“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.

July 2017 summary, in Tampa Bay Golf & Country Club

A big thanks to the Realtors that read my blog. I see you are using my data to list homes in our community. Thank you for the compliment, I’m humbled to share this information for the good of our community in Tampa Bay Golf & Country Club.

Without doubt summer is here!  We started July out with only 6 active listings.  During July we’ve engaged 6 additional listings that are now pending. This brings the total of twelve homes that have gone pending for July of this year. Eleven (11) went pending within an average of 12 days on the market. Eleven (11) sold in the past 30 days.

We currently we have 17 actively on the market. Typically August and September are slower months, and it appears we are now more in line with 2016 market conditions.

The highest price homes sold in TBGCC  are listed belowTWO (2) of the 3 were my listings.

$270,000 or $129. a sq. ft. at 10215 Hyannisport Loop, by Karen Gosselin, Keller Williams

$261,000 or $131. a sq. ft. at 29235 Caddyshack Ln by Dan Swing Listed & Sold by Dan

$245,900 or $120. a sq. ft. at 29430 Schinnecock Hills Ln by Dan Swing listed & Sold by Dan

The average selling price per sq. ft. for July using 1700 sq. ft. or more = $97.00 a sq. ft! This being said; five (5) homes sold on average $123.80 per sq. ft. The reasoning for the higher yield perhaps related to advice from a skillful Realtor. My two listings were originally built in 1999 and 1996. Skillfully placed upgrades, location, marketing content description, have exceptional impact on the final selling price.

 

Only 6 homes for sale in our community

I continue to be the home sales leader in our community, and anyone considering selling should call me first. Your home will be seen on CNN, AOL, NBC, FOX, MSN streaming news feeds all over social media. Get the Most exposure and the highest and best price for your home. I’ve sold 5 homes in the past 45 days and my gross sales for homes just in Tampa Bay Golf and Country Club has exceed $4,000,000 since the first of the year.

The current observations do not include distress, foreclosures, or un-cared for homes.

Only six (6) homes are actively on the market! Yes “it’s a sellers market” if the homes are priced accordingly. Call me now 352-834-1326

Five Villas have recently sold, the least sold for $107 per sq. ft. and the best priced per sq. ft. sold for $133.63 a sq. ft. The average selling price for Villa’s is $113.60 a sq. ft. depending on upgrades and following my advice when preparing your home.

Homes less than 1600 sq. ft. are averaging $112.75 a sq. ft. unless extraordinary location, and/or features are factored in. My team and I can help you put these elements into play when selling your home.

Homes over 1700 sq. ft are ranging in price as low as $101 a sq, ft, to $136 a sq. ft. Sold price of as low as $189,000 to as high as $267,000. I have listed and or found the buyers for both these homes. The sale price does NOT reflect sold price per sq. ft. as so many mitigating circumstances prevail.  My team and I can help you put these elements into play when selling your home.

Interested in selling, want the best price for your home?

Three of my last 5 homes have sold from $255,000 to $267,000 yes you read this correctly

Call Dan today 352-834-1326

My happy customers and observations on current trends in our community.

Congratulations, I listed 29308 Markers Loop on June 16th received a full price offer and closed on June 26th.  I helped the Beaumont’s find and close on 10454 Hyannisport Loop on June 27th. Very happy buyers & sellers!

We have only 10 homes currently active and for sale in our community. I feel it’s an obligation to comment on this activity. These homes are extremely overpriced, by no means will appraise,  and may I suggest that any buyer considering the current listings check public records for accurate heated square feet, make certain any agreement you enter into is subject to a satisfactory appraisal. “ESPECIALLY CASH OFFERS!” Motive for a professional listing agent to list your home? Active listings in the MLS bring buyers to this agent or team. The home is locked into the agreement most commonly for 6 months and there are consequences if you choose to withdraw. This being said, an educated buyer has now engaged this listing agent and respectfully shows them reasonably priced homes in the price range the buyers are qualified for. Do they come to these ridiculously overpriced listings? Maybe and maybe not, however this agent now has an active buyer they can sell a home to and in many cases, find a home outside our community.

I will NOT enter into an agreement to list your home at a price that we hope will sell because there is nothing on the market. Buyers come to me many, many times a month that do their homework and even research in depth the homeowners as well as the true value of the homes on the market. These buyers are very savvy and look for weakness and strengths in the seller and their property when considering any potential offer.

Are you looking to sell? Looking to buy? I have buyers and sellers anxious to put together a fair deal that satisfies both sides and may never stay active in the MLS for more than a day. Call me with your concerns and your requests, I assure you my staff or I will find something that meets everyone’s

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.

Listed May 15th and full price offer May 31

29430 Schinnecock Hills Ln. San Antonio, FL was only listed 16 days before a full price offer was accepted.  Check on the link below to view this listing I completed. My stats are building extremely quick results.  What other Realtors promise, I do better and my last two properties in TBG&CC are proof that a RE/MAX Agent sells more Real Estate than any other brokerage. I’ve closed on OVER $3,000,000 in the past 6 months in Tampa Bay Golf & CC in the past 6 months and have almost another $1,000,000 pending to close. Who do you want to represent you? Be part of our success, call me today 352-834-1326, and learn how your home can sell for more money and less days. No pressure to sign a contract, a scope of analytical data to assist you in determining your best choice in representation.

29430 Schinnecock Hills Ln. San Antonio, FL