For many property owners with a mortgage in negative equity, letting the home fall into foreclosure may seem like their only choice. But if you’re struggling to keep up with mortgage payments on a home that is worth less than what you owe, it’s important to know that you do have other options. Here are just a few ways to avoid a drawn out foreclosure process.

Refinance – Homeowners current on payments may be eligible for assistance through the government’s Making Home Affordable program, which allows qualified borrowers to refinance their loan.

Loan Modification – Though refinancing may be the best option, it is unlikely. The most common way homeowner’s avoid foreclosure is by renegotiating their loan terms to achieve a lower monthly payment.

Short Sale – In a short sale, your lender agrees to allow you to sell the property for less than the mortgage debt, though you may still be liable for the difference.

Deed-in-Lieu – A deed-in-lieu allows you to convey all interest in the property back to your lender, satisfying the loan and keeping you out of court. As with a short sale, your lender may still hold you liable for any deficiency left on the mortgage.

Most homeowners’ initial instinct is to fulfill their obligation and continue to pay the mortgage. But this isn’t always very fruitful. It could be many years before you break even and begin to build positive equity again. In this scenario it is best to part ways with the bad investment. Finding a viable alternative to what will inevitably end in foreclosure will save you a lot of grief and cause the least amount of damage to your credit.

Whatever your choice, it requires careful consideration. If you are thinking about walking away from your underwater mortgage, consult with a qualified Foreclosure Attorney to discuss the particulars of your case and explore your options in greater detail. An experienced attorney can negotiate the best terms for the resolution of your mortgage and ensure that your interests are well represented.

Stephen K. Hachey, a Florida real estate attorney can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.

Surplus proceeds refer to the extra money that remains after a foreclosure sale once all the debts secured by the property have been paid off. This situation can arise when the foreclosure sale price exceeds the total amount owed on the property. According to Florida Statutes 45.032 and 45.033, the former property owner has the right to claim these surplus proceeds, provided certain conditions are met.

Claiming Surplus Proceeds

The former property owner is entitled to claim the surplus proceeds if they did not assign their rights to someone else between the time the lis pendens (a written notice that a lawsuit concerning real estate has been filed) was recorded and the time of the judicial sale. However, there is another stipulation: there should be no other “subordinate lienholders” (people or companies who are owed money) who have filed a claim for the funds. If no subordinate lienholders file a claim, the property owner receives the surplus money, minus the court’s fees. The property owner has 60 days from the date of the sale to request the surplus funds.

Role of Subordinate Lienholders

Subordinate lienholders are individuals or entities that have a claim on the property but whose claim is ranked below that of the primary lender. If there are subordinate lienholders who have filed a claim, they may be entitled to a portion of the surplus proceeds. The distribution of surplus proceeds in such cases can be complex and may require legal assistance to navigate.

Transfers of Ownership and Surplus Proceeds

Transfers of ownership can complicate the distribution of surplus proceeds. For example, if a homeowner received a foreclosure notice and transferred ownership to someone else, the court must determine whether the transfer was voluntary or involuntary. A voluntary transfer would be one made in writing that followed all of Florida Statute 45.044(3) guidelines. An involuntary transfer is one made by inheritance or guardianship. If the court determines that the transfer was made in “good faith,” the transferee may be entitled to the surplus funds. If not, the court can award the surplus to the original owner, and the transferee would have the option to sue the owner for a refund.

Seeking Legal Advice

Dealing with surplus proceeds from a foreclosure sale can be complex. It’s crucial to seek professional advice to navigate these challenges. A foreclosure attorney can guide you through the process, help you understand your rights and options, and work to protect your interests. If you’re facing a situation involving a foreclosure sale and potential surplus proceeds, don’t hesitate to consult with a qualified attorney.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

 

Stephen K. Hachey P.A. Stephen K. Hachey P.A.
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Per Florida law, property-owners must give tenants notice to vacate before carrying out an eviction. In Florida, the three-day Notice is the most commonly applied method of serving formal notice to evict when tenants have defaulted on their rent and Florida statute provides a strict format for what defines a legally sufficient three-day notice.

Any number of things can render a notice defective: if you are demanding an incorrect amount for rent; if the notice includes late fees, but your lease agreement makes no mention of such fees; or if the notice fails to give the tenant proper grace period, your three-day notice is defective. Many property-owners attempt to carry out evictions on their own and often fail to follow proper legal procedure when drafting the notice, which often results in a flawed document that renders their eviction suit legally insufficient.

Recent legislation states that in cases involving a defective notice, landlords may be granted leave to amend the notice and continue eviction proceedings once the notice is revised. All the same, because the burden falls to you (the property-owner), a faulty notice will delay your case and may still end in dismissal, which can result in additional costs exceeding three times the amount of the defaulted rent in damages and legal fees payable to your tenant.

If you are a landlord struggling with a tenant refusing to pay rent, it is wise to seek legal counsel prior to making any moves to evict the tenant on your own. Though it may seem simple, drafting a document which accurately protects your legal interests can be quite complex. Consulting with an experienced attorney will ensure that your three-day notice is legally precise and that your rights are adequately protected.

Due to our current caseload, our office simply does not the have the resources
needed to dedicate to any additional tenant legal matters.
Any tenant-specific legal matters should be referred to the following organization:
Lawyer Referral Service Online (available 24/7) — https://www.floridabar.org/public/lrs/
or Phone (800) 342-8011 Monday through Friday 8:00 a.m. to 5:30 p.m.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

Florida law dictates that your landlord cannot alter your lease before it expires without a valid reason. Your lease is a legal, binding contract and save for special circumstances, if that contract is valid and has not expired, your landlord generally cannot force you to sign an agreement changing its current terms. As an example, if utilities are included in your rent under the terms of your original lease agreement, your landlord cannot charge additional money to cover utilities while your lease is in effect.

Whether or not your landlord has standing to change your contract may also depend on the nature of your lease. Under a month-to-month agreement, for example, it may be possible for your landlord to amend the terms of your agreement; however, your landlord may not change the terms of your lease without first issuing at least 30 days’ notice. Whether annual or month-to-month, your landlord is unable to make any substantial changes to your lease agreement prior to the contract’s expiration date or without your express consent.

Though lease agreements are not always written, it is in always in your best interest to have an official written contract. Any alteration to your lease thereafter must be in writing and must be properly signed by both parties. Remember, both you and your landlord are bound by the lease agreement until its expiration date. If your landlord has unexpectedly altered the terms of your lease without notice or consent, consult an experienced real estate attorney in order to ensure that you’re being treated fairly and that your rights as a tenant are protected.

Stephen K. Hachey, a Florida real estate attorney can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.

Updated: 6/2/23

In the context of real estate transactions, a title company plays a crucial role, particularly in handling escrow. When a buyer makes a purchase offer, they are often expected to include an earnest money deposit. This deposit serves as a demonstration of the buyer's serious intent to purchase the property. Once the offer is accepted and the purchase contract is signed, this money is deposited in escrow, typically held by a title company.

The Escrow Process

The escrow process is a critical part of a real estate transaction. If all goes well and the sale proceeds as planned, the earnest money held in escrow is applied towards the down payment and closing costs of the sale. However, if the deal falls through for any reason, the title company's role becomes even more significant.

In such a scenario, the title company freezes the funds in escrow. It then reviews the terms of the purchase agreement to determine whether the buyer is entitled to get the earnest deposit back.

Contract Cancellation and Escrow Funds

The cancellation of a contract can occur due to a variety of reasons. Perhaps the seller fails to fulfill the terms of the purchase contract, or there's an issue with the appraisal or inspection. Alternatively, the buyer may be unable to secure the necessary financing to finalize the sale.

In any of these cases, unless otherwise stated in the contract, the buyer would typically be entitled to a refund of the deposit. The exact amount returned may vary, as there's often a cancellation fee deducted from the earnest deposit.

Dealing with Refusal of Fund Release by the Title Company

Despite the terms of the contract, there may be instances where a title company refuses to release the buyer’s funds. If you find yourself in such a situation, it's advisable to consult with a real estate attorney. Legal action may be necessary to ensure the interests of the buyer are protected and the funds are rightfully returned.

 

Stephen K. Hachey P.A. Stephen K. Hachey P.A.
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As far as real estate transactions go, quitclaim deeds play a pivotal role, especially when it comes to the swift transfer of ownership interests in land or real property. However, a common query arises regarding the validity of these deeds, particularly in the context of their recordation in the state of Florida. Let’s dive deeper into this topic.

Understanding Quitclaim Deeds

A quitclaim deed facilitates the rapid transfer of ownership interests in real property. Unlike traditional deeds, quitclaim deeds do not involve monetary exchanges and offer no guarantee that the grantor (seller) possesses the property outright or holds the legal right to transfer ownership. This lack of assurance means that the grantee (buyer) receives minimal legal protection. As a result, quitclaim deeds are primarily used for uncomplicated, low-risk transactions, such as transferring property into trusts, inter-family ownership transfers, or gifting property.

Recordation and Validity in Florida

While the act of recording a quitclaim deed makes the transfer official in public records, Florida law does not mandate such recordation for the deed’s validity. However, the state does emphasize the importance of recording the transfer of ownership interest in public records to maintain an accurate chain of title. Failing to do so could jeopardize your rights and interests in the property.

The Importance of Recording a Quitclaim Deed

Even if your quitclaim deed is legally valid upon execution and notarization, it’s in the grantee’s best interest to file the deed with the appropriate county recording office promptly. Recording the deed serves as a public declaration of the new ownership, safeguarding the owner’s interests against potential fraud or disputes. Moreover, it provides a clear record for future transactions and can prevent potential legal complications down the line.

Seeking Expertise

Given the nuances and potential pitfalls associated with quitclaim deeds, it’s advisable to consult with an experienced real estate attorney. Such professionals can guide you through the intricacies of the process, ensuring that your interests remain protected.

Conclusion

While quitclaim deeds offer a streamlined way to transfer property ownership in Florida, understanding the importance of recording and the associated legalities is crucial. Always ensure you’re well-informed and seek expert advice when navigating such transactions.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

 

Stephen K. Hachey P.A. Stephen K. Hachey P.A.
Have Questions?
Speak With a Real Estate Attorney Now
Call Now! (813) 549-0096