The bank filed a foreclosure suit, won, took title, and sold the property to an independent third party. Now imagine that you are the third party purchaser – you bought a home from a bank that obtained title via foreclosure. You move into and live in the house you purchased from the bank at a foreclosure auction.  Then suddenly, the original homeowner, who owned the property before the bank foreclosed, has convinced a court that she still owns the property.  Incredibly, in light of the bank’s failure to correctly prosecute the foreclosure lawsuit, the homeowner is right –  she still owns the house.

The problem is created through a break in the chain of mortgage ownership. Until the 1980’s, most mortgages were loans between the homeowner and a bank, who lent the money directly.  More recently, the mortgage financing system transformed into an international system of securitization, with mortgage lenders packaging their loans into securities, bought and sold by investors like stocks. These transactions even split individual mortgages into sections, where each loan could have parts owned by different investment banks.

The transfer of ownership in these mortgage backed securities (MBS) was done with contracts on the balance sheets of Wall Street investment banks, such as Morgan Stanley and Goldman Sachs. The company who originally appeared to make the loan was normally a retail lending company such as Countrywide or Lending Tree, who typically acted as a sales company, and sometimes remained contracted to service the loan.

In the event that the loan goes into foreclosure at a later date, the then-current owner of the loan files the foreclosure and sells the property to a new owner, often at auction. The land records would show a deed of transfer from the investment bank to the new owner. This creates a break in the chain of ownership of the mortgage rights. In many cases, the transfer of ownership of the mortgage loan has gone from the original lender, through several owners, and then to the foreclosing bank, none of which is recorded on the property title history. Technically, the foreclosing bank has no recorded title rights to foreclose in the first place.

MERS announced it changed its procedures to require that an assignment of mortgage be filed prior to the start of any foreclosure suit. Typically, a mortgage is recorded in the public records with MERS as nominee for ABC Corporation. Invariably, when the foreclosure lawsuit is filed, it is not filed in the name of ABC Corporation it is filed in the name of Bank of America, JP Morgan Chase or some securitized trust – an entity with no relationship to ABC Corporation.

In most foreclosure cases, banks’ lawyers argue the plaintiff has standing if it is the “holder” of the Note (i.e. if it possesses the original note with a special endorsement in blank.) Many judges accept this position, no questions asked and thus, an assignment of mortgage is often viewed as irrelevant and superfluous.

Even if Bank of America, JP Morgan Chase, or the securitized trust has standing without an Assignment of Mortgage in the public record, ABC Corporation is still the mortgage holder of record. This means that even if Bank of America, JP Morgan, or whoever prevails in the foreclosure is the high bidder at the auction, acquires title, and sells the property to a third party, ABC Corporation is still the mortgage holder of record. What does that mean? Essentially, the entire foreclosure case was like a wild deed – it took place, but ABC Corporation can still institute a foreclosure lawsuit in its own name, as it would have priority over the bona fide purchaser who acquired title from the bank.

If ABC Corporation is the mortgage holder of record, and it is not named as a party in the mortgage foreclosure suit, and there is no Assignment of Mortgage, then the mortgage in favor of ABC Corporation still exists, even after the foreclosure, even after the auction, and even after the sale to the third party. The foreclosure happened, but as far as ABC Corporation is concerned, the foreclosure is irrelevant – it still has the mortgage.

To sum it all up, when purchasing your next Tampa home, especially in the case of foreclosure, it is very important to seek the advice of a real estate attorney and if possible, purchase title insurance when you purchase a property.

After an intense pondering session, I decided on 5 tips to maximizing small spaces.  Here goes nothing:

Be flexible. Don’t define every room to a specific purpose, give purpose to every room!
Be functional. Just because it is called a “walk-in closet”, doesn’t men that’s all its good for.  Make use of every corner and bare walls by adding an art studio or office.
Scale down. Why have a family room AND a sitting room (that no one actually sits in) with TVs in both?  Designate one area for congregating, TV watching and video game playing.  This will maximize family time as well!
Divide it up. Maximize large rooms by dividing them into sections for designated purposes.  Use 3-fold room dividers or fancy curtains to really give it a “room-y” feel. (vintage room divider found on Amazon pictured right)
Bring it outside. If you have a porch, patio or yard, ad a grill, tables, tents and out door games.  You now have the perfect place to entertain!

