Category: Orlando Realtors

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

Posted on by Jenny Zamora

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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Top Orlando Realtors Use Realeflow

Posted on by Jenny Zamora

Realeflow Gave me a Blueprint for Success

I typically don’t educate my competitors on the secrets of my success but I find myself in the Holiday spirit of giving and sharing. Also, this post serves as a long-overdue testimonial of sorts for a company that’s made a huge impact on my life and business.

By becoming a member of Realeflow, you’re becoming a member of a community of real estate professionals from all over the U.S. that are having success in their business. I can’t tell you how many times I’ve gotten referrals or advice by networking with other members.

There’s absolutely no way that I can tell you everything that Realeflow has to offer without writing a 20,000-word post so I’m just going to give you a quick overview of some of the Realeflow tools and training that have served me well in the past few years.

You’ll quickly see that there is no other program out there that is as complete as Realeflow. From marketing to keep your files organized, to training you to be successful in any real estate market…It’s all there for you on one site!

Lead Generation

This is a big one because without leads coming into your business on a regular basis…you have no business. The system allows you to input the counties from your farm area and you will instantly start receiving lists that you can use to create mailing lists and even send postcards all right from your dashboard. You will have access to lists for buyers, sellers, bankruptcies, etc. Before I joined Realeflow I was paying a lot of money for just these lists alone. With Realeflow these lists are included with your membership.

They also have an entire library of customizable website and landing page templates that you can choose from. All you have to do is provide them with the domain names that you want them to link to. Squeeze pages have provided me with a steady flow of valuable buyer leads and still do to this day… They should call it Lead flow instead of Realeflow!

Client File Management

This is my wife’s favorite feature of Realeflow being that she’s the one that has the daunting task of dealing with demanding buyers and sellers. Our real estate brokerage specializes in Orlando short sales and if you have any experience in servicing short sale clients, you know that they want updates, updates, and more updates! Even when there’s nothing to update them about! With Realeflow this part of the business is no longer a hassle. You can update everyone single one of your sellers with just a few clicks of your mouse. And long gone are the days of having to carry heavy paper files around with you when you go out of town [I used to hate that!] Now she just logs into Realeflow and every piece of information she needs is right there at her fingertips.

 She also loves the fact that everything is time-stamped so that NOT ONLY can prove to the short sale lender that YOU DID submit everything they asked for but you also have the date and time that you submitted it. Need to submit it again? [Cause that NEVER happens…] No problem, just a click away.

Training Modules

The training modules that are included in Realeflow were the big game-changer for me. Way, way, way too much info to even start talking about but if you’re willing to go through and implement the things that are taught by Greg Clement and his team in these 8 life-changing training modules,  I promise you that it will take your business to the next level. Don’t get me wrong…you have to put in the work, but it’s worth it…at least it was for me!

 Blogging

After going through module 1 included in Realeflow, I started blogging with a “Too dumb to doubt” attitude not knowing if it would even work.  Since then my real estate blog has been the single most effective marketing tool that I have. I don’t mind sharing this information because I was posting blogs several times a week for over 2 years before it ever started to make a difference in my business. Believe it or not, statistics prove that less than 3% of Orlando real estate agents blog on a regular basis. It’s important to remember that blogging is a long-term strategy. Most realtors will start posting then quickly get frustrated and stop posting altogether.  Slow and steady wins the race. 

 The key to doing anything consistently is that you have to enjoy doing it. Have you ever known someone that starts going to the gym or dieting every day for a month or two, then they lose a bunch of weight just two end up right back where they started? They don’t stick with it because they hate working out and they hate dieting. I kept on writing blog posts because it’s something that I became very passionate about. I love the idea that I’m putting valuable information out into cyberspace where anyone in the world that is looking for it can find it just by typing a few keywords into Google. How awesome is that?!

Video Marketing

There’s a whole module that covers video marketing in Realeflow. I literally went through this module 5 times before getting enough courage to get in front of that camera. Much like blogging, I found that it was something that actually I enjoyed doing. I now use video marketing regularly and successfully in my business. Subscribe to my Youtube channel 

Greg often says… “I’ll see you on the other side” at the end of his videos and for the longest time I never understood what that meant…..Come to think of it, I STILL DON’T!  But it sounds really cool.     Do you think you know what he means? Leave a comment below.

