Facing Foreclosure: Is Bankruptcy an Option for you?

Written by:  Dania S. Fernandez, Esq., Attorney at Law

Of The Law Offices of Fernandez & Associates, P.A.

When facing foreclosure there are many options available to avoid foreclosure and maintain your sanity all together.  These options include: Loan Modification/Loan Workout with your lender, Refinance, Obama’s Plan “Making Home Affordable” (go to website http://makinghomeaffordable.com) and Bankruptcy Chapter 13.  How can Bankruptcy save my home from foreclosure?  When should I file for Bankruptcy? Which Chapter should I file, Chapter 7 or Chapter 13?  These are three of the most frequently asked questions in my office.  First, in very simple terms here are the definitions of both Chapter 7 and 13:

Chapter 7: liquidation, wipes out most of your debts and in return, you may have to give up some of your property.

Chapter 13: reorganization, enables you to pay off all or a portion of your debts during a three to five year period, yet does not require you to give up any of your assets to pay creditors that you owe.  As long as you keep making payments creditors will not bother you for payment or continue the foreclosure against your property.

If you are considering a Chapter 7 Bankruptcy and you are behind in your mortgage, then make certain that you first reach a loan modification/ loan workout or Refinance with your lender and then file Chapter 7.  In the Chapter 7 Bankruptcy there will not be a loan modification option of your existing mortgage and therefore if you stop paying your mortgage you could lose your home.  Your homestead is exempt, however if you do not pay, it can be foreclosed on.  In the Chapter 13 Bankruptcy you can save your house.  However, this should be your final option and by that I mean you have tried reaching a loan modification, you have been represented by a Real Estate Attorney to defend your foreclosure and time is ticking towards the auction date of your house.  Bankruptcy is a perfectly legitimate way to stop foreclosures and repossessions, put an end to lawsuits, protect paychecks from garnishments and regain control of your life once again. 

If bankruptcy is an option for you it is important to know what is or will be required of you.  Bankruptcy is regulated by Federal law and may be affected by Florida state law.  Even though  you are not required by law to work with an attorney to file for bankruptcy, it is highly recommended.  When filing for bankruptcy, it must be filed correctly in order to have the chance for it be successful. 

It is important to consult a bankruptcy attorney or debt relief lawyer in your area in order to ensure that you fully understand your options regarding bankruptcy and whether this is the best decision for your financial future.

The following is a list of facts you should know about filing Bankruptcy:

• Stop Foreclosure.
• Avert Repossession.
• Bankruptcy is a matter of public record.
• You will need to take a credit counseling course and financial management course before you can file for bankruptcy.
• When you initially file for bankruptcy, the court will mail a notice to all the creditors listed in your bankruptcy schedule. Creditors will then be prohibited from contacting you concerning you debt. 
• Florida law will exempt certain assets.   A lawyer can help determine what is exempt and can help protect particular property. 
• You can suffer some discrimination (Prospective employers may refuse to hire you and some Governmental agencies and employers may not allow it as part of their employment policies.).
• In a Chapter 13 bankruptcy, you and your lawyer will need to work out a payment plan wherein you will pay creditors over a period of up to 5 years.
• Your income, bills, assets and property will all need to be evaluated in order to determine what is subject to liquidation, what debts can be discharged, the amount and duration of your payment plan (if any) and much more.
• A stigma may still be attached to filing bankruptcy.
• A record of filing for bankruptcy may remain on your credit profile for up to 10 years, depending upon the particular circumstances.
• While a bankruptcy filing does appear on your credit report, most people fail to realize that the damage has already been done to their credit due to missed payments or late payments.  By eliminating your debt in chapter 7, or making payments in a chapter 13, you will immediately improve your credit score.

In the midst of the economic crisis we must not forget the importance of life and your priorities.  It is your health, your family and God that should be first.  I have clients falling apart not only financially, but also emotionally and physically.  Saving our homes is not the only solution, we need jobs that can pay for the revised monthly payment, we need activities that will stimulate good health and family events that will create those memorable moments with our children, family and friends.  Take all the necessary steps to preserve that which is important to you by taking advantage all of your available options.  There are options for you and more continue to come with the evolving laws.  Know your rights, now your options call an attorney today to guide you towards life stability once again.

