Orlando Short Sale Expert | Orlando Short Sales » BPO

Orlando Short Sale Expert, We can help you with all phases of a Orlando Real Estate Short Sale

jerrylarose — Wed, 20 May 2009 23:35:58 +0000

If you are in the Orlando area, and would like to find a real estate agent that has experience handling short sales, we can help.

Avoid Foreclosure, what are your options?

Avoid Foreclosure

If you fall behind in your mortgage payments you will receive a lot of mailers offering to help you get out of your unfortunate situation. Many of these people are looking to take advantage of someone in a difficult situation. Often, the reason someone falls behind on their mortgage is due to a situation they had little control of. Jerry LaRose is here to work with you and make sure that before you do anything, you know all of your options. We have helped many clients work through difficult issues with their home and help them find the solution that makes the most sense.

The # 1 thing you need to make sure you never do is sign anything you are not familiar with. DO NOT SIGN anything with ANYONE offering a service that seems too good to be true. Many people are forced into doing something they don’t understand and it often puts the homeowner in a very vulnerable position. Don’t Do It, Don’t Sign Anything!

Options to Consider When Facing Foreclosure

Option # 1 Sell Your Home

Depending on the market and area you live in, you may consider selling you home if you have enough equity to pay off your existing liens. However, you may not be able to do a regular sale if you owe more than what your home is worth. Using an experienced Realtor that works closely with banks will give you the time needed to sell your property at the highest price possible. We can help with this process and provide our many years of real estate experience.

Option # 2 A Short Sale – Not a Typical Sale

If your home is worth less than what you owe on your mortgage, a short sale may be the best option for you. Instead of just walking away from the property and severely damaging your credit, a short sale will allow Florida Real Estate Negotiators, LLC and Jerry LaRose to negotiate with your bank and get a short sale approved and closed. Not everyone will be approved to do a real estate short sale. Banks are not eager to take a loss on their investment but they also realize that if they take the home back through the foreclosure process they will likely take a loss equal or greater to this amount. A short sale allows the bank to take the loss and move on because essentially, the banks do not want to own real estate.

Florida Real Estate Negotiators, LLC and Jerry LaRose work directly with the bank to show them this may be the best option available. It is likely in this current real estate market, that the bank will approve the short sale and accept the loss in order to avoid taking a larger loss if the property were to come back to them as a foreclosure.

The bank will be very selective in what they pay for when you sell your home through a short sale. You need to be aware of the downside of doing a short sale and what the tax implications may be. Despite a short sale having some downsides, the positives of this can still out weigh the negatives of losing your home through a foreclosure.

The Mortgage Forgiveness Debt Relief Act of 2007, also known as Section 2 of H.R. 3648 was passed to eliminate the short sale tax consequence of having to pay the additional tax that would be due on the loss to the bank. Basically, any loss to the bank would be treated as ordinary income to you because what was a loss to the bank became a gain to the former home owner. Keep in mind that this will eliminate the federal tax but you still may owe money to the state. You will need to speak with your tax professional to know what the consequences will be for your current situation. For more detailed information about The Mortgage Forgiveness Debt Relief Act of 2007, Section 2 of H.R. 3648 please refer to our page on this bill. Please feel free to call us with any questions and what your options would be. We can help you with a short sale in Orlando Florida and the surrounding area.

Option # 3 Refinance Your Home

Refinancing your home and paying off the existing loan sounds easy and it may be an option that you have already pursued. In this current real estate market it has become almost impossible to refinance your home if you have less than 10-20% of equity. We may be able to show you some loan options that you have not been presented with but it’s probably likely you have already explored this option and will not have many if any refinancing options available. Jerry LaRose works with many different lenders and has access to many different types of loan programs but the refinance market has become very limited. Contact Us today, we would be happy to provide you a quick, accurate loan quote. If your ultimate goal is to stay in your home and you can’t refinance your home your best option may be a loan modification.

