What will happen to Orlando short sales if the Mortgage debt relief Act of 2007 is not extended?
Short sales have been very popular since the market crashed in 2007, mainly because sellers have the benefit of not being taxed for the deficiency between the mortgage amount and the actual payoff. What people worry about now is that the Mortgage Forgiveness Debt Relief Act of 2007 is about to come to an end at the end of 2012 and so far we haven’t anything about the government extending it.
What do you think would happen if the law doesn’t get extended? In my opinion, this would be the end of Orlando short sales as we know them.
When you think about it, what incentive would a seller have to do an Orlando short sale if they end up with a massive deficiency when it closes? That’s right… there would be no incentive. In fact, I think that most people will just end up letting it go to foreclosure. This means that Orlando REO realtors would be busier than ever.
Deep down I truly believe that this law will be extended, it just makes good business sense for everyone involved… sellers buyers, and lenders. Orlando real estate is moving right now and a big part of that is because of the short sale inventory.
If you are considering an Orlando short sale on your house, don’t take a chance on the mortgage debt relief act of 2007 being extended. Consult with an Orlando short sale specialist and find out what your options are now or you might regret it.
“The City Beautiful” a great place to invest in real estate
Orlando is undoubtedly one of the most frequently visited places in the United States. The demand for real estate in Orlando is constantly on the rise. In fact, in recent times Orlando has witnessed an immense growth in the world of real estate. Moreover, the instability of the stock markets has made people turn to real estates for investment as well as a mode of income.
Though Orlando real estate provides a vast avenue for fruitful investment opportunities, Orlando foreclosures have also been on the rise. You’ve got to keep in mind the mortgage refinance rates as well when considering going for real estate investment.
However, in spite of everything else it remains a fact that Orlando isn’t known as ‘The City Beautiful’ not for nothing. Read along to find out the reasons why you should invest in Orlando realty.
1. Orlando’s scenic beauty – It’s a known fact that Orlando is a place that boasts of breathtaking sceneries, natural beauty, lush green surroundings, and blue lakes. This opportunity of nestling into the depths of such natural beauty is a major temptation.
2. Conducive climate conditions – Orlando is a place known for its warm and humid subtropical climate. This is a huge factor behind the real estate boom. If you’re coming from up north, then this is a major reason why you’d want to consider buying a home here in Orlando. Its weather will provide a welcome change for you.
3. Housing inventory provides you with more choices – There’s been a steady increase in the real estate housing inventory as well. As a potential investor, you’d find the luxury villas and condos as interesting real estate developments that provide attractive investment opportunities.
4. High demand for luxury homes – Real estate has seen a rise in demand with more and more luxury homes in Orlando being constructed. These are rented out as long-term or short-term vacation properties. Since tourism is high in this area, hence these luxury homes actually render a profitable option for the investors. Due to the rising demand for vacation homes, many investors are keen to buy them. Then they lease this property out to the tourists for a certain span of time.
5. Orlando has some major tourist attractions – SeaWorld, Walt Disney World and Universal Studios are some major tourist attractions. These attractions contribute to the curent real estate boom big time. Proximity of a property to these tourist attraction spots also add to the investment value of it.
6. New constructions are on the rise– There’s been a spurt in the growth of apartment complexes and condominiums. Moreover, resort properties are being renovated and fitted with extra amenities. These provide you with an added incentive for you to invest in property out here.
As a home buyer you have a lot of reasons to actually invest in Orlando real estate. With the help of our website you can Search Orlando properties like a pro in the comfort of your own home. Within seconds you’ll have a list of great Orlando properties for sale complete with listing price, photos and every other detail you want to know about the property.
Working as an Orlando short sale specialist for over eight years, I get questions from both clients and realtors about short sales all of the time; How does a short sale work? Do I have to be behind on my mortgage to do a short sale? How will it affect my credit? Will my lender come after me for the balance? Can I get money back even though I’m in foreclosure? What are the tax repercussions?…just to name a few.
This two part post ” Orlando Short Sale Guide” is for people who have unanswered questions about short sales. This week I will talk about every aspect of short sales; what they are, how they work and the do’s and don’ts of whole process. In my next post I will also be talking about probably the single most important part of the whole process and that is finding the right Orlando realtor for you.
I think the best way to start this off, like anything else is by giving you a clear definition of what a short sale is. A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens’ full amounts, whereby the lien holders agree to release their lien on the property and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
An Orlando short sale is most often the best method to Stop Orlandoforeclosure because it mitigates additional fees and costs to both the creditor and borrower. While credit is also typically damaged much less than from a foreclosure, both often result in a negative credit report against the property owner.
