Tag: mortgage companies

Who Makes The Final Decision On An Orlando Short Sale?

Posted on by Jenny Zamora

Orlando Short Sale Help

 

 

Is your mortgage with one of the large banks like Bank of America, Chase or Wells Fargo? You may be surprised to hear that these lenders don’t usually make the decision on whether or not to approve your Orlando short sale.

It’s a common misconception really but the truth is that these lenders are just servicing these loans for the Investor.

So, who is the investor you ask? The investor in most of these scenarios is usually a corporation, a hedge fund or a firm on Wall Street. It could also be a what’s called MBS or “Mortgage Backed Securities”.

The “Investor”  can also be a government-sponsored entity like Freddie Mac or Fannie Mae. These are referred to as GSEs or “Government Sponsored Entities“.  What most people don’t know is that if your lender or servicer refuses your short sale, your Orlando realtor can contact the investor directly. Most real estate agents are unaware of this and will typically go by whatever the servicing company decides.

Usually, when we contact the investor after the short sale has been denied by the bank or servicing company, we get them to reassess the short sale. It’s a matter of convincing them to accept the short sale based on the hardship of the homeowner and the true market value of the home taking into account all of the repairs that need to happen in order to get the home market-ready.

What we’ve noticed from our own experience is that the “Investor” or “third party” will do a much better job of assessing the short sale offer that was put forth… especially, because it’s their money. After they review the file and if it makes sense to them. The short sale offer is then approved and the investor will ensure that the servicing company is aware of what took place. 

This has proven to be helpful in cases where the lender has asked for a seller contribution and they threaten to close the file unless the homeowner agrees to sign a promissory note for the deficiency.  Sometimes servicing companies will reject a short sale without good reason. Other times the negotiator will have demands that just plain irrational such as wanting more than fair market value or not considering the repairs that need to happen.

 

Why Orlando Short Sale Negotiators Kill Fair Deals?

Being an Orlando short sale realtor for so many years I still get frustrated when the negotiator stands in the way of a perfectly fair transaction. Why in the world would a negotiator do this? I’ve come up with several theories like maybe they get a bonus for obtaining a higher offer and closing it…or maybe they’re just bitter.      

I realize that this might be a surprise to many homeowners but the truth is that this happens more times than it should. If you’re having trouble getting your short sale approved, then find out who the investor is and inform them of what their servicing company is doing to you.  

Our company has been able to get several Orlando short sales approved just by bypassing the servicing company and contacting the investor directly whenever the servicer doesn’t cooperate. If you or someone you know needs help with an Orlando short sale contact us at 407-902-7750 or just visit https://orlandorealtyconsultants.com/short-sales/

 

 

Orlando short sale expert

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Loan Transfers, Not Just For Delinquent Mortgages

Posted on by Jenny Zamora

Most people are under the assumption that a loan has to be in delinquent status in order to be transferred. The truth is that any loan can be transferred at any time the bank wishes. Remember the fine print that you speed read through at the closing? 

Somewhere in that fine print, it states that your mortgage company reserves the right to sell or transfer your loan at any time they wish after the closing. That means that the lender has the right to sell your loan to another lending institution without your permission.

Usually, mortgage companies will give you a written notice in the mail informing you that your loan has been or will be transferred to the new lender or servicing company.

However, I’ve had many clients tell me that they were made aware of the transfer only through a welcome letter from the new lender. Sometimes loans get transferred multiple times. Just because your loan was transferred once, it doesn’t mean that it won’t get transferred again…and again, etc.

Unless you pay off your loan in full, you will never have control over who controls your mortgage.

Mortgage Transfers Are Especially Challenging for Short Sale Realtors

For real estate agents like myself that specialize in doing Orlando short sales, this can be an extremely frustrating situation. You can have hours, days, weeks, and even months invested in a short sale file then… WHAMMO!!  Out of the blue the loan gets transferred to another lender. It wouldn’t be such a big deal if they would just transfer the complete file over to the next lender so that we could just pick up where we left off. But that’s not the case……that’s never the case!

The new lender requires the agent to submit the entire short sale package again from scratch. The only thing that does transfer over it seems is the pending sale date. So not only are you forced to waste a lot more time submitting the new file, getting a hold of the negotiator, etc. but the sale date doesn’t usually get delayed.

This has happened so many times to me that you wouldn’t bother me any more right? Wrong… this has to be the most frustrating thing that can happen to a short sale realtor especially if you’ve been working the file for several months. However, sometimes it’s a blessing in disguise if you’re lucky enough to get a lender that’s more flexible with their terms or guidelines other times homeowners end up with a lender with a much stricter set of rules.

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Mortgage Regulations Change In 2014

Posted on by Jenny Zamora

With 2014 came a whole new list of regulatory and legal changes for mortgage companies.  These rules and regulations were established with the intention to help both lenders and borrowers from making bad decisions when it comes to home mortgages. Here is a list of regulations that began in January that will affect the mortgage process for potential home buyers according to the Assoc of Mortgage professionals.

New Mortgage Regulations

* Stricter Regulations for the Self-Employed. People that don’t have an IRS form w-2 will be finding it more difficult when you apply for a loan. It’s a much greater task for individuals to prove their debt to income ratio without documentation even if their net worth is high with perfect credit to go along with it.