Written by:  Dania S. Fernandez, Esq.  Attorney at Law

The Law Offices of Fernandez & Associates, P.A.

Located at 6705 SW 57 AVE, Coral Gables, FL  33143

Telephone:  305-254-4492

E-mail:  Dania@fap-law.com

Website: www.daniafernandez.com

For more information on Foreclosure, Loan Modifications & Bankruptcy go to www.daniafernandez.com.  Or, call The Law Offices of Fernandez & Associations and schedule a free consultation with one of our attorneys at 305-254-4492.

How to know if your home has Chinese drywall?

Drywall imported from China has recently become a cause for concern because it is believed to emit a sulfuric gas, causing respiratory illness in those living in homes containing the drywall, as well as corroding copper wiring and mechanical parts in air conditioning units and other major appliances. 

Since ‘’Made In China’’ may not be visible — and not all drywall is marked — the Florida Department of Health has established some basic criteria for determining whether a home contains it. 

Homes constructed from 2004 to the present must meet two or more conditions of the following conditions; those built prior to 2004 must meet three or more:

•  There is presence of sulfur-like or other unusual odors; 
• Confirmed presence of Chinese-manufactured drywall in the home.
• Observed copper corrosion, indicated by black, sooty coating of uninsulated copper pipe leading to the air handling unit.
• Documented failure of air conditioner evaporator coil (located inside the air handling unit).
• Confirmation by an outside expert for the presence of premature copper corrosion on uninsulated copper wires and/or air conditioner evaporator coils.

 Furthermore, beware of sales pitches for commercial testing kits, as there currently are none on the market. The DOH suggests environmental consultants, builders, home inspectors and certain types of contractors may be able to confirm the presence of Chinese drywall.

 For more information visit http://chinese.intellaclaim.com and click “Imported Drywall”.

 If you feel you may have this problem, you need to address it NOW!

The team of experts at Intellaclaim Public Adjusters will help you resolve this matter as quickly as possible. 

Contact us at 305-303-7012 for a FREE Consultation. 

YES You Can! The TRUTH on getting a mortgage…

It is true that getting a loan today is very different than getting a loan a few years back, between 2003 and 2007 investors were practically giving away loans to anybody who had a semi decent credit score without even verifying income and many times without verifying employment. During this abnormal period the mortgage industry experienced a fantastic phenomenon. I don’t mean fantastic in a good or bad way but simply by its mere definition “imaginary or groundless in not being based on reality; foolish or irrational” the same applies to phenomenon “something that is impressive or extraordinary”. It is because of this fantastic phenomenon we experienced that lenders have become ultra conservative. They have literally lost their shirts on many poor performing loans. However, they have no choice but to march on, after all they are still in the business of lending money. And the way they are staying in business is by offering the safest mortgage product available to our industry, the FHA loan. FHA has always been there, it was just not the preferred choice especially when lenders were not requiring income docs and when wholesale investors were offering 100% financing, low rates, no mortgage insurance, oh! And lets not forget no employment verification. Borrowers with high scores were practically insulted if you asked them for so much as a W2 or a bank statement. There is plenty of blame to go around, but let’s not digress.  

 

1. Is it possible for me to get a loan in a reasonable time frame with a reasonable rate?
2. How do I get a loan when lenders are so tight?
3. What do I need to ensure I get the right loan for me?
4. Who do I call?