Who qualifies for an Orlando Short Sale?
Even though someone can easily prove that their house is worth less than what it owes, most lenders require the mortgage holder to be at least 30 days late on their payment to even consider a short sale. In my opinion, this is a huge flaw in the short sale process and I believe that any property that is worth less than what it owes should qualify as a short sale candidate. Creditors also require the borrower to prove they have an economic or financial hardship preventing them from being able to pay the deficiency.
The Short Sale Process
Creditors holding liens against real estate can include primary mortgages, junior lien holders—such as second mortgages, home equity lines of credit lenders, home owners association HOA—all of whom will need to approve individual applications for a short sale, should they be asked to take less than what is owed.
Some liens such as student loans, back child support and I.R.S. liens cannot be discounted and have to be paid in full in order to get the deal closed. In our office, these liens are sometimes referred to as “Deal Killers”. Most large creditors have special loss mitigation departments that evaluate borrowers’ applications for short sale approval. Often creditors use pre-determined criteria for approving the borrowers and the terms of the sale of the properties. Part of this process typically includes the creditor(s) determining the current market value of the Orlando real estate by obtaining an independent evaluation of the property with an appraisal, a Broker’s Price Opinion or [BPO]. One of the most important aspects for the borrower in this process is putting together a complete short sale package including hardship letter explaining why a short sale is needed on you Orlando property.
Due to the overwhelming number of defaulting borrowers due to mortgage failures and other causes as part of the 2008–2012 global financial crisis, many creditors have become adept at processing such short sales applications; however, it can still take several months or even a year for the process from start to finish, often requiring multiple levels of approval.
Jenny Zamora, Lic RE Broker/ Orlando short sale expert.
Orlando Mansion Officially the largest house in North America
Orlando real estate currently has the record for having the largest singe family residence in North America. At 90,000 square feet David and Jackie Siegel have nicknamed their Orlando property “Versailles” after the royal château in Versailles in the Île-de-France region of France. This mansion will officially be the largest house in America when [or if] completed. The would-be Versailles will reportedly feature nine kitchens, a bowling alley, three swimming pools and a full baseball diamond.
Here are some other interesting facts for you; 45 foot ceilings, 13 bedrooms, 23 full bathrooms, a 6,000-square-foot master suite, a banquet kitchen plus 8 satellite kitchens, a 20-car garage, three pools, a two-story wine cellar and a grand hall with a 30-foot stained glass dome. Of course, a home doesn’t get named after a famous French palace without a few more obscene extras. There’s also a boat house, formal gardens, a baseball field, two tennis courts and a rock grotto with a waterfall, a fitness center, a two-lane bowling alley, a roller rink, a video arcade and a theater.
The unfinished Orlando mansion is listed right now for $75 million. If you want it completed, it will only cost you a additional $25 million. Mr. Siegel, the chief executive officer of Orlando-based Westgate Resorts, began building the enormous, resort-like mega mansion for himself and his family in the town of Windermere, Fl. in 2007 right when the market crashed. The 76-year-old billionaire and his 46-year-old wife had to stop construction on the home three years ago when the market crashed and financing for Westgate Resorts slowed.
It appears that Mr. Seigel is trying to do the right thing. Instead of putting his extra money into this home, it is reported that he’s putting it back into the company to save the employees. Mr. Siegel has had to cut some of his 12,000 employees at Orlando-based Westgate Resorts.
Record numbers in Orlando Tourism is contributing to the shortage of Orlando real estate.
Increasing numbers of domestic tourists are buying up Orlando properties creating a noticeable decrease in nice Orlando homes. Who could blame them? This is a great place to live and even better place to visit. It seems everyone wants their own little piece of Orlando Realty. The majority of tourists that buy Orlando Real estate, intend to use these properties as vacation homes or second properties.
Orlando is considered to be the world’s top destination for families.
The theme park capital of the US attracted over 55 million visitors last year. As a matter of fact, Orlando beat out New York to be the first tourist destination to attract more than 50 million visitors in a single year. Thriving tourism means more demand for quality Orlando properties, especially for the neighborhoods located close to the theme parks like Disney World. Although some people choose not to rent out their vacation home most people do. Homeowners are cashing in on the Orlando short term rental market. Since Orlando never really has a low season, savvy out of state landlords are able to pull in a steady stream of income all year round.
So what does these mean for the future of Orlando real Estate? Increased sales means a continued stabilization in Orlando realty and I really can’t think of a downside. We can only assume that this will translate into an even higher sense of urgency for potential Orlando home buyers.
