Tag: Orlando short sale news

Orlando Short Sales…anything but short

Posted on by Jenny Zamora

Short Sales…. Long time

For potential buyers short sales can mean either getting a great deal or going through a very frustrating ordeal. by first impression a short sale implies a getting good deal on a home, kind of like a house as being on sale “houses 30% off! “. However, you should know what’s involved with buying a short sale before making an offer.

A short sale is when the lender agrees to take less than the amount owed in order to get the property sold as opposed to taking it through foreclosure. Before the lender agrees to anything, there’s a whole process that the seller needs to go through and get approval before the bank even agrees to entertain any kind of offer. This process involves the seller getting together an entire package of docs to their lender

Short Sale Docs Required from the Seller

1-Hardship lettter

2-Financial statement or profit and loss [if self employed]

3-Last 2 years tax returns

4-Recent Paystubs

5-Bank statements

6- Listing agreement

7- Purchase and Sales agreement

As you can see from the list above the seller has their homework cut out for them and some sellers aren’t the most organized people which means, just getting this list of docs together could take weeks. Once the package is complete, it is then submitted to the short sale lender.  If you think that’s it… you’re wrong, this is just the beginning. The lender will usually find a few things wrong with the package no matter how well it was put together, something will need to be in a different format, typo o the HUD, missing addendum, etc. it’s always something.

The next thing that will happen is the lender will order a BPO [brokers price opinion]. This is usually a local agent that is hired by the lender to give their opinion of what the property is really worth. Whatever this amount comes in at will be the negotiating point. That means that if your offer is much lower than the BPO amount, the bank will counter your offer until you come to an agreement. Unfortunately, some agents don’t like the extra work involved in going back and forth with the lender to get the best deal possible, so they just stick with the first amount that the lender countered at.

Hopefully, the agent handling the listing is an Orlando short sale specialist, if not it could be a very frustrating experience for both the buyer and the seller.

Buyers that need to buy fast

If you’re a buyer that needs to get into a house quickly for whatever reason, then you probably want to steer clear of short sales. Just because you’ve submitted a fair offer on a property, it doesn’t mean that you’ll get it. Not only that, you may be waiting for a month or 2 before even getting a response on whether your offer was approved or not. My suggestion is to find an Orlando realtor that specializes in the area that you want to live in and tell them what your time frame is. If you can’t find a good deal right away, maybe you should rent for six months. This will allow you more time to find the great deal you’ve been looking for.

Buyers that are in no hurry to buy

If you have all the time in the world to find a great deal on Orlando real estate, then short sales are definitely worth looking into. Find a realtor that is an Orlando short sale specialist in the area that you’re interested in living in. Meet with the realtor and let them know what kind of property you’re interested in buying and where. The agent should provide you with a list of short sale and REO properties in the area that meet your criteria. After you get your list, tell your agent immediately which ones you would like to see and go see them A.S.A.P. Orlando real estate is hot right now and good deals don’t last for very long.

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5 tips on flipping Orlando real estate

Posted on by Jenny Zamora

Orlando Re-habbers are back in business

 

The days of flipping houses in Orlando are back in a big way. Investors have their ears to the ground just waiting for the next good deal to hit the market so they can snatch it up and make a nice profit. The increasing amount of Orlando short sales and REO properties on the market are attracting house flippers like blood in shark-infested waters.

Many rehabbers took a beating when the market turned in 2007. Some were caught with their pants down holding several properties that were freshly renovated and instead of flipping them for a large profit, most of them ended up as Orlando short sales or REO properties.

Rehabbing can be tricky if you don’t know what you’re doing and there are a million things that can go wrong.  You really need to know your numbers and give yourself a huge cushion as far as how much you price it for.

5 tips to keep in mind when re-habbing a house

1- Buy your investment property at the right price- It’s crucial that you buy your investment property for the right price or you could end up losing a lot of money in the end. Be realistic with your numbers and always, always give yourself a cushion.

2- Keep away from funky floor plans– Nobody wants to live in a house with a weird layout. Even if you think you’re getting a deal of a lifetime it can be very hard to get top dollar for a house that doesn’t have an appealing floor plan.

3- Don’t take on too big of a project- Keep it simple, choose an investment property that doesn’t need any major structural repairs. Kitchen and bath remodels are OK but major repairs should be left to experienced investors.

