I have a stake in Tampa Bay Golf and Country Club “DO YOU?”

Many folks in our community do not understand why values may fluctuate so drastically in TBGCC.  We cannot depend on the surrounding zip code markets to acquire value inside our boundaries. Zillow, Trulia, and many web based estimates use algorithms to summarize value by a broad use of data.

  • Algorithms; defined means “ a procedure for solving a mathematical problem (as of finding the greatest common divisor) in a finite number of steps that frequently involves repetition of an operation!  Simply means, “Gathering public record data to calculate value! How broad can this be? By no means does this data calculate upgrades to your home. An exception being, a permitted project becomes public record that can be grabbed by this tool source.

With so many variables, it’s impossible to predict stability in our community. One important step for us to consider, reach out to families that become custodians to homes our neighbors can no longer maintain. The family, for whatever reason, chooses to give a mortgaged home back to the lender in a foreclosure action.  This impacts each and every one of us, and ultimately is currently the primary cause for unstable values in our community.

  • Caution! It’s my opinion any family challenged by these circumstances should seek professional advice before liquidating to a neighbor, or outside party looking to capitalize on someone else’s hardships.

“Deed in lieu of foreclosure”

Wikipedia definition;

What is this, and how does it affect me?  This is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.

The deed in lieu of foreclosure offers many advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower may receive more generous terms than he/she would in a formal foreclosure that in many cases entangles probate and may drag out a final will, and or trust..

Another benefit to the borrower is that it hurts his/her credit or estate less than a foreclosure does. Advantages to a lender include a reduction in the time and cost of a repossession, lower risk of borrower revenge (metal theft and vandalism of the property before sheriff eviction), and additional advantages if the borrower subsequently files for bankruptcy.

If there are any junior liens a deed in lieu maybe less attractive option for the lender. The lender will likely not want to assume the liability of the junior liens from the property owner, *Example; HOA liens, and accordingly, the lender may prefer to foreclose in order to clean the title. Each case carries its own merits, and HOA management may favor negotiations oppose to foreclosure.

In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntarily and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Sometimes, the lender will not proceed with a deed in lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the current fair value of the property. Other times, lenders will agree since they will end up with the property anyway and the foreclosure process is costly to the lender.

Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations.

Neither the borrower nor the lender is obliged to proceed with the deed in lieu of foreclosure until a final agreement is reached.

Author: danswingblog

Welcome to my Blog site. I don't provide this information to boast, I humbly provide this, so you are informed of my qualities and experience. Since the first of 2017 Dans averaged close to $1,000,000 in sales monthly. Dans accomplishments lend wisdom and credibility that I'm proud of. An informed understanding of who you elect to represent you is as important as the investment you hold in your hands. Dan has celebrated over 17 years as a full time Realtor. Successfully listed and sold homes well through the 7 figure market. Advises and assists clients with challenging Portfolios! Not uncommon to be working with foreign nationals, buyers that leverage the Sterling, Euro, and similar currency. Dan welcomes the Global community, with friends in many Nations. He brings a reputation of Integrity, Expertise, and Focus. Our customers deserve the best. Currently a "FULL TIME" Realtor listing and selling homes in Tampa Bay Golf and Country Club and provides B.P.O.'s, Broker Price Opinions, B.O.V's, Broker Opinion of Value to many lenders. Manage and Sells R.E.O., Real Estate Owned properties, distressed properties! Evaluate and negotiate solutions for sellers and lenders. Developed, operated and sold a Florida "AWARD WINNING" Ad Agency! 2010 & 11 Commercial Agent of the year. RE/MAX Paramount Properties. Relocated to RE/MAX Marketing Specialist in January 2012. Successfully closed on many extremely challenging foreclosures, and Short Sale. Coached and participated in Commercial and Multi-Income Family REO's in the past six years. Received license in 2000, took the class to sell his own properties, coerced by instructor to pursue an active license. Assist residential and commercial brokers, investors and individuals with real estate needs. Elected to the Auburndale City Commission in 1986-88. Created and served as 1st Redevelopment Chair in 1988 & 89 personally put in place all the elements for the Auburndale CRA. 1990 City Commission refused to give a full vote of confidence. After a 5 year journey to personally raise funding, extensive research and study for the CRA district perimeters, and stunned with the Commissions doubt. Positioned himself to run for office again, was re-elected to Auburndale Commission, to serve 1991-93 to full fill the CRA master plan! Active with the Central Florida Development Council from conception in 1985 and sat on the board periodically for the past 25 years representing municipalities and private investors. The positions Dan held from 1986 through 1993 enabled him to have a complete workable understanding of the State of Florida Comprehensive Plan for Future Land Use, and the benefits of intergovernmental agreements, utility franchise expansions, and public/private partnerships! Specialties: Assets recovery & receivership, Real Estate Portfolio's, REO & Short Sale of Residential and Commercial negotiations, marketing consultant, public relations, and Broker Price Opinions for residential and commercial lenders.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s