Category: Mortgage Companies

Cash buyers fueling Orlando Real Estate market recovery

Publicado el por John Conde

The Orlando Real Estate market recovery continues on a positive path and some Orlando realtors claim that the tidal wave of cash deals is behind the recovery. “Florida realtor” studies show that fifty-one percent of single-family home sales are all-cash deals. Cash buyers have a huge edge over buyers that need to qualify for a mortgage and they are preferred over traditional buyers by sellers as well as listing agents.

One reason is that cash buyers have their own money and don’t have to wait on any mortgage company for anything. Also,  sellers know that a cash deal means a quick closing, this can mean big savings for the seller who has to make another mortgage payment for every month that their home is on the market. These days a cash offer doesn’t always mean a low ball offer anymore, investors are aware of the competition and a low ball offer could mean losing the deal.

As Orlando realtors,  we are seeing more cash offers for the full listing price of properties than ever before.

Lower-end properties [under 100k ] are being devoured by investors because of the huge demand for rentals right now. Cash investors are able to buy more of the less expensive properties and turn them into monthly cash cows. And although lower-end properties are also being bought and then re-sold for a modest profit, for the most part, we are seeing them end up as rental properties.

Other investors buy properties with the sole intention of flipping them. They want nothing to do with being a landlord and are only interested in getting in and out of a property as quickly as possible.

These buyers usually have to do some rehabbing in order to see some substantial profit and this means that they are usually pretty limited on how many they can do at once. I have investor clients that will buy one or two properties and then have to wait until the houses are renovated and sold before moving on to the next deal.

So what does this all mean for the Orlando Real Estate market?

I believe that all the cash purchases that are happening right now are driving up prices as well as home values in the Bienes raíces en Orlando market. And the healthier the market is, the less risk there is for lenders to approve more mortgages for traditional buyers. This is all great news for now and hopefully will be for several years to come.

What worries me is that if home prices continue to rise to unjustifiable degrees, banks will then start giving mortgages to people that can’t afford them, then…2007 all over again!

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How can the citizens of Orlando get approval for mortgage to invest in real estate?

Publicado el por Jenny Zamora

The borrowing standards are restricted by the lenders due to the increasing rate of bankruptcy, foreclosure, or short sale. If you’re planning to apply for a mortgage loan, then you’re required to keep some of the qualification requirements in mind. You need to be cautious when you plan to invest in real estate by taking out a mortgage. You’re required to keep some of the important points in mind when you plan to get approval for a mortgage to invest in real estate in Orlando.

Here are some of the important tips that you need to consider when you plan to get a mortgage loan to invest in real estate:

1. Stable Income: A mortgage lender may check whether or not you’ve stable income to pay back the owed amount. If you’re self-employed, then you’re required to provide tax proof to help the lender evaluate your total income. Therefore, you’re required to be ready with your pay stub or income tax return to provide evidence of your stable income.

2. Review your credit score: Before applying for a loan, make sure you check your credit report to qualify for better rates. According to Experian, the average US credit score of a consumer needs to be 750. Your mortgage loan can be approved on favorable terms if your credit score exceeds 750.  If you’re a citizen of Orlando, Florida homebuyer, then ensure that your credit score exceeds 750 to get a loan at a low-interest rate.

3. Save funds for a down payment: The lenders may approve your loan program only if you make a considerable amount of downpayment on the loan. If you don’t have enough money to use as a down payment, then save funds before applying for a loan or taking financial help from your loved ones. You’re required to make a down payment of as much as 20% of the total value of the home.

4. Low Debt-to-Income ratio: If you’re planning to apply for a new loan, make sure your debt-to-income ratio is low. Well, the industry standard for an acceptable ratio is 28/36. So, your primary ratio should not exceed 28% and the second ratio should not exceed 36% of your gross income.

5. Eliminate your debt: Try to eliminate your debt before you plan to apply for a new loan. However, it can be difficult but not impossible to get a new loan with a blemished credit report. But the interest rate on your mortgage may increase because of your blemished credit report. If you want to get the loan on the favorable term, then immediately work on eradicating your debts. Before applying for the loan, make sure you put a large amount of your money to eliminate your debt. You can get your loan on favorable term once you eradicate your debt.

Therefore, you’re required to keep the above-mentioned points in mind when you’re planning to apply for a mortgage in real estate.

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What if my lender won’t accept a short sale? – Orlando Realtors

Publicado el por Jenny Zamora

Short Sales are not Guaranteed!

It’s important to be aware that your lender has absolutely no obligation to agree to a short sale.  Also, there are a handful of banks that will agree to a short sale if the homeowner is current however,  most banks won’t even consider it unless the homeowner is at least 30 days past due on their mortgage payment. Either way, it goes, you just won’t know whether or not your lender will accept a short sale until you try. You should also know that a short sale can take several months and even a year to complete depending on who the mortgage holder is and what type of loan it is.

In the event that your lender does not agree to a short sale, there are several other options available to you in the event that your lender doesn’t agree to a short sale.

Other options besides a short  sale

1- Loan Modification– This is when the lender adjusts the terms of your loan by either adjusting the principal balance of the note or by lowering the monthly payment to make it more affordable to the homeowner. Most of the time the terms of a loan modification aren’t worth agreeing to.

2- Deed-in-Lieu- This is the process by which the homeowner signs the property back over to the lender and this is also considered by many a voluntary foreclosure. Unfortunately, it also shows up on your credit as a foreclosure.

