Tag: short sale

Benefits Of A Short Sale

Posted on by Jenny Zamora


What Are The Benefits of A Short Sale?

A short sale in Orlando is a real estate transaction where the sale price of a home is less than the full amount the homeowner still owes on the mortgage. Both the seller of the property and their mortgage company must agree to a short sale. Most lenders these days will agree to the terms of a short sale and also agree to release the lien they possess on the property.

Depending on what the lender agrees to, a short sale doesn’t guarantee that the borrower will be released from the obligation to pay the remaining balance on what’s owed on the loan AKA the “deficiency”.

This is why it’s extremely important that when you hire a Realtor to do your short sale, you don’t hire just any Realtor. Make sure you hire an Orlando Short Sale Specialist. This will ensure you have the best chance at success when doing your short sale.

By agreeing to do a short sale, lenders avoid a drawn-out and costly foreclosure and the homeowner can walk away free of their debt. Before deciding on a short sale, we recommend that you find out all the options that are available to you to see what works best for you.

Benefits of A Short Sale

Less Credit Damage Than Foreclosure
When you compare the impact of foreclosure vs. a short sale on your credit, a short sale harms your credit much less than a foreclosure will. For example, you’ll be eligible for either Fannie Mae or Freddie Mac home financing after only two years following your short sale. However, after a foreclosure, it will take you at least 5 years to be eligible for the same financing.

This is because of the way the mortgage underwriting rules were changed after the financial crisis of 2008.

Cash Back To Sellers

Just about all short sales in Orlando are sold “as-is” which means you won’t have to spend a dime on fixing the place up. In addition, all lender fees, commissions, property taxes, etc. on both sides of the transaction will be paid for by the lender.

In most cases, we’re able to get our clients anywhere from $3,000 to $30,000 at the closing for relocation costs

A Fresh Start

A successful short sale gives distressed homeowners a clean break from their financial hardship. Over 50% of homeowners that opted for a loan modification instead, wound up going into default again and ultimately ended up doing a short sale. Loan modifications are usually modified to benefit the bank in the long term and most of the time you still end up paying the entire amount of what you owed in the first place.

The Sale Date Can Be Negotiated

If a homeowner is in active foreclosure, the lender together with the judge will eventually schedule a sale date of the home at the hearing. You should show up for this hearing with written proof from your Orlando Realtor that you are actively pursuing a short sale on your home. Have your Realtor go with you and provide an MLS printout of the listing, contract, as well as any communications you’ve had with your lender thus far. From my experience as a short sale realtor, they will almost always push the foreclosure sale date a maximum of 120 days giving you ample time to close the transaction.

Easier To Rent A House

Foreclosures, bankruptcies, and evictions are all red flags to landlords who will probably deny you as a renter. However, while your short sale is being negotiated, you’ll have plenty of time to find a rental to move into.
Remember, landlords are creditors also and if they see that you’ve been proactive in doing the right thing in your situation rather than just letting your home gets foreclosed on your chances are much better for them to approve you for their rental.

If you or someone you know needs short sale services in Orlando FL, Call us at 407-902-7750 or visit our site. There’s never a charge for our services and most of the time we can get cashback to sellers.

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Orlando Short Sale Q and A… Ask The Expert       

Posted on by Jenny Zamora

Q and A with Jenny Zamora, RE Broker, Orlando Short Sale Expert                    

Q- My house is worth less than what I owe on the mortgage and there’s no way I can afford to continue making payments on it because I lost my job and I’m only working part-time now. Can I ask my bank for a short sale?

A- Before I begin speaking about Orlando Short Sales, you should be aware that there are other options available to you if you want to try and keep your home. If this is the case, you should contact your lender and ask them if they would be willing to consider a loan modification on your loan. A loan modification is just that….a modification to the terms of your loan so that you can afford to make the payments. Even after pursuing a loan modification, many homeowners find out that the bank’s terms are even worse than before and opt for pursuing a short sale instead.

