Tag: short sale specialist

How To Choose A Short Sale Agent in Florida

Posted on by Jenny Zamora


Your Success Depends on the Short Sale Agent You Choose

A quick word to the wise… pick your short sale agent very carefully. A short sale is way too complex of a transaction to trust a new agent with. And don’t make the mistake of just hiring the agent with the flashiest website either. When dealing with a short sale, you need a short sale specialist… an agent who specializes in short sales.

Back in 2006 when the market crashed and short sales were everywhere, a lot of agents decided to specialize in short sales. Real estate training companies made big profits by offering short-sale training to thousands of agents. However, there’s no way you can learn how to be a short sale agent in just 3 hours. Unfortunately, many homeowners fell victim to these newbie agents claiming to be short sale specialists resulting in a failed short sale transaction.

Now in 2020, short sales in Orlando are not as abundant and there are a lot fewer short sale agents. Many times I get referrals from other real estate agents in Orlando because they don’t want to deal with the extra work involved with processing a short sale.

Ask a Real Estate Agent to Refer You To a Short Sale Agent

If you have a friend or relative that’s a real estate agent, chances are they’ll be able to refer you to a good short-sale agent. Short sales require a lot more work than a traditional transaction which is why most agents avoid them and are happy to refer them to another agent.

How Experienced Should my Short Sale Agent Be?

There are realtors out there that have been in the industry for several decades and have a ton of experience. However, some real estate agents stay in the business for longer than they should. What I mean by that is… the real estate business changes constantly and if you have an agent that’s set in their ways of doing things and not willing to keep up with the changes, then you’re in trouble and you should probably find another agent.

When it comes to finding an experienced short sale agent, you need to verify how active they’ve been recent. Ask them to show you proof of recently closed short sale transactions and find out how many clients they’re currently working with. Sure, they must have been doing short sales for a long time but even more important is what have they done lately.

I’ve been a short sale agent in Orlando, FL since 2004 with thousands of closed short sale transactions and I can tell you that there have been a lot of changes in the way short sales were handled back then and now in 2020. From different incentive programs being offered by lenders to the Federal rules and regulations, everything will continue to change.

When choosing a short sale agent, here are a few questions you should ask:

  • How many years have you been a short sale agent? Your short sale agent should have a minimum of 3 years experience in selling short sales. There’s no better teacher than experience. Making mistakes and finding out things the hard way is a great way to learn and avoid making those mistakes on future short sale deals. If you’re able to find an agent with experience in real estate investing, even better.
  • How many short sale transactions have you closed? Just imagine the knowledge of a short sale agent that has closed over 1,000 short sale transactions. These are the elite short sale agents and they will know what each of the top lenders will require, how they operate and what to expect. They will also have short sale packages from every single bank on hand. These agents will more than likely have systems in place to help streamline the process while providing you with individual attention.
  • Do you foresee any problems with my short sale? An experienced short sale agent will know if there are any red flags to warn the seller about just by asking a few questions. Remember, a real estate agent is not allowed to give tax or legal advice. However, the agent should be familiar enough to point out some potential tax consequences, legal issues, etc. Your short sale agent should be able to refer you to a real estate attorney in needed.
  • Do you have any experience with my lender? A past deal doesn’t guarantee you’ll get the same response from a bank, but it can be a good indicator. Different banks have different processes and some are much tougher to negotiate with than others. Chances are that your short sale agent will have some experience with your lender, unless your lender is a private entity or investor. If you have a loan with a private investor, you may not get the answer you want but at least you’ll get a quick response.
  • Will you be processing my short sale? Make sure the agent you’re talking to is also the person processing your short sale. If an agent is too busy, they may pass your short sale off to a third party processors who may not even be licensed. Some people believe real estate attorneys are the best negotiators for handling short sales. This isn’t the case, I actually have several real estate attorneys referring there Orlando short sales to me. The difference is that an attorney will charge you whether the deal closes or not and a real estate agent only gets paid if the deal goes through.
  • How long do you expect it will take for my short sale to close? If you haven’t yet heard, short sales are anything but short. However, if your short sale agent has recently done some deals with your lender, they should have a pretty good idea how long everything will take.

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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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Bank of America Increases Incentives for Orlando Short Sales

Posted on by Jenny Zamora

 Bank of America Stepping up their game to help out Orlando homeowners

On Tuesday Bank of America Corp.  launched a nationwide program that offers increased relocation payments to delinquent mortgage customers that care able to qualify for short sales.

B of A  tested this program in Florida last year, offering payments of $2,500 to $30,000 to help homeowners re-locate. A short sale is when a lender allows a homeowner to sell a home for less than the amount owed on the mortgage.

When B of A bought out Countrywide Financial in 2008 the company inherited a bunch of bad loans and has been exploring new ways to work with delinquent homeowners outside of foreclosure. In March, the bank stated that it would offer a limited number of  homeowners facing foreclosure the option to lease their homes.
In the last 2 years Bank of America customers have completed 200,000 short sales and another 30,000 short sales in in the first quarter of this year.

Bank of America, which inherited loads of bad loans when it bought Countrywide Financial in 2008, has been exploring ways to work with homeowners outside of foreclosure. In March, the bank said it would offer a limited number of customers facing foreclosure the ability to lease their homes.
Since October, Bank of America has rolled out multiple initiatives to speed up short sales and to prevent foreclosures. Last month, it announced plans to approve some short sales in less than 20 days.
Part of the qualifying process is to work together with the bank to obtain a pre-approved sales price. Another pre-requisite is that the homeowner must start the short sale process by the end of 2012 and completed by Sept 26, 2013. Short sales are determined case -by-case, depending on the value of the home, how much is owed, etc.
The bank was also waiving the difference between the unpaid mortgage and amount of the short sale, which allowed homeowners to walk away without still owing the bank a big chunk of money.
Also, Florida homeowners who didn’t enroll in the test program can now apply for the new plan.
If you have a mortgage with Bank of America and you’re considering an Orlando short sale, now is the time to see what their willing to offer you. Set up a free consultation with an Orlando short sale specialist and find out your options

 

 

 

 
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