Tag: Stop Foreclosure in Orlando

Orlando Real Estate remains strong, despite a dip in prices at the end of summer

Posted on by Jenny Zamora

 

Summer’s gone and Orlando Real estate takes a drop

Prices of Orlando real estate dropped slightly last month for the first in a year. Don’t panic Orlando homeowners, this happens every year at this time. The reason for the drop is mostly due to the end of the peak of the summer buying season. Two facts remain true, Orlando real estate inventory is low and demand for great Orlando properties remains high. As long as these factors remain a part of the Orlando real estate market, sellers will be able to get top dollar for their Orlando Home.

Other factors indicating a strong Orlando Real Estate market

Orlando homes are selling faster and for more than they did a year ago. Studies show that Orlando homes are spending less than 80 days on the market before coming under contract and selling for almost  97% of the listing price. A year ago, Orlando Realty was selling for less than 95% of the listing price, and these properties were listed on the MLS for over 100 days.

Great mortgage interest rates are still being offered by lenders. The average interest rate currently being offered for Orlando home buyers is at 3.78 percent as opposed to a year ago when homebuyers paid an average interest rate of 4.26 percent. This is a huge incentive right now for potential Orlando home buyers and anyone interested in buying real estate in Orlando should definitely take advantage of these historically low-interest rates.

There are more regular listings in the Orlando real estate market than has been in years. Although Orlando’s short sales and REO’s still rule Orlando’s real estate inventory right now, there is another quieter group that is not desperate to sell their Orlando properties.  Believe it or not, everyone one in three homeowners owns their house “free and clear”. This group as well as homeowners with very small mortgages on their home are able to ask for top dollar on their Orlando home and they don’t care if it sells or not. Their way of thinking is “I will sell for the right price and if not then I’m not selling”. I’ve had several clients like this over the years, and homeowners like these actually help to maintain property values up in their neighborhoods because their listing prices remain high and they really don’t care how long it takes to sell.

Right now is  a great tome to sell your Orlando Home

Considering all the factors in play right now with Orlando Real Estate, it’s a great time to sell your home. Whether you need an Orlando short Sale done or you’re o of the few and fortunate people that own your property Free and Clear. If you’re interested in seeing how much your Orlando property will sell… click on “How much is my Orlando property worth?” or you can come and see me for a free consultation and I would be happy to sit and talk with you.

Realtor in Orlando, FL

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6 Things that can Kill your Orlando Short Sale

Posted on by Jenny Zamora

The Clock is running Out on Orlando Short Sales


By now almost everyone is familiar with the term “Orlando Short Sale” that owns real estate in Orlando. In a nutshell… It’s when the bank agrees to take a substantial discount on what is owed on a delinquent mortgage.
Our office has been receiving a ton of calls and emails lately from sellers that are upside down on their mortgage all asking the same question. “ Are we still in time to do a short sale on our home without being taxed by the IIRS for the deficiency?” The simple answer to this question is yes, as long as you get it closed before 2013. However, there are many other things to consider besides the “Mortgage tax relief act of 2007”.
6 things that could kill your Orlando Short Sale

1-    The Bank refuses to take accept the short sale offer- These days this doesn’t happen that often. However, Some lenders are just not realistic when it comes to what the property is actually worth and they will just flat out refuse to do a short sale.
2-    Stubborn Homeowners Associations- In the state of Florida, HOA’s will be paid 1 year of dues if a property goes to foreclosure. However, for some reason, that I’m still trying to figure out, there are HOA’s out there that would rather let the property  go  to  foreclosure and collect a year of delinquent dues instead of collecting an amount that is  much more than that. It’s almost  like the HOA’s take it personal that a homeowner can’t pay and they want revenge!
3-    2nd mortgages not giving enough of a discount- When you do an  Orlando Short Sale on a  house that has 2 or more mortgages, the amount that you offer to that second mortgage holder as to be approved by the first mortgage holder. If the frst mortgage holder only wants the second to get $2,000.00 and the 2nd mortgage holder wants $5,000.00 guess what? That’s right… it’s a deal killer.

4-    The BPO Comes in Too High- Part of the process when doing an rlando  short sale is for the bank to order a BPO [Brokers Price Opinion]. Kind of like a mini appraisal, a BPO is usually performed by a local realtor that goes into the house and records details of the house damages, upgrades, etc. Based on all of this information the BPO agent will determine what they  think the house is worth. Unfortunately, I’ve had BPO’s done on properties where judging by their valuation of the property, they must have been either
5-    intoxicated or the more likely scenario, they want the property to get foreclosed on in hopes that they get the listing on the property from the lender as an REO listing.
6-    The buyers back out or are unable to close- Usually, you’ll know way ahead of time if you’re dealing with a legitimate buyer as opposed to a tire kicker because of a Deposit and proof of funds or a pre-approval letter. However, for whatever reason, a buyer will sometimes just not want to go through with the deal at the last second or their financing falls through. Unfortunately, It’s just the nature of the Orlando Real Estate business.

Hire an Orlando Short Sale Expert

If you’re in need of doing a short sale in Orlando, you should find an experienced short sale realtor to give yourself the best chance possible. Short sales can be tricky and hiring a good  realtor will the key to your success.

