Many homeowners, and realtors alike (offering short sale advice to their clients), are unaware that a short sale on a primary residence in Florida, will result in a complete forgiveness of debt to the homeowner seller. The American Taxpayers Relief Act of 2012, which extended the Mortgage Forgiveness Debt Relief Act through December 31, 2013, provides full protection to homeowners who sell in a short sale and have part of their mortgage debt written off or forgiven. Under this Act, if the home is the primary residence of the borrower and either a short sale, deed in lieu or certain other loss mitigation was completed, resulting in the forgiveness of debt to the homeowner, then that loan forgiveness is tax free and forever waived. The lender can never again pursue the borrower to claim any penny of it.
Many homeowners in foreclosure wrongly think that “riding it out” is the answer. They arrive at the incorrect conclusion that they can live years mortgage free and then, once the home sells in foreclosure, they are wiped away of the debt. This is an INACCURACY. If the foreclosure sells at auction, the lender may still claim the judgment or difference against the homeowner, which could result in a garnishment of wages, a freezing of debtors assets, bank accounts, seizing of any cars or boats or other methods to satisfy the debt. While unfortunately many colleagues continue to charge monthly for foreclosure defense, all they are buying is time. At the end, a trial or motion for summary judgment will creep up and if the borrower has done nothing to try and sell the property or modify, then most likely a judgment will result against them.
I always encourage foreclosure clients that I defend to find a solution early. Finding a solution early does not mean you have to move out. On the contrary. You may actually buy yourself more time, while a solution is found. Be it either a short sale, loan modification, a deed in lieu of foreclosure, a HARP refinance or any other alternative that exists today, simply riding it out is not the solution.
Contact me for a complete analysis of your financial situation to see if you qualify for a short sale, for a loan modification and whether your home can be saved. Only by hiring the services of a professional attorney will you be provided accurate and complete information to save you from a deficiency.
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Law Offices of Jacqueline A. Salcines, PA
706 S. Dixie Highway
Second Floor
Coral Gables, FL 33146
305 | 669 | 5280