Florida Law: Unpaid tax certificates (after the auction) are guaranteed 18% notes from the government. Redeemable 2 years.

A tax certificate may be held for a minimum of two (2) years but not more than seven (7) years. At any time between the second and seventh year, the certificate holder may request the sale of the property to satisfy the certificate. The certificate holder must apply for the tax deed sale by presenting the original certificate to the Tax Collector. More information on Tax Deed sales here.

Short Term: If you own 2 years of the tax liens, you can file for a tax deed and become first position (Always get your money + interest owed). If during the redemption period seller does not repay the taxes TITLE is reverted to the government and all junior liens are ERASED. That means if you invest $7,000.00 in 3 years tax liens and acquire the property (not probable but it does happen, especially in Florida) and the property is worth $30,000.00, you will own outright this property for a total investment of $7,000.00 for 3 years.

Long Term – After 2 years: At a tax deed sale, the minimum bid is generally the amount of back taxes owed plus interest, as well as costs associated with selling the property. Bidding is done in increments from $10–$100 in most states. In the event the property is not purchased, title may revert to the county government. In most jurisdictions, the county transfers title in a tax deed sale through either a Tax Deed or a Sheriff’s Deed. The purchaser of a tax deed may transfer title through a quitclaim deed but would need a quiet title action to sell with a Warranty Deed (given that a Tax Deed, Sheriff’s Deed, or quitclaim deed are insufficient to acquire title insurance).

Author: Ruben Pizarro; Realtor – Plantation Realty; My Florida Investors – President; 5620 US Hwy 98 North, Lakeland, Florida 33809; 863-409-1734

Lenders will file a tidal wave of lawsuits against homeowners in the next few years as a way to recoup losses when home sales or foreclosure auctions don’t result in enough money to pay the mortgages in full, real estate and legal analysts say.

Under Florida law, banks have five years from the date of the sale to file for so-called deficiency judgments and up to 20 years to collect. Lenders can garnish wages or make claims on borrowers’ assets.  Before the housing meltdown, few lenders filed these lawsuits. Foreclosures and short sales were relatively rare at the time, and many of the homeowners didn’t have sufficient assets to make it worth the banks’ time and expense.  But following the heady days of the housing boom that spawned millionaire investors seemingly overnight, it’s not uncommon for borrowers to default on mortgages while still holding lucrative investments.

As the next wave of the housing crisis plays out, those most in danger of getting slapped with lawsuits include angry homeowners who ransack properties they’re losing in foreclosure and borrowers who walk away from “underwater” mortgages. In both cases, analysts say, banks will want to discourage other people from such behavior.

The new Home Affordable Foreclosure Alternatives Program, or “HAFA”, starting today, is set to streamline the process of home short sales and deed-in-lieu-of-forclosure sales.

In a short sale, the servicer allows the borrower to sell the property for less than what is owed on the mortgage. The rest that is owed on the mortgage is forgiven. In a deed-in-lieu of foreclosure, the borrower transfers their property ownership to the servicer to avoid foreclosure.

Of course, there are financial incentives for the servicers. These include payments for borrower relocation assistance, payments for administrative and processing costs, and other investor incentives.  The incentives are also reported to be paid to the servicer on a one dollar ($1) for every three dollar ($3) matching basis.

It has also been reported that, if you first apply and are eligible for a modification under The Home Affordable Modification program, or ”HAMP,” then you are eligible under this new program.  Some of the requirements state that the  property in question must be your principle residence, and your mortgage must have originated before January 1, 2009. Eligibility under HAMP and HAFA means that your short sale will be approved and you will not be held to any deficiencies at time of sale.

The program is set to last until December 2012.

If you have been served with a foreclosure action, send the Complaint and Summons to our Fort Lauderdale office immediately if you have not already.  If you have the means, please scan and email them to AHuxhold@spl-law.com.  Otherwise, fax or mail them.  You have 20 days to respond to this lawsuit calculated from the date you were served with the Summons and Complaint.   Note that you have many options.  You might severely compromise those options if you or your attorneys do not meet this deadline.  However, if you are already too late, do not give up.  There are still significant options open to you.  The bank most likely does not want to take, and become responsible for your property.  They would prefer an amicable solution which saves them litigation costs, and which gets them paid something in the short term.

Our firm has been defending these actions on behalf of our clients for several years now, since prior to the start of the mortgage crisis.  The strategies of the banks, strategies of our defense, the economy and the law are constantly changing.  Our firm keeps up on these changes, and we are practicing before the Florida courts virtually every day to help property owners save their properties, and avoid long-term financial disaster.

Homeowners stuck while banks mull whether to approve short sales could benefit from new federal guidelines that give lenders a 10-day limit to respond to offers.

As 2009 came to a close, the Supreme Court approved the managed mediation program recommended by the task force it created to deal with Florida’s mounting foreclosure crisis.

On December 28 — In re: Final Report and Recommendations on Residential Mortgage Foreclosure Cases (case no. AOSC09-54) — the court addressed the Florida foreclosure problem, which encompasses “the worst foreclosure inventory and the most foreclosure starts in the nation,” and now 456,000 pending foreclosure cases statewide.

Intellectual property attorney Michael Santucci finds himself all too often fighting a new foe these days – the banks that have begun pursing his  clients unmercilessly with foreclosures and lawsuits to collect unpaid credit card debt.

An estimated 450,000 Floridians are in foreclosure. A recent report indicated that another 11.6 percent of Florida property owners are more than 30 days past due on a mortgage payment, suggesting more trouble ahead.

“Times are tough and money is tight, but people need to know they have certain rights and they can fight back.  We can usually help no matter how bad the situation.”