Orlando Realty’s Weekly Report for Home Buyers and Sellers
Below are the numbers for properties sold and newly listed properties in Orange County for the past 7 days as well as the numbers from the week prior. By looking at this report it’s evident that the Orlando Real Estate market is steadily stabilizing. Orlando short sales are overtaking foreclosure sales and the demand for Orlando Realty is more than keeping up with the inventory coming on to the market.
Our research is done by our Top Orlando Realtors using Florida’s Multiple Listing Service.
Orange County from 5/4/2012 through 5/11/2012.
* Number of Short Sale Properties Listed – 106 [ 5/27 thru 5/4 – 83]
* Number of Short Sale Properties under contract- 207 [ 5/27 thru 5/4 – 187 ]
* Number of REO Properties [Bank Owned] Listed – 113 [ 5/27 thru 5/4 – 384]
* Number of REO Properties under contract- 112 [ 5/27 thru 5/4 – 126]
* Number of Regular listings (By Owner)- 213 [ 5/27 thru 5/4 – 205]
* Number of Regular listings under contract- 243 [ 5/27 thru 5/4 – 203]
* Total Homes Sold in Orange County- 244 [ 5/27 thru 5/4 – 397]
Florida Hardest Hit is part of a federal initiative to help states devastated by the housing crash. Last week state housing officials announced changes to a $1 billion foreclosure prevention program that will make it easier for qualified homeowners to get more money. As an Orlando Realtor this makes me happy because although not everyone will qualify for this program, it will be a savior for many Orlando homeowners.
The program offers money to cover mortgage payments for homeowners who are unemployed or in jobs with salaries below what they need for basic living expenses. Funds also are used to bring delinquent mortgages current for people who have returned to work or found higher-paying jobs.
One of the major new changes to the program is that homeowners that apply to Florida’s Hardest Hit Fund don’t have to be at least 180 days late on their mortgage to get qualified. Also, it will no longer be a requirement that loans have to be originated on or before Jan 1, 2009 and If you were formerly denied by the program you will now be able to reapply.
Keep in mind that these changes must be approved by the U.S. Treasury and likely won’t be effective for at least six to eight weeks. One of the proposed changes is that unemployed homeowners can receive as much as $24,000 back to pay their mortgage over 1 year. Right now it stands at $12,000 which is a huge difference. Orlando homeowners also may be eligible for as much as $18,000 to bring past-due mortgages current. Although the program only began in April 2011, homeowners are already complaining that the Hardest Hit requirements were too restrictive.
Florida Hardest Hit has helped more than 5,540 homeowners statewide.
“Florida Hardest Hit” current qualifications for an eligible Orlando homeowner:
*Must be a Florida resident
*Must occupy property as primary residence (the property cannot be vacant, abandoned or rented)
*Borrower/co-borrower must be unemployed or underemployed through no fault of his/her own, which makes the first mortgage unaffordable
*Must have documented total household income at or below 140% of the area median income (AMI), adjusted for household size
*Must have an active checking/savings account that can be debited by the ACH method of funds transfer
*May not have unencumbered assets of $5,000 or more, or three times the current monthly mortgage payment (whichever is greater)
*Cannot have a bankruptcy that has not been discharged or dismissed
*Cannot have been convicted of a mortgage-related felony in the last 10 years.
To learn more about the program, contact an Orlando Realty Expert
Homeowner Associations have gotten tougher and tougher to negotiate with over the years. It used to be that an Orlando homeowner trying to short sale their house wouldn’t have to worry about paying their delinquent HOA dues until the closing date. Not only that, but they would also settle for a fraction of what is owed to them, usually about 10% or less in most cases. Those days are long gone!
Orlando Homeowners Associations have become the bullies of the block
What we’re seeing more and more is that the HOA’s are trying to bully Orlando realtors as well as the homeowners into getting the entire amount of what is owed to them. If they don’t get their way, they take to property to foreclosure regardless of what the lender is doing. HOA’s are fed up with being put on the back burner every time and now they’re taking it personal. They are also very aware of the law, HOA’s are entitled to get one year of past dues if the lender takes the property to foreclosure. They also know that it’s much easier for them to foreclose than a bank [no proof of ownership necessary, no issue with robo-signed documents ]. A completely different animal than a bank foreclosure.
