Tag: orlando short sale experts

Orlando Short Sale Help – VIDEO

Posted on by Jenny Zamora

Orlando Short Sale Help 407-902-7750 Video

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.

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Orlando Short Sales Decrease Due To Tax Implications

Posted on by Jenny Zamora

The debt relief act of 2007 has officially expired as of January 1st 2014. This situation creates huge tax burdens for Florida homeowners that are upside down and that have or will receive any kind of mortgage forgiveness such as a short sale.

This means that the IRS will consider any capital that was forgiven by a lender either in a short sale or even a foreclosure to be recorded as income to the homeowner and will tax that income accordingly. The “Mortgage Forgiveness Debt Relief Act” [MFDRA] of 2007 was established to allow homeowners with certain criteria to exclude this type of income from their tax returns. This act only applied to debts associated with someone’s primary residence.

Orlando Short Sale Realtors Concerned Over Tax Relief Expiring

Orlando realtors that specialize in doing short short sales are very concerned about homeowners no longer having the tax break incentive. Why would someone go through with a short sale if they knew that they would be taxed on the deficiency? It’s like jumping from the frying pan into the fire, you’re going to get burned either way.

We’re already seeing a sizable decline in Orlando short sales since the 1st of the year. I think that we’ll see even fewer short sales, fewer principal reducing modifications, and an increase in foreclosures as we get further into 2014. Homeowners aren’t seeing the upside to doing a short sale in many cases.

The truth is that without the assurance of tax being exempt on a short sale there’s much less incentive for distressed homeowners to agree to the voluntary sale of their home.

Lenders Are Foreclosing Faster Than Ever Before

There was a time shortly after the RE market crashed in 2007 where lenders were extremely overwhelmed with the amount of homeowners defaulting on their loans. This resulted in a foreclosure taking up to 2 years or more to complete in some cases.

Several Orlando homeowners that I’ve spoken to say that they’ll just stay in the house until the bank forecloses believing that it will take their lender years to foreclose on them because of the stories that they’ve heard in recent years.

This couldn’t be further from the truth and homeowners that feel this way will be in store for a rude awakening. Lenders have come a long way in streamlining there process for dealing with mortgage holders that fall behind. They now have systems in place that help to expedite the amount of time that it takes to process foreclosures, short sales, loan mods, etc. Certain lenders will foreclose within a matter of 3 to 4 months if the homeowner doesn’t take action.

What Are Other Alternatives To Foreclosure?

Homeowners are still offered the same alternatives from their lenders; short sales, loan modifications, deed-in-lieu, etc. It’s important to note that it’s not the lenders who want to tax homeowners on the deficiency amount, it’s the IRS. And, although congress is actively looking at several bills that would extend tax relief through the next year or two, it hasn’t happened yet and there’s no guarantee that it will.

 

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Who decides the value of a Short Sale?

Posted on by Jenny Zamora

Orlando Realtor –  Video transcript who decides the value of a short sale?

Hello, John Conde here with https://orlandorealtyconsultants.com/ , and today we’re here to talk about short sales

John Conde: OK first question?… The woman with the Orange hair

Audience: Who decides the value of a Short Sale?

John Conde: OK…great question and a crucial part of the short sale process.
The valuation of a short sale, as determined by the short sale lender, is probably the single most important factor of the transaction.    ….The way it works is; after we submit an offer to the bank, the bank will then order a BPO.. AKA [Brokers price opinion] on the property.

This person will usually be a local realtor that will go out to the property, and after doing their research on recent sales in the neighborhood, will give the lender their opinion of what the property is worth.

Whatever, the BPO comes in at will be the negotiating point between the lender and potential buyer.

John Conde: Next question…

Audience: Does it matter if the house needs repairs?

John Conde: Yes, it does matter and that is something that they are supposed to take into consideration when giving their estimation of value.

So they do the BPO…Now At this point there are 3 things that can happen that will dictate what follows.

1… The BPO comes in at a fair number that everyone is happy with and we proceed to closing.
2… The BPO comes in too low and the bank insists on another one being done… It happens sometimes.
3…The BPO comes in so ridiculously high that the buyer threatens to walk.
Now when this happens, you will find out what your short sale agent is really made of….The agent can choose to do one of 2 things.

#1- Just accept what the bank says, let the deal fall apart and pray that a new buyer comes along
or
B- Do whatever it takes to prove to the bank, that the BPO agent got it wrong.
Now at our company, We do this by preparing an in depth report of our own… called a CMA which is also known as a comparative market analysis]. This report contains even more information than the BPO agent provided them with.

What a CMA basically comes down to is a list of Active, Pending and Sold properties in the area… and  the whole purpose behind this is to get the lender to order another BPO or if we’re lucky they’ll just use ours.

