Category: Mortgage Companies

What if my lender won’t accept a short sale? – Orlando Realtors

Posted on by Jenny Zamora

Short Sales are not Guaranteed!

It’s important to be aware that your lender has absolutely no obligation to agree to a short sale.  Also, there are a handful of banks that will agree to a short sale if the homeowner is current however,  most banks won’t even consider it unless the homeowner is at least 30 days past due on their mortgage payment. Either way, it goes, you just won’t know whether or not your lender will accept a short sale until you try. You should also know that a short sale can take several months and even a year to complete depending on who the mortgage holder is and what type of loan it is.

In the event that your lender does not agree to a short sale, there are several other options available to you in the event that your lender doesn’t agree to a short sale.

Other options besides a short  sale

1- Loan Modification– This is when the lender adjusts the terms of your loan by either adjusting the principal balance of the note or by lowering the monthly payment to make it more affordable to the homeowner. Most of the time the terms of a loan modification aren’t worth agreeing to.

2- Deed-in-Lieu- This is the process by which the homeowner signs the property back over to the lender and this is also considered by many a voluntary foreclosure. Unfortunately, it also shows up on your credit as a foreclosure.

3-Bankruptcy-  There are two different types of bankruptcy; Chapter 7 and chapter 13. Since I am not an attorney I will just give you the basics. A chapter 7 bankruptcy is the liquidation of assets so that debtors can get paid a portion of what’s owed to them and a Chapter 13 is basically a reorganization of debts in which the debtor has a chance to work out an arrangement with his or her debt holders.

4- Let it go to Foreclosure- This is one option that I would never recommend to anyone. If you just let the property go to foreclosure, then you’re just giving up and when you give up, you give up all control of your situation. There’s a common belief that if you let your property go to foreclosure, all of your debt will be forgiven and that couldn’t be further from the truth. As a matter of fact,  the opposite will probably happen and the lender will slap you with a deficiency judgment between what you owe the lender and what the property sold for at the auction. 

If you or someone you know is behind on their mortgage, consult with a short sale expert and find out what the best option for you is.

Orlando short sale expert

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

What if My Lender Doesn’t Agree to a Short Sale?

Posted on by Jenny Zamora


 

 

What if my Lender won’t agree to a short sale? | Video Transcript

Speaker:   “This is John Conde with Orlando Realty Consultants… I’m 44 years old and I’ve never had a cavity, However, today we’re here to talk about other alternatives to short sales.”
Speaker:  “First question…The gentlemen with the dark glasses”
Audience: “What if my lender doesn’t agree to a short sale?”
Speaker: “OK… so if your lender doesn’t agree to a short sale there are other options available to you. So why don’t we just go over a few of those options now? yes?…yes?

1-One option would be a “deed in lieu “, which is basically a voluntary foreclosure and all that happens is that you sign the property back over to the bank without going through the whole legal process involved with a foreclosure. You should be aware however that a deed in lieu will show up on your credit as a foreclosure.
Speaker:  Next question…Lady with the sandwich
Audience: “What about bankruptcy?”
Yes absolutely, bankruptcy is also an option to avoid foreclosure… There are 2 different types of bankruptcies.., chapter 7 and chapter 13… Now I’m not an attorney and therefore I’m not qualified to educate you on bankruptcy… However, we do have attorneys on staff that will be happy to sit with you for a free consultation, just call our office, OK

OK, now another option available to you, if you’re interested in trying to keep your house is a loan modification… Basically, it’s when we try and get the terms of your loan adjusted so that you can afford to keep your home…….  We try to do this by either getting your payment reduced or reducing the principal balance or both.
There’s a lot involved with doing a loan mod and if you’re interested in seeing if you qualify, just give us a call and someone from our staff will be happy to help you

Speaker:  Next Question?… the young lady with the Pomeranian
Audience: What happens if I just let my house go to foreclosure?

Speaker:  OK what if you just let it go to foreclosure… Well, I would highly recommend that you don’t take this approach because you are just giving up… and when you give up then you’re giving up all control of your situation and the bank can do what they want at that point.
And don’t think that just because you let it go to foreclosure, you will be free of that debt. Actually, the opposite will probably happen and the bank will slap you with a deficiency judgment for the difference between what you owe and what the property sold for at the auction.
So please if you find yourself in this situation…consult with a licensed real estate professional figure out what your best option is and take action… Thank YOU… I’m sorry I have to go… no more questions at this time.

IF YOU ENJOYED THE VIDEO ABOVE YOU WON’T BELIEVE WHAT HAPPENS

IN THIS ONE, JUST CLICK ON THE IMAGE BELOW  

Short sale Press Conference

Sell A house in Orlando

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Short Sale your home before defaulting on your mortgage

Posted on by Jenny Zamora

Short Sale your home before defaulting on your mortgage…More and more we are starting to see a trend in the world of Orlando short sales and that is,… lenders are increasingly more willing to approve short sales before homeowners actually default on their mortgage and fall into a pre-foreclosure situation. This is a huge deal for homeowners that have been wanting get out of their upside down mortgage and haven’t done so for fear of severely damaging their credit.