 

Answers:

1. Yes, it is possible to get a loan today in a reasonable time frame at a reasonable rate. However, you have to do your part. You must choose a mortgage company that is FHA approved (directly by FHA). It is important that they are an FHA directly approved lender because there will be no additional parties that will delay your closing. Also, if you are dealing with an FHA approved Mortgage Company you will get a better rate than if there was an additional party involved. To find an FHA approved lender you can go to http://www.hud.gov/ll/code/llslcrit.cfm and type in the name of the lender you want to check or use the different criteria available on this page. You can also go to www.hud.gov and type in “lender list” at the top right hand side and click search, it will be your first choice in the results.
2. Lenders are tight because they have to survive, they are tight because they have lost a lot, they are tight because they are helpless to change their past decisions, they are however still in business and are still willing to offer loans to qualified buyers/borrowers. For the most part there are a handful of mortgage programs available today. The most popular and most obtainable are the conventional and FHA Government programs. These programs have similarities and both offer fixed rates and adjustable rate mortgages. These programs do require full disclosure of income and assets but have several options for buyers who are limited in down payment and assets needed to pay closing costs. FHA is a more obtainable program because if allows a buyer to put as little as 3% down payment and that 3% may come from several flexible sources (not just from you). Speak to a reputable mortgage company to guide you through this process.
3. Here is what you need to get a loan today: last 2 pay stubs, last 2 years W2s or last 2 years tax returns (if you are self employed or a 1099 worker), last 2 months bank statements of all your accounts (ALL PAGES even if they are blank), last quarterly retirement account (401K, IRA, Deferred Comp ALL PAGES even if they are blank), copy of your social security card and driver’s license. Before you start shopping you MUST GET PRE-QUALIFIED with a reputable mortgage company that can spend the time with you to review your credit, your income docs and your assets. This person can give you your maximum sales price and will be very useful throughout your process in giving you payment scenarios to help you and your family budget appropriately.
4. Who do you call – You call a qualified mortgage company that is willing to spend quality time with you. This is one of the most important transactions you will make in your lifetime, you should ask any and all questions you have, you should get a reasonable response time, and you should meet face to face.

 

Tricks of the trade

Here are some suggestions that will help you in your journey to home ownership:

 

  

1. Tell your realtor that you want the seller to pay your closing costs. This is very common today and represents a substantial amount of money that you will not have to pay. An FHA program will allow the seller to pay up to 6% of your closing costs and prepaid items such as insurance and escrows. 6% is more than enough to pay all your costs. You must demand it.
2. Don’t fall in love so much with a house that you are negotiating with your heart and not with your head. There is an unprecedented amount of inventory, give yourself an opportunity to shop and choose the best combination of location, sales price, and sales incentives (such as seller paid closing costs, interior and exterior upgrades and living area size).
3. If you don’t have enough money for the down payment – ask your realtor or mortgage consultant to help you in getting a state/federal/count or city grant. There are many grant opportunities out there that only require a small amount of leg work. Although most have income restrictions you won’t know unless you ask. If that doesn’t work you can always ask a family member for a gift. FHA allows the full 3% down payment to be a gift. So let’s see you get a grant or gift for the down payment and the seller pays all your closing costs, WOW! That sounds like 100% financing to me.
4. If you are currently renting and are thinking of buying a home, you picked the best time to do so. Whether you are credit challenged or not you should pay everything possible (such as rent, utility bills, car payments, and credit card payments) with a personal check because a check is traceable and verifiable. These payments you’ve made by check can serve as a compensating factor or as alternative credit in the qualification process.
5. Make sure your Realtor and Mortgage rep are full time, this is a very important decision you are about to make and you want someone that is dedicated to you and your needs, and you want to be able to reach them with ease.
6. Ask your Mortgage Rep to help you shop for a title company that is willing to give you the best service at the lowest price. Although, this may not always be your choice depending on the property you choose, whether or not the seller is paying for these fees and/or the county you live in, it is important to ask.
7. Ask your mortgage Rep to analyze your credit fro you, mortgage reps deal with credit issues all the time and are de facto experts in analyzing credit, you can get good advice from them.

 

Getting a mortgage is not hard if you have the right guidance and the right motivation. Mentally prepare yourself for the challenge and carefully choose your trusted advisors (Realtor and Mortgage Rep). My name is Mario Cerrato and I am the president of Regal Lending Group, we are located in Davie Florida and can give you the right advice. Give us a try, you won’t be disappointed.

