Category: Mortgage Companies

Orlando Short Sale Negotiator confesses to using stall tactics

Posted on by Jenny Zamora

I’ve been doing short sales in Orlando since 2005 and something happened last week that has never happened to me before. I’ve been working on this Orlando shorts sale listing for the past 3 months. After negotiating with the bank we got the payoff approved at $192,000.00 and the buyers were ready to close. Each time I would get a hold of the negotiator he would say that I would have the approval letter the next day so I would then update my clients with the same update that was given to me. After hearing the same story from me day after day and week after week It got to the point where everyone thought it was all somehow my fault.

To make matters worse, the buyer got tired of waiting and walked from the deal, my client even talked about hiring another agent. The following day I received a call from the negotiator and I couldn’t believe what he told me. He actually told me that he was purposely stalling this particular file because he didn’t want it to close until the month of March. He explained to me that the bank can only handle a certain amount of loss per month and they had already hit their limit for the month of February. He then proceeded to explain to me how he was purposely stalling me by not providing me with the approval letter. When I heard this I felt like reaching through the phone and slapping him. That wasn’t possible so I did the next best thing, I gave him a piece of my mind.

All he had to do was inform me of what was going on from the start and everything would have been fine. The buyers would have had no problem at all waiting as long as they knew what was going on. After I vented my frustration with the negotiator I insisted that he personally call my client and explain the situation to him. Thank God everything is back on track and all is right with the world, we’re closing at the beginning of March.

Short sale negotiations can get complicated and can be extremely frustrating. If you’re in need of an Orlando short sale expert call me at 407-902-7750 for a free analysis of your situation.

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What happens when an Orlando Short Sales get approved for more than appraisal value?

Posted on by Jenny Zamora

When a buyer puts in an offer on an Orlando short sale property, that person believes that they are getting a great deal. Many times this ends up being the case and after several months of waiting…the bank approves the offer but don’t celebrate yet,…  there are still a few things that can make the deal fall apart.

The appraisal is a crucial and unavoidable part of this process. let’s say for instance that the bank approved your short sale offer of $100,000.00, the next step is to get your financing in line which means getting the property appraised, inspected, etc. The issue now is to get the property to appraise for at least the amount of the contract. If the property falls short on the appraisal, let’s say $95,000.00, then there’s a problem because your lender is not going to approve a loan for $100,000.00 for a house that just appraised for $5,000.00 less.

How and why does this happen?

Appraisers have to go off of recently sold properties only, not pending properties, or active properties. So even though the BPO may have come in at a higher valuation, the reason is that BPO agents have a bit more leeway on what comparables they are able to use. As opposed to appraisers, BPO reports may include active listings, pending listings, in addition to sold listings in order to determine true valuation.

Will the short sale lender adjust the approval price to match the appraisal price?

Most lenders will actually change their payoff letter so that the deal can go through. As a matter of fact, this is something that happens all of the time in our office. The only drawback is that it takes a bit longer because there’s a process which typically 2 to 3 weeks. It all comes down to how much of a hurry the buyer is in to buy the house. If the buyer is in a position to wait the extra time, then this actually benefits them because they get an even better deal than the original price.

Lenders like Fannie Mae for instance are less likely to lower the approval amount regardless of the appraisal value. I know what you’re thinking and I agree… It makes no sense.

What happens if the lender is unwilling to adjust the approval price?

There are a couple of different scenarios that may ensue if the lender doesn’t want to lower their payoff amount. One thing that can happen is that the buyer walks away and keeps looking for another Orlando short sale. Another way to get around this issue is if it’s a cash buyer that really wants the property. However, not too many people will purchase a property for more money than the appraised value unless it holds some kind of sentimental value for them.

Need help with a short sale? Call our office at 407-902-7750

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Orlando Real Estate Market – What can be expected in 2013?

Posted on by Jenny Zamora

The tentative economic conditions will continue to impact the real estate market in Florida and particularly in Orlando even this year. Home prices are expected to rise again due to decreasing inventory facing its lowest phase since February 2006. As per the market research, the 2013 appreciation is expected to increase up to 3%. Some investors even expect the prices to climb up to 4%. If the price range will go so much higher, then it may drastically affect market conditions. The changes in price may emerge around the spring season. So, it’s better for investors to crack the deal before the prices climb.

The interest rates for the Orlando real estate market are expected to remain low. The rate may get low as 3% according to The Federal Reserve. The lower interest rates may neutralize the price hike of houses. This can be encouraging for the recovery of the real estate market.

Not only the home prices, but the mortgage guidelines are also going to face changes. There are reports of rules to become stricter for mortgage refinance. This step is being considered to help borrowers for being more responsible with their mortgage loans. Borrowers may even avoid defaulting on their mortgage by following the new set of rules. According to the new rules, borrowers must have to submit more documents for a mortgage refinance. The financial stability of the borrower will also be scrutinized minutely. The range of the qualifying credit score may be from 580 to 620. Insurance premiums of FHA are also expected to increase.