 

 

Orlando short sale 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 Short Sale Guide part-1 of 2

Posted on by Jenny Zamora

 

What are Orlando Short Sales sales all about?

Working as an Orlando short sale specialist for over eight years, I get questions from both clients and realtors about short sales all of the time; How does a short sale work? Do I have to be behind on my mortgage to do a short sale? How will it affect my credit? Will my lender come after me for  the balance? Can I get money  back even though I’m in foreclosure? What are the tax repercussions?…just to name a few.

This two part post ” Orlando Short Sale Guide” is for people who have unanswered questions about short sales.  This week  I will talk about every aspect of short sales; what they are, how they work and the do’s and don’ts of whole process. In my next post I will also be talking about probably the single most important part of the whole process and that is finding the right Orlando realtor for you.

I think the best way to  start this off,  like anything else is by giving you a clear definition of what a short sale is.  A short sale is a sale of  real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens’ full amounts, whereby the lien holders agree to release their lien on the property and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.

An Orlando short sale is most often the best method to Stop Orlando foreclosure because it mitigates additional fees and costs to both the creditor and borrower. While credit is also typically damaged much less than from a foreclosure, both often result in a negative credit report against the property owner.

Who qualifies for an Orlando Short Sale?

Even though someone can easily prove that their house is worth less than what it owes, most lenders require the mortgage holder to be  at least 30 days late on their payment to even consider a short sale. In my opinion, this is a huge flaw  in the short sale process and I believe that any property that is worth less than what it owes should qualify as a short sale candidate. Creditors also require the borrower to prove they have an economic or financial hardship preventing them from being able to pay the deficiency.

  The Short Sale Process

Creditors holding liens against real estate can include primary mortgages, junior lien holders—such as second mortgages, home equity lines of credit lenders, home owners association HOA—all of whom will need to approve individual applications for a short sale, should they be asked to take less than what is owed.

Some liens such as student loans, back child support and I.R.S. liens cannot be discounted and have to be paid in full in order to get the deal closed. In our office, these liens are sometimes referred to as “Deal Killers”.
Most large creditors have special loss mitigation departments that evaluate borrowers’ applications for short sale approval. Often creditors use pre-determined criteria for approving the borrowers and the terms of the sale of the properties. Part of this process typically includes the creditor(s) determining the current market value of the Orlando real estate by obtaining an independent evaluation of the property with an appraisal, a Broker’s Price Opinion or [BPO]. One of the most important aspects for the borrower in this process is putting together a complete  short sale package including hardship letter explaining why a short sale is needed on you Orlando property.

Due to the overwhelming number of defaulting borrowers due to mortgage failures and other causes as part of the 2008–2012 global financial crisis, many creditors have become adept at processing such short sales applications; however, it can still take several months or even a year for the process from start to finish, often requiring multiple levels of approval.

 

Jenny Zamora, Lic RE Broker/ Orlando short sale expert.

 

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Who decides the value of an Orlando Short Sale?

Posted on by Jenny Zamora

Are Orlando Short Sale properties being valued correctly?

The valuation of an Orlando short sale, as determined by the short sale lender, is probably the single most important factor of the transaction. The way it works is; we submit an offer  to the bank, then the bank will order a BPO [Brokers price opinion] on the property. This person will usually be a local realtor that will go out and take photos of the property, record any damages that need repairing and after they put everything together they will complete their “BPO report” [their opinion of what the property is worth] to send to the short sale bank or the agency that hired them.

At this point there are three things that can happen that will dictate what follows.

1- The BPO comes in at a fair number that everyone is happy with and we proceed to closing.

2- The BPO comes in too low and the bank insists on another one being  done. I hate when this happens because the 2nd BPO will almost always come in too high.

3- The BPO comes in so ridiculously high that the Orlando realtor has no choice but to insist that the short sale lender either order another BPO or walk away from the deal. [not on my watch]

Getting the Orlando short sale lender to order another BPO

Like an attorney presenting his case in court, it’s all about what you can prove to the lender.

We do this by preparing a report of our own called a CMA [comparative market analysis]. This report contains even more information than the BPO agent provided them with. Although reports can vary, from a two-page list of comparable home sales to a 50-page comprehensive guide, the length and complexity of the report depends on the Orlando realtor preparing it. What a CMA basically comes down to is a list of Active, Pending and Sold listings.
 
 Active Listings- Active listings are homes currently for sale. These listings matter only to the extent that they are your competition for buyers.

Pending Listings-Pending sale homes are formerly active listings that are under contract. They have not yet closed, so they are not yet a comparable sale.

Sold Listings- These are homes that have closed within the past six months and are typically your best source for comparable sales.

In addition to preparing a CMA for the short sale lender we provide them with a contractors estimate for repairs, lots of photos and a detailed letter explaining our case and why our offer is what it is.

 
 
Here at Orlando Realty Consultants we take the Orlando short sale process very seriously because we know what’s at stake for everyone involved, especially the sellers that I am representing. I tell all my Orlando agents to treat these situations as if they were an attorney preparing for the case of a lifetime.

 

Jenny Zamora, RE Broker

 

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