Orlando short sale -

Loan Transfers, Not Just For Delinquent Mortgages

Posted on May 28, 2014May 27, 2022 by Jenny Zamora

Most people are under the assumption that a loan has to be in delinquent status in order to be transferred. The truth is that any loan can be transferred at any time the bank wishes. Remember the fine print that you speed read through at the closing?

Somewhere in that fine print, it states that your mortgage company reserves the right to sell or transfer your loan at any time they wish after the closing. That means that the lender has the right to sell your loan to another lending institution without your permission.

Usually, mortgage companies will give you a written notice in the mail informing you that your loan has been or will be transferred to the new lender or servicing company.

However, I’ve had many clients tell me that they were made aware of the transfer only through a welcome letter from the new lender. Sometimes loans get transferred multiple times. Just because your loan was transferred once, it doesn’t mean that it won’t get transferred again…and again, etc.

Unless you pay off your loan in full, you will never have control over who controls your mortgage.

Mortgage Transfers Are Especially Challenging for Short Sale Realtors

For real estate agents like myself that specialize in doing Orlando short sales, this can be an extremely frustrating situation. You can have hours, days, weeks, and even months invested in a short sale file then… WHAMMO!! Out of the blue the loan gets transferred to another lender. It wouldn’t be such a big deal if they would just transfer the complete file over to the next lender so that we could just pick up where we left off. But that’s not the case……that’s never the case!

The new lender requires the agent to submit the entire short sale package again from scratch. The only thing that does transfer over it seems is the pending sale date. So not only are you forced to waste a lot more time submitting the new file, getting a hold of the negotiator, etc. but the sale date doesn’t usually get delayed.

This has happened so many times to me that you wouldn’t bother me any more right? Wrong… this has to be the most frustrating thing that can happen to a short sale realtor especially if you’ve been working the file for several months. However, sometimes it’s a blessing in disguise if you’re lucky enough to get a lender that’s more flexible with their terms or guidelines other times homeowners end up with a lender with a much stricter set of rules.

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Orlando Realtor- Seller Testimonial

Posted on February 12, 2014May 17, 2022 by Jenny Zamora

https://orlandorealtyconsultants.com/ VIDEO – client testimonial

This is the story of Gayle McKenzie. Gayle found our company online after being let down by another Orlando real estate agent who wasn’t able to help her out of a tight situation. She owned a beautiful house in Whisper Lakes that she was no longer able to afford and needed to get a short sale done on her home before the bank foreclosed on her.

After sitting down with Gayle on the first appointment, Jenny Zamora RE Broker, explained the short sale process to Gayle in detail making sure that she was aware of what to expect moving forward. After collecting all the documentation needed for a short sale, she submitted the complete package to the lender including a contract.

Within a few months, Zamora was able to negotiate with Gayle’s lender and got the bank to reduce a balance of $310,000.00 down to $163,000.00

Getting the house at such a steep discount made it easy to sell. Within one week of getting the approval from the bank, we had a solid buyer. Three weeks later we went to closing and Gayle was able to move into another house with the $3,000.00 relocation assistance that she received from the lender.

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The Root of All Short Sales is a Valid Hardship

Posted on December 13, 2013May 10, 2022 by Jenny Zamora

A borrower’s hardship still remains the main criterion in order for a lender to approve a short sale on a home. The simple explanation or definition of “hardship” is when someone is in “a state of affliction or misfortune” meaning that the borrower has gone or is going through something in their life whether it’s personal or financial that has affected their ability to continue paying their mortgage. There could be countless reasons that someone could be going through hardship but there always seems to be a handful that we hear about over and over again.

Working as an Orlando short sale realtor for the past 8 years, I’ve heard hardship stories that have literally brought tears to my eyes. However, listening to some of these stories has only fueled my passion for wanting to help these people that are going through a valid hardship. I also help investors that are facing foreclosure on their Orlando investment properties for whatever reason, but there’s a world of difference between losing an investment property or two or three as compared to face losing the home that you live in with your family.

Generally speaking, it’s much harder to get a short sale approved on investment property, than it is on someone’s primary residence. The truth is that some lenders are just not interested in approving a short sale on a property unless there’s a legitimate hardship at the root of it. OMG!… Does this mean that some of these loss mitigation negotiators actually have compassion for people that really need and deserve it? I’m happy to say that, yes it does. In my experience, the majority of loss mitigation reps will actually read the hardship letter and factor it into their decision of whether or not to approve a short sale.

