New changes for Miami Beach Real Estate Sellers and Buyers are taking affect this year. Many waterfront Miami Beach sellers can be affected by the latest market twists and turns. This year, beginning March 1st, Fannie Mae and Freddie Mac will begin the process of allowing some Miami Beach home owners to cancel their underwater mortgage debt using a deed in lieu foreclosure alternative. If you are wondering how and if this applies to your Miami Beach single-family home there are details every Miami Beach property owner should know.
If you have a Miami Beach home and you need to move for job relocation, status changes, or reasons relating to illness or because of needs relating to military service, but couldn’t because of the inability to sell your Miami Beach home, you can benefit from this change. Deed-in-lieu transactions for Miami Beach real estate sellers are being offered to struggling waterfront and single family home owners who are current on their mortgage or less than 90 days late on their payments, although there are rules and consequences.
To qualify to turn over your Miami Beach home without penalty, you must have house payments that equate to equal or more than 55 percent of your monthly income and be able to show documented “hardship.” Your Miami Beach home for sale must also be in good shape, meaning not damaged and relatively clean. The benefits of this option are that the decision making process can progress more quickly and simply, and that properties will remain in good condition helping neighborhoods improve, and in some cases, borrowers may even receive financial relocation assistance.
While this solution does not fit every Miami Beach real estate seller needs (since it could require use of retirement funds to pay part of the loan balance) and is only valid for use on primary mortgages, it definitely will be of help to some. Up to $6,000 can be used by mortgage lenders to negotiate loan release for borrowers. Find out more by clicking here.
In the last six years the Miami Beach housing market and mortgage lending professions have seen a lot of change. Click here to view Best Intentions: The Highs and Lows of the Miami Beach Home / National Affordable Modification Program, a report which outlines these historical events in the Miami Beach and national real estate market produced by the Consumer Federation of America.