Still not convinced that small space living is fabulous living?  Need an incentive to decorate a small space?  A website titled Apartment Therapy actually hosts an annual “Small/Cool” Contest (yes, that is the name) for homes under 1,000 SqFt.  The categories are (absolutely adorable) “Teeny-Tiny”, “Tiny”, “Little”, “Small” and “International”.  Thousands of entries are received and there is one Grand Prize winner as well as one finalist picked per category.

This year’s winner was an amazing 460 SQFT, well lit apartment in Brooklyn (pictured thanks to www.apartmenttherapy.com).  This teeny space has been completely maximized, allowing for a section for a bedroom (top left), living room (left), office, kitchen (bottom right) and bathroom.  I am in love!

According to the contest rules “The home can be designed by a professional, weekend hobbyist or design enthusiast” so everyone is invited to participate & the prizes are pretty swell!  Check them out for even more ideas on how to maximize your small space.

Whether you opt for small space living out of necessity or desire, there are so many ways to maximize the area and make it just as fabulous as an over-sized mansion!  Not to mention how green you can be, reducing your carbon footprint by using less emissions to keep a small space functioning.

How have you maximized space in your Tampa Bay home?  Do you have any small space decorating tips?

– Since the company does not have any other lines of businesses, unlike most banks or insurance companies, it can focus all of its resources to residential mortgage financing.
– New Penn Financial has a local operation in the Greater Tampa Bay area with processors, underwriters, managers and regional executives located in our office to provide fast decisions and closing turn times. Smith & Associates Real Estate can now routinely close loans within 21 days or less while our competitors struggle to close loans in 30-45 days!
– Aligning themselves with local experts, they have created a nominated appraisal panel that comprises of the most adept, professional, and knowledgeable appraisers in the area. You never have to lose another deal due to a sub-par or out of area appraiser!
– By working with one of the Smith & Associates/New Penn Financial Mortgage brokers, clients have program options such as Super Jumbo, Asset for Income Qualification, High Debt to Income Qualification, Foreign National, Investors, & Non-Warrantable Condos.

So…What does all of this mean??  More qualified homebuyers achieving the dream of homeownership!

Smith & Associates Real Estate is equipped to assist in the entire home buying experience from the initial search with a Realtor, attaining a lender all the way to having Smith Title at your closing (which we will talk about next week!)  Now to meet our fabulous Mortgage Brokers that make all of this possible:

Bobbie Nader
Smith & Associates’ Tampa Office

With over 20 years experience in the banking Real Estate Industry, consisting of operations, underwriting, closing, marketing, and originating loans, Bobbie Nader is well versed to say the least!  She is a great asset to Smith & Associates and has been recognized as a Top Producer in the field. When asking Bobbie how she feels about her job, she said “I enjoy helping clients with their home financing needs. I love what I do, and meeting wonderful people in the process. I am also excited to work along David Donaldson, my future husband.”

David Donaldson
Smith & Associates’ South Tampa Office

After working with First Union for over 10 years, Dave Donaldson came to Smith & Associates and took over the mortgage department. Not long after, he moved to the Bank of Tampa for 12 years, then eventually ended up partnering with soon to be wife, Bobbie Nader back at Smith. They have happily landed that partnership back where they first met.  A little inside scoop on Dave according to Bobbie, “David loves to cook, plan our vacations (a year in advance!), and spend time with the family.”

Steve Stapleton
Smith & Associates’ Downtown St. Pete Office

Florida licensed mortgage broker, Steve Stapleton has been a loan officer for the past 14 years and is well known throughout the Tampa Bay real estate & lending community as an honest and reputable mortgage banker. Steve has worked hand in hand with his borrowers, lenders, realtors and title companies to make sure all his transactions run smoothly and all those involved are completely satisfied.  He has lived in Tampa Bay area since 1990 & enjoys all the pleasures of the Gulf Coast, including boating, fishing, golfing, and of course…home ownership. He is very active within the community and served four years in the United States Air Force before being honorably discharged as a Senior Airman.

