FLORIDA SHORT SALES/CONDO DUES/THE NEGOTIATION WITHIN THE NEGOTIATION

Investors looking to cash in on the collapse of the real estate market in Florida should beware of the condominium fees conundrum. To put it simply, during the default period of the loan the owners often rent out the properties, but do not pay the condominium fees. This means that even after you have negotiated a short sale price with the bank, the issue still remains how to deal with the condo dues and assessments that exist in all planned communities.

You should be aware that the condo association will need a separate authorization to talk to your representative, and then in most cases your call will be referred to their lawyer.  The first thing you need to request is a payoff balance. If you request it in writing this is known as a estoppel letter. The condo associations have been so inundated with letter requests that they charge a hefty fee to prepare the estoppel letter. I suggest you let the bank order the estoppel letter.

After obtaining the estoppel figure you have to negotiate the amount of money to be contributed between the condo association and the bank, to resolve the delinquent fees and assessments. Be aware that Florida foreclosure law limits the amount of fees the bank will have to pay if they complete the foreclosure, so the banks will be difficult to negotiate with. On the other hand, if you are making a great deal, the condo association will also be difficult to negotiate with, as they will want to share in your spoils.
On government backed loans their is an interplay between the regulated  payoff amount, and the payment of the condo fees. An experienced short sale negotiatior can resolve these issues and insure that your deal does not collapse prior to, or at the settlement table.

CLOSING FANNIE MAE FREDDIE MAC SHORT SALE PROPERTIES.

Today we closed a  Wells Fargo/Fannie Mae short sale. After sitting at the settlement table for two and a half hours waiting for the final sheet to be approved I could not refrain from commenting on my observations. Short sales on government investor properties are tricky. The regulations promulgated by Fannie and Freddie force the lenders through a complex process to insure the final acceptance and payoff of the loss.

Most real estate agents  and the majority of title agents, (even the lawyers) have no idea how to resolve issues arising from changes in the settlement sheet that vary from the original short sale approval letter. We are always available to our customers to resolve these issues that arise at closing.

Investors should always stay away from  Fannie/Freddie properties as the regulations stifle your ability to wholesale the properties. Conventional loans are far more lucrative and easier to negotiate. But if you find yourself knee deep in the government quick sand we can throw you a tree limb, and drag you out.
There has never been a better moment in my lifetime to invest in real estate, just do not buy retail.