Since 2007, the amount of people threatened by foreclosure has risen dramatically. I donat think anyone could imagine the magnitude of the housing market meltdown and its aftermath. I often get questions about Florida bankruptcy laws. Below is a question that was recently posted asking about foreclosure vs. short sale.

Question: Iave been without employment for over a year and cannot meet my mortgage obligations. The bank has threatened with foreclosure on our home. At this point, what are the available options for us, or is there none? Additionally, could you explain what the differences are between a foreclosure vs. short sale?

These are two very good questions that I am sure many wonder about here in South Florida and across the nation. Let me address the second question before discussing the best options.

Differences – Foreclosure vs. Short Sale

A short sale is when a homeowner gets the opportunity to sell their home for less than what is owed. A homeowner must negotiate with the bank and must have them agreed to lower the payment amount. The trick is to not get stuck paying out a large sum of cash to get the short sale to close. The advantage of a short sale is that, in 2012, you have no tax consequences on any money that is forgiven by the bank.

A foreclosure, on the other hand, is when the bank forces the sale of a home, because the homeowner hasnat paid the mortgage and note. In foreclosure, homes sell for much less than what is owed. The borrower is not off the hook, as the lender usually places a judgment against the borrower for money still owed.

As far as what your available options are, my suggestion is to try to prevent a foreclosure, as this is not a good option. If you or anyone is threatened with foreclosure, look for a qualified foreclosure attorney so you may receive the best legal advice regarding your financial situation.

Did a quick search and did not see any posts on the topic of buying a house without using a realtor. If there is one please direct me to the forum, if not looking for some advice. We sold our house a year ago and are currently renting. We will be looking to buy a house in south Florida in the next 6-12 months, no urgency. I realize that the seller pays the buyers realtor commission almost always, so the common answer I get is “use a realtor you are not paying for it”. To which I say I am paying for it, the seller knows they have to pay typically 6% to realtor fees on the sale of their home and price accordingly (I know I did, although my realtor only charged us 1.5% so it was 4.5%). My theory is, if I don’t use a realtor will I be able to save that 3%? On a $300,000 house that is $9000, a significant amount of money. I assume the downfalls of no realtor is the process would take longer, as could not drive around looking at houses and going into look at them. We would have to wait for the sellers agent to let us in. We would pay for the home inspection anyway so not losing that value by not using realtor. As far a doing comps, which is what realtors often site as their area of expertise, I am confident I could do a comparable job of finding comps and asking a fair price. Although in this market especially in south florida there are so many house available I plan on trying to offer a low ball offer on many houses and see who bites? Also on a somewhat wider topic, if buying a foreclosure or short sale from the bank with a buyers agent who pays their 3%? I assume the bak wont pay it does the buyer then pay that amount? Thnaks to all who read I know this long-winded but looking for some real wolrd answers or theoretical either way. IS there a benefit to a realtor and if so is is worth $9000? Has anyone bought without a realtor how did it go?

I need a quick feedback from the community what is customary pricing for attorney’s fees.

I am sending description of my case to a local real estate attorney and can expect a request for retainer fee on Friday. At this stage, I need him to write a strong worded letter to the seller and/or listing agent threatening to sue for a specific performance. I am the buyer who accepted at the end the bank’s counteroffer (at market value, I paid an appraisal just for myself)
I believe towards the final stage of the short sale (after the bank’s first counteroffer), the listing agent took and has submitted other offers. He is claiming those were not above my and bank’s price.
He violated the contract – such action was not allowed. We sent him a “cure notice” to correct this infraction but instead he has just forwarded today a cancellation of the contract from the seller (just one sentence and empty line for seller’s signature, obviously he has prepared this for the seller).

Time is of essence as the bank can accept any offer at their asking price submitted by the seller/listing agent. Only the seller is contractually bound to me.
I think we have breach of contract (the sellers actions) here. The agents actions (parallel submitting) could be considered “intentional interference with contractual relations” ?

I hope that immediate strong posturing can bring this to close. I possibly would not pursue a law suit as it may be difficult to specify my loss = missed opportunity of another purchase. (The market here is hot and this is a special property which I still want)

Please feel free to comment beside the legal services pricing also on other aspects of the situation.
First flag was that there was a pool repair done well into the short sale process. Makes no sense to pay $3k if I am loosing a house in short sale. Also, the short sale is being decided by a second lien holder, as the first bank comes out whole and is still being paid (! why?) I suspect the listing agent wants double dipping by dual agency with some investor and I am an obstacle. Or, the seller has changed his mind, maybe wants to do a transaction with a relative or might be pursued for a deficiency by the bank (he is out of state and used this only seasonally, but had mortgage address here)