Orlando Foreclosure Buyers Beware! Was it Ever a Meth Lab??

 Was Your Orlando Foreclosure House Ever Used to Cook Meth?

I’ve been buying and selling Orlando real estate since 2004 and in that time I’ve re-habbed over 300 houses. About 95% of these homes were Orlando foreclosure homes that were lost or given up by the homeowner due to none payment. Most of the time it was just typical normal things that happen in life type stuff like loss of employment,  divorce, medical illness, etc. However, every once in a while we would pick one up that was used as either a drug dealers house or even worse,… a meth lab. “Meth” or “Crystal Meth’ is the abbreviation for the drug called Methamphetamine. It’s a highly addictive drug that can be created or “cooked” using over-the-counter products found at any local drug store.

Based on National studies that have been done, the U.S. has an estimated 2,500,000+ homes that have been contaminated with meth! The majority of Orlando realtors, home buyers, renters, wouldn’t have the slightest idea if a house was formerly used to cook this awful drug. This is why you sometimes you should rely on your own instincts. If something seems odd or weird about the house or you feel like something’s just not right, then you should investigate further. It’s not hard to tell when a house was recently used as a Meth lab as long as it hasn’t been cleaned up yet. Many times the owners or the lender will hurry up and change out the carpet or give it a coat of paint in order to make the house appear to clean and normal. Unfortunately, it takes a lot more than a coat of paint and new carpet to decontaminate a house from these nasty toxins.

Here are some tips to see if the house was ever used as a Meth Lab even after it’s been cleaned up

1- Ask the neighbors- This is the easiest and probably most accurate way…[Unless they’re lying to you so they can get a decent neighbor to move in next door] 2- Buy a chemical testing kit. 3- Contact the local police dept and inquire about any police issues on the property. 4- Talk to the local health dept for further advice on your suspicions. 5-Have it professionally tested [This may be a bit expensive, but worth every penny if plan on living there]

Here’s a Scary Piece of Info:  According to law enforcement departments and contractors that specialize in meth lab clean-ups, only an estimated 1 out of every 10 homes that have been used to cook meth have ever been found by the police!

For former meth labs that haven’t been cleaned or covered up, it’s much easier to tell especially if everything was left as-is.

Tips to see if the house was recently used as a Meth Lab and never cleaned up

1- Look for chemical stains on the floors and walls. Meth labs rely heavily on strong chemicals and acids to manufacture the drug which means spillage resulting in permanent staining. 2- Dead or burned grass and landscaping. Meth is sometimes cooked in remote locations in order to avoid being found out by neighbors. They will then burn the evidence such as packaging materials, etc. in the yard. Look for burn pits and or dead or stained grass, this could indicate a place where meth-producing ingredients have been disposed of 3- There’s kitty litter present and no other signs of a cat ever living there. Kitty litter is sometimes used to soak up chemicals that have spilled. Look for it in unusual places like in piles or scattered on the floor as opposed to a litter box. 4- Windows covered or painted to keep outsiders from seeing what’s really cooking. 5- Weird plumbing and glassware. Meth labs will usually be rigged with some sort of ventilation system to get rid of toxic fumes. Police will also find different glassware around the house like what you’d find in a high school

chemistry class. 6- The house hasn’t been cleaned for a long time. Meth users only care about meth and cleaning the house is not even close to making their “to-do” list. 7- Plastic bottles are present. The “shake and bake” method of making meth is very popular and is made with the use of plastic bottles of all shapes and sizes. The bottles will sometimes explode causing people to get burned as well as fires in the vicinity of the explosion.

I realize that this article may be quite a shocker for someone looking to buy a foreclosure or a short sale in Orlando. However, when I read about the statistics regarding the relation between meth labs and foreclosure properties I felt that I just had to write about it. Toxins that can be left behind from a meth lab can cause serious sickness in people and eventually even death if someone is exposed for a long time.  

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Tenants Now Able to Stay for a Full Term, Even in Foreclosure

Good News For Landlords and Tenants

Up until 2009, the law stated that any lease or rental agreement that was entered into AFTER a notice of foreclosure was served wasn’t protected by the Protecting Tenants at Foreclosure Act of 2009. This meant that tenants weren’t guaranteed the right to be able to stay for the full term of the lease. A tenant could be evicted just by the lender or new owner by simply filing some paperwork with the courthouse. However, when the Dodd-Frank Wall Street Reform and Consumer Act was put into play landlords were able to continue collecting rent checks and tenants were allowed to stay on their property for the full term of the lease even though the house was in the foreclosure process.

