Orlando Short Sale Expert | Orlando Short Sales

Fannie Mae wants to sell its housing inventory that it acquired through foreclosures. The properties are listed for sale on HomePath.com. To do so, it’s offering buyers incentives for those properties.

The new incentives recently began and are eligible for buyers who will live in the home. According to Fannie Mae, the offers must be accepted on or after January 28, 2010 and they have to close before May first for properties on its site: Homepath.com

So what’s the special offer? Buyers can receive up to 3.5 percent of the sales price for closing costs or the purchase of a new Whirlpool appliance or even a combination of the two.

There are more incentives. The government’s current buyer incentive programs include the extension of the First-Time Homebuyer Credit through April 20, 2010 (there’s a 60-day cushion to complete closing beyond that date). This program broadens the reach to include existing homeowners. Here is a quick look at eligibility and the incentives:

• $8,000 tax credit for first-time homebuyers
• $6,500 tax credit for existing homebuyers who have lived in their current residence for at least five years but want to relocate to a new primary residence
• Increased income limits for individuals and couples Tips for buying a home owned by Fannie Mae.

What you see is what you get. When you are buying a property owned by Fannie Mae, there are a few things that you should know. According to its website, Fannie Mae may make some repairs to a property but probably not much. “Fannie Mae sells each property “as is,” which means that the buyer accepts the property “as is.” Fannie Mae is not responsible for fixing any problems after settlement.”

Home inspections. Fannie Mae also recommends what I have written about for years—hire a qualified home inspector to give you an accurate report on the current condition of the home. For a relatively small amount of money, this can save you a lot and give you a greater understanding of what problems exist currently or might soon develop.

No contingencies. If your home is on the market and you’re shopping for a new one but need to close on your primary residence, Fannie Mae isn’t the way to go. “Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.”

Get prequalified. This is really important for a lot of reasons regardless of whether you’re buying a home owned by Fannie Mae. There are more restrictions these days when it comes to getting home loans. So, knowing that you’re prequalified to purchase a home at a specific price will make shopping for the home that fits your budget easier. But Fannie Mae cautions, “A loan prequalification doesn’t mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.”

Making an offer. Just as with most real estate transactions, making an offer on a home requires a lot of research. We, as your real estate agent can get you vital information and when you’re ready, the offer is submitted. “Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. We’d be happy to work with you and would be happy to submit an offer to the real estate agent who has listed the property.” Buying a home has become more affordable than ever and, with more incentives, it may be time to do some spring house hunting.

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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 http://OrlandoShortSaleExpert.com or 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 or Osceola County Florida and Orlando, Windermere, Winter Garden,  Kissimmee, Winter Park, Altamonte Springs, Maitland, Lake Mary, Oviedo 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.

jerrylarose Fannie Mae Fannie Mae, Orlando short sale expert & Specialist

Orlando short sales, expert & specialist

Fannie Mae wants to sell its housing inventory that it acquired through foreclosures. The properties are listed for sale on HomePath.com. To do so, it’s offering buyers incentives for those properties.

The new incentives recently began and are eligible for buyers who will live in the home. According to Fannie Mae, the offers must be accepted on or after January 28, 2010 and they have to close before May first for properties on its site: Homepath.com

So what’s the special offer? Buyers can receive up to 3.5 percent of the sales price for closing costs or the purchase of a new Whirlpool appliance or even a combination of the two.

There are more incentives. The government’s current buyer incentive programs include the extension of the First-Time Homebuyer Credit through April 20, 2010 (there’s a 60-day cushion to complete closing beyond that date). This program broadens the reach to include existing homeowners. Here is a quick look at eligibility and the incentives:

• $8,000 tax credit for first-time homebuyers
• $6,500 tax credit for existing homebuyers who have lived in their current residence for at least five years but want to relocate to a new primary residence
• Increased income limits for individuals and couples Tips for buying a home owned by Fannie Mae.

