Frequently Asked Questions

If you’re facing the possibility of foreclosure in Miami-Dade County, it’s essential to understand your options and rights. Our guide will help you navigate this challenging situation and make informed decisions.

Foreclosure Defense in Miami-Dade: Foreclosure defense is a critical step if you believe there’s an error in the foreclosure process. Our experienced lawyers can help protect your home. Please note that foreclosure defense is not a solution for those who have willingly stopped paying their mortgage.

Loan Modification in Miami-Dade: A loan modification may be an option for you. Through a lawyer, you can request a modification by providing necessary documentation. However, approval depends on your financial situation, and you must meet specific criteria. Failing to make the first three payments on time can result in the cancellation of the modification.

Maintaining Mortgage Payments: It’s crucial to continue making your mortgage payments during foreclosure defense or loan modification. Failure to do so can increase your debt, and you may be responsible for the difference when your home is sold at auction.

Foreclosure Sale Consequences: Reaching the point of foreclosure sale can have severe consequences, including a significant negative impact on your credit score that can last for ten years. This can make it challenging to secure housing or loans in the future.

The Short Sale Option: Consider a short sale when you’re ready to move on from your property and want to reduce stress and financial burdens. A short sale may allow you to negotiate a debt reduction with the bank, resulting in only two years of bad credit. We can help you negotiate the Short Sale directly through our Brokerage.

Pre-Foreclosure Sale Misconceptions: It’s essential to understand that selling your home through a realtor after receiving a Lis Pendens is not a viable option. Title companies and mortgage lenders will be aware of the pending foreclosure, making it difficult to complete the sale. To retain your equity, you must act before receiving a Lis Pendens, or it will be a challenging fight to regain that equity.  The sooner you start the sooner this is over.

Contact us at 786-546-2778, or by filing in this confidential form

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foreclosure will have a definite and long-lasting negative affect on your credit score.  While both a Short Sale and a Foreclosure will have a negative impact on your credit score, a foreclosure is much worse.  If the bank finalizes that foreclosure, you may be hurt for 10 years.  If you opt for a short sale, remember that this is considered a debt forgiveness by your bank.  As such your negative impact is around 2 years of negative scores.

At Victor Bao PA, we negotiate with the bank to try to reduce what you owe your bank so that you dont have a deficiency judgment. Why reduce the debt?  For two reasons.  First, in a full foreclosure without negotiating a short sale, you will be on the hook for the difference between your debt and what the bank got in an auction for the sale of your home.  Yes, if you owe $100,000 and the bank forecloses on you and that foreclosure sale brought the bank $80,000, you are still on the hook for $20,000.

If on the other hand we work a negotiation for a short sale, there may not be a deficiency judgment.  Don’t forget that if you owe $100,000 and you don’t negotiate a reduction of debt as part of your short sale, then even though the bank has forgiven your debt, more than likely, you will pay taxes on the debt forgiveness. Yes, you will pay taxes on the amount you owe minus the amount the bank recovered from the foreclosure sale.

We negotiate a reduction in debt, move out costs, and for the bank to pay for the entire short sale process for those buyers we believe will qualify for the short sale program.

The key at this point is to reduce the impact of negative credit scores and certainly to not have a full foreclosure on your credit report so you can hold a job that does a background check where credit is part of their efforts. A full foreclosure will also affect your ability to rent, lease a car, get a credit card, or buy a new home in 10 years time. That’s a lot of time.

Call us at (786) 546-2778.

Todos pensamos que comprar en foreclosure significa que la casa que compras las están vendiendo super económica y que con poco dinero puedes acceder a esa casa y vivir en ella, o hacerle un “flip” [comprarla barata y venderla cara].

Acá en Miami nada es tan económico, y el foreclosure lo pone el banco contra el dueño de la propiedad porque le debe dinero del préstamo hipotecario.  Es decir, el banco va querer que se les pago lo máximo de la deuda que suele ser mas que el valor de la casa.

¿Qué es un foreclosure?

