Today’s headlines are filled with stories about homeowners going through financial hardship and having to face a lender’s foreclosure on their Orlando property.
The majority of loan modification programs fall short but there’s another way out. It’s called a short sale. It’s when a lender agrees to a sale of a property for less than what the property owes. But you need an experienced short-sale realtor to make sure everything gets handled correctly in a professional way.
We specialize in doing Orlando short sales. The short sale realtors on our team have proven to be the best in Orlando at what they do. Through years of experience, our agents are very well equipped to handle any situation when it comes to processing a short sale from start to finish.
Are you or someone you know facing foreclosure? Come in and speak with one of our short-sale experts. Or you can visit us at https://orlandorealtyconsultants.com/
Don’t believe things you may hear about short sales being impossible to close and about how they can take forever. Short sale timelines are getting faster and lenders are starting to get their act together.
Find out who the top short sale agents in your area are. Our agents close 99% of their pre-foreclosure listings. This is more than 3 times the national average.
We have buyers for these properties and know how to get these offers accepted quickly by the lenders and get the deal closed. Over the years we’ve helped thousands of Orlando homeowners get out of upside own mortgages and move on with their lives by doing a short sale on their homes.
Market reports at the end of the first quarter of 2014 reveal the US real estate industry is inching toward increasing home prices. Almost 20 percent of the nation’s metro residential real estate markets have freed themselves from the pangs of declining home rates experienced during the recession. Further, the median prices of homes experienced a one percent hike nationwide.
Amidst the new information, is speculation that home prices would continue to grow through the four subsequent quarters. According to analysts, a 3.3 percent hike in home prices can be expected through March 2015.
Homes To Sell At Pre-recession Prices by March 2015
Compared to peak housing prices in 2007, before the market crashed and housing prices fell by 22.6 percent in 2011, the nationwide increase in 2014-Q1 is still low by 13.5 percent. However, compared to last year (fourth quarter of 2013), the value of homes saw a nationwide increase of 0.5 percent.
According to a recent industry report, 527 cities and towns out of the 6,781 that witnessed at least 10 percent decline in housing prices, have already recovered or will recover by March 2015. Further, in close to 60 metro housing areas, prices have already exceeded (or are predicted to exceed) the pre-recession values by 2015.
Affordability Not A Concern For Orlando Home Buyers
Orlando Home buyers need not be concerned about the steady appreciation in housing prices. Not yet at least, according to a majority of the real estate agents in Orlando. Top realtors hold that housing affordability will not be affected by the rise.
Affordability has been strong and will continue to be so in a majority of metro markets including the Orlando real estate market. In a couple of markets, however, San Diego, San Jose, and Los Angeles to name a few, the situation is a little different. According to the report, affordability is already a concern for these metros, with rents rising 2.7 percent from their value in the first quarter of 2013. Low affordability often causes home values to drop in certain places, especially when buyers are forced to look for affordable housing farther from the business hubs and urban job centers.
For metros, where affordability is not a concern, the first quarter presents some great home-buying opportunities. Rates of fixed and variable-rate mortgages have reduced significantly and banks have become more lenient in lending.
A final walk-through is not at all like a home inspection or an appraisal. The final walk-through occurs after all the dust has settled from negotiating the price to scheduling inspections, getting the loan approved, etc. A final walk-through is an inspection usually performed by the buyer and buyer’s agent anywhere from a couple of hours to several days before the closing. I like to schedule final walk-throughs for my buyers 5-7 days before the closing.
The main purpose of this type of inspection is to make sure that the buyer is getting exactly what was agreed upon by both buyer and seller as well as to check on repairs, if any, that were supposed to have been made by the buyer. It’s the last opportunity for the buyer to walk through the house as the buyer and not as the new owner.
The final walk-through shouldn’t be skipped by the buyer, it’s never a good idea to assume that things will be the way you expect without verifying, especially with something as important as purchasing a home.
Here are some tips when it’s time for the Final Walk-through
1- Bring a hard copy of this checklist with you so you don’t forget anything. 2- Check the exterior of the home for new damage, especially if it’s been storming since your last visit. 3- Turn on the sprinkler system, pool pump, and all exterior lights, and check outlets. 4-Run all water faucets throughout entire house, check hot and cold. Look under sinks for water leaks. 5- Test all appliances 6- Make sure that the seller hasn’t removed any fixtures, chandeliers, etc. they agreed to leave behind. 7- Test air conditioning and heater. 8- Flush every toilet. 9- Open and close every single window and door. 10- Check ceilings, walls, and floors for new water stains. 11- Turn on garbage disposal and exhaust fans. 12-Make sure any debris has been removed and the home has been cleaned. 13-Make sure you test any remote controls such as the garage door.