What you see is what you get. When you are buying a property owned by Fannie Mae, there are a few things that you should know. According to its website, Fannie Mae may make some repairs to a property but probably not much. “Fannie Mae sells each property “as is,” which means that the buyer accepts the property “as is.” Fannie Mae is not responsible for fixing any problems after settlement.”

Home inspections. Fannie Mae also recommends what I have written about for years—hire a qualified home inspector to give you an accurate report on the current condition of the home. For a relatively small amount of money, this can save you a lot and give you a greater understanding of what problems exist currently or might soon develop.

No contingencies. If your home is on the market and you’re shopping for a new one but need to close on your primary residence, Fannie Mae isn’t the way to go. “Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.”

Get prequalified. This is really important for a lot of reasons regardless of whether you’re buying a home owned by Fannie Mae. There are more restrictions these days when it comes to getting home loans. So, knowing that you’re prequalified to purchase a home at a specific price will make shopping for the home that fits your budget easier. But Fannie Mae cautions, “A loan prequalification doesn’t mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.”

Making an offer. Just as with most real estate transactions, making an offer on a home requires a lot of research. Your real estate agent can get you vital information and when you’re ready, the offer is submitted via your agent. “Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.” Buying a home has become more affordable than ever and, with more incentives, it may be time to do some spring house hunting.

***************************************************************************************

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 http://OrlandoShortSaleExpert.com or 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 or Osceola County Florida and Orlando, Windermere, Winter Garden,  Kissimmee, Winter Park, Altamonte Springs, Maitland, Lake Mary, Oviedo 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.

jerrylarose Fannie Mae Fannie Mae, Orlando short sale expert & Specialist

In an attempt to try to keep my Orlando area homeowners updated below you will find a list of Government Funded Programs in which you may qualify for. You may be asking yourself why are we offering this information if it could potentially lose us customers/business. Simply put, we are in the business of helping homeowners not taking advantage of them. Every time a homeowner reaches out to us for help, we give the customer all available options and let THEM decide what’s best for their current situation.

We will NEVER make this decision for you. If you are facing foreclosure and have exhausted all options, and just want to move on with your life, contact us IMMEDIATELY so we can work with the lender, on your behalf, to STOP the foreclosure process and help preserve your credit. Remember, it is imperative that you do everything possible to avoid a foreclosure.  A foreclosure will drastically reduce the chances of you obtaining financing in the near future. 

Information and Resources for individuals facing Foreclosure:

• HUD (Department of Housing & Urban Development) Foreclosure Resources
• HOPE for Homeowner(s) Program
• Making HOME Affordable Program

President Obama’s Housing Plan: (see if you may qualify)

• White House.Gov Website
• Financial Stability.Gov Website

Help for homeowner(s) with the following loans:

• Freddie Mac Loans Facing Foreclosure
• Fannie Mae Loans Facing Foreclosure
• VA Foreclosure Assistance

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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 http://OrlandoShortSaleExpert.com or 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 or Osceola County Florida and Orlando, Windermere, Winter Garden,  Kissimmee 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.

jerrylarose Foreclosures, Goevernment Funded Programs Orlando short sale expert & Specialist

If the latest numbers on credit card delinquency is any indicator, U.S. consumers are starting to get a handle on their credit card debt. In the 3rd quarter of this year, according to data from TransUnion, a credit reporting agency, the delinquency rate dropped to 1.1 percent.

The Associated press reports: “The decline is significant because of its timing. Delinquency rates usually rise in the third quarter from the prior period as people spend on summer vacations and back-to-school shopping,” said Clifton O’Neal, a TransUnion spokesman.” How you handle your debt affects your credit score and rating, which is what affects your ability to get a loan to purchase a home. The good thing about credit scores is that they are merely a snapshot of your credit at a given time. Missed payments, high credit vs. limits, too much credit, et. al., can all be corrected and cleaned up and your credit score return to a new high level.

Tim McLaughlin, senior vice president of Weichert Financial Services, answers the question – what dings on your credit affect your score and why it seems all the good loans (low rates, low/zero point, and even product availability), seem to favor those with good credit.