Option # 4 Negotiate a Forbearance Agreement

Typically, a forbearance agreement is accepted by a bank when someone can show they had a temporary hard ship and this is the reason they fell behind in their mortgage payments. It has become fairly common and something that Jerry LaRose can help you with. Two items a bank will look for when they consider a forbearance is the reason you fell behind in your mortgage payments, proof that your financial difficulties were a one time occurrence and not likely to happen again.

The forbearance takes the amount you owe and does 1 of 2 things: One option is to spread the amount you owe out over a period of 6 months. The other option is to add the amount owed on to the back end of your mortgage and have it paid at the end of your mortgage term. This may be an option that you were unaware of.

Option # 5 Deed in Lieu of Foreclosure

The advantages for the homeowner are to avoid foreclosure and not go through the difficult process that it entails. It will release all or most of the liability from the homeowner and allow the bank to turn around and sell the property much sooner without the bank having to spend additional time and money going through the foreclosure process. This would be a good option to consider if you feel that there will be no benefit from you selling your home or doing a short sale.

Option # 6 Do Nothing – Just Let it Go

You can always let your home go into foreclosure and do nothing. Sometimes the situation seems so overwhelming and this may be a good option. We don’t recommend that you do this, and would suggest that you talk to someone so you can determine if any of the options above would make more sense. Please feel free to ask any questions you have in our real estate forum. We have agents that will provide you with answers to all of your real estate questions. You can also contact us if you feel more comfortable. It’s important that you talk to someone that you can trust, and not someone that is looking to take advantage of someone in a difficult situation. There are many real estate scams and you don’t want to become a victim because you didn’t seek a second opinion. You may have some options that you are unaware of.

Please call us today if you have any additional questions.

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs, or visit OrlandoShortSaleExpert.com for information on Short sales and Pre Foreclosures. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

A Short Sale Can Be a Win-Win-Win: 10 Things You Need to Know to Make It Happen

jerrylarose — Mon, 26 Jan 2009 23:54:34 +0000

Orlando Short Sales

The ABCs of short sales

A short sale is what I like to call a “less bad” alternative to foreclosure. It works like this: the homeowner sells the home for a market price that is less than — short of — the amount the homeowner owes on the mortgage. The owner then pays the lender — who, of course, must agree to the deal — and the lender forgives the difference between the sale price and the mortgage amount (so the homeowner doesn’t have to come up with, say, $30,000 in cash).

Why would a lender agree to such a deal? Because the actual process of foreclosing on a home is very expensive for the lender – often costing upwards of $25,000 and a lot of time (time that the lender isn’t getting paid interest and principal on the loan). So it can often be in the lender’s best interest to simply cut its losses and sell short.

You can invest in short sales

A short sale can be a real win-win-win for you — the investor, the homeowner, and the lender. When you buy a house after the owner is already delinquent (meaning more than 90 days past due, and/or the lender has already started the foreclosure process) but before the lender actually forecloses on the home, it’s called a pre-foreclosure, and you’ll be part of a short sale. Here’s how to do it:

1. Know your market. If you don’t already live where you plan to invest, make sure you get to know your investment market well – what neighborhoods you should stay away from, where great hidden deals might be, where the hottest new development is, etc.

2. Develop an investment strategy. Pre-foreclosure investing is like any other type of real estate investing – develop a strategy for what you want to accomplish, the risks you are willing to take, and how long you plan to be investing and then stick to that strategy.

3. Develop your best practices. There are a lot of pre-foreclosure buying techniques out there. Decide which is best for you, given your investment strategy.

4. Be a bit skeptical. Just because a home is in pre-foreclosure doesn’t mean it’s automatically a good deal.

5. Ask for help. Pre-foreclosure investing takes a lot of work. Invest in the help of a trustworthy team. Leverage a real estate agent experienced in short sales to help you determine how to make an offer that’s fair for you and the seller (the bank), based in part of what other similar pre-foreclosure or foreclosed homes in the same neighborhood have recently sold for.

