Orlando Real Estate Industry Basks Under the Glory of Reduced Foreclosure Rates

CoreLogic has some great news for Orlando realtors and the Orlando real estate industry in general. The American business intelligence agency that provides financial and real estate information and analytics to businesses and the feds, reports that the foreclosure rates of real estate properties in Metro Orlando reduced again in December 2013.

This brings in a ray of hope for real estate agents in Orlando who have been worried for quite some time due to the high rates at which properties in the city get foreclosed. Even with a  decrease in the foreclosure rates in December, Orlando still sports foreclosure rates higher than the national average.

Foreclosure rate 3.65 percent down from same time a year ago

 

CoreLogic reports that 6.69 percent residential properties in the Sanford-Kissimmee-Orlando area were  slapped with foreclosure in December 2013 – 3.65 percent down from the foreclosure rate in December 2012 (10.34 percent).

CoreLogic, which trades on the New York Stock Exchange as CLGX also reported that the national average of residential-property foreclosures for December 2013 was 2.09 percent. Further, the report also revealed that homeowners of the Metro Orlando area had become more regular with their mortgage payments.

The delinquency rate dropped by 4.53 percent in December 2013. CoreLogic reported an 11.04 percent of mortgage payments coming in later than 90 days in December 2013. A year ago mortgage defaulters in the Metro Orlando area peaked at 15.57 percent.

As is the case with foreclosure rates, the Metro Orlando mortgage delinquency rates top the national average of 5.03 percent this year. Back in 2012, the rate stood at 6.40 percent for the same month.

Orlando realtors anticipate improved sentiments in near future

 

The health of a state’s real estate market greatly influences the health of the overall economy of the state. Listing agents in Orlando reveal that reduced foreclosure rates in Metro Orlando is promising news for the Orlando real estate market because it not only signifies that the housing market is improving, it also helps boost the values of other residential properties.

Add to it the fact that lowered foreclosure, as well as mortgage delinquency rates, are elementary proof that the market is less distressed and the financial status of homeowners is improving.  You’ll know why real estate agents in Orlando are tying this news to the hopes of a stronger market and more buyer confidence in the near future.

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Why Do Some Lenders Take Longer Than Others To Sell Foreclosed Homes?

A community’s chances of a speedy recovery from a hung-over Florida housing market not only depend on how many foreclosed homes they have in the neighborhood but even more importantly on which lenders own those properties.

Working as a short sale realtor in Orlando, I can tell you exactly what banks are the best ones for doing short sales as well as which ones make me cringe as soon as I hear their name in a conversation. Now, things tend to change a bit when are talking about bank-owned homes. This is when the lender takes a home through the foreclosure process and ultimately ends up owning the property after it goes to public auction. Once they own the property, it becomes an REO [real estate owned] which they will then list with a local realtor to try and get it sold.

You would think that lenders would try and get the property sold as soon as possible to avoid any further losses that they’ve already suffered. However, this is not always the case. Many times a bank-owned property will sit vacantly and abandoned with no sign at all of an attempt on the bank’s part to market it and get it sold.

Some realtors believe that it’s a strategy by the lenders to avoid flooding the market with properties again which would cause a dip in prices so they only release a certain amount of properties over a pre-determined amount of time. Others will tell you that it’s because the banks expect the Florida real estate market to continue improving and they want to hold out in order to try and capitalize on higher sales prices.

If that truly is the case then I believe that lenders are taking a huge risk in holding out to sell in a hotter market. For one thing, you should never ever depend on the appreciation. This is something that I learned a long time ago when I first started investing in Orlando real estate. Getting into a real estate investment for the sole purpose of expecting the market to get hot then cashing out is what got a whole lot of folks into trouble in 2007.

Not only that but houses that just sit vacant will continue to rack up homeowners association fees, property taxes, risk of vandalism, as well as code enforcement fines if the home is in some way in violation of county code enforcement or safety issues. Also, the longer a house sits unattended the deeper it will fall into disrepair.

For some reason, the smaller lending institutions appear to be a bit more nimble when they deal with foreclosures. It’s probably because they’re only dealing with a fraction of the number of properties that the big lenders are.

 

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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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