 

 

 

 

 

The questions today are:

Is Real Estate DEAD?

Cordaco Homes relies on the South Florida Real Estate market. We live it and breathe it every single day. Lately we are breathing shallow and at times grasping for air. We see how our customers are doing the same and we at times are reaching into this abyss to pull some of them out. A discount here, a better page their, and offering more value is what we can do to help.

So are we fighting an endless battle? Are we just prolonging doom? Snap out of it… Are you going nuts? We will come out of this broken market! We will see days of prosperity! We will extend our hand across that closing table with pride knowing we have helped another family find stability! We will, we will! We all need a place we call home and we all need a professional to help us get there.

Real Estate is not dead. The way we did real estate is. Realtors need to get back to basics. Real Estate is not about selling a home, it’s about selling a relationship. Real Estate is about realizing the need to provide an estate. Real Estate is not about selling a home at any means necessary, it’s about finding the right home, at the right price and making all parties involved feel like they received a fair deal. It’s about relationships! Real Estate is not about doing this part time, it’s about committing to a person ready and willing to make the largest investment of their life. Real Estate is not about making a few bucks on the side, it’s about helping a person achieve a level of wealth through security. That being said, the real estate professional needs to make this a career.

To conclude, I see realtors as I see a doctor or a police officer. They have a specific job to provide the public and the days of self indulgence are dead. You may not be saving a person’s life or keeping them from harm, but you are contributing to their health and keeping them from harm’s way. You, a realtor, are a key component in the livelihood of countless families, whose head of household is entrusting you to guide them. More important, you have a moral obligation to help these folk achieve responsible real estate goals. It’s about relationships!

The real estate debacle has many to blame, but one primordial culprit, GREED. Let’s fix it and learn.

Betting on Advertising Insurance

The decision to spend money in order to make money has always been a treacherous one to formulate. To make things more difficult, if you ask experts or colleagues for guidance you will end up with more questions than answers.

 

My many years of marketing experience may help you to make an individual educated assessment. Allow me to start by giving you my personal views and how they may be biased. As a publisher of four print magazines, you may assume I am going to pitch you an ad. Falling short of sounding like an infomercial, I am not here to sell anything. I am here to give some facts, a little opinion and a lot to make sense of how you should view advertising. Since this is a Real Estate magazine, I will focus on two groups; Realtors and home sellers.

 

First analogy, advertising can be viewed as buying health insurance. Usually insurance will barely pay for its self on the day to day medical expenses. Advertising is similar in that when you advertise there are long periods of small rewards such as picking up a listing contract, name recognition and new “potential” customers. The rewards from these examples yield little profit and may discourage your need to advertise. Using insurance as an example once again, we all have that day when we end up in a hospital. ¹ The average total patient charges for South Florida hospitals is $27,871 per case. It is at this point most of us utter those famous words “Thank goodness I have insurance”. In comparison, consistent advertising will yield you that sale that pays for many years worth of advertising and at that point you will swear by that advertising media. Studies show that consistent advertising promotes earnings as low 7% and as high as 30% per year. Keep in mind that different advertising outlets perform better on the day to day, while others out perform the return of investment ration in time.

Now that we have an illustration of the advertising dynamics, let’s talk about different advertising outlets. Bear in mind we are focusing on local Real Estate.

 

Let’s start with Realtors. Your options are many and range vastly in cost. The first thing you should do is forecast your earnings. Just like a large corporation, forecasting helps you set goals and allocate for expenses. Remember to consider market conditions and growth. Think about forecasting in manageable periods, like yearly quarters or market seasons. This will allow you to adjust if unforeseen circumstances occur.

