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Will The Orlando Real Estate Market Experience A Boom Post COVID-19?

Posted on by Jenny Zamora

Orlando, FL is a very popular city— and in a post-COVID-19 world, some home buyers may also see it as a great place to find a bargain.

Ever since the Coronavirus became a serious problem at the beginning of 2020, it’s had a dramatic effect on the country’s housing markets. The digitization of the home buying process made it easier for people to buy homes sight unseen, other than virtual tours.

Because many people shifted to working remotely, they were able to relocate to a different city. Many wealthier Americans even purchased 2nd homes in vacation towns just so they could wait out the pandemic.

As Americans are now starting to receive the 1st doses of the COVID-19 vaccines, it appears there’s an end to the pandemic insight. But just as COVID helped to fuel demand with home buyers, the return to normal life may have a dramatic effect in certain cities. It’s hard to predict which cities will experience a boom and which ones will suffer. One thing’s for sure… not all real estate markets will benefit equally from the end of the Coronavirus era.

Recently… the NAR [National Association of Realtors], compiled a list of the top ten real estate markets they expect to thrive in after COVID 19. Their list had places like Phoenix, Dallas, and Atlanta for example.


It was surprising to some Orlando real estate agents to see places like Des Moines, Iowa, and Madison Wisconsin on that list… and not Orlando. Realtors in Orlando, FL have very different opinions about how our local real estate market will look Post COVID-19.

Some feel that Orlando will experience a housing boom following COVID-19. Although Orlando is mostly known for parks and attractions, the Orlando real estate market remained strong despite pandemic forced shutdowns for much of 2020.

The reason for this is the diversity in employment, although many assume it’s mostly tourism-related jobs.

People in Central Florida and surrounding areas are, for the most part, still working which is fueling home sales in Orlando. The same holds for the city of Houston. Although the petroleum industry is a major employer, the City’s workforce was diverse enough to weather the COVID-19 storm.

Will Expiring Forbearance Agreements affect The Orlando RE Market

Some Realtors in Orlando believe that expiring mortgage forbearances will hurt the market. Many people are still in the term of their mortgage forbearance. Once the forbearance is over some Orlando homeowners will inevitably fall into foreclosure.

The question is… how many?? We’ve never seen such a high unemployment rate in our country and it’s uncertain how many people will return to how things were before COVID-19.

Many real estate professionals believe there will be a wave of foreclosures and Orlando short sales in 2021… We’ll have to wait and see.

In our current environment, the record low mortgage rates are creating opportunities even during the pandemic. Although whenever the economy bounces back, you can expect to see mortgage rates rise as well.

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Foreclosure, Forbearance or Short Sale?

Posted on by Jenny Zamora

Foreclosure

When it comes to homeowners delinquent on their mortgage, three options that may be offered are foreclosure, forbearance, or short sale. A foreclosure occurs when a bank sues the homeowner for being delinquent on the mortgage. Either the homeowner has to bring the account current by paying any missed payments and late fees… or the lender will continue with the foreclosure process.

If the foreclosure is completed, it means the home will be sold at a public auction. If the bank doesn’t get an offer that meets their reserve, they will end up taking back the property and selling it as an REO property [real estate owned]. During the foreclosure process, the homeowner may continue to live in the home up until the foreclosure happens. Even after the property gets foreclosed on, homeowners have a period of time to vacate depending on what state it occurs in.

Forbearance Agreement

Another option is to ask your lender for a mortgage forbearance agreement. A mortgage forbearance is designed to help homeowners who are experiencing some type of financial hardship. It’s a repayment plan where a lender suspends or adjusts the mortgage payment for a pre-determined amount of time. The purpose of the mortgage forbearance is to allow a mortgagor to keep their property while they have time to repay the mortgage. Regardless of what the forbearance agreement is, the outstanding loan balance will still need to be repaid to the lender in full.

The duration of a mortgage forbearance can range from 6 months to 10 years, and the mortgage is usually placed in escrow at the end of the term.

What Happens If I Default On Mortgage Forbearance?

If the homeowner fails to meet the terms of the new agreement, foreclosure proceedings will eventually begin again. In many cases, the bank will offer the option of a mortgage forbearance extension to the mortgagor to avoid the foreclosure process. It is often an attractive incentive to the borrower because it does not have to be paid until the end of the term of the loan.

The borrower must decide whether to accept the extension of the mortgage or not. What are the benefits of doing so?