3-Bankruptcy-  There are two different types of bankruptcy; Chapter 7 and chapter 13. Since I am not an attorney I will just give you the basics. A chapter 7 bankruptcy is the liquidation of assets so that debtors can get paid a portion of what’s owed to them and a Chapter 13 is basically a reorganization of debts in which the debtor has a chance to work out an arrangement with his or her debt holders.

4- Let it go to Foreclosure- This is one option that I would never recommend to anyone. If you just let the property go to foreclosure, then you’re just giving up and when you give up, you give up all control of your situation. There’s a common belief that if you let your property go to foreclosure, all of your debt will be forgiven and that couldn’t be further from the truth. As a matter of fact,  the opposite will probably happen and the lender will slap you with a deficiency judgment between what you owe the lender and what the property sold for at the auction. 

If you or someone you know is behind on their mortgage, consult with a short sale expert and find out what the best option for you is.

Experto en ventas cortas en Orlando

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What if My Lender Doesn’t Agree to a Short Sale?

Publicado el por Jenny Zamora


 

 

What if my Lender won’t agree to a short sale? | Video Transcript

Speaker:   “This is John Conde with Orlando Realty Consultants… I’m 44 years old and I’ve never had a cavity, However, today we’re here to talk about other alternatives to short sales.”
Speaker:  “First question…The gentlemen with the dark glasses”
Audience: “What if my lender doesn’t agree to a short sale?”
Speaker: “OK… so if your lender doesn’t agree to a short sale there are other options available to you. So why don’t we just go over a few of those options now? yes?…yes?

1-One option would be a “deed in lieu “, which is basically a voluntary foreclosure and all that happens is that you sign the property back over to the bank without going through the whole legal process involved with a foreclosure. You should be aware however that a deed in lieu will show up on your credit as a foreclosure.
Speaker:  Next question…Lady with the sandwich
Audience: “What about bankruptcy?”
Yes absolutely, bankruptcy is also an option to avoid foreclosure… There are 2 different types of bankruptcies.., chapter 7 and chapter 13… Now I’m not an attorney and therefore I’m not qualified to educate you on bankruptcy… However, we do have attorneys on staff that will be happy to sit with you for a free consultation, just call our office, OK

OK, now another option available to you, if you’re interested in trying to keep your house is a loan modification… Basically, it’s when we try and get the terms of your loan adjusted so that you can afford to keep your home…….  We try to do this by either getting your payment reduced or reducing the principal balance or both.
There’s a lot involved with doing a loan mod and if you’re interested in seeing if you qualify, just give us a call and someone from our staff will be happy to help you

Speaker:  Next Question?… the young lady with the Pomeranian
Audience: What happens if I just let my house go to foreclosure?

Speaker:  OK what if you just let it go to foreclosure… Well, I would highly recommend that you don’t take this approach because you are just giving up… and when you give up then you’re giving up all control of your situation and the bank can do what they want at that point.
And don’t think that just because you let it go to foreclosure, you will be free of that debt. Actually, the opposite will probably happen and the bank will slap you with a deficiency judgment for the difference between what you owe and what the property sold for at the auction.
So please if you find yourself in this situation…consult with a licensed real estate professional figure out what your best option is and take action… Thank YOU… I’m sorry I have to go… no more questions at this time.

IF YOU ENJOYED THE VIDEO ABOVE YOU WON’T BELIEVE WHAT HAPPENS

IN THIS ONE, JUST CLICK ON THE IMAGE BELOW  

Short sale Press Conference

Sell A house in Orlando

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Short Sale your home before defaulting on your mortgage

Publicado el por Jenny Zamora

Short Sale your home before defaulting on your mortgage…More and more we are starting to see a trend in the world of Orlando short sales and that is,… lenders are increasingly more willing to approve short sales before homeowners actually default on their mortgage and fall into a pre-foreclosure situation. This is a huge deal for homeowners that have been wanting get out of their upside down mortgage and haven’t done so for fear of severely damaging their credit.

According to our records we found that in 2012 about 20% of our short sale files, were deals where the lender had not yet filed for ejecución hipotecaria against the homeowner. A few of them were deals where the homeowner wasn’t even behind on their mortgage. I for one am praying that this trend continues…for everyone’s sake. It just makes good sense,… if the homeowner is trying to be honest with the bank by letting them know that they will be defaulting before they actually default, why shouldn’t the bank use this information to move things along faster before they start losing money?? It’s a win win situation for everyone involved. The homeowner avoids damage to their credit and the lender avoids losing big money by getting a head start on the whole process of getting the house sold. They don’t have to worry about the mortgage falling behind for more than a few payments and even more importantly,… they don’t have to shell out thousands of dollars in attorney’s fees to start the foreclosure process.

Also, by allowing these “almost distressed” homes to change hands much faster will most likely put them in the hands of new homeowners who have loans they can actually afford, which means they are more likely to be able to afford and maintain the property and these people will be more motivated to be responsible homeowner.

Most Lenders are still not seeing the “Big Picture”

Although some lenders are seeing the light when it comes to getting short sales done before waiting for the homeowner to default, the truth is that most lenders are just not having it. They have a strict set of guidelines that they follow to a ” T “, and there’s just no changing their minds…believe me I’ve tried. Dealing with these lenders can be frustrating, but it’s just part of being a short sale realtor.

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