‘Short Sale’ Opportunities Could Grow In Wake Of Flawed Foreclosure Paperwork
WEST PALM BEACH, FL (Oct. 14, 2010) – Foreclosure paperwork mishandling by lenders and their legal representatives could provide an opening for individuals attempting to “short sale” their properties, Realtor and real estate mediator Deidre Newton says.
“Attorney Generals and consumer groups are questioning whether lenders have filed, based on overwhelming volume, insufficient or illegal paperwork against property owners who have fallen behind in their mortgage payments,” Newton says. “The challenges in the courts may result in a significant delay of foreclosure cases for several months, if not longer.”
But for those individuals making payments but having a hard time selling their property because their mortgage has become higher than the value of their home, the foreclosure paperwork fiasco could be beneficial, Newton said.
“The foreclosure paperwork mess might create added leverage for ‘underwater’ home owners,” said Newton, founder of the Real Estate Negotiation School, www.renegotiationschool.com.
“Lending institutions might be more willing to negotiate the sale of such properties to move them off their books,’” Newton said. “While short sales are not optimal for lenders, they might see them as a pragmatic way of keeping people from abandoning their homes and creating a greater devaluation of properties and blighting of neighborhoods.”
A frequent contributor to media reports on the real estate scene, Newton is participating in a series of “Florida Housing Help” workshops sponsored by the state Department of Financial Services, http://www.myfloridacfo.com/Consumers/OutReach/FLHousingHelp.asp.
The next workshop is this Saturday, Oct. 16, 10 a.m. to 4 p.m. at the City of Lauderhill City Hall, 5581 W. Oakland Park Blvd.
Newton will also be holding a seminar called “Short Circuit the Short Sales” from 9-11 a.m. next Wednesday, Oct. 20, with members of the Jupiter-Tequesta-Hobe Sound Association of Realtors, 901 W. Indiantown Rd # 18, in Jupiter.
(For additional information, contact Newton directly at (561) 685-0386 or isellwpb@aol.com)
