Short Sale at No Cost to Homeowners 

We are pleased to announce a recent joint venture, aimed at assisting the homeowners with upside down mortgages, between Coldwell Banker Thomas J. White Realty and The Law Office of Paul A. Krasker, the two trusted brands in real estate sales and purchase and real estate law.  The collaboration offers a unique opportunity to homeowners to walk away from their debts through a short sale process without any future financial consequences and also creates the opportunity to receive up to $10,000, and in some instances even more, for their relocation expenses.

The process is streamlined to reduce the stress of homeowners who are in financial hardship due to some unfortunate circumstances.  The Port St Lucie short sale opportunity replaces the dreaded foreclosure or bankruptcy treats.  There are many advantages to the short selling of your home.  The damage to credit is temporary in comparison to the other two options and FHA loans for purchase of a new home is possible 6 months after the short sale.  Furthermore, the stigma of bankruptcy is proven to have adverse effects in future of the homeowners, while with the short sale they can get their financial stability back in a shorter period of time.

The process begins with listing the home as a Port St Lucie short sale transaction through one of the short sale specialists at Coldwell Banker Thomas J. White Realty.  Upon finding a buyer by your real estate agent, the experts at The Law Office of  Paul A. Krasker takes over the negotiations with the lender till all terms are agreed on by both buyer and the lender.  The foreclosure procedure comes to halt through motions filled by the attorney at the law office during all the short sale process .  This afford the homeowners an enjoyable stay in their residence without the stress associated with phone calls and letters from the lenders.  The amount of the homeowner’s work in short selling their homes is limited to gathering and signing the necessary paperwork.  The real estate agent and the law office employees will act as the authorized persons to work on behalf of the homeowner and negotiate with buyers and lenders.

The best part of short selling your home is the fact that there is no cost to sellers for both the work by Coldwell Banker Thomas J White Realtors or The Law Office of Paul A. Krasker’s employees.  In other words, you will receive FREE SERVICES from two of most recognizable names in real estate industry and have the opportunity to get paid as well.

For more information and arranging an in-person meeting with our short sale specialist simply call or email us at:

Phone: (772) 323-6730

Email: info@portstlucie.city

Buying Foreclosure Properties

The economic meltdown of the last decade has changed the landscape of the real estate and real estate investment foreclosure properties. The appearance of new terminologies such as Bank Owned and REO in our daily vocabulary has also meant the introduction of a new real estate market with rules different from the traditional real estate that we were accustomed to in the past. Although the opportunity to buy a REO property for below the fair market value is a tempting proposition however, in reality, it might not be as simple as it sounds. Many of these properties have been neglected for a long period of time and are in a dire need of repairs. While some repairs could be cosmetic and visible to naked eyes the other hidden repairs might prove more costly that one has estimated. Some foreclosure properties could have been affected by other liens and deficiencies, such as non-payment of utilities or local taxes.

The Difference Between Foreclosure and REO or Real Estate Owned

1. Buying Foreclosure Properties in Florida

It is imperative that all buyers conduct thorough due diligence prior to taking a step toward buying foreclosure properties in Florida. To start let’s examine the meaning and the process of the foreclosure along with the requirements that buyers have to comply with when acquiring such properties.

Foreclosure Process: After courts grant judgment to financial institutions, primarily for non-payment of the mortgage by the homeowners, the banks start the foreclosure process. The purpose of the foreclosure process is for the banks to recuperate the unpaid balance of the loan, accrued interest, attorney fees and other costs associated with a foreclosure process. The next step for these financial institutions, or the trustees, is to try to sell the foreclosed properties through a foreclosure auction process.

Requirements to Buy a Foreclosure Property: To buy a foreclosure property the buyer needs to have a cashier’s check for not less than the full amount of the minimum bid, all previously mentioned costs. Another important point to consider when purchasing any foreclosure property is for buyers to acknowledge that they will receive the property “AS IS”. In the case of foreclosure properties the term “AS IS” has a very broad implication, which could include buyers’ responsibilities to see that the property is vacated by previous owners, tenants or any other occupants. Buyers also assume responsibility for all liens, unpaid taxes and zoning violations that might have encumbered the title to the property.

2. Buying REO or Real Estate Owned Properties in Florida

Many foreclosed properties do not receive enough bids sufficient to cover the minimum bid that is set prior to the auction. At this time, all unsuccessful foreclosure properties become the property of the bank and referred to as Real Estate Owned or REO. This means that REO properties are actually the by-products of failed foreclosures and a result of the unsuccessful foreclosure process. The risks that were associated with foreclosure properties are reduced drastically when they become Real Estate Owned or REO Properties. When purchasing REO properties the buyers will receive the properties as vacant and don’t have to worry about evicting the tenants or previous homeowners. Also, all past due taxes along with other encumbrances such as liens and zoning violations will be cleared by the financial institutions that are in possession of the REO properties. This means that unlike the foreclosure properties the buyers of REO properties would receive a title or deed that is free and clear of any and all encumbrances.

