Tag: Orlando short sale

The Truth About How a Short Sale Will Affect Your Credit Score

Posted on by Jenny Zamora

So exactly how will a short sale impact your credit score?  The short answer is a short sale can have less of an effect on your credit score than a foreclosure. But, it must be done correctly.

Should I do a short sale?

Short sales can happen if a lender agrees to accept less than the amount owed against the home because there is not enough equity in it to pay all costs of the sale.

Firstly, it’s important to get legal and tax advice before making any decision. A real estate agent experienced in Orlando short sales can be of invaluable help to you as you negotiate with your lender. It’s important to note that not all lenders will agree to a short sale.

Although there are a few lenders that will agree to a short sale if the homeowner is current, most lenders won’t even consider a short sale unless the mortgage holder is at least 30 days behind on their payment.

What tips should I know for negotiating my short sale.

When negotiating a short sale it’s important to be aware that there is no guarantee that the lender will accept the short sale offer. You should also know that short sales can take several months to complete sometimes depending on who the lender is.

If the lender does not agree to a short sale there are other options available to the homeowner such as a “deed in lieu” which is basically a voluntary foreclosure in which you sign the property back over to the bank.

Other options include trying to negotiate a loan modification or filing for bankruptcy. If neither of these options work than the property will most likely be foreclosed on and sold at public auction to the highest bidder.

If your request is approved, ask your lender to report the short sale as “paid in full,” as part of the negotiation.

So what’s the impact on my credit score?

Many sources report that a short sale has about the same impact on your credit score as a foreclosure when the seller is in arrears; however, that’s not always the case.  With some short sales, sellers report that their credit score only dropped by 100 points.

The biggest advantage of a short sale is that you will be able to qualify to buy another home within two years as opposed to five to seven years after a foreclosure.

Talk to an Orlando real estate agent experienced in short sales to discuss the possibility of doing a short sale of your home.

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Tips for home buyers regarding Orlando short sales

Posted on by Jenny Zamora

Buying an Orlando short sale?  Don’t do it alone

Whenever you’re considering the purchase of Orlando real estate, you should always consult with an experienced and licensed real estate professional. This is especially true when you’re talking about buying an Orlando short sale because there are soo many things that can go wrong. It’s true that you can get a great deal on an Orlando property by purchasing a short sale but you need to be aware of what you’re getting into before committing to anything.

By consulting with an experienced short sale realtor, you will be able to eliminate all the guess work and be confident in your decision making.

Here are some informational tips that you may find helpful when purchasing a short sale

1- You have to be patient- If you need to get into a house quick, an Orlando short sale is probably not a good option for you. Short sales can sometimes take several months to complete. New guidelines that have been put in place by the U.S. Treasury Dept, now force lenders to respond much faster to short sale offers. However, it still takes much longer than a traditional sale.

2-Don’t put all your eggs into one basket– Just because you have an offer on a short sale, it doesn’t mean that you should stop looking at other houses. It’s not against the law to have offers on more than one property as long as you inform the other parties when one of your offers gets accepted.

3-Get the house inspected– Most Orlando short sale properties are sold as-is. For this reason it’s important to get a home inspection done by a professional home inspector especially when it’s an older home. If issues come up in the inspection you may be able to negotiate the price down even further.

4-Make sure your financing is ready– As an Orlando short sale realtor, I will not submit an offer to a lender unless the buyer shows me either proof of funds or a pre-approval letter that can be verified. Be sure that you have your financing in order even before you go house shopping. This way you know what price range you can afford and you will avoid any surprises.

 

 If you still have questions about buying an Orlando short sale feel free to contact us for a free consultation. We are Orlando short sale specialists and have been helping people buy and sell Orlando real estate since 2005.

 

 

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Fixing your credit after an Orlando short sale

Posted on by Jenny Zamora

Getting your credit score back on track after your short sale is complete

 

The local economy is recovering “slowly but surely”, the housing market is getting stronger and the term  “Orlando short sale” has become a household name. Delinquent homeowners generally elect to pursue a short sale as opposed to going through foreclosure or bankruptcy.
Short sales have become so common in fact that it’s hard to find someone that hasn’t heard of a short sale as opposed to just a few short years ago when most people had no clue what a short sale was.

