Banks are picking up the pace when it comes to approving short sales in the Miami area and across the country, a trend expected to continue in the coming months as the government pays lenders to close the deals, CNN Money reported.
However, loan modifications are still voluntary and many banks still refuse to offer any assistance to struggling home owners. A Miami foreclosure defense attorney can best assist you in exploring your options for dealing with an underwater mortgage, short sale or foreclosure in the Miami area.
As we reported last month on our Miami Foreclose Lawyer blog, the government’s latest plan would seek to get mortgage companies to reduce payments to no more than 31 percent of a homeowner’s income, suspend payments for the unemployed and reduce the total balance to no more than 115 percent of a home’s value. The effort is aimed at assisting underwater homeowners and those struggling to pay their mortgages amid the economy downturn and real estate collapse in South Florida and elsewhere in the country.
Homeowners who are underwater on their mortgage owe more than their home is worth, largely due to plummeting resale values. A short sale is an agreement between a bank and a borrower to permit a home to be sold for less than it’s worth, allowing the borrower to walk away.
However, a qualified Miami real estate attorney should always be consulted when considering a short sale, which can have tax consequences and other disadvantages best explained by a legal professional hired to protect your interests.
CNN reports that short sales accounted for 17 percent of all residential real estate sales in February, up from 13 percent in November. The new government program will pay borrowers up to $3,000 in relocation expenses and pay mortgage companies $1,500 for completing a short sale.
If you have are facing foreclosure in the Miami area or are seeking home-loan modification in South Florida, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.