Amanda Stapleton
Smith & Associates’ Belleair Bluffs Office

Amanda L Stapleton is a Licensed Mortgage Broker that has been in the mortgage industry since 2001.  Starting her career as a Mortgage Processor then progressing to Processing Manager and Operations Manager Amanda knows the mortgage process from start to finish.  On her free time you may find her spending time with her husband Steve Stapleton & their dogs or volunteering for the Susan G Komen Race for the Cure!

Whether you are looking for Tampa Real Estate, a new St. Pete home or a Belleair home for sale, Smith & Associates has you covered!

Have you ever worked with our Mortgage team?  Which office did you visit and hat did you think?

We have all seen the fully furnished and beautifully decorated luxury estates with immaculate details and feng shui that instantly makes us feel at home.  When it comes to taking photos, these are no brainers- they speak for themselves.  But what about the others?  The ones we know could be just as fabulous with a touch of detail?  How do we market these homes?

For the most part, we have two options to explore:
- Call a professional stager to have amazing furniture placed throughout the house.  Not a bad idea but it requires time, money and responsibility.
- Have the home staged with computer generated or CAD style furniture.  Still not a bad idea but you lose the “real-ness” of the photo.

While both options offer a specific advantage, combining the two would be ideal and (hooray!) now you can.  Hello, Virtual Staging.  I am not going to lie, I was a little skeptical at first but after really delving into the website and seeing some of the before and after photos (pictured), I would really like to test it out (or better yet, get one of the amazing Smith & Associates Realtors to act as my guinea pig!)

Virtually Staging Properties is an Atlanta based company created by both Realtors and Professional Stagers, so you get the best of both worlds.  Rather than using computer generated furniture, you are able to choose from a virtual library full of REAL furniture and accents that can be super imposed into the potentially fabulous but currently boring empty living room that was once a home.

Currently, the photos come in 3 standard packages:  3 photos for $225, 4 for $280 or 5 for $325 with additional photos at $60 each.  Ordering staged photos for your home for sale in Tampa Bay is as simple as filling out a short form (including as much detail/preferences as you would like) and sending it, along with high resolution pictures of a (preferably) vacant home, to one of the Virtual Stagers.  Within 3-4 business days, you will have photos of a fantastically decorated yet vacant listing and you can even order 8 x 10 prints to display in the home during showings and Open Houses!

While I am unable to speak on behalf of the company as far as the final product goes, they have been featured in several major publications and news outlets including the New York Times, multiple affiliates of ABC News and several Real Estate Magazines.  For more information on the company, visit their website at www.virtuallystagingproperties.com.

Keep in mind that they are simply bringing to life one of your photos.  Be sure to send them your best shots to ensure you are appealing to that 85% basing their future home choices off of how fabulous the photos are!

Have you used this product?  If so, what did you think?

Smith & Associates Property Management provides professional services to assist absentee owners in maintaining their home.  In working with them, you will receive the following perks:

- Lease execution and collection of rent/late fees according to the terms of the lease
- Coordination of documents and approval with any required associations
- Annual & monthly property financial reports
- Routine maintenance coordination/emergency repairs with process billing included
- Digital record of the rental property before move-in (furnished residences will be inventoried)
- Prompt responses to tenant requests
- Assist in enforcing the terms of the lease

Property Management Coordinator David Christ is currently spearheading this project, managing several units in notable Bay Area high-rises and neighborhoods including: Downtown Tampa‘s Skypoint, Downtown St. Pete‘s Luxury Condominium Signature Place, a Signature Collection listing in Avila and units in Tampa’s Victory Lofts (not pictured).

If you are looking for top quality assistance in the management of your home, The Smith & Associates Property Management Team is currently accepting new applicants from Bradenton all the way to North Tampa and can assist you in all of your leasing needs.  Please contact David Christ (pictured Left) today to guarantee your spot!

We would love your feedback: Have you worked with a Property Management company before?  How was the experience and what would you like to see from Smith’s new team?

After some intense searching (& input from a few fabulous St. Pete Realtors), we came up with a list of 11 apps (because I couldn’t stop at just 10) that may be helpful in the busy (and ever so successful) life of an iAgent.

