Category: Orlando Short Sales

Ask the Short Sale Expert

Posted on by Jenny Zamora

Recently, we recently put out a survey where we asked Orlando homeowners who were currently behind on their mortgage, what their biggest doubts or fears maybe about short sales. The response was overwhelming which is why we decided to post this Q and A article where our very own Orlando short sale expert, Jenny Zamora RE Broker answers a number of questions about short sales and the short sale process.

Q: How long have you been doing short sales?

Jenny Zamora: We’ve been specializing in Orlando short sales since 2004 and have closed thousands of transactions in that time.

Q: In which way is a short sale different than a traditional real estate sale?

Jenny Zamora: A short sale usually takes quite a bit longer than a typical sale because you need to get approval from the lender. Even though a buyer may submit an offer and the seller accepts, it’s still not an executed contract unless the lender signs off on it. Many agents prefer to send their short sale files to processing companies because they’re either unfamiliar with the process or they prefer not to deal with all the extra work that comes with processing a short sale.

Q: Is a short sale different from a foreclosure?

Jenny Zamora: Very different… the foreclosure process usually begins when the homeowner misses 3 or more payments on their mortgage. It’s the legal process by which the bank will ultimately try and sell the property at a public auction. At that point, either someone will buy it or the bank takes back possession if they think the highest bid was still too low.

short-sale-process

It costs a lot of money in court and attorney fees for a lender to complete a foreclosure on the property… and then there’s no guarantee that they’ll meet their reserve at the auction.

A short sale is actually designed to avoid having both parties go through the foreclosure process. It starts out the same way in the sense that the homeowner is behind on their mortgage. However, with a short sale, the homeowner has to prove 2 things. First, the property has to be upside-down, meaning that the property is worth less than what’s owed on the remainder of the mortgage. Second, there’s some kind of financial hardship going on preventing the homeowner from making the payments. If these main points are met then there’s a strong chance the lender will approve a short sale.

Another big difference between a foreclosure and a short sale is your credit will suffer much worse from having a foreclosure on your credit than a short sale.

Q: How long does it take to complete a short sale in Orlando these days?

Jenny Zamora: These days the average turnaround time for a short sale in Orlando is 60 days. In recent years banks have put systems and rules in place to streamline the short sale process which used to take from 6 to 12 months. A few years back… some files could’ve taken a year or two, especially when the property has multiple liens on it or some other monkey wrench was thrown into the deal.

Q: Do you have any advice for someone in need of short sale on their home?

Jenny Zamora: The most important thing would be to find an agent that has a lot of experience with short sales. This is not the time when you hire a friend or family member that just got their license last month. Short sales are complicated and you need someone that is keeping up to date on all the new rules and regulations that come out. I would start with a Google search of “Orlando short sale expert” or whatever other city the homeowner may live in. The first page of results should give you a few good options.

I would like to invite anyone who still may have questions about short sales or anything else related to real estate in Orlando, to feel free to call us at 407-902-7750 for a free consultation or visit https://orlandorealtyconsultants.com/

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Why Use A Short Sale Specialist?

Posted on by Jenny Zamora

Most Realtors in Orlando won’t touch a short sale file while others… even though they’ve never done a short sale… refuse to ask for help which can seriously hurt a homeowner’s chances at selling their home via short sale.

As the leading short sale experts in Orlando, we take on all short sale listings, even the ones that other agents want no part of. You see, it is one thing to process a short sale with just one lender but when you have to deal with multiple lenders and or liens attached it becomes a whole other ball game.

A short sale specialist should know everything there is to know about the process and everything else that goes into facilitating the entire transaction. The agent should be aware of everything from foreclosure postponement, lender guidelines, and the latest state short sale regulations. There’s no situation that should arise that’s is beyond your short sale agent’s comprehension.

Cash Back To Seller Programs

Even though your lender is accepting a loss on what’s owed to them, many times we’re able to get our short sale clients anywhere from $3,000 to $30,000 back at the closing for relocation costs. A short sale agent should be up-to-date on all the various cashback to seller programs offered by different lenders. If they aren’t aware of this it could cost the homeowner thousands of dollars when they need it the most.

How Does A Short Sale Agent Get Compensated?

In a typical short sale transaction, the lender pays the real estate commission from the sale price. Some agents will try to put a short sale processing fee on the CD [Closing Disclosure formerly as the HUD-1] but it must be approved by the lender. You should never, ever pay a real estate agent prior to doing your short sale. Only attorneys are legally allowed to charge an upfront fee to complete your short sale.

If you’re in a situation where you need to do a short sale on your home, be sure to hire a proven expert in order to give yourself the best chance at making the sale happen. For a free consultation with one of our Orlando short sale experts visit https://orlandorealtyconsultants.com or call 407-902-7750.

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New Orlando Short Sale Hits The Market

Posted on by Jenny Zamora

1309 FALLING STAR LN, ORLANDO, FL 32828

New Orlando Short Sale just hit the market! Come one, come all… Are you looking for the perfect community to call home? Or, maybe you’re looking for your next investment property. Either way, stop what you’re doing and come see this stunning 3 bed, 2 and a half bath townhome located in the much sought after, gated Avalon Lakes Community!

This 1,700 square ft home is in pristine condition both inside and out. Boasting an open floor plan, there’s plenty of living space both inside and out perfect for entertaining or just relaxing…  this beauty is move-in ready!

Other features worth mentioning…

*Beautiful new tile and carpet floors!

*Screened-in patio

Community features

*Clubhouse

*Swimming pools

*Fitness center

*Tennis courts

*Volleyball

*Playground

*A-rated schools nearby

*Minutes away from Avalon Park, UCF, highways 408, 417, 528.

One thing’s for sure, this Orlando Short Sale Home won’t be on the market for long. Call or text 407-902-7750 to schedule your appointment TODAY!

