Mortgage Fraud Criminal Penalties Increased

In wake of the recent rise in mortgage fraud in the state of Florida, the legislature has responded. Mortgage, which used to be a 3rd degree Felony, punishable by 5 years in prison and $10,000 in fines, has been upgraded to a 2nd degree felony. Now mortgage fraud is punishable by 15 years in prison and a fine of $100,000.00. In an effort to further deter mortgage brokers from inflating home values to lenders in order to obtain large amounts of money through the financing of property, individuals involved in these scams will now face longer prison terms and stiffer fines.

As a realtor, what does this mean for me? Well, I can be assured that underhanded mortgage brokers will be dealt with even more seriously through the court system. While it is impossible to completely flush out the problem of mortgage fraud, this is certainly a step in the right direction. If you, or anyone you know is interested in purchasing a home the right way, contact Harris W. Gilbert today at (786) 371-4431.

Harris W. Gilbert
Commercial Sales & Leasing
The Keyes Company Commercial Division
2121 SW 3rd Avenue
Miami, FL, 33129
Direct: (305) 779-1902
Cell: (786) 371-4431
harrisgilbert@keyes.com
http://www.hwgmiamirealestate.com/
http://hwgmiamirealestate.blogspot.com/
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http://hgilbertlaw.com/

Short Sale Process: Buyer

»The Short Sale Process: Buyer

As a buyer involved in a short sale it is important to work closely with an agent who understands the short sale process. You can expect to get a good deal based on the market price, but must understand that the process takes longer, so you have to remain patient. Normally, an offer is submitted to the bank(s) for approval. After the offer is submitted, the bank normally takes 45 - 60 days to evaluate the offer and respond with an acceptance, rejection or counter offer. Remember, all offers made are subject to the lender's approval.

After the short sale is approved by the bank, or banks if there are multiple mortgages, the buyer must be ready to close quickly as often times the lender's will condition their acceptance on a closing date. Right now bank's are looking to close quickly with buyer's who have good credit and money to bring to the table. Often times a buyer can obtain a property at 80% or less of the market value through the process of a short sale. If your looking for a good deal on a home or an investment property at a price well below the market value, then foreclosure listings are a great opportunity for you. Contact Harris Gilbert directly at (786) 371-4431 so we can search the area for a short sale properties.

Short Sale Market is Active

»Foreclosures Provide Opportunity

Whether your someone with a property in distress, or a buyer looking to purchase a property under value, the foreclosure market provides a great avenue to meet your real estate needs. If your a property owner looking to get out from under debt and overdue taxes, a short sale will benefit you greatly as opposed to giving the property back to the bank, or declaring bankruptcy. Your credit score will not be impacted nearly as greatly, thus your ability to regain positive credit history will be shorter.

For investors, banks often times elect to accept an offer on a property in distress well below the market value in order to mitigate their losses. For someone with the ability to put money down and gain financing in today's financial market, there are properties in distress that you should be considering. You need an individual who knows how to work with the banks and other brokers in order to successfully transact a short sale.

»The Short Sale Process: Seller

As a seller involved in a short sale you have to work with an agent that knows how to prepare a short sale package and communicate effectively with the loss mitigation department for the banks. Especially in south Florida, right now banks are taking longer and longer to pursue foreclosure actions due to the falling real estate market. This gives the seller a longer amount of time to conduct a short sale. If your house is worth less than your mortgages, and you are falling behind on your mortgage payments, HOA or COA fees, property taxes and other debt due to economic stress, it makes sense to short sale your house before the bank takes it over so you can deal with all of the creditors at once and settle your debts effectively.

After the short sale is approved by the bank, or banks if there are multiple mortgages, the banks still have the option to either come after the seller in court and obtain a deficiency judgment, or to write the loss off and issue a 1099 to the seller for the amount as income. As a seller, if you are issued a 1099, and are insolvent, then you need to contact a CPA to fill out IRS Form 982. There is a possibility that you won't be taxed on the gain. If you have do not have significant assets it is more likely a bank will not pursue you for a judgment. However, all banks have different policies, and they change all the time based on their current financial situations. If your facing foreclosure contact Harris Gilbert directly at (786) 371-4431 so we can attempt to short sell your property and potentially save your credit history.