I hope this was helpful in answering your questions.  Remember…we’re here to help…it’s up to you to take the next step…Thanks for watching

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Orlando Short Sale Expert Press Conference Video

Posted on by Jenny Zamora

Orlando Short Sale Expert Press Conference Video Transcript  | Orlando Realtor

From Speaker: “Hello Everyone My name is John Conde on behalf of Orlando Realty Consultants THIS IS A PRE-FORECLOSURE SITUATION! We don’t have much time. We’re here to talk about short sales today I know you all have a lot of questions so let’s get right to it, let’s please try and keep the questions short and to the point”.
From Crowd: “What is exactly is a short sale anyway”?
From Speaker: A Short sale is a pre-foreclosure arrangement between a homeowner and their lender, where the lender agrees to a sale of the property for less than what’s owed as opposed to taking the property to foreclosure.

From Crowd: “Why would a lender agree to short sale”?
From Speaker: “Well it comes down to time and money, it’s expensive and it takes a long time to take a property through the foreclosure process and banks know that they will never get even close to full payoff at the auction. Most of the time the lender buys it back as an REO property and sells it at well below market value anyway. So by doing a short sale it’s a win win for everyone involved”.
From Crowd: ” What are some reasons why someone would consider doing a short sale” ?

From Speaker: ” There are a several reasons why someone may need to do a short sale. Loss of employment  , transferring to another job,  maybe your payments have gone way up,  or Maybe your upside down and you just want to get out of a bad investment.
There could be a million reasons why someone would need a short sale”.
From Crowd: “Don’t you need an attorney to complete a short sale”?
From Speaker: “There’s a common myth that you need to involve an attorney when doing a short sale on your home and I’m here to tell you that it’s just not true! Not only that, real estate attorneys charge thousands of dollars for what a short sale realtor does for free. We actually service short sale files for several law firms in Central Florida. So long story short,… no you don’t need an attorney, but the bank does require that a licensed real estate agent represent the seller”.

From Crowd: “How will a short sale affect my credit”?
From Speaker: ” This is a subject I will be going into detail with in the coming weeks but in a nutshell, It’s much better to have a short sale on your record than a foreclosure or bankruptcy and it will be a lot easier for you to get another mortgage in the future”.

From Crowd:”What goes into a short sale package”?
From Speaker: “Another great question,… there are many different components that make up a complete short sale package, We don’t have time to get into it today but in the days ahead we will be going into each component of what makes up a complete short sale package .

“I know everyone is desperate for answers and unfortunately we just don’t have the time to get into it today. But I will tell you this… In the coming Weeks we’ll be breaking down in detail,  the different Components that go into a complete short sale package.
In closing, just know this… by completing a short sale, homeowners can walk away from their properties without having a foreclosure reported on their credit – all while having their mortgage debt completely forgiven by the lender.
Not only that but in most cases we’re able to get money back to the seller anywhere from $3,000 – $30,000.00, and you can quote me on that.
For the folks watching at home feel free to visit the website below or call the number. For everyone here I do have some business cards here for any one that wants one so just come on up”.

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Strategic Default, more popular than ever

Posted on by Jenny Zamora

Although Orlando real estate prices continue to steadily rise, strategic default is as popular as ever. As homeowners come to us to list their Orlando properties for sale, the majority of them are upside down on their mortgage. The big problem is that there are several lenders out there that won’t accept a short sale unless the mortgage holder has defaulted on their payments. This puts the homeowners in a difficult position by forcing them to either continue paying on a mortgage that is way too high or stop making their mortgage payment. Most people faced with this situation these days are strategically defaulting on their mortgage for the sole purpose of pursuing a short sale with their lender. When you think about it…what choice do they have?

 

Don’t get me wrong…I would never tell a client to purposely default on their mortgage, but once I explain their situation to them, they almost always choose to stop paying their mortgage and pursue short sale. Honestly, I can’t say that I blame them. As a matter of fact, if I was in their shoes, I would do the exact same thing.

 

How will it affect your Credit?
A short sale can have a lot less of an effect on your credit score than a foreclosure. But, it must be done correctly.
If your request for a shot sale is approved, your agent should ask your lender to report the short sale as “paid in full,” as part of the negotiation.

 

Many sources have reported that a short sale has about the same impact on your credit score as a foreclosure, however from experience with our own clients, that’s never been the case.  Most of the time, clients of ours that have completed an Orlando short sale, report that their credit score only dropped by 100 points, which can be easily fixed by a good credit repair company.

 

There are no guarantees when it comes short sales

 

It’s important for you to know there is no obligation what-so-ever on the bank’s part to accept a short sale payoff.
And you just won’t know until you begin the process.  You should also be aware that short sales can take several months to complete depending on who the lender is.

 

If you still want to learn more about shorts sales, visit us at OrlandoRealtyConsultants.com

 

 

 

Orlando Real Estate Broker

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