Tag: Orlando Short sales

Orlando Short Sale Realtors outsourcing short sales to unlicensed 3rd Parties

Posted on by Jenny Zamora

 “Orlando Short Sale Realtors” using unlicensed negotiators to do the work

It’s recently come to my attention that certain Orlando realtors that claim to be “Short Sale Experts” are actually outsourcing their short sales to  unlicensed third party negotiators. Now, I’ve heard of  real estate attorneys outsourcing their short sales to licensed real estate agents, which to me makes perfect sense especially because by law the property must be listed on the Multiple Listing Service. However, when a licensed realtor marketing themselves as an Orlando short sale expert or specialist goes out and hires a non -licensed 3rd party negotiator it just doesn’t seem right and in my opinion is just downright deceiving to the homeowner.
When a realtor goes to a listing appointment to meet a potential client, they are making a commitment to that client as the realtor that will be representing them throughout the entire short sale process and look out for their best interest every step of the way. Do you really think that they would get the listing if they told the seller “By the way, I will be turning your file over to an unlicensed negotiator for them to work the entire short sale process with your lender and hopefully we can someone to buy it”… No Way!

The truth of the matter is, escrow officers, title representatives, and many of these amateur negotiators are inexperienced and they can cause a deal to fall apart. They lack the proper experience knowledge and care that a transaction of this sensitivity needs. A true Orlando short sale expert knows the urgency of the transaction and possesses the skills, experience and tenacity to get things done. Running a successful Orlando Real estate brokerage requires the outsourcing of many things such as; marketing, lock changing, cleaning crews, posting for sale signs, etc.  However, if a realtor is outsourcing the most important part of any real estate transaction which the processing and negotiating, then maybe that realtor needs to find another profession.

Choosing a Short Sale Realtor that’s right for You

As an Orlando homeowner you deserve the best chance at negotiating a successful short sale with an experienced realtor that’s willing to work hard for you throughout the whole short sale process from beginning to end. That’s why it’s soo important to important to to research a realtors track record as well as ask for testimonials, etc. If you’re in the market for a true Orlando Short Sale expert, read my article “A Typical Work day for an Orlando Short Sale Specialist”. It will help you in choosing the best agent to meet your particular needs.

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What Exactly is a “Charge Off” when it comes to Orlando Short Sales?

Posted on by Jenny Zamora

A “charge off” is not the same as debt forgiveness

In the world of Orlando real estate when you hear the words “charge off” coming from your lender, it basically means that they are throwing their hands up and giving up on collecting that particular debt, the debt that’s being charged off is also known as a “write off”.  It’s an internal accounting technique that companies use to balance their books by writing off the debt as uncollectible. When you’re working with short sales you hear this term quite often.

This is the part where it can get a little confusing. For example, a “HELOC” or “home equity line of credit” is a  second mortgage secured by your house in which the lender that gave you the “HELOC” thought it was a sound investment for them at the time. The term “charge off” in this case just means that the bank is no longer continuing to bug you with annoying phone calls and letters and they will take a charge off on their books.

However, this doesn’t mean that it ends there. Most of the time the lender will sell the bad debt for pennies on the dollar to a much more aggressive debt collector. If you thought the original bank was annoying, these companies are often 10 times worse. I’ve gotten reports from some of my clients about these companies calling at least once or twice a day, every day including weekends. I consider these companies to be in the same category as telemarketers.

There are only 3 ways to get mortgage debt collectors off your back

1- Bankruptcy 7 or 13

Bankruptcy Chapter 7 and 13. I’m not an attorney and I’m not about to go in-depth on the subject of Bankruptcy laws but in a nutshell, If you file for chapter 7 BK, you are pretty much surrendering all of your assets to the BK court with the exception of your homestead property as well as a vehicle as long as neither of them holds significant equity. This type of BK will end any pending lawsuits as well as any repossession debts.

Chapter 13 bankruptcy enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time.

2- Loan modification

Loan modifications make sense when you are able to get the lender to not only adjust your payments but to reduce the principal balance of the loan. It just doesn’t make sense to me to agree to a loan mod if the terms only benefit the lender. Don’t get me wrong, for some people it works out, but in my experience lenders almost always try to design loan mods in a way that benefits them thus setting up the homeowner for failure…and the beat goes on.  Read the fine print!

