Tag: Jenny Zamora

Orlando Realtors Fed Up With Bad BPO’s

Posted on by Jenny Zamora

Bad BPO’s= Inflated Values

Orlando Realtors that specialize in short sales know how important the broker’s price opinion [BPO] part of the process is. The BPO refers to the value of a property as decided by a local real estate agent or broker. It’s important to note that BPO agents are not appraisers. BPOs should be done by taking into consideration the characteristics of the subject property such as similar properties in the neighborhood [square footage, upgrades, etc.] They should also consider other important factors such as the repairs that will take to make the property ready to be put on the market.

Once a contract is submitted to a lender on short sale property. The lender will then order the BPO to be done through a large BPO agency. The agency will then hire a local real estate broker or agent to do it. Most of the time the broker or agent will then do the BPO based completely on electronic data and will sometimes even complete their BPO report before even leaving the office. This means that some of the items such as necessary repairs, neighborhood trends, etc. aren’t taken into consideration often resulting in bad BPOs that a short sale agent receives.

What can an Orlando Short Sale Realtor do to prevent a Bad BPO?

1- Automatically assume that the BPO will be bad or overinflated. This will give you more time so that you’re ready to fight it.

2-Do your own Comparative Market Analysis [CMA] providing at least 5 comparable properties that will help to prove your case.

3-Take a bunch of pictures of any cosmetic, structural, or neighborhood issues that can negatively affect the value of the subject property. You should also take pictures of dated appliances, old water stains, mold and mildewed walls, worn-out wall coverings, and fixtures. Big-ticket items like roof, ceiling, AC, and water heater damages should also be included. You should also take pictures of any overgrown landscaping, broken or deteriorated fencing as well as any other issues with the yard. You should also take pictures of nearby commercial locations that could potentially influence the value of a property.

4-Carefully review the BPO report that was completed by the other agent. Remember… you are the local expert, not them. Take note of how old the comparable properties are as well as the square footage making sure that the comparables provided are a good match for your property. Make sure that the school ratings and nearby amenities were also recorded correctly such as parks, shopping, entertainment, and dining.

5-Make sure that any needed repairs were also considered as part of the BPO, this is a big one! If possible take any pictures of the comparable properties that were used that will help to prove your case with the lender. By doing this, you can prepare a detailed side-by-side comparison showing the lender that the BPO agent got it wrong.

6-Submit your analysis to the bank as soon as possible after you received the unreasonable BPO that was prepared by the Broker or agent. This will not only show the lender that you know your stuff but that you are ready to move quickly towards a resolution.

Once you’ve done all these things, it will undoubtedly make the bank take notice. Remember to always be respectful with the negotiator and use humor whenever appropriate to keep things light. I don’t care who it is, people will always appreciate a good laugh. Then the only thing left to do is follow up, follow up, follow up. At the very least the lender will have no choice but to order a second BPO.

 

 

 

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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.

 

 

 

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FHA’s Back To Work Program Giving 2nd Chances

Posted on by Jenny Zamora

 

 

FHA’s Back To Work Program

As an Orlando realtor, part of my job is to help potential home buyers get approved for a mortgage. Unfortunately, aren’t always able to qualify for the best mortgage programs like an FHA [Federal Housing Administration] loan because of negative credit events like having a foreclosure or short sale on their record.

Recently there’s been some great news for ex-homeowners that find themselves in this situation. FHA, formed in 1934 and part of the U.S. Department of Housing and Urban Development is waiving its 3-year foreclosure awaiting period. All homeowners with FHA case numbers assigned after Aug. 25th of 2013 that have gone through a bankruptcy, short sale, foreclosure, loan mod, or a deed-in-lieu can now apply and potentially get approved for an FHA mortgage.

The FHA has the role of being the insurer of mortgages made by lenders that are FHA approved. Since the FHA’s inception, it has insured loans in the entire U.S. in addition to U.S. territories as well as the District of Columbia and holds the record as the world’s largest insurer of loans at thirty-four million loans.

Basic FHA Mortgage Guidelines:

1- Loans must be made by an FHA approved lender

2-Borrowers must be U.S. citizens

3-Borrowers must have a  minimum credit score of  at least 500

4- A down payment of at least 3.5% of the contract price is required on a purchase

5- Income is verified via W-2 or federal tax returns

Within the last several years the FHA has been steadily tightening their requirements since the housing downturn. However, since August 15 of 2013, the FHA has made the decision to ease up on their requirements when it comes to borrowers that have ” experienced periods of financial difficulty due to extenuating circumstances”. Now known as the “Back to Work Program”, the FHA has gotten rid of it’s former waiting periods that were typically followed after a negative credit event.   Here are some examples of negative credit events that can affect someone trying to get approved for an FHA mortgage loan.