6. Make friends with mortgage lenders. Often, you’ll get the best deal if you can negotiate a good purchase price with the seller and get the lender to forgive a portion of the debt (the difference between the sales price and the loan balance, for example).

7. Move fast, but not too fast. You’ll need to act quickly once you find a pre-foreclosure property that you want to buy – before other investors beat you to it. At the same time, you don’t want to be too rushed or you may make a decision you’ll regret later.

8. Be committed. Pre-foreclosure investing is not for the weekend investor. It takes discipline and commitment. Even with the help of foreclosure listing services such as RealtyTrac and Yahoo! Real Estate Foreclosure Center, you’ll still have to do a lot of legwork to contact the owner, arrange the deal, fix up the house, and re-sell it before you see your investment return.

9. Know the law. There’s more legalese involved in a short sale than in a traditional home sale. Plus, foreclosure laws differ from state to state. Read up on your state’s foreclosure laws and ask your real estate agent to recommend a good real estate attorney with experience helping people purchase homes in pre-foreclosure. According to a November U.S. News article, a detail as tiny as the wrong font size on your documents could hold up the transaction or — worse — land you in legal trouble.

10. Remember price + 5% (at least). Pre-foreclosure homes tend to need repairs– sometimes minor, sometimes major. Always, always have the home inspected by a professional home inspector before you sign a sales agreement and add in the cost of the repairs the inspector recommends. If you only think about the purchase price when you’re calculating potential return on your investment, you’ll be sorely disappointed. Add at least 5% — or better yet, get a quote on repair costs from a professional contractor.

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

Orlando Short Sales, Expert specializing in Short Sales in Orange, Seminole, Lake & Osceola counties

OrlandoShortSaleExpert — Thu, 15 Jan 2009 00:47:36 +0000

Short Sale will in NO Way affect your Credit as much as a Foreclosure will!!

Don’t let the bank force you into foreclosure, a deficiency judgment, wage garnishments, asset liens, and bankruptcy.

Our Service is totally FREE to You — The Bank Will Pay Us!

We operate in Orange, Seminole, Lake, & Osceola Counties

Your credit will recover in as little as 2 years. This is far better than the 7 to 10 years that most homeowners in your situation will face.

Below is the most common elements of the short sale process.

List the home
Bank authorization forms signed
Send bank authorization to the bank(s)
Market the home
Follow up with bank(s)
Fill out financial form(s)
Gather proof of financial information
Send BPO, financial form and financial information to bank(s)
Find a buyer
Negotiate purchase price/terms with buyer
Prepare net sheet for bank(s)
Send purchase contract, listing agreement, net sheet to bank(s)
Follow up with bank and gather other bank requested information
Send bank requested information back to bank(s)
Finalize short sale with the bank(s)
Order payoff letter from bank(s)
Close the property

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

Orlando Mortgage Rates Fall to Lowest Levels in Years

OrlandoShortSaleExpert — Wed, 14 Jan 2009 01:26:50 +0000

Thirty-year mortgage rates fell last week to 4.92% and the low rates that have persisted for the last month attracted thousands of homeowners hoping to refinance to Zillow Mortgage Marketplace in December and early January.

Requests to refinance normally make up about one-third of all loan requests on Zillow Mortgage Marketplace, but in December they made up 67%. So far in January, they have made up 62%. The total number of requests also increased more than 150% from November to December.

The weekly average rates for 30-year fixed mortgages decreased to 4.92% last week, down from 5.10% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate website Zillow.com(R). Meanwhile, rates for 15-year fixed mortgages decreased to 4.58%, down from 4.79% and 5-1 adjustable rate mortgages decreased to 5.35% from 5.62%.

Mortgage Type Average Rate Average Rate % Change
Week ending 1/11/09 Week ending 1/4/09
30-year fixed 4.92% 5.10% -3.6%
15-year fixed 4.58% 4.79% -4.5%
5-1 ARM 5.35% 5.62% -4.8%

Rates for 30-year fixed mortgages fell far below 5.00% again on Monday evening, with the average rate on Zillow Mortgage Marketplace at 4.86%.

