Tag: Orlando short sale news

Orlando Real Estate remains strong, despite a dip in prices at the end of summer

Posted on by Jenny Zamora

 

Summer’s gone and Orlando Real estate takes a drop

Prices of Orlando real estate dropped slightly last month for the first in a year. Don’t panic Orlando homeowners, this happens every year at this time. The reason for the drop is mostly due to the end of the peak of the summer buying season. Two facts remain true, Orlando real estate inventory is low and demand for great Orlando properties remains high. As long as these factors remain a part of the Orlando real estate market, sellers will be able to get top dollar for their Orlando Home.

Other factors indicating a strong Orlando Real Estate market

Orlando homes are selling faster and for more than they did a year ago. Studies show that Orlando homes are spending less than 80 days on the market before coming under contract and selling for almost  97% of the listing price. A year ago, Orlando Realty was selling for less than 95% of the listing price, and these properties were listed on the MLS for over 100 days.

Great mortgage interest rates are still being offered by lenders. The average interest rate currently being offered for Orlando home buyers is at 3.78 percent as opposed to a year ago when homebuyers paid an average interest rate of 4.26 percent. This is a huge incentive right now for potential Orlando home buyers and anyone interested in buying real estate in Orlando should definitely take advantage of these historically low-interest rates.

There are more regular listings in the Orlando real estate market than has been in years. Although Orlando’s short sales and REO’s still rule Orlando’s real estate inventory right now, there is another quieter group that is not desperate to sell their Orlando properties.  Believe it or not, everyone one in three homeowners owns their house “free and clear”. This group as well as homeowners with very small mortgages on their home are able to ask for top dollar on their Orlando home and they don’t care if it sells or not. Their way of thinking is “I will sell for the right price and if not then I’m not selling”. I’ve had several clients like this over the years, and homeowners like these actually help to maintain property values up in their neighborhoods because their listing prices remain high and they really don’t care how long it takes to sell.

Right now is  a great tome to sell your Orlando Home

Considering all the factors in play right now with Orlando Real Estate, it’s a great time to sell your home. Whether you need an Orlando short Sale done or you’re o of the few and fortunate people that own your property Free and Clear. If you’re interested in seeing how much your Orlando property will sell… click on “How much is my Orlando property worth?” or you can come and see me for a free consultation and I would be happy to sit and talk with you.

Realtor in Orlando, FL

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The world of Orlando Short Sales may be coming to a screeching halt

Posted on by Jenny Zamora

What will happen to Orlando short sales if the Mortgage debt relief Act of 2007 is not extended?

Short sales have been very popular since the market crashed in 2007,  mainly because sellers have the benefit of not being taxed for the deficiency between the mortgage amount and the actual payoff. What people worry about now is that the  Mortgage Forgiveness Debt Relief Act of 2007  is about to come to an end at the end of  2012 and so far we haven’t anything about the government extending it.

What do you think would happen if the law doesn’t get extended? In my opinion, this would be the end of Orlando short sales as we know them.

When you think about it, what incentive would a seller have to do an Orlando short sale if they end up with a massive deficiency when it closes?  That’s right… there would be no incentive. In fact, I think that most people will just end up letting it go to foreclosure. This means that Orlando REO realtors would be busier than ever.

Deep down I truly believe that this law will be extended, it just makes good business sense for everyone involved… sellers buyers, and lenders. Orlando real estate is moving right now and a big part of that is because of the short sale inventory.

If you are considering an Orlando short sale on your house, don’t take a chance on the mortgage debt relief act of 2007 being extended. Consult with an Orlando short sale specialist and find out what your options are now or you might regret it.

Jenny Zamora, Lic RE Broker. Orlando Short Sale Specialist

Orlando short sale expert

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Buyers Beware of Scams on Orlando Short Sale Approvals

Posted on by Jenny Zamora

Orlando  Short Sales becoming a popular target for Scammers

 

There’s a scam out there for everything and the world of Orlando real estate is no exception. Recently there’s been an outbreak of people trying to pull scams with title companies and short sales, here’s how it works. Scammers are mimicking major lender’s approval letters, including similar language and the bank’s logo. The letters look soo real that they’ve actually gotten away with it several times.

In some cases these scammers or “scumbags” use short sale approval letters that they fabricated to carry out there schemes. The result is that Orlando homebuyers purchase homes that they thought they had clear title to when in reality these properties where not only devalued but had huge liens attached to the property.

In other instances these scammers go so far as to assume the identities of unsuspecting Orlando homeowners or sometimes pretend to represent short sale lenders issuing bogus payoff letters approving short sales for ridiculously low amounts. These scams allegedly have resulted in more than $10,000,000.00 in losses.

In a short sale, a seller has the lender’s permission to unload the home for less than what’s owed on the mortgage.

It seems that luxury Orlando homes are the biggest target for these types of swindlers because they get bigger payoffs… when it actually works.

The reason these scams work is because of a huge lack in communication between title companies and short sale lenders

According to Mortgage Daily.com., Florida tops the nation in mortgage fraud,  The Dallas-based trade publication said more than $260 million worth of fraud was being investigated in the Sunshine State at the end of the first quarter of the year.

If you or someone you know are involved in any kind of Orlando real estate transaction, make sure that you’re working with a proven Orlando realtor.

