Space Coast FL Realty
Agi Anderson, Digital Diva

Case study: Investor’s Mortgage Payment Triples

Behind Mortgage Payment

An investor I am now helping has a Suntrust equity line payment that was $463 per month. In the fall of 2015 it shot up to $1549 per month. After many calls and deliberation, in February 2016, Suntrust advised they were willing to reduce his payment to $1101 per month. However, the payment was still more than double of what what he was paying.  The investor said, “Agi, I had to come to terms and accept I am unable to make this property work, I am relieved that you can help me sell in a short sale.” This property is being marketed as a short sale in the Brevard MLS.

Check back. Updates will be posted until the property closes

The investor has more than one problem, he has two mortgages. In order to sell his property in a short sale my team and I have to work with both lenders. The investor stopped paying both mortgage payments, so the property will go in default in about 90 days. Even though we are communicating with both lenders about the short sale, if the property does not have a contract within 90 days, chances are my investor will receive a lis pendens default notice.

Fortunately, FL Prevention Services has a proven method on how we process a short sale, even with two lenders, in order to expedite the process when an offer is accepted by the seller. It is the seller who accepts the contract, however, both lenders must approve the sale to sell short, meaning the sale price is less than what is owed on both mortgages.

Does Mortgage Forgiveness Debt Relief Act apply to investors?

Many investors are under the impression that they are not able to sell  in a short sale, however that is not the case in this case or any other sell short situation. A real estate investor is not protected with the Mortgage Forgiveness Debt Relief Act. Only primary homeowners are eligible for mortgage forgiveness, they do receive a 1099 upon closing in a short sale, however will not be subject to paying income tax. My investor will also receive a 1099 but he will subject to income tax.

The long and short of it, a  short sale is far less invasive than a foreclosure.  Credit recovery is much quicker and there is no judgement for the deficit resulting from the shortage in the short sale.

Increased Mortgage Payments Behind on mortgage

Many property owners who purchased property with an adjustable rate mortgage between 2005-2007 are experiencing increased mortgage payments because the loans are converting. Many property owners, are faced with payments doubling, in this case with my investor client, the payment tripled. Obviously the payment amounts are too difficult to keep up and owners get behind on mortgage. Lenders are not making loan modifications that make a difference, so what’s an owner to do? The best option is selling the property in a short sale. The short sale process requires time, patience and paperwork, lenders require proof that the property can not sale in a traditional sale.

Reach for Mortgage Relief

FL Prevention Services makes it as painless as possible for residential homeowners and real estate investors, to sell in a short sale. Our aim is to expedite short sale transactions. The Short Sale Expedited’s™ proven processes and highly synergistic lineup of title attorneys, closing agents, buyers network, and skilled negotiators, ensure the most successful outcome to the owner’s situation. If you or someone you know are suffering with increased mortgage payments,  our Short Sales Expedited™ services are available to you at no charge and no obligation. Even though we work directly for you, we are compensated by the bank or by the buyer. Mortgage relief is in sight, click here to start the confidential process.

Posted on July 19, 2016 at 3:02 pm by Agi Anderson, Digital Diva

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