Tag: Orlando Short sales

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

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
TOC*

Orlando Short Sale Negotiator confesses to using stall tactics

Posted on by Jenny Zamora

I’ve been doing short sales in Orlando since 2005 and something happened last week that has never happened to me before. I’ve been working on this Orlando shorts sale listing for the past 3 months. After negotiating with the bank we got the payoff approved at $192,000.00 and the buyers were ready to close. Each time I would get a hold of the negotiator he would say that I would have the approval letter the next day so I would then update my clients with the same update that was given to me. After hearing the same story from me day after day and week after week It got to the point where everyone thought it was all somehow my fault.

To make matters worse, the buyer got tired of waiting and walked from the deal, my client even talked about hiring another agent. The following day I received a call from the negotiator and I couldn’t believe what he told me. He actually told me that he was purposely stalling this particular file because he didn’t want it to close until the month of March. He explained to me that the bank can only handle a certain amount of loss per month and they had already hit their limit for the month of February. He then proceeded to explain to me how he was purposely stalling me by not providing me with the approval letter. When I heard this I felt like reaching through the phone and slapping him. That wasn’t possible so I did the next best thing, I gave him a piece of my mind.

All he had to do was inform me of what was going on from the start and everything would have been fine. The buyers would have had no problem at all waiting as long as they knew what was going on. After I vented my frustration with the negotiator I insisted that he personally call my client and explain the situation to him. Thank God everything is back on track and all is right with the world, we’re closing at the beginning of March.

Short sale negotiations can get complicated and can be extremely frustrating. If you’re in need of an Orlando short sale expert call me at 407-902-7750 for a free analysis of your situation.

Orlando short sale expert

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
TOC*

What happens when an Orlando Short Sales get approved for more than appraisal value?

Posted on by Jenny Zamora

When a buyer puts in an offer on an Orlando short sale property, that person believes that they are getting a great deal. Many times this ends up being the case and after several months of waiting…the bank approves the offer but don’t celebrate yet,…  there are still a few things that can make the deal fall apart.

The appraisal is a crucial and unavoidable part of this process. let’s say for instance that the bank approved your short sale offer of $100,000.00, the next step is to get your financing in line which means getting the property appraised, inspected, etc. The issue now is to get the property to appraise for at least the amount of the contract. If the property falls short on the appraisal, let’s say $95,000.00, then there’s a problem because your lender is not going to approve a loan for $100,000.00 for a house that just appraised for $5,000.00 less.

How and why does this happen?

Appraisers have to go off of recently sold properties only, not pending properties, or active properties. So even though the BPO may have come in at a higher valuation, the reason is that BPO agents have a bit more leeway on what comparables they are able to use. As opposed to appraisers, BPO reports may include active listings, pending listings, in addition to sold listings in order to determine true valuation.

Will the short sale lender adjust the approval price to match the appraisal price?

Most lenders will actually change their payoff letter so that the deal can go through. As a matter of fact, this is something that happens all of the time in our office. The only drawback is that it takes a bit longer because there’s a process which typically 2 to 3 weeks. It all comes down to how much of a hurry the buyer is in to buy the house. If the buyer is in a position to wait the extra time, then this actually benefits them because they get an even better deal than the original price.

Lenders like Fannie Mae for instance are less likely to lower the approval amount regardless of the appraisal value. I know what you’re thinking and I agree… It makes no sense.

What happens if the lender is unwilling to adjust the approval price?

There are a couple of different scenarios that may ensue if the lender doesn’t want to lower their payoff amount. One thing that can happen is that the buyer walks away and keeps looking for another Orlando short sale. Another way to get around this issue is if it’s a cash buyer that really wants the property. However, not too many people will purchase a property for more money than the appraised value unless it holds some kind of sentimental value for them.

Need help with a short sale? Call our office at 407-902-7750

Orlando short sale expert

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
TOC*

Apopka Short Sale | 2464 Pickford Circle 32703

Posted on by Jenny Zamora

Apopka Short Sale | 2464 Pickford Circle 32703- This is a Gorgeous Single family home located in the very desirable subdivision of Lake Heiniger Estates. It’s sits on an enormous over sized corner lot. The spacious kitchen is a house wife’s dream with solid wood cabinets, granite countertops and high end stainless steel appliances.

This home is in excellent condition and move -in ready.

Do you want to search for properties like a pro in just a few seconds?

visit us at OrlandoRealtyConsultants.com to see this or any of our other properties using our property search tool.

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
TOC*

Orlando Short Sale Realtor, A labor of Love

Posted on by Jenny Zamora

I remember when I  became a FL REALTOR back in 2004, the gentleman speaking at the podium that day, I don’t recall his name but something that he said that day resonated with me and still does until this day. He said, “when practicing real estate don’t make it about the money,… you’ll make more money”. What he was really saying was to always,… ALWAYS put the client’s needs first in any real estate transaction and by doing so you will eventually make more money.  The word will get around that you are the type of agent that goes “above and beyond” for their clients and people will seek you out for all of their Orlando real estate needs.

Well, here I am eight years later telling you that he was totally right! The only marketing that I do, if you want to call it marketing, is writing this blog about real estate [which I love doing!].  Most of my clients are referrals from past clients and my office is running at full capacity, it’s because of this that we are constantly on the lookout for Orlando short sale superstars to recruit.

When I take on a new short sale listing, the law says that my fiduciary responsibility is to my client. However,  I feel that a realtor’s responsibility is to look out for everyone involved.. the seller, the buyer, the lender as well as the buyer’s agent. It’s like I tell the agents in my office “Everyone involved in the transaction needs to walk away satisfied with the results”, and if they practice real estate with that mindset they will be successful.

Orlando short sale specialist… not just a job

Making both sides of the closing table happy… there’s no better feeling in the world.  Being a good real estate agent is kind of like being a good teacher, you really have to love it to be great at it and there’s just no way you can fake it. Have you ever had a horrible teacher in grade school or high school? I’m talking about the teacher that just doesn’t care and it’s painfully obvious to everyone in the classroom. I’ll bet that there’s at least one teacher that just popped into your mind as you were reading that last sentence. Well, imagine having a realtor represent you that just doesn’t care about you. Sure they go through the motions of what a realtor is supposed to do and they do just enough to scrape by.

That’s because that type of realtor chose the wrong profession to be in and they’re miserable. I’ve known many of these agents over the years and have even made the mistake of hiring a few for short periods of time. These agents will eventually show their true colors and everyone around them will know that their heart is just not in it. Don’t get me wrong…I’m not saying that they are bad people what I am saying is that these people will never be successful real estate agents and sooner or later will realize that they’re in the wrong line of work.

When choosing a real estate agent to represent you and do your short sale, make sure to do your research. I’ve said this countless times and I will continue saying it. Doing a short sale on your home will be one of if not the most important transactions in your lifetime. Make sure that you choose an Orlando short sale realtor that absolutely loves what they do!

 

Orlando short sale expert

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
TOC*