Take your time!
As an Orlando Realtor, I always stress to my clients that this is one time that you DO NOT want to rush. Spend a good hour or more going through the house that you will call home. The last thing you want to deal with when you move in is cleaning or repairing something that should’ve been done by the seller.
Be sure to take notes about anything you may have noticed that wasn’t the way it was supposed to be and inform your real estate agent. Remember, the final walk-through will be your last opportunity to mention anything that you’re not pleased with before the closing of the transaction.
This is the story of Irene Mazza. When she first came to see us, she had a rental property that was costing her $150 per month and was ready to just let it go to foreclosure. We sat down with Ms. Mazza and explained her options to her. After hearing about all of the options available to her, she decided on a loan modification.
We’re happy to report that not only did we help her get her home loan modified, but she is now instead of losing $150 every month, she’s making $300 per month on her rental property.
Don’t take our word for it, watch the video and you can hear it right from her.
There’s been a lot of buzz about the current housing recovery in Orlando, many real estate agents feel that these developments mean the end of Orlando short sales. Speaking as a realtor that specializes in doing short sales, I completely disagree with that, and I’ll tell you why:
Has The Orlando Real Estate Market Fully Recovered?
It’s true that we are now facing a housing market that’s less heated and moving towards normalcy. Home price increases are driven by market demand as well as inventory shortages. And as far as pricing goes, according to CoreLogic, there was a nearly 12% growth in 2013. However, halfway through 2014, we’re already experiencing a cooling trend overall in Orlando with lower-priced properties in the lead with just 2% growth. All these things can be attributed to rising interest rates, a drop in investor participation, ever-changing short sale rules, as well as increased inventory.
Any active real estate agent can tell you that decreased inventory will lead to higher prices. Then when housing prices increase, it gets people feeling good about the market again which helps to convince homeowners that were on the fence about selling, to put their house back on the market. However, while price increases are encouraging, we still have a long way to get to erasing equity losses from the last decade.
In my opinion, the restart of any housing market is directly related to inventory and that’s why I feel that the current rebirth of the Orlando real estate market is an illusion. If you haven’t heard the term “shadow inventory”, it basically means real estate inventory that’s not yet reflected on the market.
There are several reasons why shadow inventory exists. Here are the most common:
Loan modifications- This is a foreclosure workout program that’s designed to modify the terms of the loan making it more affordable to the homeowner
Homeowners in litigation- These homeowners are in actively litigating foreclosures with their lenders causing the property to be tied up for up to several years in some cases.
Short Sales that have fallen short- Those people that have just given up trying to short sale their home because of an incompetent agent that couldn’t get the job done or a lender that just won’t budge.
Foreclosed properties- This is when a property has gone to foreclosure and taken back by the lender. I believe that this is the biggest reason for shadow inventory. When the lenders take back these properties it can sometimes take up to several years for the property to be put back on the market. Once it’s put back on the market for sale, it’s then considered an REO [real estate owned] property.
Unrealistic Property Values Not Helping Things
Another major factor that affects housing recovery is the perception of property values. Dealing with hundreds of BPO agents and appraisers [sometimes known as Deal Killers”] I know how much someone’s price opinion can vary from someone Else’s. It’s not uncommon to find very high and very low comps for most properties. This can be problematic because, with a short sale side, buyers will always try to use the lowest comps to justify buying a distressed property. Unfortunately, in the real estate industry, you just don’t know how things will play out in any transaction which is why you have to be prepared for everything.
Orlando Short Sales Will Be Around For A While
All of the things mentioned previously in this article all play a role in why I think that short sales are here to stay…at least for the next year or two. 91% of our clients are short sale clients and I can truly say that a short sale represents a way out for people, a way to get out of a bad situation and help people to move on with their lives. I also believe that lenders will start to wake up and smell the coffee when it comes to short sales vs foreclosure. Lenders benefit far more from a short sale as opposed to spending valuable time and money on a foreclosure. By allowing more homeowners to short sell their homes, they won’t have to deal with the hassle of getting the property back on the market and hoping to recoup a portion of their money.