El foreclosure comienza con lo que se llama el Lis Pendens.  El Lis Pendens le deja saber a todos que el banco tiene una acción sobre la propiedad y que tiene contemplado la acción de desalojar al dueño para recuperar su préstamo.  Porque es importante el Lis Pendens?  Porque en el momento que el banco inicia el proceso y un comprado quiere comprar la casa, la empresa que asegura el titulo no lo va asegurar.  Asegurarias un titulo limpio para un hogar si ya tienes notificación que la casa esta en foreclosure?  Claro que no.

Hay veces que el dueño que esta en forclosure evita el servicio de la queja y al “summons”, pensando que se va a comprar un poco más de tiempo en la casa antes que se la quiten en foreclosure.  No es cierto.  El banco tiene 120 dias después de iniciar el foreclosure por el lis pendens para darle al dueño servicio sobre la queja. Si el banco ve que no puede servir, solo tiene que publicar la querella en un periódico local.  Es decir, ya todos van a saber que estas en foreclosure.

Aparte, ya sabes que el foreclosure te da 10 años de mal crédito donde no podrás comprar or alquilar or tener un trabajo donde manejes dinero.  Sin embargo, si negocias el short sale tendrás 2 años de crédito dañado y recuperaras tu crédito el tercer año.

¿Por qué dejan de pagar la propiedad?

Está claro que cada uno tiene una situación por lo cual dejan de pagar la hipoteca y entran en foreclosure.

Las más frecuentes son:

1. Pérdida de trabajo
2. Heridas as que impiden trabajar
3. Muchas deudas y obligaciones
4. Divorcio
5. Decisión de negocio (inversión inmobiliaria con resultados diferentes a lo esperado)
6. Cuentas medicas que son una prioridad.

Consejos para el Foreclosure

Desde el principio te digo que el foreclosure es una situación compleja y lenta.  De media nosotros podemos tardar entre 3 a 6 meses en hacer el cierre en una casa bajo foreclosure.  Primero sugiero que trabajes con una empresa como la nuestra que SOLO TRABAJA FORECLOSURES Y SHORT SALES. Es un proceso que por un fallo pequeño pierdes la oportunidad y también tu dinero.

1. Nosotros empezamos por buscar la deuda del propietario original y la deuda en la queja del banco donde indica el total de la deuda con los gastos legales.
2. Debes saber el proceso de negociación con el banco y como extender los tramites legales si no tienes abogado. En Victor Bao PA, si eres cliente nosotros te pagamos el abogado para extender el tiempo para llegar a juicio.  Si no negocias con el banco y vas a la corte, no podrás comprarte ese short sale.
3. Trabaja con un equipo que tenga experiencia en búsqueda, negociación y cierre de propiedades en foreclosure. Nuestro equipo incluye Brokers con mas de 15 anos de experiencia en Short Sales y Foreclosures. También incluye abogados y empresas de titulo con lo cual contamos para asegurarnos que podemos trasladar el titulo en tiempo puntual.
4. Cash es mejor ya que la aprobación por parte del banco sobre un comprador en short sale tarda de 1-3 meses dependiendo en el banco.

Antes de hacer una oferta sobre una casa en foreclosure deberias:

1. Tipo de propiedad:Aunque apartamentos y townhomes para inversores son las mas buscadas, también vienen a foreclosure con la complejidad de la asociación.  Ya sabes que si no ha pagado el dueño su hipoteca, tampoco ha pagado a la asociación. Ellos te van a pedir una solicitud antes de aprobar la casa para la venta y para ello quieren que se les pague la deuda mas el costo de abogados.
2. Compra con cash o vas a financiar:Sin garantía, el banco no va dejar vender la casa en un short sale.  El comprador debe ser aprobado por el banco.
3. El precio:Acá en Miami cuando hay un foreclosure recibimos ofertas sin ni siquiera ver a la propiedad.
4. Tiempo de cierre:Depende en la situación.  El que te diga que lo hace en treinta días es una mentira. El banco tarda 37 días de media para aprobártelo y la asociación otros 15 y luego viene la valoración [apraisal] de la casa y el cierre que puede tardar 3 semana mas.  Ya ves, 75 días no es ridículo.
5. Precio de lista vs. Precio de compra:Nosotros utilizamos un sistema propiedad de nuestra empresa que calcula la deuda, el valor de mercado, la condición de la casa, y lo que los bancos han aceptado de nosotros en el pasado para darte una idea que el costo verdadero del hogar y lo que le puedes sacar en un tiempo razonable. Te ofrecemos esta consulta gratis.