The “Dodd-Frank Act” changed that definition in a big way by allowing landlords to rent their homes out to a qualified for fair market rent even though the home was in active foreclosure, just along as the foreclosure or transfer of title didn’t actually happen yet. This meant that a tenant’s lease would be honored for the entire term of the lease as long as it was reasonable in relation to normal lease agreements.  The law also states that if someone buys the property at the foreclosure sale and intends to occupy the property as his or her primary residence, then they have the right to evict the tenant after 90 days from the transfer of the title to the new owner. Lenders or investors must wait out the entire term of the lease before starting the eviction process.

Benefit to Tenants and Landlords in Foreclosure

Before the law was put into place, landlords that were in the process of foreclosure could still rent their house out but by law they had to inform the tenant of what was going on as well as let them know that whenever the foreclosure happened, that they only had 90 days after the foreclosure sale, just as long as the lease was signed and executed prior to the bank serving the notice of foreclosure. Now, it doesn’t matter when the lease was written and executed, the renter is allowed to stay for the entire term of the lease, unless the new buyer plans to occupy the property as their primary. And since the majority of foreclosures are bought by the lenders or investors that intend to resell or rent the property, this encompasses most foreclosures.

As an Orlando real estate agent, I’ve helped both tenants and landlords find feasible solutions to their housing and real estate needs. Sometimes the answer to their problem has always been there and it’s just a matter of educating people on their options according to the law. Once people know what they are and what they aren’t allowed to do, the solution will usually appear. The laws that I wrote about in this article apply nationwide so realtors should be aware of these options that are currently available to their clients.

My name is Jenny Zamora RE Broker and my passion is helping people in distress find effective solutions to their real estate needs.

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Foreclosure Drop Experienced in Orlando

Foreclosure of residential houses in Orlando has shown a marked decrease. This started from the time when the state began to expedite foreclosures as per the new law that was implemented from July 1 this year. According to reports by RealtyTrac Inc, foreclosure filings have dropped by at least 50% as compared to the past year. The total number of houses in the Metro Orlando area which received their first foreclosure notice fell to 678. This is effectively a fall of 63% compared to the previous year. This trend that is experienced in Orland real estate is repeated across Florida. A statewide report published in July by the Florida Supreme Court states that cases related to foreclosure fell 75% when compared to July 2012.

Reasons for the drop

It is unclear if the drop is the result of a new law formulated to streamline the ability of the lender to repossess immovable structures that are saddled with mortgage payments long overdue. According to one foreclosure attorney, this dramatic fall is the result of banks and mortgage service providers being unable to provide documentation as proof that they are in control of the loan as demanded by the new legislation. As per the attorney, the new law was written in such a way that it was almost indecipherable to the lending industry as well as to the courts.

Mortgage companies are taking the only action they can confidently opt for – either modify the mortgage or sell the concerned house as a short sale. Orlando short sales are said to occur when an immovable property or a house is sold for less the amount of money owed on the structure. The incidence of short sales has been increased throughout Florida in the past few months.

Decrease in foreclosure filings

Foreclosures are markedly decreasing. In Metro Orlando, approximately 2,415 houses gave some variety of foreclosure filing. The August report shows that such filings have decreased by 27% when compared to the previous year’s August report and also a 11% decrease from July this year. The Orlando metropolitan area is made up of 3 regions: Orange, Seminole, and Osceola. According to RealtyTrac Vice President, it is premature to assume that the law is not functioning as it should. Although foreclosure activity is down for the Orlando area, the courts have approved an increase in number of foreclosure sale notices as well as auction notices in the metro region. One way of knowing that foreclosure notices will be filed is that the concerned banks have begun to start the search and preparation work important to start the process of foreclosure.

 

 

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Orlando Short Sale Expert Press Conference Video

Orlando Short Sale Expert Press Conference Video Transcript  | Orlando Realtor

From Speaker: “Hello Everyone My name is John Conde on behalf of Orlando Realty Consultants THIS IS A PRE-FORECLOSURE SITUATION! We don’t have much time. We’re here to talk about short sales today I know you all have a lot of questions so let’s get right to it, let’s please try and keep the questions short and to the point”.
From Crowd: “What is exactly is a short sale anyway”?
From Speaker: A Short sale is a pre-foreclosure arrangement between a homeowner and their lender, where the lender agrees to a sale of the property for less than what’s owed as opposed to taking the property to foreclosure.