The REO properties are normally listed somewhat below the fair market value and do not carry the risks that are associated with most foreclosure properties. While the bank-owned, REO homes are good choices for first-time home buyers, investors and anyone in need of dependable housing, but like any other investment, the homebuyers might do their homework and always employ the assistance of a real estate professional.

REO, Real Estate Owned Properties in Port St Lucie

Buying REO, Real Estate Owned, or as commonly known the Bank Owned Properties in Port St Lucie offers all advantages that we discussed earlier plus a better price point that results in getting more properties for your the money. The 2014 year-end analysis of the real estate market in St Lucie County is clearly the indication of the fact that the better deals are still in this country.  The following data is compiled from the annual report by Florida Realtor Association, FAR:

While the Median Price for St Lucie County for 2014 established at $145.000, the Median Price of $218,000 was recorded for the neighboring Palm Beach County during the same calendar year. Also at the same period, the St Lucie County homeowners enjoyed a higher rate of appreciation on their real estate, by 16.3%, against the 11.8% increase in property values in the Palm Beach County. From major cities in St Lucie County, the City of Port St Lucie showed a 16% appreciation, with Median Price of $145,000 while Jensen Beach showed their Median Prices dropping from $250,000 to $179,000 or a 12.7% decline and Stuart had an increase of 14.7% bringing their Median Prices to $188,000.

Although the opportunity to buy a REO property for below the fair market value is a tempting proposition, in reality, it might not be as simple as it sounds. Many of these properties have been neglected for a long period of time and are in a dire need of repairs. While some repairs could be cosmetic and visible to naked eyes the other hidden repairs might prove more costly that one has estimated. Some foreclosure properties could have been affected by other liens and deficiencies, such as non-payment of utilities or local taxes.

Studying this report proves that while some markets are heading toward becoming out of reach for many middle-class families, Port St Lucie, and St Lucie County homes are still within the reach and are the clear choice for homebuyers and investors alike.

Fannie Mae Foreclosure Properties

Fannie Mae may have the following or similar verbiage in their agreements indicating once the property is closed the Real Estate Transaction is final.  Essentially if the real estate taxes increase after the closing due to the removal of Homestead, Fannie Mae, will not reimburse for the difference in proration after the closing.  Fannie Mae does not always file the real estate Deed right away with the St Lucie County Property Appraiser office.  Fannie Mae does not pay transfer taxes on deeds.  So the sale which shows Fannie Mae as an owner may not show up until they sell the property to the new Buyer.  At this time, when the deed is being recorded the homestead may be removed resulting in an increase in the property taxes.  Most often the new property tax statement is not  for the current year at the closing and for that reason the previous year tax statement will be used to prorate taxes between Seller and Buyer on the settlement statement.

 Although the tax office always indicates that Port St Lucie Homestead Exemption is not transferable, which is correct in a sense, but in some occasions the new home buyer will enjoy the previous owner’s exemption.  This is how it works; the Homestead exemption has a deadline to file and new owners have until the end of the year to comply with filing for a homestead.  Now, what happens if you buy a home that has Homestead Exemption during the month of January?  First of all, if the previous owner buys a new home he has to wait until the end of the year to apply for homestead, which means his homestead will stay with the home he sold till county change that in new tax cycle.  This means his homestead will stay on his prior house until around August when the county reassesses the taxes and since the homeowner with homestead doesn’t own the property anymore, they will remove his homestead at that time.  Meanwhile, the new homeowner will pay the taxes that were calculated to the previous owner, including the homestead benefit, till August.

In many occasions and especially when prices are on the rise, the county will assess the new home buyer’s taxes higher than before.  At this time, the original tax base increases when the homestead is removed.  This will have an increase in the new home buyer’s taxes till next tax cycle when their homestead has taken effect.

What does this mean to the buyer?  This means your property taxes can go up once the Homestead is removed for the year of purchase leaving you no alternative but, to pay the difference in real estate taxes.  This also means if your escrow was funded on last year’s tax rate your mortgage will go up to make up the difference in Escrow shortage.   
Please Note: The property taxes could become complicated at times like any other tax related issues.  The purpose of this article is for a general informational only, the author is not a tax expert.  All home buyers should consult a tax advisor or a closing attorney for information regarding property taxes during closing. 