Kurio: Think Nationwide MLS without having to find a computer.  Use the GPS Technology to find nearby houses, send out branded flyers and quickly share listing details right from your phone.  The great thing is, it isn’t only for iDevices.  Agents can register & sign into Kurio from any web-enabled mobile device.  (FREE! Visit Kurio.mobi on your device)

AroundMe: When a buyer wants to know exactly how far from their potential new home they need to trek for a iced quad venti soy latte and a movie, you will want to have this app handy.  Using that convenient GPS technology again, search the 10 categories for businesses closest to you, map them out and email directions within a matter of minutes.  This app is available for both iPhone & Android devices.  (FREE! Visit www.aroundmeapp.com)

MagicPlan: Carrying around a yardstick and sketching out floor plans are officially a thing of the past if you are equipped with the iPhone 4.  To make a long story short, using the phone’s fancy gyroscope technology, you are able to spin around a room to measure, draw and publish a JPEG or PDF interactive floorplan faster than you can say “what happened to my measuring tape?!”  On top of it all, the details you can add are icing on the cake- doors, sinks, refridgerators, the whole 9.  (FREE! Purchase through the iTunes store)

Tour Narrator: Keep track of your listings and type or record showing notes to share with your seller in one little application.  All notes and photos can be easily formatted to a PDF for posting or distribution.  ($1.99 Purchase through the iTunes store)

Dictionary of Real Estate Terms: New to Real Estate or want to stay brushed up on all the tricky terms?  Scroll through in alphabetical order to quiz yourself on what you know or search for that word that has you stumped.  You can also book mark things you tend to forget, send them in an email or post them to Twitter all from the same app!  ($1.99 Purchase through the iTunes store)

Mortgage Calculator: This application was created by Homes.com and has 4 different calculators in one: Buy or Rent, Debt to Income, Monthly Payment, & Refinance Calculator.  This could come in handy with non-pre-approved clients sitting on the fence with buying or renting as well as buyers trying to figure out what price range is right for their budget.  A few screen taps & the entry of some numbers can save hours of unnecessary showings and potential let downs.  (FREE! Purchase through the iTunes store)

My Realty Tool: Keeping track of listings, leads and lockbox codes has never been so straightforward.  The best part of the app is the simplicity of the lay-out:  There are 3 categories & you can enter a few lines of information, and everything you need is at your fingertips.  If only life was this easy!  (FREE! Purchase through the iTunes store)

Property Evaluator: Whether you are working with an investor or sending performance projections to clients, this app will make you look like the pro that you are.  Gain client trust by quickly calculating and tracking monthly and annual expense vs revenue reports, taking into consideration every detail- even inflation!  If their praise & appreciation doesn’t cause a little inflation to that head of yours, I’m not sure what will.  But regardless, you’re allowed to pat yourself on the back sometimes!  ($1.99 Purchase through the iTunes store)

Offender Locator: With this app, you can show potential buyers exactly how safe their future neighborhood is by using the GPS tool or simply entering their address.  This app is in the Top 5 free apps in the US & has been featured on both CNN and NBC.  It is a quick and easy solution to new families curious about local crime.  (FREE! Purchase through the iTunes store)

Foreclosure Search: Whether you have buyers and investors inquiring about foreclosed properties or are looking to gain some new bank-owned listings, this app by USHUD.com can be of assistance.  Search Nationwide for bank or government owned properties and inquire about the listing (by phone or email) with the tap of a screen.  (FREE! Purchase through the iTunes store)

Idea Sketch:  Sellers rightfully want to know why they should choose Smith & Associates Real Estate to list their home.  This app allows you to plan for Open Houses or lay out selling strategies in easy to use mind maps, concept maps or flow charts.  Whether you choose to save them as photos to send to your seller or share them on facebook, it is a quick and simple way to sketch out a master plan of action…now you just need the app that keeps the plan in action.  (FREE! Purchase through the iTunes store)

Well, that’s my list for now- I apologize if these applications consume your once paper and pencil filled life.  If you want nothing to do with the iPhone, please disregard everything you’ve just read.  However, if you are an Apple product lover like myself, what Real Estate relevant apps are you currently using?  Have you tried any of these 11?  What did you think?