Speed of Implementation

Greg Clement, the founder of Realeflow talks about “speed of implementation” in one of the training modules. I believe he is referring to how fast you implement something after you’ve learned it. He also says that the speed at which you implement something will be a huge factor in how successful you will be at something. I firmly believe this and I have believed it even before I heard him say it. So whatever it is that you learn through courses that you sign up for, boot camps, etc. Implement it as fast as you can because that’s the only way you’ll know if it works or not.

I can’t tell you how many real estate marketing courses that I’ve bought or signed up for in the past that have turned out to be complete BS, but I just kept on going until I found what worked for me. When it comes to marketing your business, there is no failure, only feedback. Through Realeflow I finally found what I was looking for. 

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Cash Incentives for Short Sales Continue

Posted on by Jenny Zamora

 Cash Incentives for Short Sales

It appears that new short sale guidelines that have been put into place continue to make it easier for distressed homeowners to get relocation assistance after completing the short sale on their distressed property. Mortgage companies Freddie Mac and Fannie Mae have launched a new short sale program allowing the homeowner to complete a short sale and receive cash incentives without missing any mortgage payments….It’s about time!

I don’t know why this hasn’t always been the case. I believe that as long as the homeowner can prove a valid hardship, then why force them to miss payments if they’re willing to work with the bank sooner than later. For one thing, the lender loses less money. Why would you want the homeowner to miss at least one or two payments before allowing them to start the process if they’re willing to start the process while continuing to make the payments? I think that if this were the case then there would be a lot less distressed homeowners doing a strategic default.

[HAFA] The Home Affordable Foreclosure Alternatives Program provides distressed homeowners with cash relocation incentive of $3,000.00. The problem is that the guidelines have several restrictions that many times kept distressed sellers from getting the assistance they so desperately needed.

B of A, The nation’s largest loan servicer offers the HAFA program in addition to several other in-house programs. Its most popular program is the “Cooperative Short Sale Program” which has an “Enhanced Relocation Assistance” that ranges anywhere from $2,500 to $30,000. Just this past year we were able to qualify 3 of our Orlando short sale clients for the $30,000.00 cashback at closing. Bank of America has recently launched the enhanced program on a national level. This program applies to pre-approved short sales, these are short sales that are started without there being an offer to purchase. The amount of the incentive is based on the value of the home.

 

WILL YOUR LENDER COOPERATE?

There are some who will tell you that banks would rather take a house to foreclosure or modify the loan than approve a short sale. This just isn’t true, it costs a lender a lot of time and money to take a house through the foreclosure process and at the end of the day, it’s just a numbers game.

The truth is that short sales net lenders twelve to twenty-five percent more than they would make from foreclosure because of the time and money that it takes to not only regain control over the property, but to make any repairs, market and finally resell the house. And as far as loan modifications are concerned, over half of them default within the first year then ultimately turn into short sale or foreclosure.

Lenders have finally figured this all out and that’s why they are constantly streamlining there process and continue to create enticing offers to help out distressed homeowners. By completing a short sale, a distressed homeowner can avoid going through a foreclosure and limit the damage done to their credit.

 

 

 

Realtor in Orlando, FL

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The Root of All Short Sales is a Valid Hardship

Posted on by Jenny Zamora

 

A borrower’s hardship still remains the main criterion in order for a lender to approve a short sale on a home. The simple explanation or definition of “hardship” is when someone is in “a state of affliction or misfortune” meaning that the borrower has gone or is going through something in their life whether it’s personal or financial that has affected their ability to continue paying their mortgage. There could be countless reasons that someone could be going through hardship but there always seems to be a handful that we hear about over and over again.

Working as an Orlando short sale realtor for the past 8 years, I’ve heard hardship stories that have literally brought tears to my eyes. However, listening to some of these stories has only fueled my passion for wanting to help these people that are going through a valid hardship. I also help investors that are facing foreclosure on their Orlando investment properties for whatever reason, but there’s a world of difference between losing an investment property or two or three as compared to face losing the home that you live in with your family.