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Short Sales In Orlando Still Rank Near The Top In U.S.

Posted on by Jenny Zamora

Although short sales in Orlando have dwindled in recent years, Central Florida still ranks as one of the top regions in the US having the most short sale listings.

Ironically, “short sales” can take a very long time to complete. These are homes in which the bank is willing to entertain a lower amount than what’s owed on the mortgage, in order to recoup most of their money.

More than 1 in every ten homes that were sold in the Orlando area in the last quarter of 2016 area was a short sale listing. The only other areas that had a higher short sale rate in the state of Florida were Fort Myers and Lakeland.

When short sales first became popular after the market crash of 2007, banks were willing to accept a much bigger loss than is the case today. This meant that investors and rehabbers like me were enjoying much larger profits than is the case with short sales today.

These days banks want as close to full market value as they can get. Many times these listings only make sense if you plan on moving into the house and making repairs yourself.

As an Orlando real estate investor, I make several offers on short sale listings every week most of which get denied for being too low. When buying a property as an investment home to resale you have to consider all the costs involved like repairs, closing costs, marketing, staging, etc. After doing the math, I can tell you that most short sale listings right now in Orlando are way… way overpriced for investors to make any money on them.

Certified distressed Property Expert

Banks are realizing that if they just let the home go to foreclosure, they can sell it for closer to market value instead of accepting a low-ball offer from an investor. Orlando short sales are ending up being auctioned off online auction these days more than ever. This strategy also allows these lenders to expose their property to anyone in the world with a computer.

Orlando’s continued distinction for short sales is a clear indication of how depressed this area’s housing market was just a few short years ago. At that time, there were more Orlando short sales and foreclosures than there were traditional sales. It has taken several years to push these distressed Orlando properties out of the pipeline.

Now that market conditions have been steadily improving, more homeowners are able to sell their homes at a profit. And for homeowners that are a bit underwater are starting to see the light at the end of the tunnel that will allow them to hang in there instead of having to come up with the difference at the closing.

For homeowners that are deeply underwater that are still at risk of losing their home to foreclosure, a short sale is still their preferred alternative because it does a lot less damage to the homeowner’s credit. They can also walk away with less debt and even come away with a few thousand bucks in their pocket for relocation costs.

I can tell you from experience as an Orlando Realtor and investor that short sales are no longer the deals they once were. Banks are being harder negotiators than ever and if they don’t get their number, they have no problem foreclosing.

Buyers who want to use the home as their primary residence and are willing to pay close to market value can still get a slight discount buying an Orlando short sale. However, for most retail buyers when they hear the word “short sale”, they usually pass because they know that short sale lenders can take a long time to respond and there’s never a guarantee that they will accept your offer.

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Orlando Short Sale Q and A… Ask The Expert       

Posted on by Jenny Zamora

Q and A with Jenny Zamora, RE Broker, Orlando Short Sale Expert                    

Q- My house is worth less than what I owe on the mortgage and there’s no way I can afford to continue making payments on it because I lost my job and I’m only working part-time now. Can I ask my bank for a short sale?

A- Before I begin speaking about Orlando Short Sales, you should be aware that there are other options available to you if you want to try and keep your home. If this is the case, you should contact your lender and ask them if they would be willing to consider a loan modification on your loan. A loan modification is just that….a modification to the terms of your loan so that you can afford to make the payments. Even after pursuing a loan modification, many homeowners find out that the bank’s terms are even worse than before and opt for pursuing a short sale instead.

Assuming that you’ve already decided that you want out of the situation and sell your house, you can ask your lender if a short sale is an option that they would consider. I would strongly suggest that you contact an Orlando Short Sale Expert to help you with this. Most realtors don’t like doing short sales because of the amount of all the extra work involved so make sure that you find one that lives eats and breathes short sales. Your Orlando realtor can give you an estimate of how much your home is worth in today’s market so that you know exactly where you stand before approaching your bank. Your short sale realtor should also be a skilled negotiator to ensure you get the best chance at a successful short sale. Negotiating with the bank as well as prospective buyers is a common part of the short sale process.

Q- How does the short sale process work?

A- A short sale happens when your mortgage lender is willing to accept less than the full mortgage payoff on your loan. You’ll need to provide your lender with some documentation like financials, a list of assets, and a complete explanation in writing of why you can no longer afford to continue making your mortgage payments AKA a “hardship letter”.Once your realtor has submitted the entire short sale package to the bank and they agree to a short sale, you’ll be required by the bank to list the property for sale with your Realtor for market value.

Q- How long does a short sale take?

A- Unfortunately, short sales are anything but short. Banks don’t like taking a loss, so don’t expect them to be in a rush to help you get out of the situation. In addition to negotiating with your lender, your Realtor will also be negotiating with potential buyers and buyer’s agents trying to get the deal done. You have to remain patient when it comes to processing a short sale.

Q- What are the tax implications if I do a short sale?

A- The Internal Revenue Service considers a debt that has been forgiven as income. This means that if you paid your lender $110,000 through a short sale and you owed $180,000, the unpaid balance of $70,000 would be considered income. In 2007 the Mortgage Forgiveness Debt Relief Act of 2007 was instated to help homeowners who lost their homes through short sale or foreclosure by waiving the income tax implications on the forgiven debt. Unfortunately for today’s distressed homeowners, this Act expired in late 2013. This means that you will more than likely be responsible for paying income tax on the debt that was forgiven by your lender through the short sale.

Q- How will a short sale affect my credit?

A- The good news is that a short sale will have much less of a negative impact on your credit than a foreclosure or bankruptcy. However, depending on the number of late payments you have on your mortgage, your credit will still be significantly affected and it will probably be a few years before you can get another mortgage.

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