Llámenos hoy al (786) 546-2778 y te ayudamos a vender esa propiedad hoy mismo.

 

Selling Your Home While under Lis Pendens

So you want to sell your property before you receive the summons from your mortgage company?  A very challenging predicament.  While we are not lawyers, we can tell you that it will be difficult to sell the property because a title company will more than likely not give the buyer title insurance on the property. In addition, you will be brought into the lawsuit and forced to pay the mortgagee (the bank) in addition to your sales price.

What’s a Lis Pendens

A lis pendens protects the bank’s interest and also protects future purchasers interest or encumbrancers of the property.   The lis pendens really keeps the buyer from getting entangled in the dispute between the bank and the current owner (the seller).

Can I avoid receiving the Court Summons and Complaint?

I don’t have to tell you that you should be honest and not hide from the process server.  Eventually, usually before 120 days, the bank will simply publish the fact that you defaulted on the mortgage and take it away anyways.  Yes, take it even if you hide forever.

A Short Sale

You can have us negotiate a short sale on your behalf with the bank.  This means we try to get the bank to reduce the amount you owe it [don’t forget that every month you haven’t paid has inured penalties, fees, fines and legal costs of taking action against you].    We also try, and more often than not get, a decrease in your debt, move out costs by the bank, and all the Brokerage fees.  Yes, it’s really all free for you.

Get a Bona Fide Buyer Quickly

We list the property to a bona-fide buyer.  Yes, bona fide.  A buyer who has the capacity to purchase your property whom we know the bank will approve.

How is the Buyer Affected in a Lis Pendens if he buys the home?

Oh yes, you are thinking to yourself: “I’m gonna flip that house cause I’m paying peanuts for it”.  Don’t be so certain.  You are at risk of so many other factors such as condo or community association bills and fees and fines, attorney’s fees, workman’s liens, taxes, insurance and so many other potential glitches, all without title insurance.  Who would lend you money to buy a house where another bank has already said through the Lis Pendens that they own your home.  Unless you are working with a Brokerage like ours, I would not consider purchasing a Lis Pendens home.  Way too many what if’s which can cost you all that money you made from your hard work.

Ask the Courts for the time the bank gave you.

We will have our in-house counsel file a continuance in the Courts so that we have the time to close on your property. Yes, the bank might give us the green light for the short sale, but the lawyers continue to pursue the case regardless of the bank’s negotiation with the current homeowner.  The Court will sell the property even if the bank has told you that they are ok with giving you time to sell your house to a bona fide buyer. Yes, that’s correct, one hand doesn’t really know what the other is doing. Be careful along this slippers slope.

How long do banks take to ok a buyer on your lis pendens or short sale property?

Each bank is different, but we find that it takes them 30-60 days to give you the green light on a new buyer for that short sale.  Again, keep in mind that you have 20 days to respond to the summons and the banks complaint.  So, needless to say you will need an attorney to help delay your answer to the complaint or you will be in default and the bank will get a judgment to take your home away.  Our in house counsel will make sure that the there is a request for a delay.  Initially it will be enough to negotiate with the bank and produce a bona fide purchaser.  One day off and you will lose your home. In addition, at Victor Bao PA, we don’t make you pay for the legal fees, we absorb the limited representation of counsel in your matter.