3- Orlando Short Sale

Now, this is a subject that I am very qualified to talk to you about. Orlando short sales are the preferred method for most people to eliminate their underwater mortgage problem. Orlando homeowners usually come to me after they consult with a Bankruptcy attorney realizing that a short sale is by far their best option. By completing an Orlando short sale on their home, a homeowner is able to rid themselves of their largest debt by far,.. their mortgage. On top of that, homeowners are able to come away with cash from the closing of the transaction, sometimes up to $30,000.00. [not a typo] thirty thousand U.S. dollars.

A short sale also is the lender’s preferred alternative to foreclosure and is often the best option for everyone involved. The only people that don’t care for short sales are Bankruptcy attorneys because there’s no money in it for them.

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Avoiding the Orlando Loan Modification Mine Field

Posted on by Jenny Zamora

Loan modifications have helped thousands of Orlando homeowners to keep their homes.

However, you must be aware of the fine print and know exactly what it will mean to you. Sometimes the terms of a loan modification are often worse than the original mortgage. The best loan modifications are when you are able to not only reduce your payment but reduce the principal balance of the loan. Many loan mods are structured so that your payment gets reduced but you still have to pay off the entire amount of the original mortgage plus penalties. In my opinion, these types of loan modifications are just not worth agreeing to. If your house is only worth $100,000.00 and your loan amount is $200,000.00 why on earth would you want to end up paying that entire amount?

Push for a loan modification with principal balance reduction

Banks will always try to get you to agree to what suits them better, this is why you have to be a tough negotiator, don’t just agree with the first proposal that they put in front of you. You have to remember that banks also want to come to an agreement. It costs lenders a lot of time and money to take someone through the foreclosure process. The best thing you can do is hire an Orlando real estate attorney that specializes in loan modifications. If you try to go at it alone with your lender, it could end up costing you a lot more money in the long run. Sure, a good Orlando real estate attorney may cost you a couple of grand upfront, but you’ll have a much better chance if you have an experienced negotiator in your corner.

5 things to watch out for when negotiating an Orlando loan modification

1- Your lender has the option of dropping all penalties. Don’t be bullied into a take-it or leave-it trap where they give you the option to pay off the penalties upfront or have them roll the penalties into the balance. You should demand that they wave all penalties as part of the deal.

2- Sometimes lenders will try to get you to agree that if they lose the original loan documents, you must assist the lender in reproducing them. As ridiculous as this may sound, it’s true and you should never agree to something like this. It comes down to the lender having additional legal protection if they screw up. A clause like this has absolutely no benefit to you.

3- Step by step rate increases that are too steep for you to afford or balloon payments that become due before you have time to be prepared for them.

4- Don’t agree to payments that you really can’t afford. When doing a loan modification, the idea is to make the loan affordable to you and your family. Be realistic, don’t put yourself into a position where your budget is soo tight that you’re only one major car repair away from being in default again.

5- Don’t agree to an interest rate that can automatically adjust based on an index over which you have no control.

An Orlando Short Sale may be your best option

As you can see, there are a lot of things that you need to watch out for when entering into a loan modification with your lender. The fact of the matter is that even when you have the bank’s best offer on the table, it still may not be good enough.

You may be much better off doing an Orlando short sale.  At the end of the day, it’s just a house, it’s not part of your family. By doing an Orlando short sale, not only will you be free of your lender forever, but you can get enough cash back to start over and get yourself into a much better situation than you would be agreeing to the terms of a loan modification.

As always, if you have questions about anything to do with Orlando real estate. Call us and set up a free consultation with an Orlando real estate expert.

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More Senior Citizens Facing Orlando Foreclosure

Posted on by Jenny Zamora

Older Americans who own Orlando real estate are not immune to the foreclosure process

Many Americans that are 55+, grew up thinking that real estate in Orlando would only appreciate in value and that you need to own a house to be financially secure. That way of thinking was passed on from there parents and was shared by just about everyone else in that generation. Unfortunately, according to AARP Senior Americans got in just as much hot water as the younger generations.