The Fair Isaac Corporation maintains the most popularly used score (referred to as the FICO score) and it ranges from 300 to 850. They also have a great resource on how to understand the score: What I like about McLaughlin’s information from his Market Monitor newsletter is that he provides the number of points your score will drop or increase with these items in place or cleaned up.

“There are five major ‘dings’ that impact your DCS (Decision Credit Score, or FICO score) the most, some obvious, some not so obvious: Maxed out credit cards: Doesn’t seem like a big deal in the grand scheme of things, right? Oh, it is: a maxed out credit card can reduce your DCS anywhere from 10 to 45 points, according to Fair Isaacs, a hefty price to pay for accumulating debt.

30 Day late mortgage payment: In addition to the late fees, this occurrence adversely impacts your DCS by 60 to 110 points … a whopping impact for being late on your mortgage.

Debt settlement: Also known as debt arbitration or debt negotiation, it is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. The downside, a 45 to 125 point drop in your DCS.

Foreclosure: Unfortunately, an occurrence we are seeing far too often as of late. In addition to the event, it will reduce your DCS 85 to 160 points.

Bankruptcy: The event that would have the single biggest negative impact on your DCS, reducing your score 130 to 240 points; an almost irreparable event.”

FICO has its own web site dealing with the scoring prices and it’s a good starting place for those trying to repair their credit rating.

Here are the three credit reporting agencies that use the FICO score:

Equifax (www.equifax.com)

TransUnion (www.TransUnion.com)

Experian (www.Experian.com)

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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 http://OrlandoShortSaleExpert.com or 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 or Osceola County Florida and Orlando, Windermere, Winter Garden,  Kissimmee 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

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One in 20 Americans say they plan to buy a home within the next year, and they’re most likely to be 34 years old or younger and living in the South or West, according to a survey released Wednesday.

Roughly a quarter of potential buyers said the No. 1 reason they would buy now is because prices appear to have bottomed out. That reason topped bargain-priced foreclosures, worries about rising interest rates and a wide selection of homes.

The survey,  reveals how Americans are responding to a fragile housing recovery after three years of staggering price declines. The percentage of buyers thinking of jumping into the market was down slightly from a March survey, but up about 1 point from a poll in June.

Home prices rebounded this summer at an annualized pace of almost 7 percent, according to the Standard & Poor’s/Case-Shiller home price index. But with high unemployment and foreclosures clouding the picture, economists debate whether prices will dip again.

Recent housing figures and homebuilder earnings support a stabilizing housing market, and concerns about the expiration of federal homebuyer tax credit are moot after Congress last week extended and expanded the credit.

Buyers who have owned their current Orlando area homes for at least five years are eligible for tax credits of up to $6,500, while first-time homebuyers – or anyone who hasn’t owned a home in the last three years – would still get up to $8,000. To qualify, buyers have to sign a purchase agreement by April 30, 2010, and close by June 30.

The survey was conducted before the credit extension.

Those surveyed widely favored federal policies that kept interest rates low and helped troubled homeowners avoid foreclosure over those that helped first-time homebuyers purchase a home. And, overall, 48 percent of those polled didn’t think the government was doing enough to stabilize the housing market, whereas 42 percent thought it was.

Forty-five percent of Americans worry that they or someone they know will face foreclosure in the next year. And almost 30 percent of those with a mortgage have contacted their lender in the past year to reduce their payments.

Almost a quarter of Americans who refinanced their mortgages have used the savings for living expenses or paying down debt, the survey found. Less than 9 percent are putting the savings toward investment or retirement.

The telephone poll, which included about two-thirds homeowners and one-third renters, was conducted in October by market research firm GfK. It had a margin of error of plus or minus 3 percentage points.

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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 http://OrlandoShortSaleExpert.com or 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 or Osceola County Florida and Orlando, Windermere, Winter Garden,  Kissimmee 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.

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Great news…

The U.S. House of Representatives has just voted (403-12) to extend and expand the homebuyer tax credit.  It’s now on its way to the President for his signature!