 

A short sale is when a mortgage holder tries to sell their property for less than what is owed. The delinquent homeowner must first get permission from their lender in order to pursue the short sale. Homeowners will typically seek out a short sale when they can no longer afford to pay the mortgage or the house owes much more than what the property is worth. Banks have come to the realization that they actually lose more money by taking a property to foreclosure as opposed to a short sale.

 

Many people will argue that a short sale will affect you far less than a foreclosure but the truth is that whether a seller does a short sale or foreclosure the points you lose are about the same. Fair Issac says the average points lost on a FICO score are as follows:

30 days late: 40 to 110 points
90 days late: 70 to 135 points
Foreclosure, short sale or deed-in-lieu: 85 to 160
Bankruptcy: 130 to 240

 

People who Opt for an Orlando short sale will have a much better chance of qualifying for a mortgage in the future.

It depends a lot on how the lender records or reports the sale once the transaction is complete. A short sale is usually recorded by the lender as a settlement as opposed to a paid debt. When the lender reports the sale as “settled”, it appears on a credit report as the lender accepting less than what  was owed. This will always have a negative affect on credit scores. However, if you’re able to get the lender to record the sale as “paid”, then your credit score will not suffer any further. The chances of this happening are slim to none and it takes some really good negotiating skills by your Orlando realtor with the short sale lender in order to accomplish this improbable task.

 

 

According to some mortgage brokers that I work with, it’s much easier to get someone a loan that has a short sale on their credit as opposed to having a foreclosure on their credit, even after several years have passed. The best thing to do once your short sale has gone to closing, is to contact several of these Credit repair companies and find out what they are offering. My suggestion, as always would be to  Google “credit repair companies” and contact all the companies that appear on page 1. Credit repair has become very competitive and most companies will work with you on an affordable payment plan.

 

 

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School’s Out and Orlando Real Estate is as Hot as the Summer Sun

Posted on by Jenny Zamora

Orlando Real Estate is Hot, Hot, Hot

Orlando’s summer home-buying season is here. With school being out, parents don’t have to worry about pulling their kids out before the end of the year. There is a sense of urgency in the air and potential home buyers are scrambling to buy a piece of Orlando Realty before the beginning of the new school year. Potential Orlando home buyers are out in record numbers actively searching for their next home. The problem is that there is just not enough inventory to keep up with the demand for Orlando Real Estate.

As an Orlando realtor, I am constantly showing homes to potential buyers, and finding the right one is not always an easy task. When I come across a terrific Orlando property that my clients love, I will almost always recommend them go above the asking price. Orlando real estate is a hot commodity once again and when you find a great deal, you’d better move fast or be ready to miss out. Now that the summer is upon us this is more true than ever.

When it was a buyers market, I would have to show a potential home buyer between 6 and 10 homes before they would even consider putting in an offer on one of them, buyers had the luxury of being extra picky. This made things a lot harder on realtors forcing many Orlando agents to pursue other ways to make a living.

Submitting a full price offer on an Orlando Home may not be enough

The problem these days is that you can’t make an offer soon enough. And sometimes when you send in the offer and there are already multiple offers on the table.  Although this can get frustrating for buyers, part of being an Orlando realtor is to guide our clients on their home buying mission every step of the way. If a client of mine really likes a certain Orlando property, I will almost always suggest that they offer more than the listing price to ensure that they have a chance at getting their offer accepted.

Following up with the Agent is Crucial

The sign of an experienced Orlando Realtor is that they know how to follow up. Many times, listing agents get overwhelmed and if you don’t stay on top of them, your offer could get pushed to the side or end up on the “back burner”.  It’s the realtor’s job to not only submit the offer but to make sure the offer was received and follow up, follow up, follow up. Unfortunately, there are agents out there that don’t always follow the rules like they are supposed to so that they can drive up the price and increase their commission. This is why it’s important to have a Top Orlando Realtor looking out for your best interest.

Happy House Hunting!

Jenny Zamora, Lic RE Broker

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