In addition to giving the borrower a second chance to redeem their property from foreclosure. Extending the forbearance agreement also gives the homeowner another opportunity to refinance their loan and possibly get a better price.

Short Sale

If a homeowner is denied an extension on their forbearance, then doing a short sale on the home may be the best option. A short sale is when a lender accepts a discounted amount on what’s owed on the mortgage.

Orlando Short Sale Experts


A short sale happens when a homeowner can no longer afford to make the mortgage payment because of financial hardship. Another condition that must be present for a short sale is the home must be worth less than what’s owed on the mortgage.

The homeowner will be required to submit a complete short sale package. If there is equity in the home, the homeowner could just sell the home as a normal sale and pay the bank from the proceeds.

It can be very costly for the lender to take someone through the foreclosure process, which is why a short sale can be a great option for both parties. The bank requires the homeowner to list the home with a local short-sale realtor. This is great for the homeowner because the short sale realtor will work with the lender to short sell the home. There is a lot more work involved in processing a short sale as opposed to a traditional listing.

Work With A Short Sale Expert

If you end up choosing to do a short sale, you must hire a short sale specialist. This is an agent that specializes in doing short sales and is up-to-date on the State’s rules and regulations. Many lenders offer cash incentives to borrowers to agree to a short sale depending on what lender.

Another benefit of working with a short sale expert is they have established relationships with every major lender. Good communication is key when working a short sale with any lender.

Benefits of A Short Sale

  • Avoid Foreclosure
  • Avoid Bankruptcy
  • Eliminate Mortgage Debt
  • Less Damage to your Credit- has less of a negative impact than a foreclosure
  • Get Cash Back at Closing [depending on the lender and situation]

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How To Extend Your COVID-19 Mortgage Forbearance

Posted on by Jenny Zamora

If you received a mortgage forbearance due to COVID-19, your payment suspension could be about to expire. If so, you must request an extension before the initial forbearance agreement expires. It’s important to know that a forbearance extension through CARES isn’t guaranteed. The CARES Act [aka] Coronavirus, Aid, Relief, and Economic Security (CARES) Act.
was signed into law on March 27th of 2020. If you aren’t sure, contact an experienced Orlando Realtor to assist you.

The act granted homeowners who were financially affected by the coronavirus a 6-month temporary suspension with no penalties. That means the first forbearance agreements began to expire at the end of October 2020.

The CARE Act also allowed for a 180 forbearance extension… as long as the homeowner requests before the initial agreement expires.

MAIN POINTS

  • The CARES Act provides up to 360 days of mortgage payment forbearance for homeowners with a federally backed loan.
  • The initial forbearance can be for up to 6 months with one 6 month extension.
  • You must request the initial forbearance from your bank as well as the extension. Neither one is automatic.
  • To apply for an initial forbearance or an extension, contact your lender.
  • Typically, forbearance freezes delinquency, which also stops foreclosure.
  • Most lenders offer COVID-19 related forbearance. For private lenders rules and conditions vary.

What Loans Qualify for Forbearance Under the CARES Act?

The CARES Act forbearance applies to mortgages backed by the federal government:

  • Loans insured by the Federal Housing Administration
  • Loans insured under section 255 of the National Housing Act.
  • Loans insured under section 184 or 184A of the Housing and Community Development Act of 1992.
  • Loans insured by the Department of Veterans Affairs.
  • Loans insured or made by the Department of Agriculture.
  • Loans insured by the Federal Home Loan Mortgage Corporations (Freddie Mac) or (Fannie Mae)

Apply For Your Extension Through Your Lender

If your loan forbearance is about to expire and you still can’t make the payments, contact your lender immediately. Check your mortgage statement for the contact information of your mortgage servicer.

Your lender should notify you before the expiration of your current forbearance. Don’t take a chance! If you’re not sure when your current forbearance expires then call your servicer to tell them you need an extension. If you’re unsure or need some help, feel free to contact us at https://orlandorealtyconsultants.com/ for immediate assistance.

Before you contact the lender, visit their website for any mortgage relief options available.

The CARES Act only requires that you request an extension and by law… you shall receive one.

Get It In Writing!

Although the law doesn’t require your forbearance request to be written, it’s a good idea to ask your lender for documentation detailing the terms of your agreement.

Things to keep in mind:

  • To get the extension, you don’t need to submit additional documentation. Only your claim to have a coronavirus-related financial hardship will be required.
  • During the time of your forbearance, additional fees, penalties, or interest will be waved.
  • You have the option to shorten the forbearance and continue to make payments at any time. Let your lender know of the change.