From Crowd: “Why would a lender agree to short sale”?
From Speaker: “Well it comes down to time and money, it’s expensive and it takes a long time to take a property through the foreclosure process and banks know that they will never get even close to full payoff at the auction. Most of the time the lender buys it back as an REO property and sells it at well below market value anyway. So by doing a short sale it’s a win win for everyone involved”.
From Crowd: ” What are some reasons why someone would consider doing a short sale” ?

From Speaker: ” There are a several reasons why someone may need to do a short sale. Loss of employment  , transferring to another job,  maybe your payments have gone way up,  or Maybe your upside down and you just want to get out of a bad investment.
There could be a million reasons why someone would need a short sale”.
From Crowd: “Don’t you need an attorney to complete a short sale”?
From Speaker: “There’s a common myth that you need to involve an attorney when doing a short sale on your home and I’m here to tell you that it’s just not true! Not only that, real estate attorneys charge thousands of dollars for what a short sale realtor does for free. We actually service short sale files for several law firms in Central Florida. So long story short,… no you don’t need an attorney, but the bank does require that a licensed real estate agent represent the seller”.

From Crowd: “How will a short sale affect my credit”?
From Speaker: ” This is a subject I will be going into detail with in the coming weeks but in a nutshell, It’s much better to have a short sale on your record than a foreclosure or bankruptcy and it will be a lot easier for you to get another mortgage in the future”.

From Crowd:”What goes into a short sale package”?
From Speaker: “Another great question,… there are many different components that make up a complete short sale package, We don’t have time to get into it today but in the days ahead we will be going into each component of what makes up a complete short sale package .

“I know everyone is desperate for answers and unfortunately we just don’t have the time to get into it today. But I will tell you this… In the coming Weeks we’ll be breaking down in detail,  the different Components that go into a complete short sale package.
In closing, just know this… by completing a short sale, homeowners can walk away from their properties without having a foreclosure reported on their credit – all while having their mortgage debt completely forgiven by the lender.
Not only that but in most cases we’re able to get money back to the seller anywhere from $3,000 – $30,000.00, and you can quote me on that.
For the folks watching at home feel free to visit the website below or call the number. For everyone here I do have some business cards here for any one that wants one so just come on up”.

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Great News for Orlando Short Sales!

Mortgage Forgiveness Debt Relief Act of 2007 has been Extended

The mortgage debt relief act has officially been extended for another year. This is a law that exempts those who are in a foreclosure or short sale situation [primary residences only] from having to pay federal income taxes on the deficiency balance of their mortgage after the transaction is complete.

This law was passed back in 2007 right when the Florida real estate market crashed. The main purpose of the law was to allow people to complete the short sale on their home and not be taxed on the deficiency as if it were income. This is a huge incentive for homeowners that are upside down to short sale their home.

I know many people have been holding their breath as the ending of the Mortgage Forgiveness Debt Relief Act of 2007 would have signaled a harmful blow to the real estate industry. Well now they can breath a sigh of relief, the Mortgage Forgiveness Debt Relief Act is now set to expire on January 1, 2014 and only applies to only a primary residence. Most homeowners that were on the fence about doing a short sale on their home would have probably chosen to file for bankruptcy as opposed to working something out with the lender.

Here’s an example of exactly what this means; Let’s say that a struggling homeowner sells their home for $100,000 and they owe $175,000, they are not taxed on the $75,000 that the bank had to write off. This is great news for homeowners that are struggling. Prior to the Act, homeowners were taxed on the forgiven debt, known as debt discharge income. If this act wasn’t in place, even people that have lost their homes to foreclosure would be taxed on the deficiency balance between what the house owed and what it sold for.Unlike any other liens or judgments, I.R.S. liens will follow you for the rest of your life and if you try to avoid paying them off, the I.R.S. will garnish your wages.

 Orlando Realtors are Thrilled that “the Act” was extended

For realtors like myself that specialize in doing Orlando short sales, this great news. It means that short sales are still going to be the best way to go for struggling homeowners who can no longer afford to pay their mortgage. I would imagine that BK attorneys were hoping that the act wouldn’t be extended so that more homeowners would have opted for filing bankruptcy as opposed to short sale. at the end of the day, it’s a win win for all parties involved in the transaction.

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