* Foreclosure

* Short Sale

* Deed-in Lieu

* Bankruptcy Chapter 13

* Bankruptcy Chapter 7

* Loan modification

* Forbearance agreements

It seems that there are actually some compassionate people running this company. The FHA has come to the realization that sometimes bad credit situations are beyond the homeowner’s control and that someone’s credit doesn’t always reflect a person’s willingness or ability to pay there mortgage. One can only hope that other lending organizations will follow the FHA’s lead.

 

 

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Orlando Foreclosure Discounts Shrinking

Posted on by Jenny Zamora

Orlando Foreclosure properties just aren’t the bargains that they used to be. In August of 2009, the average discount on a foreclosed home was about 24%. As of September of this year, it’s now down to about 7% compared to what a home buyer would’ve paid for the same property in a conventional transaction.

Orlando, which is one of the cities that was hit the hardest by the foreclosure crisis has such a strong demand right now for properties that the discounts are pretty much gone unless the house is in need of major renovations. Our company specializes in Orlando short sales and I can tell you that just about every one of our listings receives multiple offers for the listing price or above.  It’s extremely rare these days that we get an offer that’s lower than the listing price because buyers know that it’s a very competitive market right now. As a matter of fact, about half of our properties end up selling for over the listing price.

Regular homebuyers [not investors] are the main reason for the increased demand for Orlando real estate. Everyone wants to take advantage of the historic affordability, which means the combination between lower home prices and great mortgage rates. This doesn’t mean that you still can’t get a good deal in Orlando, but be prepared to submit multiple offers on multiple properties. It’s because of this that it’s much more work to be a buyer’s agent where you have to show multiple homes and submit multiple offers before you find what your buyer is looking for. It’s very common these days to go see a house that has been listed for less than 24 hours and find out that the home already has multiple offers on it.

Orlando Re-Habbers Still Turning a Profit

The average home buyer wants nothing to do with remodeling a home after they’ve purchased it. This is why there’s soo much competition for Orlando homes that are move-in ready. However, for the home buyer that is willing to roll up his or her sleeves and dive into some major home repairs, there’s still a profit to be made. There are some lenders that will complete the renovations on their own foreclosed properties before putting them back on the market, but most of the time they just want to sell them as-is.

Homes that are in need of repairs can still be good investment opportunities if you know what you’re doing. Using an experienced Orlando realtor to help with your search is highly recommended. It’s also important to know what repairs need to happen and how much the repairs will cost before you commit to buying a fixer-upper. Although profit margins are quite a bit smaller than they were a few years ago, a full-time rehabber can still make a decent living from flipping houses.

 

 

 

 

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Are Florida Real Estate Prices Set to Plummet with the Onset of Global Warming?

Posted on by Jenny Zamora

Global warming is not an unfamiliar topic of discussion; every day we move closer to a very grave situation, that of the steadily melting polar icecaps. The water from the melting of these icecaps is slowly resulting in a rise in the sea level, and it’s not just scientists that are keenly studying this phenomenon; Florida real estate agents have also begun to consider the fact that rising sea levels may start to eat into the desirability of real estate in low lying areas.

If reports are to be believed, the onset of the first dramatically noticeable effects of global warming is just a decade away, and anxious real estate owners are looking to sell their land in a bid to avoid losing money due to the predicted drop in Florida real estate prices in areas that are low-lying, with respect to their altitude above sea level. In a situation like this, the only measure that would offset this price drop is preventive action on behalf of governments, to reduce practices that contribute to an increased rate of global warming.

Some buyers are still unaware

According to a statement given by one of the directors at the Florida Atlantic University’s Center for Environmental Studies Florida real estate agents are discretely in contact with the university in order to gain an approximate idea of how much the sea level is expected to rise over a certain time frame. What scientists are puzzled about is the small number of realtors that have actually thought of this possibility.  People are still buying waterfront property at premium prices, unaware of the possible threats they face a decade down the line.

Rising sea levels are the cause of concern

According to the calculations of the Southeast Florida Regional Climate Change Compact, the price drop on account of a one-foot rise in sea level are approximately four million USD, with a three-foot high rise in sea level exponentially increasing this value to thirty-one million USD. Real estate agents are speculating on how much longer such waterfront properties are going to remain desirable.

According to the projections generated by the Army Corps of Engineers, South Florida is expected to see a three to seven-inch rise in sea levels by the year 2030 and anywhere between nine and 24 inches by the year 2060. According to the Florida Atlantic University, the change in these real estate prices will be clearly visible when the region experiences a natural calamity, post which rebuilding initiatives will determine which areas are worth rebuilding and which aren’t.

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