The closing on a short sale

There are many complexities with a short sale.  If you have a buyer, the buyer’s proof of credit.  Whether the buyer is a traditional of FHA or VA buyer will have a lengthy affect on the purchase and put you in jeopardy in the sale of your home before your time runs out.  A buyer needs to be pre approved for a conventional loan.  You must allow the buyer to enter the home and make his inspection.  Question is how when the home has no electricity. Yes, that’s right, the buyer cannot see the home without lights even in the daytime.  We negotiate a temporary electric account to keep the lights on for the limited purpose of the inspection and the appraisal. Yes, there must be an appraisal.

Can I use my cousin who is a Realtor to sell my house under lis pendens?

You could, but only if you want to lose your home and hate your cousin. The actions from lis pendens to closing on a short sale are stressful, time consuming and involve financial calculations to determine the best offer to submit to the bank.  If you hire your cousin, who is a Realtor, to sell your house on short sale, make sure you also hire an attorney for foreclosure defense. The total costs of doing it this way may add up to more than the equity you have in your home …you know, the one you are trying to keep.

Our Suggestion on Lis Pendens and Short Sales

We suggest you hire a Brokerage firm that has a long history of executing short sales in the foreclosure process.  One that has in house legal counsel and knows how to play the game so you don’t lose all of your money trying to figure it out.  Don’t forget, the bank may sell your house in an auction, and still hold you responsible for the difference between the cheap price they sold it at and the mortgage and note amount you originally signed with them.

What other alternatives to a short sale do you have?

You have a few, but these are legal.  While we put our attorney to work for you at no cost, that is limited to representation during the short sale.  You can however hire an attorney to do a foreclosure defense for you.  From what we know, that cost is in the ballpark of $1,500 up front to start the process, and around $500 per month [we suggest you inquire with a law firm about exact costs, it may be more].  As part of this effort, the attorney may help you get a loan modification if for example you have had some hardship such as a loss of a job, a loved one, an injury, or medical bills. The legal process may take a few years.  Don’t forget however that while you pay your attorney, you still owe the bank the monthly mortgage amount.  Yes, that’s right, you pay the attorney and the mortgage with all the fees and costs.

Our big and visible disclaimer.  We are not a law firm, but we are real estate brokers specializing in Lis Pendens, short sales and foreclosures, which most attorneys are not unless they too have a valid real estate broker’s license in Florida.

Call /text us at (786) 546-2778 if you have any questions or concerns, our consultation is completely free as it relates to your short sale options.

 

 

 

One question that always comes up on “how to do a short sale on my house”? We’ll try to respond here without a lot of elaboration:

First, no, you don’t need a lawyer.  A Brokerage Firm such as ours can negotiate the Short Sale on behalf of an owner without the need for an attorney.  As a firm however, we do place our in-house counsel on your case so that we are working both with the Bank and the Court at the same time.  Yes, you got it, many times the right hand (bank) doesn’t know what the left hand (lawyers) is doing.

That being said, make sure that the law firm knows what the bank has negotiated with you and that they are not still pursuing the legal claim while you are negotiating the short sale or loan modification with the bank.

Next you can try to sell your home by owner, but the bank requires a valid FARBAR contract plus specific documents from the buyer so they can determine if the buyer will be accepted by them.

The bank takes 37 days to approve a short sale.  If the bank doesn’t approve it, then you will have a foreclosure in your credit which lasts 10 years on your credit.  You may also have problems with your citizenship status if you are not a lawful permanent resident.

The whole process is not difficult, but complex and one slight mishap and all of your work was a waste of time.

What we do at Victor Bao PA is that entire negotiation with your bank and we place our in-house counsel on your case to slow the legal and court proceedings by filing continuations and answering the banks complaint as we find a buyer and negotiate for a reduction in your debt with the bank.

The key is going to be to stop the Court proceedings while you find a qualified (not having a relative buy your property without being fully qualified). and moving quickly with HUD statements, inspections, opinions of price the bank will approve, etc.

It is heavy paperwork and takes time.  Cross your T’s and dot your i’s as they say.

Call us if you have any questions at (786) 546-2778.