 

Once you have forecasted your earnings, allocate and commit moneys to advertising. Small or large work this budget to the best of your abilities. I recommend developing a short mantra which describes you and how you differ from other realtors. Strive for multidimensional marketing campaigns that relay your mantra. In other words, don’t just list properties online and neglect your image and services. Develop a campaign that achieves three things:

Exposes your listings

Brands your image

Depicts your specialties (Farming Areas)

Do this by using multiple formats of advertising. Focus on saturation and not so much on quantity. As a result, I would recommend using three advertising formats for every $10,000 spent yearly (e. g. $4000 on print media, $4000 on internet and $2000 on networking). Stay away from blowing your budget on one media, such as television. Select advertising formats that focus on your farming area and target your clientele. You are throwing your money in the air if you choose advertising outlets that flood large geographical areas which will yield low quality calls from neighborhoods you rather not work.

Find balance between exposure, image and cost. For the most part you will achieve two if the three. For example, you may advertise on a “life-style” magazine that has phenomenal image and a great distribution, but uses up your budget. Another example, you may choose to do a radio show on satellite radio which is cost effective and brands you as an expert in your field, but it airs at 6:00 am when your core market is sleeping. Lastly, posting your listings on as many free web sites as you can will generate several emails and leads, but these don’t portray who you are and all the services your offer. Be careful to not spend countless hours on the computer which carries several hidden costs. Before you know it, you hired an assistant, you are outsourcing web services and you are developing a site that never seems to be complete. Focus on being a realtor not a webmaster.

 

Sellers, lets start by stating the market is not favorable right now. Remember I started by questioning the decision to spend money in order to make money. DEMAND that your realtor advertises your property. If you have a high ticket property for sale, your realtor may ask for an advance to market your property. This is a common request which, for the most part, it is a good practice to engage into. Large ticket properties take much longer to sell; therefore your realtor may need your help to keep your property exposed. This in the long run could save you loads of money. In that order, selecting a realtor who has a marketing plan is imperative. It helps that the realtor focuses on similar properties to your own. This will ensure he or she is targeting the sort of buyer that is looking for your type of property. This is one of those times when competition helps. Make sure their marketing plan has several advertising medians. In fact, look for traits that are similar to the ones cited on the previous paragraph.

 

Don’t let realtors convince you that any particular advertising format “is dead”. Yes there are outlets that work better than others, but all advertising Medias have a niche and serve a purpose. Today there is a large push to sell properties on the internet, and for the most part I would agree. The problem occurs when an agent is trying to evade the expense to advertise. Don’t allow this type of agent to convince you that properties are only selling via the internet. The World Wide Web works, but the internet limits the selling abilities of your agent to get you the best deal possible. The net is a great way to generate leads, but without the proper substance to back it up it is just another email inquiring about your property. To qualify a realtor as a strong internet driven marketer, ask them what they are doing for SEO (Search Engine Optimization), visit their site and see how it ranks using the Google ranking tool, and ask how they are advertising that web site locally. Moreover, how are area visitors or area residents locating their web site amongst the estimated 340,000 real estate web sites? Finally, ask what other web sites or online services he or she is affiliated with to generate leads. This goes back to focusing on saturation and farming within your target demographic.

 

Second analogy, advertising could be a little like gambling. Most of you have at some point visited a casino. I’m not talking about a slot machine arcade, but rather a full blown slots, tables, booking, and money making machine. In advertising you are the casino. Choose your theme, mantra in your case. Arrange several options in which your patrons can gamble, advertise in multiple medians in your case. Be ready to loose a little, but keep them playing and you will bring loads of profit. As a result, advertising should never be purchased in single units. For example, do not run just one ad, do not send out one mail out, and do not just do one open house. If you are going to carry out this practice all you will do is squander your money. Going back to the gambling analogy, you chance to loose much more if you put down a single chip on one number, the odds are far too great. If you commit to craps, you increase your chances to win by playing at least for a complete shooter’s session. This way you have multiple opportunities to adjust your bets and spread the risk.

 

Your odds greatly improve when you have knowledge of the game. One method you earn that knowledge is by playing the game. Advertising is the same way. Do your homework on each advertising resource, but use your budget to implement a campaign. On print media do not run less than two issues and do not commit to a longer contract than six issues for your first attempt. Newspapers still work well when you run single line ads for multiple days. Radio and television is a great resource that could be extended by joining forces with other agents or choosing programs that run multiple short slots. Use your budget to negotiate volume discounts. For those Medias you are confident with, work out prepaid discounts.