At a state level, the 30-year fixed mortgage rate in Maryland and Virginia had the biggest decreases, dropping from 5.26% to 4.97% and 5.21% to 4.93%, respectively. Rates on 30-year fixed mortgages were lowest in the states of Arizona (4.80%) and Texas (4.84%), while Maryland (4.97%) and Michigan (5.05%) had the highest rates.

State Average 30-yr. Fixed Average 30-yr. Fixed % Change
Rate Rate
Week ending 1/11/09 Week ending 1/4/09

Florida 4.85% 5.02% -3.4%

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

It’s Time to BUY in Orlando, Interest Rates cut again

OrlandoShortSaleExpert — Wed, 17 Dec 2008 17:03:27 +0000

Interest Rates down in Orlando

In case you had not heard, on Tuesday the Federal Reserve lowered its key
interest rate to 0.25% — the lowest level ever “MSN”. Several banks have
announced they are lowering their rate to 3.25% in light of the Fed’s
decision. Typically the prime rate is 3 percentage points higher than the
fed funds rate ”CNN MONEY”. This will trickle down into mortgage rates
soon resulting in historic low mortgage rates.

For you as a homeowner or an investor this means the time to buy is now.

In the words of Donald Trump, “Buy, Buy, Buy, now is the time to Buy” House prices are at there lowest and the fed just cut the rates. Pool your money, borrow from your family talk to your accountant, whatever it takes, get in the game now!”
Take a minute to give me a call, I am available discuss an approach that
makes sense for you. Together we can make 2009 the year you move from
working for your money to the year you start making your money work for you!

I look forward to hearing form you soon.

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

Buyer Advise for an Orlando or Windermere Fl. Short Sale

OrlandoShortSaleExpert — Wed, 03 Sep 2008 23:01:04 +0000

Buyers:

1. First understand that this process may take 90 days after you’ve submitted your offer. Don’t go into a short sale if you have a specific timeframe that you must have the home closed.

2. Understand that there are no guarantees in a Orlando short sale.

3. The lender may require more cash or a higher price up to the actual moment of closing.

4. The lender will most likely not allow the seller to pay any of your closing costs or give allowances for repairs. Typically, all deals are “AS-IS”.

5. There is likely no certainty of the final price or closing date until just before closing. When the final word comes down from the lender that they’ll accept the offer, typically they’ll want to close in a week or less. Have your inspectors and lender ready to move forward.

6. Be sure there’s an out for the buyer if the contract is not approved by a certain date. You don’t want to be stuck in limbo waiting for the lender. Make it contingent upon some reasonable date.

7. Don’t pay for inspections or any other expenses until you know the lender has accepted your offer.

Short Sales could be a great way to purchase property at a discount as long as you have patience.

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Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

P.S. If you are listing your home as a short sale in Orange County Florida and Orlando, Windermere, Winter Garden, or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales.

Orlando Short Sale Sellers considering a short sale

OrlandoShortSaleExpert — Sat, 30 Aug 2008 20:16:40 +0000

1. Your credit score may fall 100 points or more.

2. You may be asked to sign a note or take a new loan for the amount of the short fall.

3. The lender may get a judgement against you for the amount of the short fall.

4. You may have to pay income taxes on the amount of the shortfall – it could be taxed as income to you.

5. Understand that you will have to prove that you cannot pay. Similar to how you qualified for the loan, but now you have to prove that you cannot afford this loan. What’s changed/

6. Understand that big discrepancies or a big gap between your income/assets used to obtain the loan may indicate mortgage fraud, unless employment or expense circumstances have drastically changed.

7.You will need to get in writing from the lender that they will approve your contract for a lower payoff.

8. Some lenders won’t talk to you until you’re behind in payments on your mortgage.

9. Make sure you and your realtor disclose everything to the buyers on the front end.

10. Contract must contain ad addendum stating that the sale is contingent upon approval by the seller’s lender of a reduced loan payoff.