BG Holmberg is a veteran Tampa real estate agent who recently sold a home to the first buyer that viewed his listing.  Some of his spring cleaning tips that helped sell the Tampa home included painting the pool deck, pressure washing the wood fence and removing overgrown flower beds and replacing it with sod.

St. Pete real estate agent Tia Hockensmith knows the importance of making your outdoor living space just as inviting as your indoor living space.  Fill up container planters with vibrant annuals and freshen flower beds with new mulch. Make a great first impression with a great front porch by replacing your tired welcome mat and consider a new color for your front door. You might even enjoy your own homecoming each day!

Spring cleaning on the inside of a home needs the same amount of detail as the outside.  When selling Tampa real estate, one of our associates, Carrie Smith, suggests getting the boxes and items stored in the garage off the floor and onto shelves inside storage containers.  For a small investment, it can add a great deal of appeal to potential buyers, especially those who used to have basements.  Closets systems can also add a great deal of appeal to buyers.

Laura Blackwell had the owners of her listing at 948 Lake Placido Court organize their walk-in pantry.  Both the owners and Laura feel that this made a big difference. Not only did they get rid of food items that were expired but they found many duplicate items.  It now showcases the size of the walk-in pantry and appeals to buyers that are looking for storage space in the kitchen.

Isabel Caruso, who has been selling St. Pete real estate for many years, offers a great household cleaning tip for owners thinking about selling their home.  A solution of 3 cups water, 1 cup vodka and 25-30 drops of eucalyptus oil will help rid your home of dust mites.  Lightly mist the areas and let it air dry.  If you have scuffs on walls or doors, water marks, hard water stains, try the sponge product called Magic Erasers.  They are very effective and can save you a lot of time and effort on cleaning.

Last, if you have a busy work and family life and don’t have the time to clean, hire a cleaning service.  Let them do the heavy spring cleaning chores like moving furniture and cleaning all windows inside and out.  This might help kick start your spring cleaning and motivate you to take care of other chores.  A clean, de-cluttered home will you’re your home for sale a lot more attractive to prospective buyers!

Show dates & hours: Friday, Sept 3 from 11:00 am – 8:00 pm;  Saturday, Sept 4 11:00 am – 8:00 pm;  Sunday, Sept 5 11:00 am – 6:00 pm;  Monday, Sept 6 11:00 am – 6:00 pm.

Unable to visit on these dates?  No problem.  You can catch it at the Florida State Fairgrounds November 5-7!

A gorgeous Key West style home located on Gordon Avenue in South Tampa sold this week after only 2.5 months on the market.  We decided to talk to the agents involved in this transaction about what lead to such a quick sale.  The 4 bedroom, 2.5 bath home was constructed in 2001 by a custom home builder who created it for his own residence.  Two stories enclose 2,964 square feet of custom designer finishes, which certainly this home stand out from the competition.

“The neighborhood the home is located in had a lot to do with the sale,” said Tampa realtor Tricia Smedley, who listed the property.  “Located in Shell Point, it’s in a quiet area and the neighborhood is known as a tropical paradise. The home also showed beautifully on the inside.  It’s full of custom features and beautiful woodwork.”

Tampa real estate agent Rick Miller represented the buyer, a recent transplant from Ohio.  “She appreciated the lush tropical setting of the neighborhood,” Miller said, “and the home’s beautiful design and custom features made this one stand out from the rest.”

“She’s really thrilled,” says Miller of his client.  “She was ready to buy and we found her the perfect home at the right price.  It was meant to be.”

The National Association of Realtors recently launched a new consumer website called Houselogic.  The free and very easy to navigate site was created to both educate and assist consumers in regards to all aspects of owning a home.  The site is a great resource for both current and potential owners of Tampa real estate, with a wide array of informational articles and news from home finance to home improvement.  Houselogic also features a great project planner, where property owners can organize, plan, and schedule improvements to their home. Buying guides are also available, allowing for owners  of Tampa real estate to make the best decisions when purchasing appliances and more.

Get the most out of your real estate investment, and check out this great free resource!