Central Florida Short Sales

Tutas Towne Realty and Bryant Tutas just had another successful Kissimmee Florida Short Sale closing with GMAC Mortgage.

The property:

Primary Residence. 4 bedroom 2 bath single family home located in Forest Edge in Kissimmee  Florida. This home has 2,190 sq ft of living area. It was purchased new in June of 2004 for $218,500. It Sold 1/17/2012 for $155,000. That's a decline in value of 29% in 7.5 years. 

Liens:

• 1st Mortgage with GMAC Mortgage for $281,000

Hardship:

• Loss of income.

Summary:

I placed the property on the market 8 September 2011 for $165,000. We negotiated a deal at $155,000, 7 days later. The deal was submitted for HAFA but was denied. It was resubmitted as a regular short sale and was approved.

Tutas Towne Realty closed the transaction on 17 January 2012. 128 days from listing to closing!!

GMAC Mortgage accepted $138,250 or .49 cents on the dollar for the 1st mortgage. 

***The Seller received FULL WAIVER OF DEFICIENCY with no contributions. GMAC paid 6% commission and paid 3% in buyer closing costs.

Do you need help with your Florida Short Sale?

 Tutas Towne Realty has already successfully negotiated Short Sales with the following Lenders and Investors.

• Chase Short Sale
• Sun Trust Short Sale
• GMAC Short Sale
• Wells Fargo Short Sale
• Bank of America Short Sale
• USA Bank Short Sale
• PNC Bank Short Sale
• Citi Short Sale
• HomeEq Short Sale
• Fifth Third Bank Short Sale
• ING Direct Short Sale
• GreenTree Short Sale
• Capital One Short Sale
• ASC Short Sale
• First Horizon Short Sale
• E-Trade Short Sale
• Transland Financial Short Sale
• US Bank Short Sale
• IBM LBPS Short Sale
• Nationstar Short Sale
• BAC Florida Short Sale
• Real Time Solutions Short Sale
• Fannie Mae Short Sale
• FHA Short Sale
• Selene Finance Short Sale
• Indy Mac
• One West Bank
• DTA Solutions LLC Short sale

Can we add you to our list of successful Short Sales?

Broker Bryant. I have approval to close on my short sale from the 1st mortgage but the 2nd loan is only willing to release the lien and will not relieve me of future liability. Should I file Bankruptcy instead of closing on my Orlando Florida Short Sale? Undecided.

Hi Undecided,

Great question. Here is my opinion:

****I am not an Attorney. This is just my opinion based on my experience with short sales. Please seek competent legal advice.

First, before you can consider closing you need to see the Short Sale Approval Letter for the 1st to make sure it states there is a "Waiver of Deficiency". Florida is a deficiency State so getting this waiver in writing is very important. The Short Sale approval letter will state "Waiver of Deficiency" or maybe "forgiven". It would be beneficial to have an Attorney review the Short Sale Approval Letter for you.

Ideally, you want the Short Sale Approval Letter from the 2nd to have the same wording. Although this is much more difficult to achieve. BUT there usually is a figure that they will accept to do this. You need to know what this figure is. 

With a "Release of Lien" only the debt now becomes an unsecured debt. Just like a credit card.

Most junior liens will release a lien for $3,000 and allow the transaction to close. Then they want to make arrangements later for you to pay.

At some point after closing:

• They may contact you and try to make payment arrangements.
  

• OR they may sell the note to a collection company.
  

• OR they could go back in front of a judge and get a deficiency judgment against you.
  

The "Deficiency Judgment" is probably the least likely scenario unless you have high income and assets for them to garnish. It cost the investor money to get a judgment and the likelihood of them throwing more money at a non performing asset are probably small. But they can. Some of my sellers have taken this risk and just closed on the deal. Mainly because at a minimum they wanted to get rid of the 1st loan's debt.

I am not aware of any of my past sellers that had a judgment filed against them. Some were able to negotiate deals after the fact. For example I had one guy with a Bank of America 2nd for about $45,000. They contacted him after closing and settled for $2,500. Some have agreed to sign a smaller promissory note and some have never been contacted.

Whatever they chose to do the 2nd debt was still not settled at time of closing and became an unknown. Not a good position to be in if you have choices. It's always best to settle now if at all possible. And I think it is.

The key is to find out what they want now to release the lien AND forgive the debt. You need to know what that figure is. Once you know the figure you can figure out how to get them what they want.

For example: Lets say the 2nd lien insist on $10,000 to settle the debt. And the 1st has already offered them $3,000. The additional $7,000 could be a combination of getting the 1st to increase this amount. Having the Buyer or yourself pay something towards the 2nd. Paying part of it on an unsecured note with zero interest.

I guess my point is that there are solutions. But first we have to fully identify the problem. This is where negotiating comes in and it's something that may not have been done to it's fullest, yet.

Let me know if I can help. I'd be happy to contact the lender on your behalf and see what I can sort out. You  need to get to their bottom line so you can then make a good informed decision.

Richard Zaretsky, Esq. has written many articles that may help you in your decision making process. Here's his table of contents.

Are you facing foreclosure in Florida?

"Please explain me the details of a short sale, or other proposal that you can bring to my case. "

You will have to provide them with:

Are you facing foreclosure in Florida?