Once they get the property into their possession, they rent it out. HOA’s know that even though it costs them a couple grand to foreclose on the homeowner, they are now able to rent rent the property out and recoup some of the loss. Many times they are able to make thousands of dollars just because the lenders take so long to foreclose.
Orlando Buyers are Having to Come out of Pocket to Pay Delinquent HOA dues
I personally think it’s ridiculous that an HOA would foreclose on a homeowner because of a few thousand dollars in past dues. Unfortunately, there is nothing that can be done about it, especially when they’ve already hired an attorney to handle all negotiations. I can tell you there’s nothing more frustrating than having an Orlando short sale 90% complete and the only thing holding up the deal is settling with the HOA. All your negotiating with the lenders is done, they’ve both given you payoff letters, and they’ve also given you 30 days to close. The only thing left to due is get the HOA to give you a discounted payoff letter and you’re golden.
The problem is that they want either the entire amount or an amount that is very close to full payoff! Unfortunately, if they don’t budge, then either you figure out a way to get them their money or the deal falls through. As an experienced Orlando realtor I will take a cut on my commission just so the deal will go through. Most of the time however, this isn’t enough for them. Sellers usually can’t afford to come up with any money, and the only ones left that can make the deal happen are the new buyers. Even though that debt has nothing to do with them at all, we have to make them aware that if they don’t pay it, they don’t get the house.
Orlando Realty’s Weekly Report for Home Buyers and Sellers
On behalf of Orlando Realty and our entire team of Orlando real estate professionals, we are proud to introduce a weekly report of market statistics of what’s happening in the world of Orlando real estate. This report provides up-to-date information to help educate Florida Home buyers and Sellers so that they can get a feel for the market and make educated decisions when it comes to buying or selling Orlando Real Estate.
Our research is done by our Top Orlando Realtors using Florida’s Multiple Listing Service.
When it comes to doing an Orlando short sale, many things come into play. One of the most important aspects of this particular home selling process is the agent that you choose. Your real estate agent will be doing all of the negotiations for you with your bank as well as with the potential buyer; therefore, you have to trust your short sale agent. In order to trust your agent, you should know important things about them before turning the steering wheel over to them when it comes to selling your home. When picking an agent, it’s absolutely crucial that you do your research on that person.
The first thing you should do is research the agent’s background and area of expertise in Orlando Real Estate. The best way to research the company is to utilize online search engines. Simply type in the company or the agent’s name followed by “reviews.” Within seconds you should be able to find numerous reviews from previous clients that will help you to determine the reputation of the company in which your agent is associated.
Certified Distressed Property designation
As with anyone that you hire, you should take into consideration the agent’s real estate experiences. You can also ask the agent to provide you with references, which you can call to obtain detailed information from previous Short Sale clients. References can provide you with the best information about what to expect if you need to do a short sale on your house.
Also, make sure that you agent has their Certified Distressed Property Designation. Although this isn’t the most important thing that you should consider when hiring an agent, it certainly doesn’t hurt to hold this endorsement.
Ask About Getting Cash Back for Your Short Sale
There are many “Cash For Keys” type programs out there right now from organizations such as HAFA. We’ve gotten our clients anywhere from $3,000.00 to $20,000.00 back from the bank at closing. When interviewing a realtor, make sure that you ask about these programs and what the plan of attack will be before signing anything. If they don’t specialize in short sales, then chances are they’re not going to know what the latest laws and regulations are and what they’re able to qualify you for.
The problems start when a homeowner hires an agent to do their short sale and the agent either has very limited experience with short sales or none at all. Short sales are not easy and not all realtors have the skills, work ethic or experience required to be an expert short sale agent. When homeowners make the mistake of not hiring the right agent for the job, the result can be disastrous resulting in your home getting foreclosed on.
If you’re in the market for a real estate agent that specializes in doing short sales do your research and find out everything that you can about the agent before making your decision, you’ll be glad you did. Ask me anything, I’m here to help.