If you still haven’t asked for your mortgage forbearance, don’t worry… you may still be able to as long as the emergency declaration is still in effect. You can check with your local Orlando real estate agent to get informed.

What About Private Lender Forbearance Agreements?

If you have a mortgage through a private lender you’ll have to contact them and see what they’re offering. Because your lender will have their own set of terms and conditions, you’ll need to pay close attention to the fine print. For example, some private lenders may want you to pay a balloon payment for missed payments and interest.

During Your Forbearance

During the time of your Forbearance, while preparing for life after your forbearance expires, there are a few things you should be doing…

  • Maintain copies of ALL written documents pertaining to your forbearance agreement.
  • Check your monthly mortgage statements carefully to make sure there are no mistakes.
  • Pause auto-payments for your mortgage during your forbearance.
  • Carefully monitor your credit report for any errors and make sure your lender is reporting your status correctly
  • Prior to your forbearance expiring, be sure to have a plan in place with your lender for you to repay what you owe.

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What Not to Do When Selling a House

Posted on by Jenny Zamora

Selling your home is a major life milestone. It can be complicated when you consider all the steps involved. Repairs, preparing the home to list, finding a buyer, home inspections, the closing process, and finally the move. The process is like no other financial transaction. But too often, sellers sabotage the sale of their homes by making avoidable mistakes.

Listing and selling your home is time-consuming and stressful. It may feel like an invasion of privacy. Strangers will come in and out of your home and poke around. They will criticize and make unnecessary comments in your presence. To top it all off, they will offer you less money than what you are asking for and ask for closing costs.

Listing mistakes can impact your finances and most importantly, the sale of your home. Little improvements can go a long way. A well-maintained exterior signals to buyers that the interior has been well maintained as well. Trim the trees, lay fresh mulch, hose down the walkways, pressure-wash the sidewalk, upgrade old light fixtures, or paint the front door.

These are some of the most common mistakes you should avoid when selling a home:

1. Not Hiring an Agent

Your Real Estate Agent will be a valuable resource in your quest to get the best possible price for your home. Helping you set a fair listing price, offer suggestions about staging, repairs, cleaning, and curb appeal that will pay off. Some choose to go the For Sale by Owner route to avoid paying commissions but don’t realize the support and guidance we offer.

A great agent has your best interests at heart. They will help you set a fair and competitive selling price for a quick sale. An agent can also help with the emotional part of the process. We interact with potential buyers and eliminate showings to those who only want to look at your property but have no interest in buying a home. Selling looks easy, but you need someone that understands the process forwards and backward.

Your agent will have more experience negotiating home sales. You will get more money than you could on your own. If any problems occur during the process, and usually do, an experienced agent will be there to handle them for you. We are familiar with all the paperwork involved in real estate transactions and make sure the process goes smoothly.

2. Setting an unrealistic price

You might have an idea of how much your home could be worth based on home sales in your community. Homes of similar size and features that have sold near you. These comparable sales referred to as “comps”, are what real estate agents use to recommend a listing price.

The challenge is that no two homes are ever the same. As agents, we need to account for each difference between homes to be accurate. This is called adjusting. Pricing your home too high can cause the listing to suffer.

The price you want and what the market will bring can be two very different things.

Whether you end up with more or less than your asking price will likely depend not just on your pricing approach, but also on whether you’re in a buyer’s market or a seller’s market.

In today’s market, Buyers are extremely well educated. They have all the historical data. Access to tax records. What you paid for the property and many times what you owe. A seller needs to understand they are dealing with a very educated party in the negotiation.

Over-pricing a home and having a listing on the market for several months, is never good. This might make a buyer think there is something wrong with the property.

3. Failing to make the necessary repairs

A long list of repairs can turn buyers off and potentially decrease the value of your home. Buyers expect the condition of your home to match the description on your listing.

Whatever improvements or upgrades are completed, make sure these are done right and by a professional. The objective here is to address evident issues, especially those that are likely to turn up during a home inspection.

Look for items that are broken, in poor condition, or can affect the safety, structure, or functionality of the home. Pay attention to things like appliances, carpet, light fixtures, dents, and scrapes on walls and doors.

4. Skimping on listing photos

Photos are one of the best marketing tools online. Professional photos create more interest in a property, more interest leads to more buyers.

If possible, hire a professional real estate photographer to get top-quality results. Don’t allow your agent to take a few snapshots on a phone. Good quality photos should be clear and taken during the day when there is plenty of natural light out.