Generally speaking, it’s much harder to get a short sale approved on investment property, than it is on someone’s primary residence. The truth is that some lenders are just not interested in approving a short sale on a property unless there’s a legitimate hardship at the root of it. OMG!… Does this mean that some of these loss mitigation negotiators actually have compassion for people that really need and deserve it? I’m happy to say that, yes it does. In my experience, the majority of loss mitigation reps will actually read the hardship letter and factor it into their decision of whether or not to approve a short sale.

Here are some of the main reasons why people are facing financial hardship.

1. Reduction of income

2. Loss of employment

3. Medical problems

4. Divorce

5. A death or serious injury in the family

6. Having to relocate because of employment or school.

7. Business going under

8. Drug addiction

Financial hardship alone, however, is just not enough to get a short sale approved. The biggest reason is that the home must be worth less than the full payoff of the mortgage. If not, then the home could typically be sold as a traditional listing providing that there’s enough equity to cover the closing costs of the transaction.

Here’s a basic example that can be used as a template to create a hardship letter.

Dear Lender,

I’m writing this letter to explain why I am no longer able to continue making my mortgage payments to you.

[Here is where you want to write about your personal hardship in detail]

Also, current market conditions in my area have significantly deteriorated causing my home to be worth substantially less than what is owed on my mortgage balance. As a result, I’m asking that you please consider allowing me to sell my house as a short sale.

Kindest Regards,

Distressed homeowner.

Cash Back to the Seller at Closing

Assuming that all of the other criteria of the lender are met to proceed with the short sale, the borrower may also be eligible for relocation incentives from the lender. Programs such as HAFA [Home Affordable Foreclosure Alternatives] will actually pay the seller anywhere from $3,000 to $30,000 back at the closing depending on the situation.

 

 

 

 

Orlando short sale expert

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Short Sales Run Parallel to Foreclosure

Posted on by Jenny Zamora

There is a common myth in the world of short sales that once you begin the short sale process, it stops the foreclosure process. I’ve been doing short sales in Orlando since 2005 and I can tell you from experience that it’s just not true. Don’t get me wrong… in some situations, it can happen and often does happen, where the lender suspends foreclosure proceedings if a house is in the short sale process and they want to see how it plays out. However, some people have the impression that starting a short sale with their lender will automatically stop the foreclosure process and the truth is that nothing can be further from the truth. The fact of the matter is that the foreclosure process and the short sale process run parallel to each other and sometimes it just comes down to a race to see which situation arrives first.

Although we have an outstanding track record when it comes to getting short sales done, even with a pending auction date, I will still tell my clients that nothing is guaranteed. And anyone who tells you differently is either lying or they’re just ignorant on the subject. The problem occurs when a real estate agent tells someone that they guarantee to complete their short sale just to get them locked in as a client and the property ends up getting sold at the auction anyway.

When I hear about this happening to someone, it makes me absolutely furious because a short sale is only one of many options to avoiding foreclosure. Not only that but sometimes it’s not even the best option for someone, especially if the seller wants to try and keep the house. It’s true that realtors get paid a commission when they complete a short sale but this is no reason to try and steer somebody into this situation when they know that another option may suit them better.

Here are some alternatives to short sales.

1- Loan Modification- This is when we try to get the terms of your loan adjusted thus making it more affordable to the homeowner.

 

2- Deed-in-Lieu- A deed-in-lieu occurs when you sign the house back over to the lender as opposed to going through the foreclosure process.

 

3- Bankruptcy Chapters 7 or 13– This will offer the homeowner the opportunity to either buy some time and try to get reorganized or eliminate their debt as well as their assets in order to satisfy their outstanding debts once and for all. Bankruptcy situations should be discussed with a bankruptcy attorney.

I learned 9 years ago when I first started in the real estate business, that to be a successful real estate agent you should always, always do what’s best for the client that you’re representing and not what’s best for your bank account. This mindset has always served me well and I truly believe that I am more successful because of it.

 

 

 

Orlando short sale expert

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