4-Hiring contractors– Make a list of the work that needs to be completed and get at least 3 estimates. Make sure to ask for references from any contractors you hire and be sure to get everything in writing. It’s crucial that you get the work done as quickly as possible, come up with a realistic time frame for the work to be completed and make sure your contractors commit to it. If not you could end up shrinking your profit margin substantially.

  5- Price it correctly from the start– This is where your Orlando realtor comes into play. Pricing your investment property is key and should be done by an experienced real estate agent that specializes in the area of where your property is located. You don’t want to price it too high because it will take longer to sell. Remember, each day the property sits on the market is costing you money.

The Orlando Real Estate Market is ripe for re-habbing properties right now

Even though you should never rely on appreciation when buying an investment property, the Orlando real estate market provides the perfect conditions for flipping houses right now. Property values are steadily going up in most parts of Orlando and if you’re able to find an Orlando investment property at the right price, you could turn it into a nice profit. Orlando realty is hot right now and smart investors are taking full advantage of the current market conditions.

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Orlando Real Estate: Investors hurting first-time homebuyers

Posted on by Jenny Zamora

Savvy Orlando real estate investors are beating first time home buyers to the punch

1st time home buyers looking for their ” dream home” are no competition for the seasoned Orlando real estate investor. People looking for their 1st house to move into with their families are finding themselves being squeezed out of the Orlando real estate market by investors looking to capitalize on the current market conditions. With a growing number of people being foreclosed on each week , Orlando short sales are everywhere and investors know that the rental market will keep getting stronger as homeowners that have been foreclosed on scramble to get into rental properties in addition to people moving into the Orlando area from another state or country.

1st time Orlando home buyers grow increasingly frustrated

I feel bad for my clients who are just looking to buy their first home so that they can get their family moved in and settled. These people have no intention of flipping the house for a quick profit, pulling an equity line on it or renting it out for additional cash flow. They just want to move in, raise a family and do their best to “live happily ever after”. The problem with first time home buyers is that they have to qualify for financing which can take a while sometimes and there’s never a guarantee that they will get approved.

Today’s average seller is very educated on how different types of buyers and terms could affect them. It’s not just about taking the highest offer that you receive.

3 Tips for Sellers when looking at offers

1- Is the buyer pre-approved? I personally won’t even show one of my listings unless I have proof that the potential buyer has already done their due diligence as far as going to a mortgage broker or lender and getting pre-qualified for a loan. The buyer will also know what an affordable purchase price will be for them.

2- Will the house appraise for the amount of the asking price? A seller could have a contract on the property with a pre-approved buyer willing to pay full asking price and the deal can still fall apart. These days lenders will almost always insist on an appraisal being done on the property with an appraiser of their choice, [not the buyer or seller’s choice]. Once the appraisal is ordered by the lender, the lender will work off of the appraisal value and sometimes the property just doesn’t appraise for the amount of the contract price.

Things that can happen if the house doesn’t appraise for asking price.

a- The seller comes down on the asking price in order to make the deal happen. This is what usually takes place because the seller realizes        that he will probably run into the same problem again and will ultimately have to lower the price in order to get the house sold.

b- The buyer will have to come out of pocket to make up the difference. This rarely happens unless the buyer is absolutely in love with the home and the seller is unwilling to lower the price.

c- The deal just falls apart.

3- Are your buyers Cash buyers? Cash buyers are almost always investors looking for their next investment property.

Things to consider when you have an “all cash offer”


a- A cash buyer will not pay you full retail price for your house. Whether they are buying with the intent of flipping or renting it out, they are going to want a deal that makes sense to them, [dollars and cents]

b- Cash buyers can close quickly. One of the benefits of working with cash buyer is that there are no lenders involved. Experienced investors will already know what the numbers are even if there are repairs involved. They will rarely get an appraisal done which means that there are not many things that can get in the way of this deal getting done, usually within 3 days or so.