Showcase your home’s best assets. Many buyers are looking for homes online these days and make their decision to fall in love with your home with pictures. Good quality photos will set your listing apart and help generate extra interest.

5. Not staging your home

Sellers often take lightly the power of furnishing and staging. All homes benefit from staging, whether they are studio condos, single-family homes, or lavish mansions. Staging is not decorating; it is placing neutral yet tasteful furnishings to draw attention to the features of your home. In some cases, you can get away with moving furniture around or adding a curtain or a painting. But sometimes, you may need to stage your home.

Have your agent, point out areas of your home that need attention. Declutter, clean thoroughly, add a fresh coat of paint on the walls, and get rid of any odors. This will help you make a good impression on buyers.

Generally speaking, the cleaner, less cluttered, your home is, the more appeal it can have. Even if you’re not hiring professionals, there’s plenty you can do yourself. Hide personal photos, knickknacks, and memorabilia. Tone down distracting decor and bright colors. Move anything that would divert attention from the most important thing a buyer should be focusing on, the Home.

Be a wise seller, call a professional!

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What to Fix Up When Selling a House

Posted on by Jenny Zamora

No two homes are ever alike. This means your home is going to have a unique list of repairs to deal with. So how do you find these repairs and what do you do next? Do you repair or leave it alone?

The process of getting a property ready to list can seem intimidating. There is a long list. Clearing the inside and outside clutter, cleaning the home. Organizing and throwing out the junk you have not seen in years.

We all know it is easy to miss a lot of the wear and tear that happens to your home over the years. But when you start thinking about selling, the state of your home becomes much clearer. A home is an investment, and regular maintenance helps keep your investment strong.

Buyers often look for homes that require few repairs and are ready to Move in! A little prevention can spare you from the pain of watching a buyer walk away. A deal can fall apart because the home inspector found issues the buyer is not ready to deal with after closing.

Welcome to the world of Fixing to Sell. Now, you cannot just throw the listing on the market and hope for a buyer. You must prepare, and presentation is essential.

Who wants to pour more $$$$$ into the house they are leaving behind? You do. The last thing you want is for your buyer to walk away from the sale over a jiggly toilet seat handle. Deals falling through due to repair issues happen more often than you think.

Best Repairs Worth Making Before You Sell:

1. Cosmetics

As a rule of thumb, cosmetic renovations are normally cheaper than structural renovations. Buyers buy with their eyes, so now is the time to go through the interior in detail. Are there dents and dings on the walls and doors? Scratched moldings or worn-out paint? Spruce up the inside with a fresh coat of paint. Pick light, neutral and on-trend colors. Fix minor cracks in the wall. Cosmetics usually involves things that are clear and not hidden like wiring or plumbing. Replace worn or stained carpeting. Replace any chipped or cracked floor tiles or refinish scratched or dented hardwood. Replace old drapes and window coverings. Change the linens in bedrooms and towels in bathrooms. Put some fresh flowers in the kitchen.

2. Exterior

Curb Appeal. The exterior is the first thing buyers will see, so you want it to look great! Replace missing fence boards, add sod if the yard is looking like it needs it, clean up any junk that may have accumulated in the yard or on the outside. Change the house number or letterbox to something new and fresh.
Make sure the grass is mowed and that weeds are taken care of. Plant some flowers in the beds to add color and make the place feel homier. Trim the palm trees and bushes and don’t leave any garbage around.

3. Kitchen

Do not do a complete kitchen renovation unless you know you can make your money back on the sale. You can make minor repairs that will make your kitchen appear more inviting. Paint if necessary. Change the hardware on the cabinets. Install new fixtures. Replace the countertops with something more appealing (granite and marble are not necessary). The price of solid surface materials has come down in recent years so it might be worth getting an estimate.
With the appliances, buyers are going to expect these to work. If the oven, dishwasher, refrigerator, or range are out of order or in awful condition, consider replacing them.

4. HVAC

Your heating, ventilation, and air conditioning system (HVAC) should be in good working order. It should be clean and free of leaks. Your thermostat should be operating properly. Hire an HVAC technician to complete a tune-up and change the AC filter. Make sure you get an assessment of your system’s condition.

Leaving repairs for a buyer is not a smart thing to do if you are looking to get the most money for your home. Now that you know what to look for. Have a pre-inspection done on your home, so you can fix the major issues before listing the property.

For other most common problem areas, you will need to hire a professional. Things like faulty wiring, drainage, roof problems, foundation problems, poor upkeep, and plumbing.

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