Orlando Short Sales…anything but short

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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Florida short sale | Luxurious Winter Park home for sale

Great deal on a Luxury Winter Park Home- 1760 ELIZABETHS WALK, WINTER PARK

 

Orlando Realty Consultants is proud to add 1760 Elizabeths Walk  Winter Park, Fl. to it’s list of breathtaking luxury homes. Built in 2002, this 3,710 sq ft. two story single family home is located in one of Winter Park’s premier neighborhoods, Windsong!

Being an Orlando short sale, this property will be sold at a huge discount and will be a great deal for anyone wanting to live in this area.

With 5 bed rooms and 4 full bathrooms and large common areas the layout has a seemingly effortless flow to it. Exquisite solid wood cabinetry, exotic granite counter tops, and top of the line appliances all come together with an amazing attention to detail throughout this gorgeous house.

 

Just a few of the home’s features

* Huge master’s retreat with sitting area

* Wide open Kitchen

* Vaulted Ceilings

* Granite counter tops throughout

* Solid wood cabinetry throughout

* High end appliances and fixtures throughout

* Dining and great room designed for family gatherings and entertainment.

* Wood burning Fireplace in the living Room

* Covered back patio

* 2-car garage

* Located in a Cul-De-Sac

* Community club house, 2 Community pools, and playground

 

 

Easy access to schools, first rate shops and restaurants, and close to Orlando’s top medical facilities

So much more a definite must see!

Call to make your appointment, You DO NOT want to miss out on this Great opportunity! BANK APPROVED PRICE!!

 

Are you currently searching for your Central Florida dream home?  Look no further just click on;  search Orlando Luxury real estate and you”ll have access to all the properties listed on the Florida MLS. Within just a few clicks of your mouse, you’ll be searching out Florida real estate like a pro.

 

 

 

 

 

 

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5 tips on flipping Orlando real estate

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

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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Mortgage Insurance and how it affects Orlando Short Sales

The definition of Mortgage Insurance

 

In a nutshell, mortgage insurance is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance (MI) is required for mortgage loans which exceed 80% of the property’s sale price.

This means that if you are buying a home with less than 20% down, you are obligated to pay for mortgage insurance. The mortgage insurer will charge a premium for this coverage, which may be paid by either the borrower or the lender. If the borrower defaults and the property is sold at a loss, The MI company will pay out the amount as described in the policy. Coverages offered by mortgage insurers can vary from 20% to 50% and higher.

 

 

How does mortgage insurance affect an Orlando short sale?

If you’re trying to complete a short sale on your property and there’s a mortgage insurance in place then there are some things that you  need to  be aware of. The decision long longer falls only on the lender, it will also have to be approved the the mortgage insurance company as well. As a mater of fact the MI company is usually the one in charge of the situation.

Typically what happens, especially in regards to 2nd liens, is that the MI company will want a higher payoff than would be the case if the loan did not have MI. This can definitely complicate things because if the 2nd mortgage holder wants a higher pay off than the 1st mortgage holder is willing to pay then the deal can easily fall apart.

The MI company can refuse the short sale offer and kill the deal even if the lender approves it.  Although our office has closed countless short sales that have had MI insurance, I can tell you that there’s a lot more work involved. It’s actually just like dealing with another lien holder.

There are 2 different types of mortgage insurance, one is paid for by the borrower and the other is paid for by the lender.

Borrower-Paid Private Mortgage Insurance (BPMI) – This is default insurance on mortgage loans paid for by borrowers. BPMI allows borrowers to obtain a mortgage without having to provide 20% down payment, by covering the lender for the added risk of a high loan-to-value  mortgage.

Lender-paid private mortgage insurance (LPMI)–LPMI is similar to BPMI except that it is paid for by the lender, and the borrower is often unaware of its existence unless the homeowner tries to do a short sale. The cost of the premium is built into the interest rate charged on the loan. The lender will go ahead and insure themselves if they feel it benefits them.

 

 

Orlando short sale expert

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