Here are some of the main reasons why people are facing financial hardship.

1. Reduction of income

2. Loss of employment

3. Medical problems

4. Divorce

5. A death or serious injury in the family

6. Having to relocate because of employment or school.

7. Business going under

8. Drug addiction

Financial hardship alone, however, is just not enough to get a short sale approved. The biggest reason is that the home must be worth less than the full payoff of the mortgage. If not, then the home could typically be sold as a traditional listing providing that there’s enough equity to cover the closing costs of the transaction.

Here’s a basic example that can be used as a template to create a hardship letter.

Dear Lender,

I’m writing this letter to explain why I am no longer able to continue making my mortgage payments to you.

[Here is where you want to write about your personal hardship in detail]

Also, current market conditions in my area have significantly deteriorated causing my home to be worth substantially less than what is owed on my mortgage balance. As a result, I’m asking that you please consider allowing me to sell my house as a short sale.

Kindest Regards,

Distressed homeowner.

Cash Back to the Seller at Closing

Assuming that all of the other criteria of the lender are met to proceed with the short sale, the borrower may also be eligible for relocation incentives from the lender. Programs such as HAFA [Home Affordable Foreclosure Alternatives] will actually pay the seller anywhere from $3,000 to $30,000 back at the closing depending on the situation.

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Mistakes to Avoid when Flipping a House

Posted on November 22, 2013May 3, 2022 by Jenny Zamora

With Orlando Real Estate in high demand again, experienced investors are taking advantage of these almost perfect conditions for rehabbing houses. Even new investors are turning out in record numbers to try and cash in on flipping a house. Rookie investors will always make mistakes on their first re-hab property just like I did when I first started back in 2004.

Here’s a list of the most common mistakes made by rookies when flipping a house and how to avoid them.

Trying to make a NON-DEAL into a DEAL

Some investors allow themselves to be caught up by emotion. They want to buy an investment home soo badly that they rush and end up buying a house that’s over-priced because they let their emotions take over. When trying to flip a house for profit, let cold hard facts take the lead, not emotion.

As a rule of thumb which has served me well over the years is to never, ever buy a house for anything more than 70% of the home’s repaired value. Paying more than this amount can lead to smaller profits or even a loss.

Underestimating your budget for repairs

This is usually the most common mistake made by new investors. Another rule of thumb that I use when rehabbing a house is to take the amount of how much you think it will cost to repair the house and add $5,000.00 to it. Someone that has never renovated a house before will always underprice the cost of repairs needed to get the house ready for the Orlando Real estate market. You should always enlist the help of a general contractor to give you an accurate amount of what you will spend on the renovation. You need to factor this amount into your offer before making your bid.

Trying to do the work yourself

New investors tend to fall in love with the idea of themselves doing all the work. They picture themselves remodeling the bathroom, painting the whole house, re-doing the landscaping, etc. and they will be done inside of a week, just like on their favorite house flipping show. Trust me, it’s best to let the pro’s handle the majority of the work load. Your time will be better spent looking for the next deal.

Taking too much time to complete the repairs

For each month that you own the property there is another month of carrying costs that you have to pay. Between the mortgage, insurance, property taxes and utilities it can add up much faster than you think. Carrying costs will not only take a monthly chunk out of your profits but can also cause you to take a loss. When you sign an agreement with your contractor, make sure that he commits to a deadline in black and white. You can also try to squeeze in a clause that charges your contractor a daily fee for everyday that the project goes past the deadline. This will keep your contractor motivated to finish the job on time and keeping you on track to get the home back on the market A.S.A.P.

Trying to Sell it on your own

Some newbie investors tend to think that they can sell the property on their own to avoid paying realtors commissions. Big mistake! You should list the house an experienced Orlando realtor that has a proven track record in working with investors. A realtor will not only fight to get you the highest price possible, but they will also assume the responsibility of making sure that everything gets done smoothly… or they don’t get paid.

Your goal as an investor should be to buy a house at the right price that you can quickly then turn around and sell for a profit. You should never let your emotions involved and become attached to any home. Always be willing to walk away from a potential deal, especially when it’s a NON-DEAL.

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