Real Estate Transactions
As a real estate attorney I have done transactional work for over 27 years. We offer a broad range of real estate services; attorney supervised efficient services at moderate prices. Many title companies have had to close their doors…not us! By providing a quality product, handled by licensed professionals at reasonable prices, we expect to only grow larger and continue to be there for you as the market turns around. We thrive by providing the services that your clients need today and the support that you need to deliver for them in an upside down real estate market.
For several years now, we have been submitting and closing short sales for our Realtors and their clients. I won’t lie to you and say that we have found some miraculous way to get through the bank’s defenses and close these things in short order, because we have not; but we get them done, and there are very good reasons why you should have an attorney handle the short sale process. First, the bulk of the submission consists of the borrower’s personal financial information. Realtors are not in a position to handle this information as just the act of possession creates new potential for exposure to professional liability that may not be covered by your errors and omissions coverage.
After 10 years of interest rates at absolute zero, the Federal Reserve has announced that it feels the U.S. economy has recovered enough that it will now raise the prime interest rate by a quarter of a point. The amount of the increase is not significant but the change in direction is. The prime rate is keyed to the 10 year Treasury note and do not determine mortgage rates, but long term interest rates which have been at historic lows as well are bound to follow suit. Such a historic change is bound to have an effect on real estate sales. Potential investors who have waited to see what the future would bring, now know that the future will bring higher mortgage interest rates and will begin to make their move. Despite the fact that money will become more expensive, home prices will increase as demand increases. The real estate market is going to heat up soon.
COMMENT: Florida is a lien state as opposed to a title state; we use a mortgage form which makes the lender a lien holder as opposed to a deed of trust which transfers title to property to the lender at the loan closing. In order to sell a property at foreclosure in Florida, a lender needs to first acquire title to the property at trial, usually through a summary judgment procedure. This has allowed delinquent property owners, by contesting the foreclosure process, to drag out the eventual loss of their property at auction sale, sometimes for years and by delaying the inevitable, recoup much of their lost investment through living in the property for years without making a payment. Those days are over. Recently the Florida Supreme Court has adopted procedures to speed up the process and make it easier for lenders to complete the foreclosure process and sell the property at auction sale. If you are facing foreclosure now and expect to drag out the process for years like your neighbor did in recent years, you are in for a surprise. If you are facing foreclosure you need to think about an exit strategy (mortgage modification or short sale) and pursue it from the start. Don’t delay. Summary judgment followed by a sale date is right around the corner.
OPINION: After eight years of recession and an unprecedented number of foreclosures, the banks now own a substantial proportion of the properties on the market or coming on the market soon. Home buyers are going to buy these properties. Although the price may seem right, buyers need to be very careful with these properties. They need to know what they are getting into. The contract that bank R.E.O. departments use are not the same the Florida Bar contracts that realtors use, not even close. They are completely one-sided and the banks use the lower purchase price to control the entire process. Furthermore the banks take no responsibility for the condition of the property or for latent defects or code violations or issues with the HOA/Condo associations, to whom they are only responsible, by law, for 1 year of outstanding dues, leaving the associations with a substantial loss and a sense of being abused that they will pass on to the home buyer if possible. Although the buyer in most counties in Florida controls the closing, in these R.E.O. property closings, that is most often not the case. Buyers can go through the entire process without consulting an attorney. That can be a huge mistake. I have seen more and more home buyers who want to know after closing what can be done for problems with the property that were not disclosed to them at closing. Most often they have waived, or by that time lost their right to complain. The purchase of a home is the most important purchase you will most likely make. Even if you have to pay a little extra, it is important enough to use a real estate attorney who knows what to look for in these types of transactions and can tell you what you are really.
The number is 954-998-3354.
Michael H. Hirsch, P.A.
Attorney At Law - Serving the People of Florida since 1989
Micheal H Hirsch P.A. Attorney At Law
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