Following is an example of an actual verbiage used in the Fannie Mae’s Addendums:

10. Closing Costs and Adjustments:

(a) The Purchaser and the Seller agree to prorate the following expenses as of the Settlement Date: real estate taxes and assessments, common area charges, condominium or planned unit development or similar community assessments, cooperative fees, maintenance fees and rents, if any. In determining prorations, the Settlement Date shall be allocated to the Purchaser. Payment of special assessment district bonds and assessments, and payment of homeowner’s association or special assessments shall be paid current and prorated between the Purchaser and the Seller as of Settlement Date with payments not yet due and owing to be assumed by the Purchaser without credit toward Purchase Price. The Property taxes shall be prorated based on an estimate or actual taxes from the previous year on the Property. All prorations shall be based upon a 30-day month and all such prorations shall be final. The Seller shall not be responsible for any amounts due, paid or to be paid after closing, including but not limited to, any taxes, penalties or interest assessed or due as a result of retroactive, postponed or additional taxes resulting from any change in use of, or construction on, or improvement to the Property, or an adjustment in the appraised value of the Property. In the event the Seller has paid any taxes, special assessments or other fees and there is a refund of any such taxes, assessments or fees after closing, and the Purchaser as current owner of the Property receives the payment, the Purchaser will immediately submit the refund to the Seller.

(b) Fannie Mae is a congressionally chartered corporation and is exempt from realty transfer taxes pursuant to 12 U.S.C. 1723a(c)(2) and will not pay realty transfer taxes regardless of local practice. Any realty transfer taxes due on the sale as a result of the conveyance of the Property will be the sole responsibility of the Purchaser.

(c) The Seller shall pay the real estate commission per the listing agreement between the Seller and the Seller’s listing broker.

(d) Purchaser shall release Seller from any and all claims arising from the adjustments or prorations or errors in calculating the adjustment or prorations that are or may be discovered after closing. THE PURCHASER AGREES TO EXECUTE AND DELIVER TO THE SELLER AT CLOSING FANNIE MAE’S Tax Proration Agreement 03/2011.  

10. Closing Costs and Adjustments: (a) The Purchaser and the Seller agree to prorate the following expenses as of the Settlement Date: real estate taxes and assessments, common area charges, condominium or planned unit development or similar community assessments, cooperative fees, maintenance fees and rents, if any. In determining prorations, the Settlement Date shall be allocated to the Purchaser. Payment of special assessment district bonds and assessments, and payment of homeowner’s association or special assessments shall be paid current and prorated between the Purchaser and the Seller as of Settlement Date with payments not yet due and owing to be assumed by the Purchaser without credit toward Purchase Price. The Property taxes shall be prorated based on an estimate or actual taxes from the previous year on the Property. All prorations shall be based upon a 30-day month and all such prorations shall be final. The Seller shall not be responsible for any amounts due, paid or to be paid after closing, including but not limited to, any taxes, penalties or interest assessed or due as a result of retroactive, postponed or additional taxes resulting from any change in use of, or construction on, or improvement to the Property, or an adjustment in the appraised value of the Property. In the event the Seller has paid any taxes, special assessments or other fees and there is a refund of any such taxes, assessments or fees after closing, and the Purchaser as current owner of the Property receives the payment, the Purchaser will immediately submit the refund to the Seller. (b) Fannie Mae is a congressionally chartered corporation and is exempt from realty transfer taxes pursuant to 12 U.S.C. 1723a(c)(2) and will not pay realty transfer taxes regardless of local practice. Any realty transfer taxes due on the sale as a result of the conveyance of the Property will be the sole responsibility of the Purchaser. (c) The Seller shall pay the real estate commission per the listing agreement between the Seller and the Seller’s listing broker. (d) Purchaser shall release Seller from any and all claims arising from the adjustments or prorations or errors in calculating the adjustment or prorations that are or may be discovered after closing. THE PURCHASER AGREES TO EXECUTE AND DELIVER TO THE SELLER AT CLOSING FANNIE MAE’S Tax Proration Agreement 03/2011.

Foreclosure or Short Sale Home Buyers in Port St Lucie

There is a new influx of home buyers in Port St Lucie interested in buying homes after the foreclosure of their home during the past few years.  The real estate meltdown of the last decade has put many of these homeowners out of the real estate market.  The large majority is somewhat gun shy to jump back into home ownership and some are uncertain of rules for obtaining a loan after a foreclosure or short sale.  This is while the Fannie Mae guidelines have seen some significant changes in favor of such home buyers during the past few years.