Tag: Top Orlando Realtors

The Importance of Homeowner’s Insurance!

Posted on by Jenny Zamora

Homeowner’s insurance is the most important protection for your most valuable asset – your home.

However, the cost of homeowner’s insurance can be a significant expense for many homeowners. The cost varies depending on several factors, such as the value of your home, your location, and your insurance history.

Location

One of the most significant factors that can impact the cost of homeowner’s insurance is the location of your home. If you live in an area that is prone to natural disasters, such as hurricanes or floods, your insurance rates may be higher. This is because the risk of damage to your home is higher in these areas, which means the insurance company is taking on a greater risk by insuring your property.

Flood insurance is an important protection for homeowners in areas that are at risk of flooding. Homeowner’s insurance typically does not cover flood damage, which means you need to purchase a separate flood insurance policy if you want this coverage.

Flood insurance can be purchased through the National Flood Insurance Program (NFIP) or through private insurance companies. The cost of flood insurance can vary depending on the risk of flooding in your area, the value of your home, and other factors.

If you live in a flood-prone area, it is important to consider purchasing flood insurance to protect your home and belongings. You can access this information on the FEMA flood map.

Age

Another factor that can impact the cost of homeowners insurance is the age and condition of your home. If your home is older or has not been well-maintained, the insurance company may consider it a higher risk and charge you a higher premium. Similarly, if your home has certain features that make it more susceptible to damage, such as a swimming pool or a wood-burning stove, your rates may be higher.

History

Your insurance history can also impact the cost of your homeowner’s insurance. If you have a history of filing claims, insurance companies may view you as a higher risk and charge you higher premiums. Similarly, if you have a poor credit score, insurance companies may consider you a higher risk and charge you more for coverage.

While the cost of homeowners insurance can be a significant expense, it is important to have this protection for your home. Without insurance, you could be at risk of losing everything in the event of a disaster or accident.

To keep your rates as low as possible, consider taking steps to reduce your risk, such as installing a security system or doing home repairs. You can also shop around for insurance quotes to find the best rate for your needs.

Fraudulent Claims

Many of my clients express frustration with the high rates and wonder why they are so much higher than in other states. The truth is, that one of the major reasons for the high rates in FL is excessive fraudulent claims.

Fraudulent claims have been a significant issue in Florida for years, particularly when it comes to property insurance claims. According to the National Insurance Crime Bureau, Florida consistently ranks as one of the top states for insurance fraud. This type of fraud can take many forms, from staged accidents to falsified damage claims.

Fraudulent claims not only drive up the cost of insurance but also have other negative effects on the real estate market. For example, insurance companies may be hesitant to provide coverage in areas known for fraud, making it more difficult to sell homes in those areas.

Natural Disasters

One of the primary reasons that Florida is particularly susceptible to insurance fraud is the prevalence of natural disasters like hurricanes. When a hurricane hits, it can cause widespread damage to homes and businesses, making it easy for dishonest individuals to submit false claims. This type of fraud can drive up the cost of insurance for everyone in the state, even those who have never filed a claim.

In addition to natural disasters, there are other factors that make Florida a target for insurance fraud. For example, the state has a large population of seniors, who are often targeted by unscrupulous individuals looking to take advantage of their vulnerability. There are also many people in Florida who are struggling financially, and some may be tempted to file fraudulent claims to collect insurance money.

Additionally, some insurers may require higher deductibles or refuse to cover certain types of damage altogether, which can make it harder for homeowners to recover from disasters.

Solution

So, what can be done to address the issue of fraudulent claims in Florida? One approach is increasing penalties for those caught committing insurance fraud. The state already has strong laws in place to address insurance fraud, but enforcement can be challenging. By increasing the penalties for those who are caught, it may be possible to deter some would-be fraudsters.

Another approach is to educate homeowners about the dangers of insurance fraud and how to avoid it. Many people may not realize that filing a false insurance claim is a serious crime that can have significant consequences. By raising awareness about the issue, we may be able to prevent some instances of fraud from occurring in the first place.

Insurance companies can also take steps to address the issue of fraud. For example, they can invest in technology that can help detect fraudulent claims more quickly and accurately. They can also work with law enforcement agencies to identify and prosecute those who are committing fraud.

As a Real Estate Broker, I believe it is important to educate my clients about the issue of insurance fraud and how it can impact the cost of homeowner’s insurance in Florida. I also believe it is important to work with reputable insurers who have a strong track record of combating fraud.

In conclusion, by working together, we can help protect homeowners and keep insurance rates as affordable as possible.

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Low Inventory and High-Interest Rates!

Posted on by Jenny Zamora

As a Real Estate Broker in Central Florida, I’ve seen firsthand how the lack of affordable homes has become a significant challenge for both buyers and sellers in the area. There are many reasons for this shortage, but one of the main drivers is the combination of high-interest rates and low inventory levels.

I stay updated on local market trends and work to provide my clients with the necessary guidance and support. By understanding their needs, budget, and preferences, I can help them find affordable homes and navigate the current market conditions. Overall, while there may not be an easy solution to the lack of inventory of affordable homes in Central Florida, with the right strategies and support, we can help make homeownership more accessible to everyone.

Buyers

For buyers, the current market conditions can make it challenging to find a home that meets their needs and their budget. Buyers are looking for affordable homes that are move-in ready, but the current inventory of available properties is limited. Additionally, with interest rates on the rise, potential buyers are seeing their purchasing power decrease.

Another solution is for buyers to consider alternative financing options, such as FHA, VA, or USDA loans, which can provide lower interest rates and offer $0 down payment requirements. However, these programs may not be available to everyone, and they come with their own set of guidelines and restrictions.

Sellers

On the other hand, sellers are also feeling the impact of the current market conditions. While they may be able to sell their homes for a higher price due to increased demand, finding a new home to purchase can be difficult. Many sellers are hesitant to put their homes on the market without a solid plan for their next move, leading to even lower inventory levels.

Sellers may also not want to walk away from old loans due to the locked low-interest rates. If a seller purchased their home during a time when interest rates were low, they may have a significantly lower interest rate on their mortgage than the current market rate.

This means they are paying less in interest on their loan each month, which can make their monthly mortgage payments more affordable. By walking away from their old loan, sellers may risk losing these advantageous interest rates and could end up with a higher mortgage payment on a smaller loan.

Builders

One way to combat the lack of affordable inventory is for builders to construct more homes in the area. However, the high cost of land, labor, and materials, along with strict zoning laws, can make it difficult for builders to construct affordable homes. Additionally, many builders focus on luxury homes, leaving a gap in the market for affordable housing.

The low inventory of affordable housing in Central Florida has become a significant challenge for both buyers and sellers in the area. With a rapidly growing population and an influx of people moving to the region, the demand for housing has increased, leading to higher home prices and limited inventory.

Interest Rates

One of the main drivers of the low inventory of affordable housing is the combination of rising interest rates and limited inventory levels. At the same time, the limited inventory of affordable homes means that buyers have fewer options to choose from, leading to increased competition and higher prices.

The lack of affordable housing is also impacting the rental market in Central Florida. As home prices continue to rise, many potential homebuyers are choosing to rent instead. However, the demand for rental properties has also increased, leading to higher rents and limited availability.

Real Estate Agents

Real estate agents can also play a crucial role in helping buyers and sellers navigate the current market conditions. By understanding the local market trends and staying up to date on changes in interest rates and inventory levels, agents can provide valuable insight and guidance to their clients. We can help buyers find affordable homes that meet their needs and budget, and we can assist sellers in pricing their homes appropriately to attract potential buyers.

In addition to working with real estate agents, buyers, and sellers can also take steps to make their transactions more attractive to each other. For example, buyers may want to consider making a larger down payment or offering to close quickly to make their offer more appealing to sellers. Conversely, sellers may want to consider making repairs or upgrades to their homes to make them more desirable to potential buyers.

Overall, the lack of affordable inventory in Central Florida is a challenging issue that requires a multi-faceted approach to address.

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What is happening with the Interest Rates in Florida?

Posted on by Jenny Zamora

If you are a Florida homeowner, you’re probably wondering what is happening with interest rates. This hike was the Federal Reserve’s latest attempt to combat skyrocketing inflation. But many are wondering how this move will impact the housing market. The truth is that moderately priced homes will probably not be affected as much as higher-priced homes. In the meantime, the rates will increase enough to make buying a home difficult, and even more difficult if the mortgage is more expensive than the current rate.

The average interest rate on a fixed 30-year mortgage in the U.S. reached 5.53% this week, more than double its level from a year ago. Demand for properties tends to soften as mortgage rates climb, eventually leading to a decline in home prices. If mortgage rates continue rising to 7%, home prices in some parts of the U.S. could fall as much as 40%. Sellers in Florida are already starting to lower their prices because of climbing mortgage rates, although it will take a few months. This summer might be the most opportune time for homebuyers.

The good news is that mortgage interest rates in Florida are still lower than the national average. Despite this lower interest rate, home prices, monthly ownership costs, and cost of living metrics in Florida are all comparable to those in other states. That doesn’t mean that buying a home in Florida is any cheaper than elsewhere, but it’s certainly cheaper than many other places. For sun lovers, buying a home in Florida is an excellent option.

Higher mortgage rates add thousands of extra dollars in payments to the homebuyer over the life of the loan. A $429,000 house the median price of a home, according to the St. Louis Federal Reserve Bank, will cost roughly an additional $5,750 per year at today’s rates.

If you’re wondering what’s going on with the interest rates in Florida, you may be wondering how you can get the best deal. As long as you’re paying the right price for the home, interest rates will likely remain relatively steady in the short term. You can also take advantage by refinancing your current loan. But if you’re looking to buy a house in Florida, you’ll probably need to get the right type of mortgage for your needs.

If you’re looking for the best mortgage rate in Florida, be sure to shop around. While you can lock in your interest rate for 30 years, consider a 30-year fixed-rate mortgage. It will provide you with fixed monthly payments for a much longer period of time.

While the interest rates in Florida are lower than the national average, home prices, monthly ownership costs, and other cost-of-living metrics are all at par with the national average. While buying a home in Florida may not be as cheap as buying a home in other states, it is a great option for sun worshippers. If you’re looking for a home in Florida, it’s definitely time to shop around.

In addition to the still lower interest rates, you can also take advantage of housing assistance programs in the Sunshine State. The Florida Housing Department offers various government-backed loan programs and a 0% interest rate loan for closing costs. This loan doesn’t have to be paid back until you sell the house. Aside from the down payment and closing cost assistance, you’ll also be gaining a stake in the state’s booming housing market.

Interest rates in Florida follow national trends. In May, 30-year fixed-rate loans averaged 4.25%. This rate fell to 4.25% in July, August, and September, indicating that the current market is experiencing a downward trend. However, many lenders still offer attractive rates, so it is worth researching your options. Here are the most recent mortgage rates in Florida and where you can find them. You may also be surprised to learn that these rates are still significantly lower than the national averages.

Fortunately, a recent Florida legislative change is helping judgment debtors. A recent change to state law has made interest rates in Florida more predictable. The statutory interest rate is no longer based on the interest rates in effect on the day the judgment was entered. The state legislature attempted to limit interest rates in Florida by setting a ceiling for judgment interest rates and providing a uniform number for some limited situations. These new laws may help judgment debtors in Florida, but only time will tell.

While credit is an important financial tool, it also requires discipline, responsibility, and the right approach to avoid damaging your credit and incurring fines. To get started with credit lines in Florida, contact your local bank.

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How To Extend Your COVID-19 Mortgage Forbearance

Posted on by Jenny Zamora

If you received a mortgage forbearance due to COVID-19, your payment suspension could be about to expire. If so, you must request an extension before the initial forbearance agreement expires. It’s important to know that a forbearance extension through CARES isn’t guaranteed. The CARES Act [aka] Coronavirus, Aid, Relief, and Economic Security (CARES) Act.
was signed into law on March 27th of 2020. If you aren’t sure, contact an experienced Orlando Realtor to assist you.

The act granted homeowners who were financially affected by the coronavirus a 6-month temporary suspension with no penalties. That means the first forbearance agreements began to expire at the end of October 2020.

The CARE Act also allowed for a 180 forbearance extension… as long as the homeowner requests before the initial agreement expires.

MAIN POINTS

  • The CARES Act provides up to 360 days of mortgage payment forbearance for homeowners with a federally backed loan.
  • The initial forbearance can be for up to 6 months with one 6 month extension.
  • You must request the initial forbearance from your bank as well as the extension. Neither one is automatic.
  • To apply for an initial forbearance or an extension, contact your lender.
  • Typically, forbearance freezes delinquency, which also stops foreclosure.
  • Most lenders offer COVID-19 related forbearance. For private lenders rules and conditions vary.

What Loans Qualify for Forbearance Under the CARES Act?

The CARES Act forbearance applies to mortgages backed by the federal government:

  • Loans insured by the Federal Housing Administration
  • Loans insured under section 255 of the National Housing Act.
  • Loans insured under section 184 or 184A of the Housing and Community Development Act of 1992.
  • Loans insured by the Department of Veterans Affairs.
  • Loans insured or made by the Department of Agriculture.
  • Loans insured by the Federal Home Loan Mortgage Corporations (Freddie Mac) or (Fannie Mae)

Apply For Your Extension Through Your Lender

If your loan forbearance is about to expire and you still can’t make the payments, contact your lender immediately. Check your mortgage statement for the contact information of your mortgage servicer.

Your lender should notify you before the expiration of your current forbearance. Don’t take a chance! If you’re not sure when your current forbearance expires then call your servicer to tell them you need an extension. If you’re unsure or need some help, feel free to contact us at https://orlandorealtyconsultants.com/ for immediate assistance.

Before you contact the lender, visit their website for any mortgage relief options available.

The CARES Act only requires that you request an extension and by law… you shall receive one.

Get It In Writing!

Although the law doesn’t require your forbearance request to be written, it’s a good idea to ask your lender for documentation detailing the terms of your agreement.

Things to keep in mind:

  • To get the extension, you don’t need to submit additional documentation. Only your claim to have a coronavirus-related financial hardship will be required.
  • During the time of your forbearance, additional fees, penalties, or interest will be waved.
  • You have the option to shorten the forbearance and continue to make payments at any time. Let your lender know of the change.

If you still haven’t asked for your mortgage forbearance, don’t worry… you may still be able to as long as the emergency declaration is still in effect. You can check with your local Orlando real estate agent to get informed.

What About Private Lender Forbearance Agreements?

If you have a mortgage through a private lender you’ll have to contact them and see what they’re offering. Because your lender will have their own set of terms and conditions, you’ll need to pay close attention to the fine print. For example, some private lenders may want you to pay a balloon payment for missed payments and interest.

During Your Forbearance

During the time of your Forbearance, while preparing for life after your forbearance expires, there are a few things you should be doing…

  • Maintain copies of ALL written documents pertaining to your forbearance agreement.
  • Check your monthly mortgage statements carefully to make sure there are no mistakes.
  • Pause auto-payments for your mortgage during your forbearance.
  • Carefully monitor your credit report for any errors and make sure your lender is reporting your status correctly
  • Prior to your forbearance expiring, be sure to have a plan in place with your lender for you to repay what you owe.

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Florida Foreclosure Process

Posted on by Jenny Zamora

Going through a Florida foreclosure is not a pleasant experience. On top of that, you can get overwhelmed with dealing with the foreclosure process. There are legal timelines you must be aware of like court hearings and possibly eviction if you can’t stop the foreclosure.

These are the questions most commonly asked by homeowners struggling with foreclosure:

  • What’s the foreclosure process in Florida?
  • How much time does the FL foreclosure process take?
  • How long before they evict someone after a foreclosure?
  • Can I stop a Foreclosure in Florida?
  • Is FL a foreclosure redemption state?

Generally, a Florida foreclosure can be avoided if you know what you’re doing. In this post we’ll be discussing the foreclosure process in Florida and what you can do to stop foreclosure.

Foreclosure is a legal process where the mortgage lender of the home takes action to repossess the home or sell it at a public auction to the highest bidder. Once the foreclosure has been complete, the new owner or the bank has the right to evict anyone living there. 

Florida Judicial Foreclosure

That’s a fancy way of saying the courts decide the case. A Florida foreclosure must go through the courts and abide by timelines issued by the judge assigned to the case.

FL Lien Theory

In Florida, you own your property with a mortgage note. The deed is in your name and so is the debt attached to the home.

When the bank gave you a mortgage, they also filed a lien on the home. This is a recorded official document outlining the amount owed and your promise to pay them back. On the lien, the buyer is named as the owner of the deed and title to the property.

In some other states, the bank owns the home until the mortgage is paid in full.

Florida Foreclosure Law

If you find yourself struggling with foreclosure then knowledge is your best friend. Understanding the foreclosure laws in Florida will help you to make good decisions moving forward.

If you already have a foreclosure sale date you need to hire a foreclosure attorney to try and delay the proceedings.

Do you need help selling a foreclosure property in Florida?

The Phases of Florida Foreclosure

  • Pre-foreclosure
  • Foreclosure lawsuit
  • After the foreclosure sale

The thought of losing your home can be terrifying but it’s far worse if you don’t know how long it takes. Knowing how much time you have will help you when making a plan of action to stop the foreclosure.

Pre-Foreclosure: The amount of time from missing a mortgage payment until the bank files a lawsuit. Pre-foreclosure begins as soon as you miss your first mortgage payment. A Florida pre-foreclosure lasts anywhere from 3 to 6 months depending on the lender and the situation. You can extend or even stall pre-foreclosure by working with your lender on alternatives to foreclosure.

Pre-foreclosure is the perfect time to explore your options. If your home has no equity you may be a good candidate for a short sale. If you want to keep your home, you can ask about a loan modification. Another option if the home has equity is selling to a cash buyer.

What Happens When You Start Missing Payments?

Most lenders in Florida allow a 15-day grace period after missing a mortgage payment. Once the grace period is over, you will probably incur a late fee. At 30 days past due the bank may report you to the credit bureaus. After 30 days your lender will start reaching out more frequently. This is a good opportunity, to be honest with your lender and start a dialogue about your situation.

By the time you are 45 days late on your payment, you will be referred to the loss mitigation dept where a rep will be assigned to you.

Foreclosure Lawsuit

A foreclosure lawsuit in Florida begins with the bank filing a Summons, Complaint, and finally a Lis Pendens. A “Summons” is a legal notice of the foreclosure lawsuit and it orders you to appear before a judge at a certain time and day. You will also have 20 days to file your response.

The Complaint

The complaint puts in motion the legal and factual basis for the lawsuit. A foreclosure complaint describes the terms of the mortgage or promissory note, property being foreclosed on, the amount due, etc. Complaints will also specify the relief sought after by the lender.

The Lis Pendens

A “Lis Pendens” is a written notice that states the foreclosure lawsuit has been filed against your home. The purpose of this is to inform the public there is a lawsuit against the property. Banks are required to file and record the Lis Pendens with the local county in FL.

A Lis Pendens can be several pages long and must include: names of the parties involved, filing date of the lawsuit, property description, and relief being sought.

The Service of Summons and Complaint

Once the Lis Pendens has been filed, the bank must “serve” you with the complaint, summons, and Lis Pendens regarding the foreclosure lawsuit. This is usually done by mail or by a process server.

Responding to the Summons

Once you’ve received the summons and complaint, you have 20 days to file a response. You must file a response before the 20 days run out. If not, the judge may decide to fast-track the foreclosure sale date.  For example: “I’m currently working with my lender to do a short sale on my home, please allow me some time to do this so I can avoid foreclosure”

Once you’ve filed your answer, the judge may just put it to the bottom of his stack or set a date for a “Preliminary Hearing”.

The Preliminary Hearing

If by this time you still haven’t found an alternative to foreclosure, the process continues with a preliminary hearing. In the preliminary hearing, you tell the court what your plan is to avoid the foreclosure and the judge decides what happens next. If the judge sees that you’re being proactive by pursuing an alternative to foreclosure with the bank, you may be granted more time.

If you haven’t taken any action to correct the situation then the judge will probably set a foreclosure sale date.

Summary Judgment Hearing

In this hearing, the lender will present their case to the judge to rule in their favor. This is based on only the non-disputed facts so if something is wrong, this is the time to speak up. You have the chance to offer up any proof of why the foreclosure shouldn’t move forward.

Your lender might include the financial damages including mortgage balance and interest as part of a summary judgment motion.

Foreclosure Sale Date

The county court may set a foreclosure sale date after the entry of the summary judgment. At that time, it will be sold to the highest bidder or required by the bank to list as an REO property. Whoever the new owner is at this point will have the option to evict anyone living in the home.

Alternatives to Florida Foreclosure

If you want to sell the property to avoid foreclosure and walk away then doing a short sale may be the way to go. A short sale is when the bank allows you to sell the home for what it’s worth and not what it owes. So if you owe more than the home is worth, requesting a short sale is a great option.

Applying for a Short Sale

If you decide on a short sale, you’ll need to submit a complete short sale package. The short sale package generally consists of your financial information like pay stubs and bank statements, proof of hardship, letter explaining your situation. The lender will usually request 30 days for a short sale review.

Hiring Short Sale Realtor

If you wish to pursue a short sale on your property then you need a short sale agent. This is a real estate agent that specializes in short sales. A short sale is a much more complex process than a normal listing which is why most agents shy away from short sales. An experienced short-sale agent can step into your shoes and deal with the lender on your behalf.

Hiring the wrong Realtor can mean the difference between selling your house and being foreclosed on.

A short sale agent can also help you with:

  • Advising you on most current loss mitigation programs available
  • Completing and submitting the short sale package properly
  • Provide you with updates on your short sale review
  • Keep you up-to-date on court hearings and timelines

Loan Modification

A loan modification is when your lender adjusts the terms of your mortgage by reducing the payment making it more affordable to you. If you want to stay in your home and can afford a slightly lower payment, then this may be a good 1st option.

Deed-in-Lieu of Foreclosure

The transferring of ownership back to the bank instead of a foreclosure.

Filing For Bankruptcy

Courts issue an “automatic stay” on creditors (consult with your local bankruptcy attorney)

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