The perception is that older Americans are more housing secure than younger people, but the truth is that millions of Americans that are over the age of 55 are carrying more mortgage debt than ever before, over three million of which are at risk of losing their homes.  And as of December 2011, approximately 3.5 million loans of people age 55+ were upside down, meaning that their home is worth less than the loan amount. From 2007 to 2011, a staggering 1.5 million + older Americans lost their homes to foreclosure.

Even though older Americans still have lower foreclosure rates than people that are under 55, they are increasing at an alarming rate.

Older Americans weren’t immune to the Orlando real estate boom and bust. They took out equity lines of credit when Orlando property values shot up, sold their homes for retail prices and purchased investment properties that floundered just like everybody else.

 The biggest difference here is that if you’re under 55 and lose your house to foreclosure, you still have time to get back on your feet through hard work and perseverance. Older Americans don’t have this option because the truth of the matter is that time is not on their side. When I think about Older people losing their homes to foreclosure, it literally brings tears to my eyes, it’s just really sad.
 
For generations, home ownership has been a safety net in retirement, the report notes. Equity that built up over decades could be tapped for medical bills, supplement fixed incomes or help transition into an assisted living facility. If a senior needs to transition to an assisted living facility but can’t sell his house to get the money to pay for it, then that’s a huge problem.

Gail Matillo, director of elder housing for the Florida Department of Elder Affairs, recommends seniors call a local aging resource center if they are having trouble with house payments. The statewide hot line is 800-863-5337.

If you are in need of an Orlando Short Sale, call us for a free consultation.

 

 

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Orlando Real Estate, the new 401k for retirees

Posted on by Jenny Zamora

Orlando real estate is once again a good investment for retirees

After the huge real estate bubble, we experienced between 2000 thru 2006, we all learned a painful lesson in 2007 when the market tanked. It’s just not normal for Orlando real estate prices to double over the course f only seven years. When the market crashed, Orlando’s real estate prices dropped to 50% of where they were and in some areas of Orlando, it was even more than that.

What I have been seeing more of recently, however,  is that people are considering Orlando realty as a good investment for retirement once again. Here in Orlando, the bottoming process has already happened and prices have been on a steady rise. There is still a long way to go before we see a normal housing market, however, historically low mortgage rates are helping the market by making the cost of ownership more affordable, assuming that the potential buyer can qualify.

Sensing this opportunity, many are jumping into the rental market to boost retirement savings and income. There are however several important factors to consider when buying an Orlando property for the purpose of receiving a steady stream of income.

 5 Tips for potential Orlando Landlords

1- Make sure that you buy at the right price- This is where working with an experienced Orlando realtor will pay off big. Make sure your agent shows you the recent comparables in the area. Chances are that you won’t find anything at 30% market value unless it needs work done, but you should be able to buy something at fair market value, which is OK if you’re thinking long term.

2- Forget about flipping- The days of flipping houses for a huge profit are gone for the most part and you shouldn’t go into this thinking that you will be able to sell your investment property for twice what you paid for it in six months, it’s just not going to happen.

3- Take advantage of Historically low mortgage rates- Even if a potential home buyer is able to purchase an Orlando Investment property, I always suggest to them that they should consider getting a mortgage. With historically low rates right now, it’s a great opportunity for potential investors if they can qualify.

4-Consider hiring a property management company- Being a landlord can be a great source of income if you’re up to the task. However,  I must warn you that it’s not for everyone. Landlords have to deal with not only the maintaining of the property, but they have to be available to tenants at a moment’s notice in case of emergencies. This is why you should consider hiring a property management company right from the start. You should work this expense into your budget before even buying your investment property so that you will know if the numbers make sense.

5-Get familiar with Orange county eviction laws- If you become a landlord for any amount of time you can expect to have a deal with an eviction or two [at least]. It’s very important that your rental agreements are solid and that you do background checks on ALL of your tenants no matter how nice you think they are. It may cost you a few extra bucks to get a quality tenant into your house but I can tell you from experience that paying a bit more upfront to do things correctly will save you time, money, and headaches in the long run.

It’s important for people considering Orlando real estate as retirement income to remember what the goal is. The goal is for the owner to be mortgage-free and to collect a steady stream of income on a house that’s free and clear.

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