The diminishing inventory is also a decisive factor for the real estate market in Orlando in 2013. The shrinking inventory may aggravate the competition for quality properties in Orlando. So, the scope of getting multiple offers at a time will increase automatically.

Many market experts explain the Orlando real estate market as a seller’s market. Of course, the rise in home prices proves this claim. These market conditions are more favorable for sellers.

The construction of new homes may also bring huge changes in the real estate market. The degree of change depends largely on future economic alterations. Experienced professionals are expecting the gap between the new home sales and the re-sale to get broadened. Builders may offer lesser incentives to buy properties. This may be a good time to build profitable properties.

As the market condition is suggesting, the investors must take advantage of the beneficial situation before it’s too late. The overall market predictions are favorable till now, but the situations may change if the world economy takes a turn. The same applies to a mortgage refinance too. It’s advisable to decide on refinancing after judging the market.

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7 Tips for Getting the Best Price on Quality Homeowners Insurance

Posted on by Jenny Zamora

Homeowner’s insurance is something we hope we’ll never have to make use of, but no one knows when disaster may strike. Buying a home in Orlando, or anywhere for that matter, is a major investment. So, it only makes sense to protect it and, if your home is mortgaged, your lender will require that it is insured.

Here are seven tips to consider when buying house insurance.

  1. Know the value of your home. It is very important to know your home’s replacement cost as a basic homeowner’s policy may not be enough to replace your entire home. Make sure.
  2. Choose an insurance company with a good reputation. Research a company’s claims service, as well as its financial stability. A low premium is no bargain if it takes an insurer forever to process your claim. On the other hand, the mortgage company through which you obtained your mortgage may offer you their own type of insurance policy. Often, this type of policy will cost three times a much, so it’s far better to look elsewhere for coverage.
  3. As with most other purchases, you should comparison shop to make sure you’re getting the best possible price. Be aware that the same or a similar product may be priced differently by different companies. It always pays to shop around. By comparing prices at several different insurers, you can be sure you’re getting the best possible coverage at the best possible price.
  4. Consider extra coverage. Depending on where you live, it may be advisable to add coverage for natural disasters such as lightning strikes, wind, hail or snowstorms. It is also worthwhile to have protection against smoke damage, theft, vandalism, explosions and plumbing disasters. This will undoubtedly add to your premiums but, depending on your circumstances, may be worth budgeting for.
  5. Make sure you fully understand the protection you’re getting. Read your policy carefully and speak to your insurance agent about any questions or concerns you may have.
  6. Ask for discounts. Many companies offer reduced rates for behaviors that diminish risk. An example would be if your household is non-smoking.
  7. Keep your policy updated and always reread it before you file a claim to avoid any surprises. Your idea of fair compensation may not be the same as that of your insurer. You need to be able to prove your losses so that you can get what you need to replace them.
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Fixing your credit after an Orlando short sale

Posted on by Jenny Zamora

Getting your credit score back on track after your short sale is complete

 

The local economy is recovering “slowly but surely”, the housing market is getting stronger and the term  “Orlando short sale” has become a household name. Delinquent homeowners generally elect to pursue a short sale as opposed to going through foreclosure or bankruptcy.
Short sales have become so common in fact that it’s hard to find someone that hasn’t heard of a short sale as opposed to just a few short years ago when most people had no clue what a short sale was.

 

A short sale is when a mortgage holder tries to sell their property for less than what is owed. The delinquent homeowner must first get permission from their lender in order to pursue the short sale. Homeowners will typically seek out a short sale when they can no longer afford to pay the mortgage or the house owes much more than what the property is worth. Banks have come to the realization that they actually lose more money by taking a property to foreclosure as opposed to a short sale.

 

Many people will argue that a short sale will affect you far less than a foreclosure but the truth is that whether a seller does a short sale or foreclosure the points you lose are about the same. Fair Issac says the average points lost on a FICO score are as follows:

30 days late: 40 to 110 points
90 days late: 70 to 135 points
Foreclosure, short sale or deed-in-lieu: 85 to 160
Bankruptcy: 130 to 240

 

People who Opt for an Orlando short sale will have a much better chance of qualifying for a mortgage in the future.

It depends a lot on how the lender records or reports the sale once the transaction is complete. A short sale is usually recorded by the lender as a settlement as opposed to a paid debt. When the lender reports the sale as “settled”, it appears on a credit report as the lender accepting less than what  was owed. This will always have a negative affect on credit scores. However, if you’re able to get the lender to record the sale as “paid”, then your credit score will not suffer any further. The chances of this happening are slim to none and it takes some really good negotiating skills by your Orlando realtor with the short sale lender in order to accomplish this improbable task.

 

 

According to some mortgage brokers that I work with, it’s much easier to get someone a loan that has a short sale on their credit as opposed to having a foreclosure on their credit, even after several years have passed. The best thing to do once your short sale has gone to closing, is to contact several of these Credit repair companies and find out what they are offering. My suggestion, as always would be to  Google “credit repair companies” and contact all the companies that appear on page 1. Credit repair has become very competitive and most companies will work with you on an affordable payment plan.

 

 

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