Will the rush to buy in Florida result in legal problems for new homeowners?

Florida – November 30, 2022

Home sales activity may dip in South Florida next year, while prices will continue to grow, according to Realtor.com’s 2023 housing forecast. This may be an issue of demand as many from out of state rushed to secure properties in Florida in the last year.  The projections say mortgage rates will increase to 7.4% early in the year and retreat to 7.1% by year end. The median price for existing home sales is projected to increase 5.4% and rents will hit new highs with a 6.3% increase, adding to budget pressures for potential first-time homebuyers, the report said. Did impulse buying of Florida real estate leave buyers with debt they cannot pay?  If you are a buyer or seller that is experiencing contract breaches, mortgage disputes, foreclosure actions and implied warranties disputes, consultation with a Florida real estate attorney may be prudent.

Foreclosure.

Of all the legal problems surrounding home buying, foreclosures may the biggest risk to those who have bought on impulse at high purchase prices that their budget will not sustain. A real estate lawyer can assist with a foreclosure action when a lender threatens possession of a piece of real estate because the borrower has defaulted on the payments.

In accordance with Federal law, a lender cannot officially start foreclosure proceedings with the “first notice or filing” until the borrower is 120-days behind on the payment.  There are instances when the process may begin earlier if a borrower has been delinquent with principal, interest, and escrow amounts due, but not paid. The 120-day rule applies to mortgages that are secured by a property, which is the borrower’s principal residence. (12 C.F.R. § 1024.30). Experienced foreclosure attorneys guide property owners by answering questions and initiating proper steps to stop a foreclosure action. Bankruptcy may be an option to stave off foreclosure. If an individual files for bankruptcy before a foreclosure action is initiated, an automatic stay may prevent the foreclosure from moving forward.

Services provided.

Florida attorneys are knowledgeable about real estate law and associated market trends in a specific area.  Either party to a sale may hire a real estate attorney to resolve any disputes surrounding the purchase and sale of an Orlando property.  They can guide actions to stave off negative impacts surrounding a Florida property transaction and may provide both seller and buyer with transactional materials relevant to a sale.

Hire a real estate lawyer.

The duty of a real estate attorney is to guarantee the legal transfer of a property from a seller to a buyer and they are responsible for transporting the documentation between the two parties for the transaction to conclude as well as filing property titles and deed with the appropriate counties.  They also have experience with contracts associated with the purchase of a property to protect clients from those who do not fulfill contracts related to the transaction.

Legal Counsel, P.A.

189 S. Orange Ave., Ste. 1800
Orlando, Florida  32801

Phone: 407-982-4321

Sources.

1. South Florida home sales to drop in 2023 while prices grow, Realtor.com projects – South Florida Agent Magazine
2. Chapter 196 Section 031 – 2020 Florida Statutes – The Florida Senate (flsenate.gov)
3. Statutes & Constitution :View Statutes : Online Sunshine (state.fl.us)