You can view (and print) a one-page PDF document that outlines the final provisions using this link: 

http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf

The modifications in the column labeled “December 1 – April 30, 2010” become effective when President Obama signs the bill (he is expected to sign by tomorrow).  All changes made to the current credit become effective on that date, as well.

Thank you to everyone for the endless calls and emails to our Congressional Delegation!  This is a great win!

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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 http://OrlandoShortSaleExpert.com or 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 or Osceola County Florida and Orlando, Windermere, Winter Garden,  Kissimmee 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.

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A common question I often get is: “Why would a bank or lender agree to a short sale?”

Let’s look at an example…

The seller of a home owes 200k on a property where the best offer was only 160K. The reason why could be almost anything…lack of curb appeal, cost of repairs, old house, today’s slow market?

What are the seller’s choices? The homeowner can sell for 160K and bring 40K to close the deal because the loan is upside down. Or the buyer and seller can work together to negotiate a short sale.

Obviously, if the seller doesn’t have 40K to bring to the table at closing, the deal’s not going to get done. Even if they do, does it really make sense to toss in 40K without seeing if the bank will take less?

Of course, it takes a great deal MORE than a phone call to get a bank to agree to taking a loss, no matter what the number.

Banks actually don’t want to take houses to foreclosure because they don’t want to have to worry about selling residential real estate; after all, they’re financial institutions, not real estate brokerages. Being heavily regulated by the federal government, banks can only have so many bad debts on their books. A foreclosed property represents a “non-performing asset” that ties up money, hurting profitability.

For this reason, doing a short sale on a property in foreclosure is the PREFERRED method used by banks to liquidate property.

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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 http://OrlandoShortSaleExpert.com or 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 or Osceola County Florida and Orlando, Windermere, Winter Garden,  Kissimmee 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

jerrylarose Short Sale FAQ's, Short Sale buyer Luxury homes, Orlando Real Estate, Orlando short sale expert & Specialist, Why would a bank accept a short sale?, Windermere & Winter Garden Fl. real estate

We all talk about what if’s. One big “what if” that many homeowners have today has to do with mortgages.

About one-third of South Florida mortgages are underwater, meaning the homeowners owe more than the home is worth at today’s depressed prices, according to First American CoreLogic. Some homeowners are certainly wondering why they’re sending in the payment on, say, a $300,000 mortgage, when the house today would sell for only $210,000.

Your options: Keep paying or try to change your loan’s terms.

But some people wonder, what if I just stop paying the mortgage? It may be a tempting idea, but it quickly leads to trouble.

Here’s what could happen if you don’t pay the mortgage.

Report to the credit bureau

If your payment does not arrive, your lender or servicer will report this late payment to the credit bureau by the first day of the next month. This can happen in as little as two weeks from due date and put a negative mark on your credit report. Your credit score drops.

The late payment report whacks your credit rating. Your credit score starts to drop, by up to 200 points, if this is your only late or missed payment.

In the next 30 days, you can expect your other creditors to take note of the late payment and to take action. They can raise your interest rates, shut off your credit card entirely, or lower your credit limit. You also could face other changes in your financial life, because auto insurance, student loans and other forms of credit are pegged to your credit score.

Tightening of credit lowers your score

Credit scores feed on themselves. If your credit card limits are lowered and you are carrying a balance, you are then using more of your available credit, something known as your utilization rate. When that goes up, it lowers your score some more.

The negative mark stays on your credit report for seven years. But the impact on your credit score lessens over time. The biggest impact is for the first two years.

Lender response

The phone will start ringing. Your
Cards are closed, rates rise
 lender will try to contact you, try to persuade you to go into a loan modification of some kind.

But after 90 days, you cannot just start making payments again. The lender may actually send your payment back, if you send it this late and have not been in contact.

What happens next

After four months of not paying your mortgage, you will likely be served with a foreclosure notice.

If you don’t respond within 20 days, then the lender, in the following 60 days, will ask a court to issue a judgment against you.