11. Property should be sold “AS-IS” to make it as simple as possible for the lender.

12. The home should be listed for sale close to market value at first and the price reduced over several weeks, showing the lender that you tried to sell higher and no one bit on the higher price.

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Orlando Fl. Short Sale What to Expect!

OrlandoShortSaleExpert — Sun, 17 Aug 2008 22:40:45 +0000

The bank is going to what to see your entire financial picture. This means you will need to provide copy of back taxes, paycheck stubs, bank statements, personal financial statement, etc. They will want to know what all your assets are.
The bank may want you to sign a promissory note for the difference, now it will most probably be at a hugely reduced amount and may include monthly payments.
When the bank gives the final approval of the short sale, they may request that the escrow close in as little as 30 days, sometimes sooner.
As the seller, you can not receive any proceeds from the sale. Period.
Your Real Estate agents, and Title company, may have to work for reduced fees.
The banks are incredibly overwhelmed with short sales and many times a decision can take upwards of 90 days; however, recently the approval process has been streamlined at many lenders.
Your property may be foreclosed on during the short sale process because the bank can not process the short sale in time; however, if you have a strong agent they should be able to get the foreclosure postponed give me a call to help postpone any foreclosure dates.
Do not expect to receive any information on a regular basis. There may be weeks that go by with no news from the lender. This is perfectly normal.
The bank will want to get a BPO (broker price opinion) and/or an appraisal of your house.
Be patient. This is the best policy. Try to avoid being stressed out over something that you can not control. If you have a well trained agent, you are in good hands.

If you have any questions, please don’t hesitate to contact me.

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What is a BPO? As it relates to a short sale in Orlando

OrlandoShortSaleExpert — Sun, 17 Aug 2008 22:00:23 +0000

BPO stands for Broker’s Price Opinion. The term Broker’s Price Opinion (BPO) is a method that a Real Estate Broker (or an agent acting on behalf of their employing broker) uses to estimate the value of a Real Estate property/house. The estimate of value is submitted in a BPO report (2-3 pages) that includes local Orlando Real Estate market information, neighborhood analysis, and (comps) properties that compare to the (subject) house that is being valued. This method of estimating a value has similarities to a Certified Market Analysis CMA and a residential Real Estate appraisal.

Performing a BPO, in the BPO industry, means that a Real Estate Professional (agent, broker, or appraiser) is requested by a financial institution to submit an estimate of value for a property in a BPO report for a fee. A financial institution may order a BPO for the following situations:

home equity lines of credit
home equity loans
requests to remove PMI – Private Mortgage Insurance
REO/Foreclosures/Short Sale
Any other reason that a bank/lender needs to make a financial decision on a property

BPO Process

A bank receives an application for a Home Equity Loan, Home Equity Line of Credit, request to remove PMI etc… The loan officer must determine the value of the home.
The bank contacts a BPO Company for a BPO (they may order multiple BPOs for comparison) on the property in question. A due date is established for the BPO (usually within a week).
The BPO Company maintains a list of Real Estate Professionals that perform BPOs. The BPO Company contacts a Real Estate Professional on their list to perform the BPO. The Real Estate Professional’s due date is a few days before the final BPO is due.
The Real Estate Professional contacts the homeowner to schedule an inspection of the home or property (if an interior inspection is required).
The Real Estate Professional physically inspects the home/property.
The Real Estate Professional gathers Real Estate market information and compiles the information to determine a valuation.
The Real Estate Professional submits the finished BPO to the BPO Company.
The BPO Company conducts a quality review of the BPO.
The BPO Company submits the final BPO to the Bank/Lender.
The BPO Company pays the Real Estate Professional.
The Bank/Lender pays the BPO Company.
The Bank/Lender makes a financial decision based on the opinion of value contained in the BPO.

Orlando Real Estate, Orlando Homes For Sale, Windermere Fl real estate, Winter Garden Fl. Real estate,

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