 

 

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6 Things that can Kill your Orlando Short Sale

Posted on by Jenny Zamora

The Clock is running Out on Orlando Short Sales


By now almost everyone is familiar with the term “Orlando Short Sale” that owns real estate in Orlando. In a nutshell… It’s when the bank agrees to take a substantial discount on what is owed on a delinquent mortgage.
Our office has been receiving a ton of calls and emails lately from sellers that are upside down on their mortgage all asking the same question. “ Are we still in time to do a short sale on our home without being taxed by the IIRS for the deficiency?” The simple answer to this question is yes, as long as you get it closed before 2013. However, there are many other things to consider besides the “Mortgage tax relief act of 2007”.
6 things that could kill your Orlando Short Sale

1-    The Bank refuses to take accept the short sale offer- These days this doesn’t happen that often. However, Some lenders are just not realistic when it comes to what the property is actually worth and they will just flat out refuse to do a short sale.
2-    Stubborn Homeowners Associations- In the state of Florida, HOA’s will be paid 1 year of dues if a property goes to foreclosure. However, for some reason, that I’m still trying to figure out, there are HOA’s out there that would rather let the property  go  to  foreclosure and collect a year of delinquent dues instead of collecting an amount that is  much more than that. It’s almost  like the HOA’s take it personal that a homeowner can’t pay and they want revenge!
3-    2nd mortgages not giving enough of a discount- When you do an  Orlando Short Sale on a  house that has 2 or more mortgages, the amount that you offer to that second mortgage holder as to be approved by the first mortgage holder. If the frst mortgage holder only wants the second to get $2,000.00 and the 2nd mortgage holder wants $5,000.00 guess what? That’s right… it’s a deal killer.

4-    The BPO Comes in Too High- Part of the process when doing an rlando  short sale is for the bank to order a BPO [Brokers Price Opinion]. Kind of like a mini appraisal, a BPO is usually performed by a local realtor that goes into the house and records details of the house damages, upgrades, etc. Based on all of this information the BPO agent will determine what they  think the house is worth. Unfortunately, I’ve had BPO’s done on properties where judging by their valuation of the property, they must have been either
5-    intoxicated or the more likely scenario, they want the property to get foreclosed on in hopes that they get the listing on the property from the lender as an REO listing.
6-    The buyers back out or are unable to close- Usually, you’ll know way ahead of time if you’re dealing with a legitimate buyer as opposed to a tire kicker because of a Deposit and proof of funds or a pre-approval letter. However, for whatever reason, a buyer will sometimes just not want to go through with the deal at the last second or their financing falls through. Unfortunately, It’s just the nature of the Orlando Real Estate business.

Hire an Orlando Short Sale Expert

If you’re in need of doing a short sale in Orlando, you should find an experienced short sale realtor to give yourself the best chance possible. Short sales can be tricky and hiring a good  realtor will the key to your success.

 

 

Orlando short sale expert

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Orlando short sale vs. Deed in Lieu

Posted on by Jenny Zamora

 

A deed in lieu/ foreclosure with a smile

By now just about everyone living in Orlando has heard of terms such as “short sale” , “deed in lieu”, loan modification, etc. It’s important to know exactly what the difference is between these terms are and what the implications are. For  example; many  homeowners believe that a deed in lieu is  the same as doing a short sale.  This couldn’t be further than the truth. A deed in lieu is simply put is a foreclosure with a smile on it’s face or a “voluntary foreclosure”.

An overlooked downside to a deed in lieu of foreclosure is the possible forgiveness of the deficiency balance. Under federal law, a creditor is required to file a 1099C whenever it forgives a loan balance greater than $600. This may create a tax liability for the former property owner because it is considered “income.” However, the Mortgage Forgiveness Debt Relief Act of 2007 provides tax relief for some loans forgiven in 2007 through 2012.

The key issue in a deed in lieu of foreclosure is whether the lender is willing to forgive the deficiency balance. Make sure to read the contract carefully to see how the deficiency balance issue is handled. If the document is unclear, take it to an experienced Orlando real estate attorney with experience in property law. An attorney’s time is not cheap, but will be a bargain compared to signing an agreement you do not understand and are surprised later to realize its implications.

 

Consider Doing an Orlando Short Sale Instead of a deed in lieu

I’ve had a countless number of Orlando homeowners over the years come into my office asking me to explain the difference between a deed in lieu and a short sale. By doing an Orlando short sale the lender agrees to accept less than the balance owed on the mortgage at sale. The deficiency balance may be forgiven and you also may qualify for a “Cash for Keys” program which means that by doing a short sale, your lender may give you a cash incentive [between 3- 30 thousand dollars] . On the other hand a deed in lieu of foreclosure is basically a voluntary foreclosure n which you sign the deed over to the lender and walk away. However, a foreclosure, unlike a deed in lieu of foreclosure, the ownership of the property is not transferred to the mortgage holder, and remains with the owner.

The lesson here is if you are considering either a deed in lieu of foreclosure or a short sale you must review the terms and conditions carefully and make certain you understand whether the deficiency balance is forgiven. This is why it’s absolutely crucial to consult with an Orlando Real Estate expertwhen making such an important decision.

Lenders prefer short sales over taking a property to foreclosure because they don’t want to own distressed properties. They would much rather see the owner sell the property and lose the deficiency balance than be forced to take the property through foreclosure, as foreclosure is a costly and time-consuming process.

Another reason to consider a Orlando short sale over a foreclosure is that Foreclosure auctions tend to bring significantly less money than a normal sale would bring. If the sale brings less than the amount owed on the loan, the remaining balance of the loan is called a deficiency balance. This means that you could end up with a deficiency judgment against you for the balance.

If you still have questions about Orlando short sales, come see us for a free consultation. We’ve been specializing in Florida short sales and our team of Certified Distressed Property Experts are up  to date on the latest laws and regulations when it comes to Orlando real estate ensuring that our clients get the best options available to them.

 

Jenny Zamora, Lic.  RE  Broker, CDPE

 

 

 

Orlando short sale expert

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