Super-Priority Liens may cost You more Money

Maybe you have heard from the financial crisis in housing industry from years ago. At that time only the lenders had the opportunity and the money to foreclosure on a home. But as soon as the homeowner was in default and did not pay the mortgage, they often also stopped paying their homeowner association fees when their property was located in a mandatory homeowner association community.

The unpaid association fees to the homeowner association resulted in a shortfall of the association's budget and the remaining homeowners of the association had to cover that shortfall. This financial problem of the homeowner association started to happen shortly after the financial crisis in many state and the homeowner association began to foreclose on the defaulting homeowners themselves.

However, in these cases the mortgage of the lender was not erased from the property records and the banks could still foreclose on the property later and they often did. During this period the lender did not pay the homeowner association fees but the new title owner, which were often the homeowner associations could at least rent the property and cover their shortfall with the rental payments.  

Now 22 states and the District of Columbia have granted the homeowner associations a so-called Super-Priority Lien. This means that such a homeowner association liens that results from not paying the homeowner association dues will have the priority before the mortgage lien of the lenders.

This is a potential risk for the lenders and can lead to higher interest rates for such a mortgage in a homeowner association community or a higher down payment requirement for the purchase. Either way you as the home buyer will have to pay the price. Therefore check with your lender their policy in this matter before you make your decision to buy a home in homeowner association community.

Need more information? You can contact us at andrea@florida-informations.com.
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High End Foreclosures

You think that is not possible? Such people have tons of money and can sit out the market downturn and financial crisis? That would be nice but these individuals have also their financial troubles. The only difference is that their foreclosure drama often starts later then that one of you and me.

The housing crisis and the stock market crash in 2008 affected the wealthier people with home values of $750,000 and more in the same way but they could survive the meltdown and avoid foreclosure longer than the ordinary middle class. The ordinary housing market had its highest foreclosure level in October 2011 while the high priced luxury market had its highest numbers in May 2012 and it is not yet over.

The states with the largest number of high end luxury mansions in the foreclosure process are New Jersey, New York and Florida. These states belong also to the states where many rich people own their primary or secondary residence.

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Foreclosures are back to normal

Since the burst of the real estate bubble with all its impacts on the housing market, Florida is back on its normal pace. However, Florida is still at the top of all states with its foreclosure numbers. The numbers are on the lowest level since 2006 and only 2.3 % of homes that have a mortgage are in default. This is great news after the horrific years.

However, there are still 4 Florida cities at the top list of foreclosure numbers. One is close to home: Miami and the other three are in the middle region: Tampa, Orlando and Melbourne-Titusville.

Florida is still on the top when it comes to the time period of the foreclosure proceedings. It takes the banks nearly 2 ½ year to take passion of a financed property. That is bad for the banks but good for home owner because they normally stay in their home.

For more information about your opportunities you can reach us at andrea@florida-informations.com