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Orlando Short Sale Realtors outsourcing short sales to unlicensed 3rd Parties

Posted on by Jenny Zamora

 “Orlando Short Sale Realtors” using unlicensed negotiators to do the work

It’s recently come to my attention that certain Orlando realtors that claim to be “Short Sale Experts” are actually outsourcing their short sales to  unlicensed third party negotiators. Now, I’ve heard of  real estate attorneys outsourcing their short sales to licensed real estate agents, which to me makes perfect sense especially because by law the property must be listed on the Multiple Listing Service. However, when a licensed realtor marketing themselves as an Orlando short sale expert or specialist goes out and hires a non -licensed 3rd party negotiator it just doesn’t seem right and in my opinion is just downright deceiving to the homeowner.
When a realtor goes to a listing appointment to meet a potential client, they are making a commitment to that client as the realtor that will be representing them throughout the entire short sale process and look out for their best interest every step of the way. Do you really think that they would get the listing if they told the seller “By the way, I will be turning your file over to an unlicensed negotiator for them to work the entire short sale process with your lender and hopefully we can someone to buy it”… No Way!

The truth of the matter is, escrow officers, title representatives, and many of these amateur negotiators are inexperienced and they can cause a deal to fall apart. They lack the proper experience knowledge and care that a transaction of this sensitivity needs. A true Orlando short sale expert knows the urgency of the transaction and possesses the skills, experience and tenacity to get things done. Running a successful Orlando Real estate brokerage requires the outsourcing of many things such as; marketing, lock changing, cleaning crews, posting for sale signs, etc.  However, if a realtor is outsourcing the most important part of any real estate transaction which the processing and negotiating, then maybe that realtor needs to find another profession.

Choosing a Short Sale Realtor that’s right for You

As an Orlando homeowner you deserve the best chance at negotiating a successful short sale with an experienced realtor that’s willing to work hard for you throughout the whole short sale process from beginning to end. That’s why it’s soo important to important to to research a realtors track record as well as ask for testimonials, etc. If you’re in the market for a true Orlando Short Sale expert, read my article “A Typical Work day for an Orlando Short Sale Specialist”. It will help you in choosing the best agent to meet your particular needs.

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Banks are becoming more experienced with Orlando short sales making things easier for realtors

Posted on by Jenny Zamora

Banks are getting much faster at the Orlando short sale process

Short sales have had a bad reputation in the Orlando real estate market for several years now. Realtors didn’t want to take on short sale properties either because they didn’t know what was involved and were afraid of getting in over their head or because they knew exactly what was involved and they didn’t want to commit to the hard work that’s involved in completing an Orlando short sale. Buyers didn’t like them because of the time that it would take to hear back from the bank about their offer that was submitted. Sometimes a potential buyer would submit a contract and have to wait three or four months just to find out that their offer wasn’t accepted, and all that time they spent waiting to hear back from the bank could have been utilized searching for other properties. This was extremely frustrating for everyone involved.

Lenders also must have felt frustrated because the truth is they just weren’t prepared to take on all these short sales. They weren’t prepared to handle short sales period… let alone hundreds of thousands of them coming at them at once. I believe that this is probably one of the reasons why loss mitigators would often tell agents that they didn’t receive certain documentation over and over again, or they would say things like we needed these docs in a certain order or a month later they would tell you to send everything again because it needs to be updated. Any experienced Orlando short sale realtors that are reading this post right know exactly what I’m talking about. In my opinion, these were stall tactics because lenders didn’t know how to get these short sales processed in an efficient manner.

Orlando short sales are being fast tracked thanks to experienced negotiators

Short sales are now being processed much faster than was the case just a year ago. Lenders have come a long way in putting systems in place to make things move more smoothly for the homeowner as well as the Orlando realtor processing the whole thing. I feel that the biggest change, however, is because of the short sale negotiators having much more experience in dealing with short sales now. At the end of the day, Big banks don’t run things, people do, and for some people, it’s easier to say that they didn’t receive something or come up with some other type of lame stalling tactic rather than to admit that they didn’t know what they doing.

Lately,  I’ve noticed a huge difference in the way that short sale negotiators handle short sale files. They’ve gotten better in every area; from ordering the BPO to negotiating with their investors and even getting extensions on payoff letters. I have about a dozen or so negotiators with several different lenders that I just love working with because “they get it”, they know how this business works and they will do whatever it takes to get the deal done.  Don’t get me wrong, I still have conversations with some short sale negotiators that frustrate me to no end because they are clueless about the Orlando real estate market or real estate in general yet they still try to tell me how much I should list an Orlando property for, but for the most part it’s gotten much much better.

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