Assuming that you’ve already decided that you want out of the situation and sell your house, you can ask your lender if a short sale is an option that they would consider. I would strongly suggest that you contact an Orlando Short Sale Expert to help you with this. Most realtors don’t like doing short sales because of the amount of all the extra work involved so make sure that you find one that lives eats and breathes short sales. Your Orlando realtor can give you an estimate of how much your home is worth in today’s market so that you know exactly where you stand before approaching your bank. Your short sale realtor should also be a skilled negotiator to ensure you get the best chance at a successful short sale. Negotiating with the bank as well as prospective buyers is a common part of the short sale process.

Q- How does the short sale process work?

A- A short sale happens when your mortgage lender is willing to accept less than the full mortgage payoff on your loan. You’ll need to provide your lender with some documentation like financials, a list of assets, and a complete explanation in writing of why you can no longer afford to continue making your mortgage payments AKA a “hardship letter”.Once your realtor has submitted the entire short sale package to the bank and they agree to a short sale, you’ll be required by the bank to list the property for sale with your Realtor for market value.

Q- How long does a short sale take?

A- Unfortunately, short sales are anything but short. Banks don’t like taking a loss, so don’t expect them to be in a rush to help you get out of the situation. In addition to negotiating with your lender, your Realtor will also be negotiating with potential buyers and buyer’s agents trying to get the deal done. You have to remain patient when it comes to processing a short sale.

Q- What are the tax implications if I do a short sale?

A- The Internal Revenue Service considers a debt that has been forgiven as income. This means that if you paid your lender $110,000 through a short sale and you owed $180,000, the unpaid balance of $70,000 would be considered income. In 2007 the Mortgage Forgiveness Debt Relief Act of 2007 was instated to help homeowners who lost their homes through short sale or foreclosure by waiving the income tax implications on the forgiven debt. Unfortunately for today’s distressed homeowners, this Act expired in late 2013. This means that you will more than likely be responsible for paying income tax on the debt that was forgiven by your lender through the short sale.

Q- How will a short sale affect my credit?

A- The good news is that a short sale will have much less of a negative impact on your credit than a foreclosure or bankruptcy. However, depending on the number of late payments you have on your mortgage, your credit will still be significantly affected and it will probably be a few years before you can get another mortgage.

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TOR 003: How Does The Bank Decide The Value Of A Short Sale?

Posted on by Jenny Zamora

Top Orlando Realtors Podcast Episode:003

Diego Fontana in the BVL area of Kissimmee asks…”How do they decide the value of a Short Sale property“? The valuation of a property, in my opinion, is the single most important factor in the whole short sale process.


Here’s the way it works. We start by submitting an offer to the bank, the bank will then order what’s called a BPO on the house AKA a broker’s price opinion. In some cases, the bank orders a full-on appraisal, but most of the time it’s going to be a BPO
The person that does the BPO is usually a local realtor hired by an agency that’s been hired by the bank.


So the realtor goes out to the property, takes some pictures, and does some research. then based on things like
• recent sales in the area
• repairs that the home needs
• and even upgrades that the house may have

marketing


They take all these things into account to create the BPO report. So this is the realtor’s opinion of what the property’s worth.


Whatever, the BPO comes in at will be the negotiating point between the lender and potential buyer.
The BPO happens…
Now At this point, there are 3 things that can happen that will dictate what follows.
The BPO comes in at a fair valuation, everyone’s happy, and we proceed to close.
or…
The BPO comes in really low, so low in fact.. that the bank insists on another one being done… and although it doesn’t happen too often, it can and does happen on occasion.
or…
The BPO comes in super high and the buyer threatens to walk.


When this happens, the Orlando listing agent has to Do whatever it takes to get the bank to order a second BPO. We do this by making a report of our own… called a CMA or comparative market analysis
This report has even more information than a BPO does.


The sole purpose behind sending them a CMA is to get the bank to order another BPO or if we’re lucky they’ll just use our report.
In the end, after all the dust settles, the lenders are the ones that decide how much they are willing to accept for the property.


