale within 30 days from receipt of the application.
  • Mortgage servicers were required to confirm receipt of the short sale application within three days of submissions
  • Weekly updates to the agents became mandatory
  • Mortgage servicers could approve short sales without having to wait for PMI approval
  • Offering additoinal incentives to homeowners for moving costs in the sum of $3,000.00

Source: ” The Shorter Short Sale: Long on Borrower Benefits”  Freddie Mac Executive Perspetives BLog (Jan. 22, 2013)

Additionally, many dont know that they qualify for a short sale even if your home is worth over a million dollars or the loan to be paid off is a Jumbo Loan, or you are a foreign national.  Short sale rules and regulations have become very “realistic” to not sue the word “lax”. But, all in all, mortgage giants like Fannie Mae and Freddie Mac, as well as most lenders, have realized the cost of foreclosing and taking on an REO propertys far surpass that of short selling. The proof is in the amount of incentives they continue to give the borrowers, sometimes as much as $26,000.00, even in 2012!

The most important tool whether your are buying or selling a short sale continues to be… DONT GO IT ALONE.  Employ a qualified real estate attorney to review and examine title, specially if the home is in foreclosure, review liens oon the property, encumbrances, as well as handle the negotiation between the borrower and the short sale lender. “I am always astounded when clients come to me and tell me they have been negotiating their short sale without an attorney for the past 12 months without any closure in sight.  It is no surprise that either the short sale is not approved, or more informaiton is required, endlessly or worse, a denial is made that is not merited.  This is when the services of an attorney/accountant are of most value.”  Jacqueline A. Salcines, Esq.

Whether you want to gracefully exit or immediately dump a property you can no longer afford, call us to run your finanicals and see if a short sale is in your future.

 

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ESTATE-TAX CHANGES FOR 2013

CHANGES TO THE ESTATE-TAX EXEMPTION FOR 2013

Sellers of property over a million dollars should be aware of changes to the Estate-Tax Exemption in 2013.

The Federal Estate-tax Exclusion amount for estates of property owners who die in 2013 increased to $5,250,000 in 2013, up from $5,120,000 in 2012, as per the Internal Revenue Service.

The federal estate-tax exclusion is now permanently set at $5 million and will be indexed for inflation. Due to inflation, however, the amount for 2013 works out to $5,250,000.

The federal gift and generation-skipping transfer tax exemption continues to be the same as the estate-tax exclusion amount. The top federal estate-tax rate on the largest estates is now 40%, up from 35% in 2012. Transfers from one spouse to the other generally and typically tax-free. Under the new law, portability also became permanent.

Portability effectively makes the federal estate-tax exclusion amount “portable” between a husband and wife. When one spouse dies, the other typically can get the deceased spouse’s unused exemption amount without having to set up trusts or other tax-saving maneuvers.

Even if your estate falls below the federal threshold, don’t automatically ignore the subject. With increasing federal estate-tax exclusions, there is an increased focus on state estate taxes, in all states that impose an estate tax.

As both a Real Estate Lawyer and Accountant, Jacqueline A. Salcines, Esq. is equipped to assist you with all your real estate needs. Contact us for legal and tax advice, sound guidance and peace of mind. Located in Coral Gables. 305|669|5280

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MORTGAGE FORGIVENESS RELIEF ACT OF 2012 TO PROVIDE RELIEF FOR DISTRESSED HOMEOWNERS

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MORTGAGE FORGIVENESS RELIEF ACT OF 2012 RELIEVES DISTRESSED
HOMEOWNERS IN SHORT SALES AND LOAN MODIFICATIONS FOR ONE MORE YEAR

Finally, Congress came to its senses, and extended the debt forgiveness benefits for qualified homeowners. Through the passage of the American Taxpayer Relief Act of 2012, qualified distressed homeowners who have any debt forgiven as a result of a short sale, foreclosure or loan modification principal reduction, will not have to pay taxes on any debt forgiven. This protection is now extended through December 31, 2013. Homeowners will still receive a 1099-C form that will need to be reported to the IRS, but will not be liable for any amounts owed to the IRS for such cancellation of debt.

Under the Federal Tax Code, all types of forgiven debt are treated as income, and is subject to taxes. Because of the recently passed Mortgage Forgiveness Debt Relief Act, homeowners who get their mortgage debt forgiven through either a short sale or loan modification, will not face a tax on the amount forgiven, up to $2 million dollars. “Forgiven Debt” refers to the difference between the amount the homeowner owes on his or her mortgage and the amount the mortgage company receives at closing.

The law had short sellers scrambling to close by December 31, 2012, because had it not been extended, any forgiven debt would be considered taxable income. But now, with this new law, distressed homeowners are free to continue their short sales without having to worry about paying Uncle Sam any amounts after the closing.

Attorney Jacqueline Salcines states “In the advent of the housing market recuperating and so many homes in South Florida being in foreclosure and short sale, there was a dire need for the extension of this protection to homeowners. Many clients were coming into the office, wanting to walk away and face judgments or bankruptcy because they truly had no means of paying any amounts to the IRS. Now, with the protection extended, we can once again freely negotiate these short sale to completion without the homeowner worrying whether they will incur additional costs.”

“It certainly should not have taken so long to have this law extended. And it should be extended beyond December 31, 2013 because with so many homes in South Florida in distress, there will be principal reductions and short sales requiring forgiveness for years to come. This is not going to be cleaned up in one year.” Aida Pacheco, Loss Mitigation Manager at Jacqueline A. Salcines, P.A.

For now, we will have until December 31, 2013 to close existing short sales and modify loans. With our rapid team of short sale processors, we, at the Law Offices of Jacqueline A. Salcines, PA can get the job done.

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