 

Internet advertising is a little more complicated. While many will argue, I feel it is still in its infancy. Changes to search engine algorithms occur often and every web site has a better way to do the same thing. Many web sites offer “free” services that attract sellers and realtors, but be careful. Today many people are scrambling to help their Search Engine ranking by linking to directories that do not bring any value to the seller or agent. In fact, the majority are promising more than what they can deliver.

 

As per NAR, the internet contributes 24% of the leads that sell homes. I recommend you focus on web resources that have valid credentials such as being ranked by Google. Don’t be fooled by web sites that look pretty or have multiple gadgets. The ones that work have content, are affiliated to another advertising media and have good search engine ranking. Try to use web resources that use multiple input methods to fulfill its database. For example, choose sites that have IDX capabilities and a private database. This way the content is fresh and several formats are contributing to its content. Content equals more search engine exposure.

 

To conclude, advertising should be an educated venture that insures your growth. Develop a budget, diversify your Medias, commit to campaigns, try new technologies and favor what works. Accept that everything has a cycle and what works today may not work tomorrow, so educate yourself and try new vendors and/or formats. Furthermore, try to use advertising providers that combine Medias. To give you and idea, some home magazines offer good internet exposure and services for little or no additional expense. Remember to do your homework and ask what the web sites monthly visit and hit counts are. Verify ranking by using search engine tools. Remember that saturation of your farming area and clientele is key; therefore choose sites that cater to your needs. If you are trying to grow your web site’s exposure offer to exchange links with advertising vendors. Link exchange grows your link popularity which in turn helps your placement in Google and other search engines. Choose providers which are focused on helping you grow your business, not selling you ad space or ad time.

European Buyers

With a weak dollar and a morbidly slow market in Florida, realtors have to change their focus. Adjusting to new market trends is a smart move. The conventional realtor will tell you the Real Estate season is over in the coastal areas of South Florida. I would like to stick my hand inside that box and get you out. Thinking outside of that container has never been more important.

With slightly declining prices in US dollars and rapidly declining prices in British Pounds or Euros, real estate in the United States is rapidly becoming a bargain for European investors. We no longer depend on visitors from Northern states who took advantage of milder winters to buy properties in South Florida. European tourist will fast become the visitor of choice.

And isn’t this how capitalistic economies work. When supply is too great, prices drop. When prices drop far enough then the value for distant buyers increases and they make the effort to enter a market that they normally would not. When this occurs enough capital comes into the market to cause it to stabilize and rebound.

Together with their economic strength, their social and cultural habits incorporate very well with the South Florida life-style. Another guest that fits the European model is the South American. Brazilians and Venezuelans are some of the many groups that, due to either economic strength or political uncertainty, are willing to invest in our area. Moreover, Europeans and South American tend to work less than North Americans. As a result, they not only can afford to buy in the US, but they can afford to spend time here.

The biggest factor for overseas buyers is the complicated tax laws and conflicts that have to be addressed. If you are looking into attracting international buyers try to team up with an excellent tax accountant or attorney to make sure that the buyers are not put in a bad position to get the deal done. Become familiarized with foreign programs that stimulate investment funds, there hundreds popping up each day.

Adjusting to new market trends will help you keep ahead of the curve. Apple and Microsoft became great by creating a new curve. Each, in their way, established a need and set a new standard. If these companies would have concentrated in creating a better calculator or a “Pong” game the communication revolution would not have occurred, they jumped the curve. Furthermore, they stayed ahead of it by growing the need for their products. Realtors you need to do the same.

Realtors, get ready for a new buyer. They will be here all summer in our beaches, in the café next door, in your building and in the rented car at the red light. They have unprecedented market power. Some are not aware of it, some are very aware. Don’t let them tan, walk and drive past you. Create a new curve!