Tag: Jenny Zamora

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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How Do Orlando Real Estate Agents Get Paid?

Posted on by Jenny Zamora

I was meeting with a client last earlier this week that was looking for a 4-bedroom home in East Orlando. At one point in our meeting, she looked at me with a blank stare on her face and asked me how much I was going to charge her to find her a house. Just at that moment, I realized just how many pieces there are to the puzzle in a real estate transaction.

As Orlando real estate agents, we’re aware of everything involved with buying and selling homes because it’s our profession and it’s something we do every day. However, a first-time buyer may be completely clueless about how a real estate transaction works. That’s why it’s our job as real estate agents to make sure the buyers and sellers are completely informed about every last detail of the transaction they are about to be involved in.

Typically the buyer’s agent’s commission gets paid by the seller. Here’s how it works… The agent representing the seller AKA the “Seller’s agent” signs an agreement with the seller AKA a “Listing agreement” to pay a specific amount of commission in order to sell the home. Then the listing agent will enter the listing into the Multiple Listing Service [MLS] and based on whatever amount they agreed upon with their client, they will usually offer the buyer’s agent 50% of the commission. When the transaction is complete both agents are paid out of the seller’s proceeds.

How do Realtors get paid when it’s a short sale?

It works a bit differently when it’s a short sale or foreclosure situation. In a short sale scenario, the seller is upside down on their mortgage which means that there is more money owed on the property than the property is actually worth. A short sale is a pre-foreclosure arrangement between the seller in which the lender is agreeing to the sale of a property for less than what is owed in order to re-cooperate some of their money. This usually means that the seller is financially unable to bring any money at all to the table. In this case, the Bank pays both real estate agents. Banks will usually approve a commission of 5% or 6% which is to be split 50/50 by both agents involved.

There is one situation in which the buyer pays the commission which is pretty rare. Some homeowners choose to sell their property “For Sale By Owner” in order to avoid paying any commission at all on the sale of their home. In rare cases like these, the buyer pays the agent when the transaction closes. It’s never a good idea for a buyer to enter into a real estate transaction without the representation of a licensed Orlando realtor. 

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A Real estate agent plays many key roles in getting the transaction closed. A realtor can also play the role of negotiator making sure that the buyer gets the best price possible on the property, most of the time the amount of money that a buyer saves on the transaction far exceeds what they agreed to pay the agent.

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Demystifying the Short Sale Process

Posted on by Jenny Zamora

 

For those buyers facing an imminent threat of foreclosure, a short sale is a viable option indeed. Through a short sale, the seller eliminates the debt burden that comes with his value- depleted property that no longer attracts enough of a sale price to pay off the loan in full. Scores of homeowners saddled with underwater properties have taken the help of short-sale negotiators to get a reasonable price for their homes in recent times. If you are looking for advice and information on Orlando short sales, read on. 

 

Getting the Short Sale Package Approved

 

This is the first step in your Orlando short sales process. Your lender needs to approve your sale of the property at a price that is less than your total debt due to him. To do this, he needs to be sure that you cannot afford to pay off his loan from other sources (e.g.: your savings).  The first step of the short sale is for you to present a short sale package to the lender. This package outlines an overview of your finances and your credit score along with a hardship letter and the home’s documents indicating the purchase price. Once the lender is convinced that a short sale is your best option, he approves the process.

 

Listing the Property

 

Now it is time to present the property in the best possible way so that you can attract the most number of buyers. Working with reputed Orlando realtors who are also experienced short-sale negotiators is a great advantage at this stage. The realtor has an understanding of the market and the skill to present your property as a good buy to prospective homeowners. Locate a realtor who has a deep insight of the current Orlando real estate market so that you can price your home right. The Orlando realtor will also ensure that your home appears in all the right listings so that it is highly visible in the marketplace.

 

Sell the Home and Get Rid of Your Debt


Once your home gets an offer you like, it is time to start processing the short sale. Your lender may require several documents to process the actual sale. Here too, an experienced Orlando short sale realtor can prove to be of immense help. Collect all the documents and present them to your lender for approval of the proposal. Once he gives his approval, the sale can be finalized and closed. In some situations, the lender may reject the proposal.

 

If this does happen to you, don’t give up hope. Ask your lender to give the reasons for rejection in writing. There may be some negotiations that you can do with the buyer/ lender with the help of your Orlando realtor to ensure that the proposal is tweaked to meet his approval.

 

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