Umatilla Florida Blog

    Due to economic circumstances often beyond their control, many homeowners are finding themselves facing the prospect of losing their homes due to foreclosure. Foreclosure is the process by which mortgage holders (Banks) attempt to either acquire title to or receive payment for the real estate properties which serve as collateral for the funds they have loaned to borrowers.

    In some cases, the banks may be able to modify the terms of the mortgage to allow the homeowner (borrower) to make lower monthly payments and thus remain in the home. However, most cases result in some sort of foreclosure proceeding. The options for a homeowner at this point are basically reduced to three choices which are further defined by the circumstances surrounding the actual mortgage. The three choices are:

1. Short Sale. The homeowner finds a buyer for the home at whatever price the market will bear and which is usually less than the mortgage principal balance. The lender becomes a party to the transaction and must agree to sell the home at the reduced price. The difference in what was owed minus what was realized in the sale then becomes forgiven debt, and may become taxable income to the borrower. A short sale is usually the best way for a distressed homeowner to proceed because it's impact on the homeowner's credit is far less than that of an actual foreclosure. Banks would also prefer a short sale because they don't want to actually own the property.

2. Deed in Lieu of Foreclosure. In this situation, the borrower simply gives the property back to the bank in exchange for the bank's agreement to consider the homeowner's promissory note associated with the mortgage to be paid in full. While this may seem simpler than the short sale described above, typically banks do not want to actually own the properties and would rather the homeowner attempt to sell the home themselves. In addition, factors such as second mortgages further complicate things and make a "Deed in Lieu" solution less likely. As in a short sale, the forgiven debt may still be taxable to the borrower.

3. Foreclosure. In this scenario, the property has not been sold in a short sale and the bank did not accept a deed in lieu of foreclosure. The property goes to public auction. The bank incurrs significant legal expenses in this process and adds them to the mortgage amount owed by the borrower. The borrower's credit is significantly impacted by a foreclosure both in reduced credit score and in a much longer period of time that the event remains on the borrower's credit history.

    For a simple, easy to understand, discussion of the pros and cons of the first two options, short sale and deed in lieu, go to the following link:

    http://www.nolo.com/legal-encyclopedia/article-30016.html

    If you are finding yourself in a distressed situation with respect to your mortgage, I would highly recommend that you contact a Realtor qualified in this type of transaction. I would be honored to help you in this regard. Please feel free to call me at 352-455-3684.

    Thank you,

    Geoffrey F. Presson

    Broker/Owner

    Silver Beach Realty, LLC

Silver Beach Realty, LLC, of Umatilla, Florida is pleased to announce that, on September 25, 2009, it sold yet another Umatilla, Florida home.

The property, located in the Lake Smith Estates subdivision, was listed by Donna Spears, donnaspearssells@aol.com of ERA Neil Fischer Realty and Investments, and sold by Geoffrey Presson of Silver Beach Realty, LLC, www.silverbeachrealty.com. The home itself is a 3-bedroom, 2-bathroom block home built in 2002. It is 1,761 square feet, heated and cooled.

Geoffrey Presson of Silver Beach Realty, LLC remarked that the home was in excellent condition. The time from listing to contract was a short 27 days and the time from contract to closing was a mere 34 days. (As a benchmark, the six-month moving average of listing to closing in the Umatilla area is 134 days). These impressive figures are a testiment to the home being priced effectively by Donna Spears of ERA Neil Fischer Realty and Investments, and a tribute to the exceptional teamwork between Donna and the selling broker, Geoffrey Presson, of Silver Beach Realty, LLC. Geoffrey Presson also remarked that his buyers were pre-approved, motivated and responsive and that as a result, the entire transaction went very smoothly.

Assistance came from another area as well. The financing was arranged by Robert Warren robert.warren@bankofamerica.com of Bank of America Home Loans. Rob coordinated the bulk of the paperwork necessary to the loan approval process on which the entire transaction was based. His attention to detail in this regard definitely contributed to the short contract-to-closing time of 34 days.

One additional factor which bears mentioning is that the property included a one-year home warranty provided at no cost to the buyers by Silver Beach Realty, LLC. The warranty, through American Home Shield www.ahswarranty.com, covers all major systems in the home for a period of one year from date of closing. Similar home warranties are generally provided on all homes sold by Silver Beach realty, LLC.

For additional information on the many advantages of doing business with Silver Beach Realty, LLC, please contact Broker/Owner Geoffrey Presson at geoff@silverbeachrealty.com or telephone 352-455-3684.

On September 11, 2009, Silver Beach Realty, LLC was proud to announce that it had successfully sold a two-bedroom, two-bathroom waterfront home in the Three Lakes subdivision of Umatilla, FL. This home was originally listed on May 12, 2009 and closed in a short 122 days.

This home was listed by Geoffrey Presson of Silver Beach Realty, LLC. The selling agent was Janice Patterson of Home Real Estate Professionals of Mount Dora (www.wesellmtdorahomes.com, www.homesofmountdora.com).

Geoffrey Presson of Silver Beach Realty, LLC remarked that the home was in excellent condition and was priced effectively from day one. It was shown extensively and was under contract in only 48 days. (The long period of time from contract to closing was to honor a request by the buyers to postpone closing in order for them to be able to take advantage of the First Time Home Buyers’ Tax Credit program). Even with this delay, the closing occurred in only 122 days which is slightly better than the Umatilla area six-month moving average of 134 days.

Two additional factors were critical in the short 48 days from listing to contract. First, the property featured a home warranty purchased by Silver Beach Realty, LLC and given to the buyers at no cost. This warranty was with American Home Shield (www.ahswarranty.com) and covered all major systems in the house for a period of one year from the date of closing. Second, to complement extensive internet exposure, this property was additionally advertised using the Talking House system (www.talkinghouse.com). This program includes a small radio transmitter which is positioned in the house and which broadcasts a low-power recorded radio message explaining the features of the property. Interested parties merely tune their AM radio to a preset frequency to hear a short audio presentation. This can be done in the comfort of the home shopper’s own automobile.

For additional information about the many advantages of doing business with Silver Beach Realty, LLC, please visit our web site, www.silverbeachrealty.com or call us at 352-455-3684.