Category: Orlando Short Sales

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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Orlando Short Sales… Know The Rules!

Posted on by Jenny Zamora

Don’t let the name fool you, Orlando short sales take a long time! The reason being is that a short sale means that the bank loses money so you can’t blame them for not being in a rush. This can however be helpful to the homeowner by allowing them time to get their house sold and avoiding foreclosure. If a lender approves a short sale on a home, it means that they are allowing the homeowner to sell their home for less than what’s owed on the mortgage.

Recently, the United States Treasury Department changed the rules to make the short sale process easier and more efficient. Usually, the short sale process will drag on for several months and even up to a year in some cases. And even then there was no guarantee that the lender would agree to a short sale. That’s why there are so few Orlando short-sale realtors willing to specialize in this area of real estate.

Some short-sale agents remain skeptical and think that nothing will change. Orlando short sale specialist Jenny Zamora, Broker at Orlando Realty Consultants “I will be the first to shout from the rooftops if the short sale process becomes faster than what it is”.

These are some of the changes that are being put in place:

  • Potential buyers must submit a pre-approval letter from a lender together with their offer on the home.
  • Lenders have to either approve or deny a short sale offer within ten business days.
  • To protect the homeowner from being forced out, the short sale lender must give a 45 day closing period unless the seller agrees to a lesser amount of time.
  • If someone buys a house via short sale, they cannot sell it for at least 90 days. This scenario is fine for someone planning to live in the home but it presents a problem for investors looking to do a quick flip.
  • Orlando short sales done through the HAFA program [Home Affordable Alternatives Program] can’t be sold to a friend or relative or business partner of the seller.
  • A maximum of $3,000 can go to holders of junior liens to release a lien on their property
  • A lender may not foreclose while the house is being marketed for sale during the short sale process.
  • Lenders may no longer charge fees to borrowers who wish to pursue a short sale instead of a foreclosure.
  • Lenders may no longer lower realtor commissions after an offer has been received.

Jenny Zamora, Orlando Realtor, and short sale specialist are overall happy with the changes although she is doubtful these changes will increase her already outstanding turnaround time of 30-45 days to complete a short sale.

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