Anyone who has considered buying, selling or leasing real estate in the last few years understands that market conditions have made it so that completing even the most basic transaction is anything but basic. Who would have imagined that the simple act of renting an apartment would warrant a title search to make sure the property is not in or about to enter foreclosure, or that it might take more than eight months to find out if an offer on a single-family home was accepted or even countered? The real estate industry today is unlike anything we have ever witnessed in the past as short sales, foreclosures, drum-tight lending requirements and many, many other factors are creating a multitude of problems that can catch even the most seasoned buyers and sellers off guard. So at this time, when the market offers as many headaches as it does bargains perhaps the most intelligent real estate decision you can make is electing to have an experienced real estate attorney on your side.
The rationale behind this notion is really very simple, whether you are buying, selling, lending or borrowing, a lawyer – your lawyer – is the only one looking out for your best interest in the deal. Unlike brokers, agents and other relevant players, your lawyer doesn’t have a vested interest in the actual transaction, but rather, as an advocate for you, earns his or her pay by making sure you understand your options, are protected from the unforeseen and will avoid problems hidden in the fine print. Furthermore, experienced real estate lawyers bring much more to the table than trained eyes and legal expertise. Through many years of working within the system, the connections and relationships your attorney has developed – with lenders, brokers, agents and other lawyers – can truly make all the difference when it comes down to getting things done. So while there may be nominal added expense, the truth is that legal representation may end up saving you, more than just money, in the long run.
With the number of foreclosures in South Florida up more than 71 percent in the first quarter of 2010 compared to the same time period last year and one in every 46 homes in some stage of the process, it seems almost certain that you, or someone you know, is in the midst of this very trying and tumultuous situation. So what do you do if you find yourself upside down, struggling to make your mortgage payments or facing the very real possibility of losing your property? The long and short answer is…it depends on your goals, your situation and how effectively you can assess your potential options and pursue them.
If you are one of the many, many homeowners that truly wants to stay in your home and are willing and able to make mortgage payments, there are several potential options. Often the best one is approaching your lender for a loan modification, which may actually be easier to obtain than refinancing. Many lenders will re-negotiate the terms of an existing mortgage depending on the situation. Of course, the process is in no way quick, easy or guaranteed, and patience, persistence and time are needed as most lenders are often short staffed and overburdened by a backlog of requests. However, this is a viable avenue and we have personally helped homeowners successfully re-negotiate the terms of their mortgage allowing them to keep their homes long term.
On the flip side, if a loan modification or workout is no longer your main objective, then your focus should be on minimizing your exposure and maximizing the amount of time you can remain in your house. The legal system is designed to protect you and your rights and there are a number of steps you can take within the law to resolve the situation while avoiding deficiency judgment and further damage to your standing, credit and personal life. However, there is no standard formula in this regard and perhaps the most important thing you can do in this situation is find someone with experience that you can trust to answer your questions, advocate and negotiate on your behalf and make an already stressful time somewhat more manageable.
After almost 20 years focusing exclusively on real estate law, it has been truly amazing to witness how much the market has changed in the past four years. From the implosion of the subprime and collateralized mortgage market and the collapse of Wall Street, to the rampant over-development and speculation in Miami and beyond, a wide array of factors have created turmoil, uncertainty and, in some cases, opportunity across all segments of the industry.
As part of the rapidly evolving paradigm that is the real estate market today, individuals from all backgrounds are coming to us seeking counsel on and asking questions about challenges, concepts and transaction types that were almost unfathomable just a few short years ago. The general lack of understanding about the realities of the current environment and what is possible within the law has led us to believe that many could use more and better information. To that end, over the course of the next 12 months, we will provide you with our perspectives on a number of the most commonly encountered situations in the real estate market today. Our hope is that by doing so you will begin to acquire the knowledge and confidence you need to appropriately manage your current holdings and future transactions.
We encourage your comments and feedback, and welcome you to the R&T Perspective.
Sitio Espanol