A county sale will be arranged 50 to 120 days after the judgment. Next, 120 days after the sale, the sheriff will be at the door. Ten days after that, you’ll be thrown out of your home.

(Tip: This schedule is a general one. Courts are facing a backlog of foreclosure cases and could take longer to go through these steps. If you hire a lawyer and fight the foreclosure, you may be able to delay the sale for many months or avoid it altogether.)

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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 http://OrlandoShortSaleExpert.com or 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 or Osceola County Florida and Orlando, Windermere, Winter Garden,  Kissimmee 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.

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Orlando Real Estate Sales

 

Members of the Orlando Regional REALTOR® Association in September sold 54.30 percent more homes than in September of last year, contributing to the area’s year-to-date sales increase of 50.69 percent. The most recent statistics show a continuing broad improvement in the area’s housing market, but ORRA President Les Simmonds, L.G. Simmonds Real Estate Corp., says economists expect a rise in foreclosures over the next 12 months and that it is important to maintain a healthy level of ready buyers to absorb the resulting increase in inventory.  The median price of all existing homes sold in September declined 2.34 percent to $125,000 from the $128,000 recorded in August. That same median price is a decrease of 31.32 percent compared to September 2008’s median of $181,995. 

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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 http://OrlandoShortSaleExpert.com or 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 or Osceola County Florida and Orlando, Windermere, Winter Garden,  Kissimmee 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.

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

 Orlando sales continue to increase

jerrylarose Orlando Market conditions, Orlando market Statistics, Short Sales Luxury homes, Orlando Real Estate, Orlando short sale expert & Specialist, Windermere & Winter Garden Fl. real estate

I get numerous questions weekly in regards to whether or not to Short Sell a property in the Orlando area. So, I want to post the latest question I just received and the response that I sent. Perhaps that will help when you are considering short selling your Orlando area property.

Question:

            Our hardship is that my husband and I wanted to sell the house and we can’t due to the drop in price. Our mortgage is for $242,000 and our house is currently value at about a third or a fourth of the mortgage we owe. I am still making payments on the house but we do not need the house anymore as we are not living in Florida. Due to the drop in price, we are unable to sell it, but since we do not want to ruin our credit, we are still making payment on the house. Is there a way I could short sale the house, without stop making payments on the house?

 We are current in our payments. We pay about $1700 a month, but my loan is 5/1 ARM Interest only. We have had the mortgage for 3 years (Since 7/2006), so until 7/2011, it will be interest only and I do not want to imagine what will happen, once the mortgage changes to a variable rate.

 Financially speaking, we can afford the monthly payments for now, but within the next year or so, we will be buying a house in NY and we wont be able to pay 2 houses.

Please advise.

 Answer:

One of the main considerations for a short sale is the fact that you can’t afford it. If your monthly debt’s outweigh your monthly income then you should qualify. If they aren’t then they’ll probably say no to it. You did not indicate the lender. You’ll probably want to call them and ask them their advise. Every lender that I’ve dealt with will not consider a short sale if you are current on your payments. They essentially will not accept a short sale if you’re current. again, call your lender and try to find out. My experience is no.

              In regards to not wanting to ruin your credit, well if the lender will not accept a short sale if you’re current, then you have no other option. I do not know exactly how it will affect your credit score, my previous clients are telling me between 100 – 200 point drop in score.

However, since a short sale will eventually be settled and sold this will be recorded on your credit score as settled debt for less than full  amount. I am hearing that your credit score will probably rebound to it’s current level in as short as 2 years. Also fannie mae says that you can purchase another home after approx. 2 years vs. a foreclosure it’s 5 years.

So, you have to ask yourself, do you want to take a hit for 2 years on your credit score and be done with this property or do you want to hang on to it for the next 10-15 years until such time that the market recovers to a point where you can breakeven.  That’s your ultimate question. You decide. Please let me know if I can answer any other questions.

Thanks

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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 http://OrlandoShortSaleExpert.com or 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 or Osceola County Florida and Orlando, Windermere, Winter Garden,  Kissimmee 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.

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