According to our records we found that in 2012 about 20% of our short sale files, were deals where the lender had not yet filed for foreclosure against the homeowner. A few of them were deals where the homeowner wasn’t even behind on their mortgage. I for one am praying that this trend continues…for everyone’s sake. It just makes good sense,… if the homeowner is trying to be honest with the bank by letting them know that they will be defaulting before they actually default, why shouldn’t the bank use this information to move things along faster before they start losing money?? It’s a win win situation for everyone involved. The homeowner avoids damage to their credit and the lender avoids losing big money by getting a head start on the whole process of getting the house sold. They don’t have to worry about the mortgage falling behind for more than a few payments and even more importantly,… they don’t have to shell out thousands of dollars in attorney’s fees to start the foreclosure process.

Also, by allowing these “almost distressed” homes to change hands much faster will most likely put them in the hands of new homeowners who have loans they can actually afford, which means they are more likely to be able to afford and maintain the property and these people will be more motivated to be responsible homeowner.

Most Lenders are still not seeing the “Big Picture”

Although some lenders are seeing the light when it comes to getting short sales done before waiting for the homeowner to default, the truth is that most lenders are just not having it. They have a strict set of guidelines that they follow to a ” T “, and there’s just no changing their minds…believe me I’ve tried. Dealing with these lenders can be frustrating, but it’s just part of being a short sale realtor.

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Ocwen outsourcing Orlando short sales to India

Posted on by Jenny Zamora

Ocwen outsourcing Orlando short sales- It used to be that the hardest bank to negotiate a short sale with was Bank of America… hands down. But ever since B of A has implemented the Equator system they are now one of my favorite lenders to work with. In the past year or so there’s a new leader in my list of the absolute worst lenders to work with, and the winner is………Green Tree but Ocwen is a close 2nd. Ocwen is extremely frustrating to work with and part of the reason is that they outsource their short sale department to to India. You can’t even call the negotiator directly anymore because your call goes directly to a call center. And the person you end up talking to is beyond clueless, all they are able to do is  take a message, and sometimes they even get that wrong. The only way to speak to your negotiator is to schedule a call back, which most times never occurs..If you leave it up to them, it will be weeks for you to get a call back. What I do is call every day until they get tired of me complaining…finally a call back, usually from someone other than the negotiator so you are back to square one..
I’ve always thought that the short sale negotiator should be a licensed realtor, after all… the whole job revolves around the buying and selling of real estate. How on earth is someone that is unlicensed, living half way around the world qualified to discuss short sale?
Ocwen is obviously trying to save a few bucks by outsourcing to people that work for $2-$3 per hour. However, this is one position that should absolutely not be outsourced! To be a good short sale negotiator, you need to be familiar with the real estate business, it’s just not something that you can fake.

 

Don’t get me wrong, Even in our company use we use VA’s [virtual assistants] for certain things like link building, compiling lists, etc. … but negotiate a short sale…are you kidding me?

 

Short Sales are too Important to Out source

 

I’ve said this a million times and will continue to say it. Negotiating a short sale is serious business and is usually one of the most important transactions that someone will ever be involved in. I really hope that Ocwen gets their act together especially for the mortgage holder’s sake

 

Orlando Real Estate Broker

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Strategic Default, more popular than ever

Posted on by Jenny Zamora

Although Orlando real estate prices continue to steadily rise, strategic default is as popular as ever. As homeowners come to us to list their Orlando properties for sale, the majority of them are upside down on their mortgage. The big problem is that there are several lenders out there that won’t accept a short sale unless the mortgage holder has defaulted on their payments. This puts the homeowners in a difficult position by forcing them to either continue paying on a mortgage that is way too high or stop making their mortgage payment. Most people faced with this situation these days are strategically defaulting on their mortgage for the sole purpose of pursuing a short sale with their lender. When you think about it…what choice do they have?

 

Don’t get me wrong…I would never tell a client to purposely default on their mortgage, but once I explain their situation to them, they almost always choose to stop paying their mortgage and pursue short sale. Honestly, I can’t say that I blame them. As a matter of fact, if I was in their shoes, I would do the exact same thing.

 

How will it affect your Credit?
A short sale can have a lot less of an effect on your credit score than a foreclosure. But, it must be done correctly.
If your request for a shot sale is approved, your agent should ask your lender to report the short sale as “paid in full,” as part of the negotiation.

 

Many sources have reported that a short sale has about the same impact on your credit score as a foreclosure, however from experience with our own clients, that’s never been the case.  Most of the time, clients of ours that have completed an Orlando short sale, report that their credit score only dropped by 100 points, which can be easily fixed by a good credit repair company.

 

There are no guarantees when it comes short sales

 

It’s important for you to know there is no obligation what-so-ever on the bank’s part to accept a short sale payoff.
And you just won’t know until you begin the process.  You should also be aware that short sales can take several months to complete depending on who the lender is.

 

If you still want to learn more about shorts sales, visit us at OrlandoRealtyConsultants.com

 

 

 

Orlando Real Estate Broker

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields