Tag: Orlando Realtors

Orlando Real Estate Still On The Upswing

Posted on by Jenny Zamora

Although Orlando real estate still has one of the more affordable housing markets in the US, it’s evident that the price of residential real estate in “The City Beautiful” is steadily on the rise.

In the month of May, home buyers in Orlando spent an astounding 18% to 20% of their income on the mortgage payment. I don’t know about you, but this sounds really high to me. Especially, when you consider that at the height of Orlando’s low point in 2010 [after the big crash of 2007] buyers were only spending 10% to 12% of their income on the mortgage payment. What’s wrong with people??!!

Have you ever heard the joke about how Johnny’s dad wouldn’t buy him a $200 bike because of an $80,000.00 mortgage. Although it would be perfect to include in this post, I can’t write about it here because of the adult content that it contains, but if you’re over 18, you should Google it!

There’s nothing wrong with people [for the most part] per say. It’s that they have no choice but to do what needs to be done in order to provide food and shelter for their families. If that means having to spend a nice chunk of their income to keep a roof over their heads, then so be it! We can only do what the market permits us to do.

Check out these numbers; the median home price in Orlando back in 2010 was $1000,000 and just 2 months ago [June 2014] it was up to $165,000. I’m not sure what that exactly means but… Holy Cow! That’s a big increase! 

Orlando Real Estate Market Keeps On Growing and it Shows No Signs Of Slowing.

Even with this huge increase, affordability levels are still relatively low when you look at historical averages. This means that we’re not done growing yet, even if mortgage rates go up a point. Here’s how it works; If mortgage interest rates would go up a point, let’s say from 4% to 5% on a thirty-year mortgage, it would mean that homeowners instead of spending 18% to 20% of their income on a mortgage payment, they would be spending 20% to 22% on their mortgage. According to RealtyTrac this also includes property taxes.

Consider Renting Over Buying

Orlando is said to have one of the most affordable housing rates for buyers in the nation. However, for renters it’s ranked as one of the LEAST affordable places to live in the US… Hold on to your hats! Renters in Orlando spend an average of 34% of their income on paying the rent! Now that’s crazy right?…  Not always.

There are many advantages to renting as opposed to buying a home in Orlando. Here are a couple of advantages of renting over buying.

You don’t have to qualify for a mortgage- Probably the worst part of buying a home is qualifying for it. Unless you have impeccable credit and have never missed a payment in your lifetime, chances are whatever lender you try to get a mortgage with will make you jump through more hoops than a show dog with no guarantees that you get approved. If you rent a home, this is a non-issue and you don’t have to worry about plopping down 20% at the closing table

There’s no commitment- When you commit to a mortgage, you agreed in writing to pay back the entire amount of the loan to the lender or they reserve the right to foreclose on you putting your credit and probably your spouse’s credit at risk. When you rent, you’re only committing to the term of the lease and you can easily pack up and move on. This is why renting is especially attractive to people who are uncertain of there future because of a new job or some other circumstance that would cause them to have to move.


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Banks Can Take Your Assets After Foreclosure!

Posted on by Jenny Zamora

Stop Foreclosure Before It Starts

Are you behind on your mortgage and worried that the lender might go after your other assets if your home gets foreclosed on?

Unfortunately, it can happen if you live in Florida. This scenario can occur in an instance where if the bank is unable to recoup the full amount of the loan especially if it’s a large loan.

With such a large number of Orlando foreclosures still looming many homeowners are wondering if their lender can garnish their salary or personal bank accounts.

The problems that can crop up from a typical foreclosure sale don’t usually occur until after the sale has taken place and the bank ends up with the short end of the stick.

Here in Florida lenders can go to the court for a “deficiency judgment” in order to try and collect the rest of the money that is owed after the foreclosure. With a deficiency judgment in their possession, banks can go after your personal assets like a car or a boat. However, if the asset isn’t yet paid off, then the lender will have to settle for the second position after the lender for the car or boat, etc.

Florida lenders don’t usually go after a person’s assets following a foreclosure sale especially if they don’t see much to tap into.The truth is that collecting judgments is extremely time-consuming and can be quite costly to the bank.

Banks will pay more attention to homeowners with homes that are worth millions of dollars because the larger the loan the bigger the loss. In these cases, the lenders will check the borrower’s bank accounts especially if the accounts are with the same bank. Depending on the situation, banks can move to freeze or garnish these accounts. Banks will also go after businesses that default on large commercial properties.

Just When You Thought It Was Over

There’s another risk that exists for smaller borrowers that may occur down the line. Many times, banks end up selling off these types of judgments to investors or collection agencies for pennies on the dollar. These agencies hire people that are dedicated to hound people any way they can for a settlement. Since judgments are valid for up to twenty years, it gives them more than enough time to come after the borrower for the balance due.

Avoiding A Deficiency Judgment

The best way to avoid a deficiency judgment is for people to deal with their mortgage problems head-on. take action! If a borrower has the chance to pursue a short sale with their lender then they should do it. Not dealing with the problem is the absolute worst thing that someone can do to themselves. It’s like having a financial ticking time bomb on their hands. Borrowers are soo much better off working with the bank as opposed to avoiding them.

Hire A Short Sale Expert

It’s extremely important that the short sale payoff be recorded as a “full payoff”. To ensure that things are done correctly, enlist the help of a short sale expert. Find a short-sale realtor in your area that has a high closing ratio. Avoid realtors that aren’t experienced in the short sale arena or that have only done a few. Selling a home is one of the most, if not the most important transaction of a person’s life so it’s crucial that they find the best-qualified realtor for the job.

 

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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

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Hiring The Right Realtor – Video

Posted on by Jenny Zamora

If you’re looking to buy or sell a home in the Orlando area, it can be overwhelming in these tough and confusing economic times.

Finding the right Orlando real estate agent to help you through the maze is critical.

Look no further! Our proven track record, experience, a record of excellence, and knowledge are your keys to a great buying or selling experience.

We will be with you every step of the way guiding you on this journey, and we’ll do it on your schedule.

We will be your advocate and adviser,  and our strong negotiating skills will take the stress out of what can be an uncomfortable part of the purchase experience call us today and give us the opportunity to earn your trust and your business.

Our company specializes in getting homes sold for the most amount of money in the least amount of time. Our team consists of some of the most successful real estate agents in Orlando. We are equipped to handle any type of real estate transaction… any price, condition, or situation.

Not ready to speak to a realtor yet?  No problem, check out our Home Valuation Tool to find out how much your house is worth.  And if you’re looking to buy a home, then try our home search tool and see all the available properties that are actively for sale in Florida.

Hiring The Right Realtor – Video

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Average Home Price in Orlando Rises to $165K

Posted on by Jenny Zamora

The average price of houses in Orlando rose in May, making it the fourth successive month to touch $165,000. According to Orlando realtors, this has been a peak period since 2008.

According to reports published by Orlando Regional Realtors Association, prices inched up about 1.5 percent in April and about 13.7 percent in May compared to the rates of last year. The report of the association mainly reflects the sales which occurred in Seminole and Orange counties.

The previous time prices of homes were this high, was in December 2008. At that time the prices were $167,500 – a sharp dip from a high of $264,436 achieved in July 2007.

The statistics

Members of the Orlando Regional Realtors Association closed approximately 2,651 sales in the month of May. Sales were down approximately 1 percent in the period starting from April, standing at approximately 11 percent. The available inventory rose from about 3.9 months during April to about 4.1 months during May. This is quite below the six-month level but is adjudged normally.

Probable causes

Zola Szerences, the Association Chairman, said that sales decline can be partly attributed to investor decline. The investors went away from Orlando real estate market as the prices increased. While foreclosures add sorely required inventory injections, they are responsible for slowing the sales. Like Orlando’s short sales, transactions due to foreclosures take more time to process compared to standard transactions.

After many years of shrinking proportions, foreclosures rose about 15 percent in May this year compared to the same period of 2013. Normal sale of homes lowered a little but still comprised approximately two-thirds of total sales. Orlando short sales went down by 62 percent in the period between May 2013 and May 2014. The highest decrease was recorded in the sales of Orlando’s condo market, which fell by 24 percent from last year.

Immediate future

According to Moe Musleem of Re/MAX Legacy, the reason for such an occurrence is that a number of foreclosures are now appearing in the market as the loans are being acquired by a number of loan servicers. He added that the construction of residences has quenched a little of the demand, but not their prices. Musleem is hopeful that a greater number of foreclosures will appear in the market. Since a lot of construction projects are coming up in Seminole and Orange, a large number of properties will sit out in the market.

 

 

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