Avoid Foreclosure By Watching For The Signs – Inside the real estate foreclosure market – Tacoma News Tribune
The surge in home mortgage foreclosures has added to the huge inventory of homes for sale and potential homebuyers are waiting for home prices to bottom out before buying. As banks attempt to unload their foreclosed properties and homeowners in danger of a home foreclosure seek to find relief from their mortgages, the pressure is on to lower home prices. However, when do you know when homes have bottomed out and it’s the right time to buy? By checking the following you can gain insight into a home market turnaround.
- Mortgage defaults–when the number of foreclosures is rising you can be sure that home prices are falling. You can find information regarding REO (the real estate term for foreclosed properties) through the county recorder’s office in your area.
- Home foreclosure sales–this is the actual number of foreclosure filings which can also be determined by going to the country recorder’s office or you may find help from a title company. Home foreclosures are generally listed between 10-20% below the current market.
- Builder’s permits–builders know how to read their local market and if you begin to see a consistent rise in builder’s permits you are seeing a change in the housing market pulse.
- Existing home sales–you want to look for an increase in the moving average during the last 12 months in your area to see whether the market is beginning to shift more toward a seller’s market
Monitoring these indicators can help you determine when it is time to buy. With interest rates as low as they are, pick a safe mortgage to avoid the foreclosure pitfalls that many homeowners are facing today.
Can someone explain the mortgage foreclosure process?
Florida. Also, can a mortgagee put a lien on other assets if not used as security in that mortgage?
This is not specific to Florida but, the general foreclosure proceeding is:
1. Foreclosure suit filed in court and with the county recorder's office
2. Mandatory filings, notices and a statutory period of 'right to redemption' [depending on state law and the type of deed 30 days to 7 months]
3. If all $ in the arrears plus legal cost aren't paid the judge will issue and order and of foreclosure , this also transfers title of the property to the lender.
4. Foreclosure sale, which will probably leave a deficiency balance which is a judgment against you. And this amount can be collected by the lender from other assets just like any other judgment.
Advice: Sell the property before the foreclosure sale or give the lender a deed in lieu [return the property to them] if you are concerned about other assets being at risk. Although some types of assets are judgment proof [pensions, primary residences, % of wages, etc.], you should consult an attorney about the specifics
hope that helps.
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To answer your specific second question: Yes, in Florida the lender can get what is called a deficiency judgment. That means the lender can go to court, get a judgment against you for the remaining amount owed plus expenses associated with the foreclosure and deficiency collection, and start attaching other assets.
http://www.foreclosurelaw.org/Florida_Foreclosure_Law.htm
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You don't pay, lender files default with county, foreclosure begins, you are given notice as to the date of the sheriff sale and when you have to vacate the property. And yes if the lender isn't able to recoup the balance on the mortgage when the property is sold, then can put a judgment lien against you, and/or file a 1099 form with the IRS grossing up your income for the year.
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