* A Decreased FHA Loan Limit. The Federal Housing Authority has announced that as of the beginning of 2014 that mortgages shall not exceed the amount of $625,000.00 which is down from the previous amount of $729,750.00. People wanting to apply for a larger loan would have to apply for a “Jumbo Loan”, which will probably involve a much higher down payment.

* A Cap on Loan origination Fees. As of January 2014 points and fees for a new mortgage cannot exceed 3%of the total loan.

* The Ability to Repay Mandate. This regulation was set in place by the (CFPB) Consumer Financial Protection Bureau. Its purpose is to set a standard for lending to make sure that each borrower is a truly qualified borrower. Lenders will now have to follow a set of rules in order to establish a consumer’s income, assets, and current obligations before approving them. This is what the government considers a “Qualified Mortgage”.

As a Realtor in Orlando, I think it’s a great idea that these new rules are now in place. It helps to protect potential homebuyers from getting in over their heads and in the long run, it should decrease the number of future homeowners from falling into default with their lenders. These are signs that the mortgage industry has learned a lesson from the real estate crash of 2007.

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Orlando Foreclosure Rates Continue On A Downward Trend

Posted on by Jenny Zamora


CoreLogic has some great news for Orlando realtors and the real estate industry in general. The American business intelligence agency that provides financial and real estate information and analytics to businesses and the feds, reports that Orlando foreclosure rates reduced again in December 2013.

This brings in a ray of hope for real estate agents in Orlando who have been worried for quite some time due to the high rates at which properties in the city get foreclosed. Even with a  decrease in the foreclosure rates in December, Orlando still sports foreclosure rates higher than the national average.

Orlando Foreclosure rate 3.65 percent down from same time a year ago

 

CoreLogic reports that 6.69 percent of residential properties in the Sanford-Kissimmee-Orlando area were slapped with foreclosure in December 2013 – 3.65 percent down from the foreclosure rate in December 2012 (10.34 percent).

CoreLogic, which trades on the New York Stock Exchange as CLGX also reported that the national average of residential-property foreclosures for December 2013 was 2.09 percent. Further, the report also revealed that homeowners of the Metro Orlando area had become more regular with their mortgage payments.

The delinquency rate dropped by 4.53 percent in December 2013. CoreLogic reported an 11.04 percent of mortgage payments coming in later than 90 days in December 2013. A year ago mortgage defaulters in the Metro Orlando area peaked at 15.57 percent.

As is the case with foreclosure rates, the Metro Orlando mortgage delinquency rates top the national average of 5.03 percent this year. Back in 2012, the rate stood at 6.40 percent for the same month.

 

Orlando Realtors Anticipate Improved Sentiments In Near Future

The health of a state’s real estate market greatly influences the health of the overall economy of the state. Listing agents in Orlando reveal that reduced foreclosure rates in Metro Orlando are promising news for the Orlando real estate market because it not only signifies that the housing market is improving, it also helps boost the values of other residential properties.

Add to it the fact that lowered foreclosure, as well as mortgage delinquency rates, are elementary proof that the market is less distressed and the financial status of homeowners is improving.  You’ll know why real estate agents in Orlando are tying this news to the hopes of a stronger market and more buyer confidence in the near future.

 

 

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

5 Amazing Reasons Why A Large Down Payment Is So Important Right Now

Posted on by Jenny Zamora

Summary

If you haven’t bought your first home I suggest you start putting your money away right now because it’s always a good idea to put down a large down payment. Here are a few great reasons why it’s your best option in most cases.

Bleeding you dry with interest

The banks need to make money and they do it by adding a massive amount of interest to your mortgage repayments. For the first half of your mortgage, you’re lucky if you’re paying hardly anything towards the price of your home. It’s quite a substantial amount of money and most people write it off as something that must be done. Put more money down in the beginning and over the life of your mortgage you’ll end up paying a lot less interest which is only a good thing.

A more lavish lifestyle

Do you like to fly to the beach a few times per year so you can top up your tan? Maybe you just like to eat out at nice restaurants a few times per week. When you’re still young it’s worth it to dig in and come up with a larger down payment when buying your home because it means your mortgage repayments will be smaller. You will have more money in your pocket every month and every dollar you earn won’t be getting pumped into your home.

You can sell if you have to

When you don’t put down a large down payment you’re in very risky waters should you ever decide to sell your home. I’m sure you know houses don’t always go up in price and sometimes they fall sharply. If you don’t have enough money invested in your home when it’s time to sell you might not even be able to make enough money to pay back the bank. This won’t matter too much if you don’t plan on selling your new home, but you never know what might happen in the future.

The light at the end of the tunnel

The first few years are great when you buy a new home because you’re just happy you have a place to call your own. It doesn’t take long for reality to kick in and you realize you’ll be making big monthly payments for the majority of your life. When you put down more money in the beginning the light at the end of the tunnel isn’t as far away. You’ll still have many unhappy years of handing over your hard-earned money, but at least it will be over a lot quicker than usual.

You don’t need the money

In some cases, it’s not a good idea to put down too much money in the beginning because what happens when you need it? You won’t be able to take it out again once it’s in, but this is a good thing if you have a simple life and you don’t have any other need for a large chunk of money. When you have credit card debt people say you should pay off your debt instead of saving your money because you’ll actually come out on top. It’s the same situation here and if you invest in a bigger down payment you’ll come out on top, provided you don’t need it of course.

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields