Orlando Real Estate Armando's Blog

The Long Story on Short Sales

Wed, 24 Jun 2009 15:06:44 -0500

The Long Story on Short Sales

Everyone likes a story with a happy ending: Boy meets girl, they fall in love, get married and live happily ever after. The story is a little longer if boy and girl try to buy a short sale house and then live happily ever after. That story is not as simple. Patience is the main ingredient in any story involving a short sale. First of all, a short sale is when the seller owes more than house can be sold for and the lender agrees to accept a loss on the house. President Obama recently announced further measures to help beleaguered homeowners, including encouraging lenders to accept short sales.

The benefit of a short sale is that homeowners avoid foreclosure and the completely ruined credit that goes with it. However, the "short" in short sale refers to the loss to the bank, not the quickness of the sale. Because buyers are dealing with the seller's lender as well as the seller, paperwork does not move quickly. "The problem is it's never clear who in a bank has the authority to approve a short sale," said Howard Glaser, a mortgage industry consultant in Washington and a former HUD official in a recent Associated Press article. Federal standards "would speed the process for buyers and sellers by making it more efficient."

The number of foreclosures continues to accelerate across the country. The AP reported that number of foreclosures was up 32 percent in April compared with the same month last year. Of course, the Austin foreclosure rate is not that high, but Central Texas is facing its fair share of the housing crisis. The number of short sales, pre-foreclosure homes, on the market is likely to increase in the months ahead as the economy continues to be shaky. A short sale may be a good deal for a buyer, as in most cases the owner has stopped making payments and the home is vacant.

It is in the lender's best interest to get the defaulted loan off the books and accept an offer, but that doesn't mean they will jump at any offer. It can't be stressed enough the importance of having a qualified real estate agent, and that is certainly the case when dealing with short sales. If a buyer decides to make an offer on a short sale home, the real estate agent needs to do a little research. First, a title search will indicate how much is owed to the lender, who the lender is and whether there is more than one mortgage on the house. A buyer should know that complications can arise if more than one lender is involved.

Another thing the real estate agent needs to determine for the buyer is comparable recent sales in the same neighborhood. These, more than anything else, will help determine the best offer price for the house. For example, if a home is listed for $200,000, but the last sale in the neighborhood was for a home with the same square footage for $175,000, then the buyer can be confident in making a lower offer. The agent should include comparable sales in the offer package sent to the lender. Although a short sale home is still in the seller/owner's name, everything from the offer to any repair addendum to the final close has to be approved by the lender.

It is crucial that the seller's agent has good lines of communication with a lender representative, usually someone in the loss mitigation department, to move the process along. There can be a happy ending with short sales for both the buyer, who can get a good deal, and the seller, who can be saved from foreclosure. The story on short sales, however, can be a long one.

New Year's Wishes you never thought of!!

Thu, 03 Jan 2008 12:44:14 -0600

May your hair, your teeth, your face-lift, your abs, and your stocks not fall.

May your blood pressure, your triglycerides, your cholesterol, your white blood count and your mortgage interest rate not rise.

May you get a clean bill of health from your dentist, your cardiologist, your gastroenterologist, your urologist, your proctologist, your podiatrist, your psychiatrist, and your plumber.

May you find a way to travel from anywhere to anywhere during rush hour in less than an hour, and when you get there may you find a parking space.

May you find yourself together with beloved family and cherished friends, ushering in the New Year ahead.

May what you see in the mirror delight you, and what others see in you delight them.

May the telemarketers wait to make their sales calls until you finish dinner, may your checkbook and your budget balance, and may they include generous amounts for charity.

May you remember to say "I love you" at least once a day to your partner, your child, and your parents. You can say it to your secretary, your nurse, your butcher, your photographer, your masseuse, your seamstress, your hairdresser or your gym instructor, but not with a twinkle in your eye.

May we live as intended, in a world at peace with the awareness of the beauty in every sunset, every flower's unfolding petals, every baby's smile and every wonderful, astonishing, miraculous part of ourselves.

Bless you with every happiness, great health, peace and much love during this new year and all those that follow.

GBU ALL!

ICE In Case of Emergency**

Fri, 28 Dec 2007 12:08:52 -0600

We all carry our mobile phones with names & numbers stored in its memory but nobody, other than ourselves, knows which of these numbers belong to our closest family or friends.

If we were to be involved in an accident or were taken ill, the people attending us would have our mobile phone but wouldn't know who to call. Yes, there are hundreds of numbers stored but which one is the contact person in case of an emergency? Hence this "ICE" (In Case of Emergency) Campaign

The concept of "ICE" is catching on quickly. It is a method of contact during emergency situations. As cell phones are carried by the majority of the population, all you need to do is store the number of a contact person or persons who should be contacted during emergency under the name "ICE" ( In Case Of Emergency).

The idea was thought up by a paramedic who found that when he went to the scenes of accidents, there were always mobile phones with patients, but they didn't know which number to call. He therefore thought that it would be a good idea if there was a nationally recognized name for this purpose.

In an emergency situation, Emergency Service personnel and hospital Staff would be able to quickly contact the right person by simply dialing the number you have stored as "ICE."

For more than one contact name simply enter ICE1, ICE2 and ICE3 etc. A great idea that will make a difference!
Let's spread the concept of ICE by storing an ICE number in our Mobile phones today!

Please pass this on it really could save your life or a loved ones.

Although I've got MOM, HOME listed on my cell, it can't hurt to have an ICE #.

ICE will speak for you when you are not able to.

Sometimes it PAYS to be OLD!

Thu, 27 Dec 2007 12:24:38 -0600

No one believes seniors . . . everyone thinks they're senile.

An Elderly couple was celebrating their sixtieth anniversary. The couple had married as childhood sweethearts and had moved back to their old neighborhood after they retired.

Holding hands they walked back to their old school. It was not locked, so they entered, and found the old desk they'd shared, where Andy had carved "I love you, Sally."

On their way back home, a bag of money fell out of an armored car, practically landing at their feet Sally quickly picked it up, but not sure what to do with it, they took it home. There, she counted the money--fifty-thousand dollars.

Andy said, "We've got to give it back." Sally said, "Finders keepers." She put the money back in the bag and hid it in their attic.

The next day, two FBI men were canvassing the neighborhood looking for the money, and knocked on the door. "Pardon me, but did either of you find a bag that fell out of an armored car yesterday?" Sally said, "No." Andy said, "She's lying. She hid it up in the attic." Sally said, "Don't believe him, he's getting senile."

The agents turn to Andy and began to question him. One says: "Tell us the story from the beginning" Andy said, "Well, when Sally and I were walking home from school yesterday . . "

The first FBI guy turns to his partner and says, "We're outta here."

Oldest WW I Vet Dies!

Thu, 27 Dec 2007 09:58:04 -0600

We can't forget the men and women who sacrificed so that the rest of us may enjoy the rights and freedoms we cherish so dearly!

The oldest known living U.S. veteran of World War I, J. Russell Coffey a retired teacher, one of only three U.S. veterans still alive from the "war to end all wars," died at the ripe old age of 109.

More than 4.7 million Americans joined the military from 1917-1918. The two remaining U.S. veterans are Frank Buckles, 106, of Charles Town, W.Va.; and Harry Richard Landis, 108, of Sun City Center, Fla., according to the Veterans Affairs Department.

Can you imagine listening to his war stories or just stories about the "good ole days".

May he rest in peace!

Prices keep Dropping!

Wed, 26 Dec 2007 14:36:22 -0600

As reported today home prices dropped 6.7 % in October for the 10th time in as many months. That's the largest drop since the beginning of '91.

They said that Miami led the list lower with a 12% drop. I don't know what the figures are for Orlando, Fl.

It doesn't look too rosey out there, no matter how some may want to paint the picture. It will probably be another year until we see any significant change in this market.

But as prices drop I think more and more buyers may come out of hiding and start to rekindle buying/selling activity. There are already many investors probing foreclosures.

It's got to get better sooner or later. just hold on and we'll make it through!

Netbank Fails

Sat, 22 Dec 2007 17:24:33 -0600

The recent collapse of online bank NetBank has left a lot of people nervous. It is the biggest bank failure since the early 1990s. While the cost to taxpayers is unknownr, the FDIC should cover everything. When this type of thing happens the federal regulators walk in, they try to package the bank's assets and get them in somebody else's hands. The transition from NetBank to ING has generally been smooth for customers. Those who were most at risk of losing money were people with more than $100,000 in their accounts. It's always better to be safe and only invest less than $100,000 in any bank. That way your money is protected.

Lowered Rates may Rise

Tue, 18 Dec 2007 15:29:38 -0600

Last week the Federal Reserve lowered interest rates for the third straight meeting of the FOMC. What does this mean? Well, if you're looking to capture the best home loan rates, you need to act now. For those with an application already in process, you should probably lock your rate as soon as possible. And, for anyone who has yet to begin a loan application, what are you waiting for?

Despite this latest cut from the Fed, rates for many borrowers could actually increase soon. Fannie Mae and Freddie Mac have recently announced 2008 Loan Level Price Adjustments (LLPAs) that are already starting to show up on lenders' rate sheets. LLPAs are automatic "penalties" based on credit scores, which tack on costs in the form of points or higher rates for most anyone with a FICO less than 720.

Since September 18th, the Federal Funds Rate has gone down 100 basis points. If you have a loan that is tied to the Prime Rate, this means your rates have been lowered a full point. But, for those seeking to obtain new financing, you must act now to take advantage.

Following each of the last two interest rate cuts by the Fed, home loan rates jumped higher a couple of weeks later. Remember, lower short-term rates are inflationary by nature, and cause consumers to spend more money. Because of this, long-term rates tend to increase as bond holders hate inflation and command higher rates as a result in order to protect their investments.

Because of these pressures and the upcoming Loan Level Price Adjustments, interest rates are most likely going to rise.

A BILLION

Tue, 11 Dec 2007 12:19:14 -0600

The next time you hear a politician use the word 'billion' in a casual manner, think about whether you want the 'politicians' spending YOUR tax money.
A billion is a difficult number to comprehend, but one advertising agency did a good job of putting that figure into some perspective in one of its releases.

A. A billion seconds ago it was 1959.

B. A billion minutes ago Jesus was alive.

C. A billion hours ago our ancestors were living in the Stone Age.

D. A billion days ago no-one walked on the earth on two feet.

E. A billion dollars ago was only 8 hours and 20 minutes, at the rate our government is spending it.

While this thought is still fresh in our brain, let's take a look at New Orleans It's amazing what you can learn with some simple division . .

Louisiana Senator, Mary Landrieu (D), has asked the Congress for $250 BILLION to rebuild New Orleans . Interesting number, what does it mean?

A. Well, if you are one of 484,674 residents of New Orleans (every man, woman, child), you could each get $516,528.

B. Or, if you have one of the 188,251 homes in New Orleans , your home gets $1,329,787.

C. Or, if you are a family of four, your family gets $2,066,012.

Washington, D.C .. HELLO!!! ... Are all your calculators broken?

Fed Reserve's new rules!

Mon, 10 Dec 2007 13:48:35 -0600

The Federal reserve is jumping into the sub-prime fray with programs that might rival what Pres Bush and congress are working on.

The Federal Reserve is expected to ban pre-payment penalties, low -doc loans, Alt-A loans and loans that do not collect for the pre-payment of property taxes and insurance premiums as they apply to the sub-prime sector of the market. The new rules would apply to sub-prime loans offered by any lender.

With this action the Fed is exercising the most control it has since Chairman Bernanke started his new post.

How does a Warranty Deed to Trustee help in Pre-Foreclosure??

Sat, 08 Dec 2007 18:46:40 -0600

As many know because of the great number of homewoners defaulting on their mortage payments, many homes are going into pre-foreclosure.

Other than pay the money owed, many of these homeowners don't know what to do about their unfortunate situation.

Some list their home with a Realtor at a lower than market price in the hope that the lender will accept a Short Sale. I think this is probably the wisest thing to do.

Now there are others that are approached by people that claim to save their home from foreclosure. The homeowner is advised to transfer the property to a trust via a Warranty Deed to Trustee giving full control of the property to this trustee.

A client of mine is in pre-foreclosure and, without seeking anyone's advice including mine, entered into such an agreement.

Does anybody know the mechanics of this so called "saving your home" technique?

I searched AR and the web but couldn't find much.

I would greatly appreciate your input!

Thanks in advance!

Short Sales Training

Sat, 08 Dec 2007 17:52:43 -0600

As we know Short sales have become a big part of our business. This past Thursday I attended a 6 hour workshop on Short Sales. The cost was minimal, $49.00, but the information was substantial.

A thorough explanation of Short Sales and how to build the perfect package
Blank Short Sale package forms, including an interactive Net HUD and Seller's Financial worksheet in Excel format
3 Actual Hardship letters with revisions and comments to explain the true nature of the situation
Downloadable and Printable Value Short Sales Realtor Documents that we use to create our Short Sale package
Actual marketing examples & materials that you can use to get Short Sales (includes sample "Drip-Marketing" letters, postcards, door hanger & tri-fold brochure designed specifically for Realtors)
Legal Forms commonly used during a Short Sale

For more info about the workshops you might want to visit their website at www.ValueShortSales.com

You may take this as a testimonial from me. I don't work for them nor will I get anything if you use them.

I just think that it was well worth the $49.

VA increases loans to above $417,000

Tue, 04 Dec 2007 09:34:58 -0600

The Government National Mortgage Association (Ginnie Mae) has changed its rules to allow larger VA loans if the member is willing to make a down payment of at least 25 percent of the portion of the home's price that exceeds $417,000. Eligible veterans and active-duty military personnel have been able to buy a home for as much as $417,000 without a down payment or private mortgage insurance for some time now.

For more info click here

Fire trucks are Gathering!

Sat, 01 Dec 2007 23:54:39 -0600

Well we had a credit crisis in August, but the Fed came to the rescue. The subprime market is nonexistent. And the housing market is in free-fall. But the economy is weathering the various crises quite well. Wasn't the GDP at an very high 4.9% last quarter, when we were in the middle of the credit crisis? And Abu Dhabi injects $7.5 billion in capital into Citigroup, setting the market's mind at ease. All iseems well. So lets party!

However, I think when we look out the window from the lofty market heights, we see a few fire trucks starting to gather, and those sirens are telling us that more are on the way. There is smoke coming from the building. Attention must be paid.

An increasing number of well-respected analysts are suggesting that a recession is either already starting or will soon be here, and the list is growing every week. The Economist predicts a recession is highly likely. Jan Hatzius of Goldman Sachs forecasts a recession and that the growing credit crunch will reduce lending by about $2 trillion (that's with a t, thank you).

The normally bullish Richard Berner of JP Morgan writes: "Risks to the consumer are rising, and the risk of outright US recession is higher now than at any time in the past six years: Housing is in sharp decline, consumers are vulnerable, and companies may cut capital spending and liquidate inventories. A strong contribution from global growth is still a huge positive, but spillovers from US weakness to trading partners may hobble that lone source of strength. These pressures could last longer or be more intense than I expect. And even if the economy skirts overall recession, corporate earnings will likely decline."

So the fire trucks gather, the Fed, ready to lower rates and the Banks pumping in money to stave off impending doom!

Mortgage Rates drop a Lot this Week!

Sat, 01 Dec 2007 22:16:12 -0600

With major banks and big Wall street firms feeling the pain associated with the country's mortgage fiasco mortgage rates fell so much this week that 30-year mortgages rates dropped to the lowest level in more than two years. 30-year fixed-rate mortgages averaged 6.10 percent. and was the lowest rate since the week of Oct. 13. 2005, when rates were at 6.03 percent.

And that may not be the end of it, as the Fed's Bernanke is said to be ready to lower rates further on december 11.

Let's hope this helps sales!

Homeowners Insurance may go higher in Florida

Sat, 01 Dec 2007 22:05:57 -0600

The chief economist for the Insurance Information Institute, said Florida remains the most catastrophe-prone state because of its exposure to hurricanes.

Well you know what that means for homeowners. With current insurance rates in Florida well above the national average, that's not all the bad news, they're likely to go higher.

Supposedly the State run insurance company needs to replenish their coffers after after experiencing a rate freeze.

Oh well no matter what we know who'll end up paying through the nose!

Senator Hagel, What's Up??

Sat, 01 Dec 2007 20:01:28 -0600

Yea, what's up with him? He's been nagging the administration for a while now.

The Vietnam vet has compared Iraq to Vietnam. The longer U.S. forces remain in Iraq, he said, the more it begins to resemble the Vietnam war.

About Last years Israeli bombing of Lebanon-- he questioned how that would give us the trust and credibility to lead a lasting and sustained peace effort in the Middle East?"

He's been critical of the administration for their current posturing against Iran.

Recently he's said they have failed the country. Hagel said he would give the Bush-Cheney administration "the lowest grade of any I've known."

Hmmm, I wonder why he's retiring?

PRICE REDUCED FOR THE LAST TIME TO $214,900

Fri, 30 Nov 2007 13:20:35 -0600

***PRICE REDUCED TO*** $214,900

PRICED $59,000 BELOW AN APPRAISAL DONE IN NOVEMBER, 2007***LAST CHANCE TO BUY THIS HOUSE BEFORE IT IS PULLED FROM THE MARKET AND RENTED OUT!!

OWNER TURNED DOWN A $251K OFFER 6 MONTHS AGO, BECAUSE THE HOUSE IS THAT NICE.

OWNER ALREADY BOUGHT ANOTHER HOME AND IS READY TO LET THIS ONE GO FOR $214,900!

BRING ANY CLOSE OFFER AND HE MIGHT TAKE IT.

For more info and pictures click here or call Quest Realty Services @ 407-427-7354

NEW PRICE $649,900 for 4,530 sq ft home.

Fri, 30 Nov 2007 13:09:01 -0600

***PRICE REDUCED***OWNER SAYS BRING ALL OFFERS $$6,500 rebate when you buy this home thru QUEST REALTY SERVICES**Elegant custom home on 1/2 acre, near Heathrow, in gated Estates at Wekiva Park!! With over 4500 Sq Ft, this spectacular home has a lot to offer! As you journey up the drive and walk ways to enter through the large Double front doors, you are welcomedhome into the spacious entry way which opens to the expansive dining and living rooms, overseeing the well planned covered lanai. To the left you venture into the warm and delightful kitchen, highlighted with a wrap around bar, center island & custom wood cabinetry. A separate roomy breakfast nook oversees and leads to the covered lanai. Adjacent to the kitchen is a large family room, equipped with a fireplace, built-in entertainment center and accented by custom designed ceiling details. The oversized master suite is situated to the back right of the home and also has access to the covered lanai overlooking the huge well maintained fenced back yard. The master suite features a sitting area, a 10x13 master closet and a dressing room leading to the enormous master bathroom boasting a large walk-in double shower and separate jetted whirlpool bath tub. Adjacent to the master bathroom you'll find an oversized study/den/5th bedroom (nursery).To the right side of this ongoing home, separated by a set of double French doors (one of 3 sets in the home), is a private wing including 3 bedrooms, 2 bathrooms and a separate sitting/tv area. This home is pool planned with a full separate bathroom. Don't miss your opportunity to own this exceptionally valued home!!

For more info and pics click here or contact Quest Realty Services @ 407-427-7354

Own a Home, Enhance your life

Tue, 27 Nov 2007 10:07:17 -0600

According to a "Home Ownership Survey" by Neighborhood Housing Services, home ownership enhances the quality of life and financial positions of most homeowners, in most cases.

The reasons for this are:

* Increases in home value, if not in the short term, most likely in the long term.
* Interaction with neighbors, sometimes it may not be pleasant
* Better conditions and amenities in the new neighborhood than in the previous one, hopefully

I hope your experience is similar and that you enjoy your home!

Protect yourself from Carbon Monoxide

Sat, 24 Nov 2007 20:12:12 -0600

Low-cost carbon monoxide detectors can save lives, and many states are beginning to require them.
Many are surprised to learn that carbon monoxide is the leading cause of accidental poisoning in the U.S. It takes some 2,000 lives a year and makes many more sick.

Though carbon-monoxide detectors are widely available, fewer than a third of homes have them. That could change as more states pass laws requiring them in homes.

Some cities are taking action on their own. Chicago and St. Louis, for example, have laws requiring them. The legislation has lifesaving effects. Cities that require carbon-monoxide detectors have much lower death rates from exposure to the gas than those that don't.

A study published in the American Journal of Emergency Medicine. In Chicago 0.4 percent of those exposed to the gas died. In Los Angeles, 15 percent of those exposed to carbon monoxide died.

There are many possible sources such as a furnace, kitchen stove, water heater, fireplace, generator, charcoal broiler, and anything that burns fossil fuels. Protect yourself and your household. Install a carbon-monoxide detector.

Priced at $217,900-$56,000 under recent Appraisal

Sat, 24 Nov 2007 19:20:26 -0600

***PRICE REDUCED TO $217,900***Beautiful Two Story California Contemporary Home with dramatic open balcony overlooking living room with soaring 18 ft ceiling and natural stone fireplace. Located minutes from downtown Orlando. Priced well below market and motivated owner. Home is located at the end of a Cul-de-sac at the top of a hill. It has a 167 ft wide backyard for children and pets. The home's exterior was repainted not long ago and the interior is clean and ready to move in.

Owner is refinancing and appraisal came in at $274,000

For more info Click here or contact Armando Rodriguez, Quest-Realty-Services 407-427-7354

Two bedroom two bath orlando Condo $172,000

Sat, 24 Nov 2007 19:11:46 -0600

Two bedroom two bath condo in Ventura which is a gated golf comunity with Tennis, basketball courts, Clubhouse with restaurant, bar, Olympic size pool. Minutes to the Orlando airport, minutes to downtown Orlando, only 30 minutes to the theme park attractions. $172,000 bring offers!

For more info contact Armando Rodriguez, Quest Realty Services @ 407-427-7354

Some companies looking to capitalize on sub-prime mess

Sat, 24 Nov 2007 18:33:34 -0600

Well say it ain't so! Some Credit card companies are now targeting those in danger of losing their homes because of sub-prime mortgages. Imagine being a homeowner who is in trouble and getting offers for new credit cards in the mail. While you might think you're getting a lifeline, you're actually being thrown a cinder block. The Boston Globe reports that the credit card industry has doubled its solicitations to households in sub-prime status. The Consumer Federation of America is angry at the banks for targeting these people. So if you are in trouble and get these solicitations, look at them as a burden not a gift. The banks are trying to score money on your hard times. Compounding debt on top of more debt is not a path to wealth it's more like rearranging the deck chairs on the Titanic.

Some Lenders won't "work-out" with you.

Thu, 22 Nov 2007 16:25:01 -0600

Many homeowners looking for help with their mortgage malaise are being told that the lender can't do a loan wor-out for them because they're not behind in their payments.

So they face the damned if you do and damned if you don't dilemma. If they fall behind in their payments, their credit score will certainly take a big hit. If they don't make the monthly payments and the lender can't make a suitable work-out, with a bad credit score they'll have a very hard time even finding an apartment to move to if they're foreclosed on. As the number of renters increase, landlords can choose those with the best scores.

With an estimated two million adjustable rate mortgages set to adjust in 2008. It can only get worse.

I know family that was paying close to $2,800 per month in housing expense. The husband had a big reduction in income and they were just barely making the payments. But because they were not behind in their payments, the lender would not adjust the mortgage terms. Since they owed more than market value, they decided to move to a larger rental home for $1,500 per month before they missed a payment and had their credit destroyed. They did not want to take a chance in not qualifying for a rental.

Let's hope lenders come to their senses before any more lives are destroyed.