So Diego, there you have it. I hope that answers your question.


That’s our show for this week, join us next week for the 3rd episode in our short sale series.

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New Homes In Orlando Getting More Expensive

Posted on by Jenny Zamora

In 2014 new housing developments in Orlando became increasingly more expensive throughout the year and we can expect to see more of the same in 2015 according to Orlando Realtors. This is in part due to newly retired couples looking for a permanent move as well as vacationers wanting to have a new home away from home.

Prices on new homes in Orange county are scaring some buyers away. In fact, when compared to Lake and Osceola counties, Orange County leads the way in price per sq ft. for relatively the same quality home. Builders say that retirees and vacationers have been able to tap into their investment savings in recent years and use them to reinvest in Orlando real estate.

The rising prices of new homes in Orlando have been evident in both the high end as well as lower-end homes. New home builders see the trend and continually try to offset the higher prices by offering incentives to buyers that struggle to qualify for mortgages, especially the people that lost their homes in the market crash of 2007 to foreclosure or short sale.

Reducing the number of upgrades, less customization on the homes as well as reducing closing costs to a minimum are the most popular ways to discount pricing. Even with builders scrambling to find ways to keep costs down and increase buyer incentives, higher prices may still price many potential home buyers out of the Orlando real estate market.

However, even with the higher-priced homes, closings on new homes in Central Florida overall have continued to increase during the past year. South Orlando seems to be Central Florida’s strongest area for new home building with over 1,200 housing starts in the third quarter of 2014.

Approximately 1/3rd of those homes were in the Lake Nona area development which was the most activity for single-family residences for the quarter. Overall during the third quarter of 2014 builders began building more houses than they had sold.

THE POINTE AT HUNTERS CREEK

 New Homes In Orlando Falling Behind Schedule

This may be the cause for other developments like “The Point at Hunters Creek” formerly known as “Kailey’s Ridge” to fall way behind schedule. This development located in the much sought-after community Hunters Creek was to consist of 134 single-family homes built by both Ryan Homes and Surrey Homes and was expected to have homes for sale by October of 2014.

We’re now in January of 2015 and the new development has only gotten as far as clearing the land and paving the streets. Many potential buyers that have been patiently waiting to secure one of these new homes have opted instead to buy an older home in the community.

 

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Do You Need An Attorney To Short Sale?

Posted on by Jenny Zamora

Do You Need An Attorney To Short Sale? 407-902-7750 Video

There’s a common misconception among distressed homeowners that you need to hire an attorney in order to complete a short sale on your home. The truth is that you don’t need to hire an attorney in order to complete a short sale.  The lender does however require that a licensed real estate agent represent the seller in order for a short sale to be approved.

There are some cases where you would want to consult with an attorney such as;  if there’s title issues, the property’s in probate or if there’s a Bankruptcy involved, etc.

Now with that being said, most of the time you don’t need to hire an attorney to short sale your home.

One of the most popular reasons why people hire a short-sale realtor instead of an attorney is the cost. Attorneys can charge you thousands of dollars to do your short sale, whereas a licensed realtor does it for free.

Wouldn’t you rather save your money instead of turning it over to a lawyer?

A realtor only gets paid if the short sale closes, and they get paid by the lender,it doesn’t cost the homeowner a dime. Not only that, but most of the time we get you cash back a closing. We’ve gotten our clients anywhere from $3,00 to $30,000.00 back at closing.

There are currently thousands of Orlando homeowners that are looking for help with their situation. The process isn’t just hard, It’s scary. We’re talking about potentially getting kicked out of your home. This is why it’s crucial that you get help from a proven Orlando Short sale Expert.

We understand this which is why we are devoted to helping people that are facing foreclosure and financial hardship to find solutions to their real estate needs.

If you or someone you know needs help with a short sale. visit our website at https://orlandorealtyconsultants.com/short-sales/ or just give us a call at 407-902-7750 for a Free consultation.

 

 

Orlando short sale expert

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