Orlando Short Sale Expert | Orlando Short Sales, Orlando Short Sale Realtor

Foreclosures Fall

The number of U.S. households on the verge of losing their homes dipped in May from April, and the annual increase was the smallest in three years.

But as layoffs, rather than risky mortgages, become the main reason that borrowers default on their home loans, foreclosures likely will remain elevated this year and into 2010. Many economists expect unemployment, now at 9.4 percent nationwide, to rise as high as 10 percent, and some project it will exceed the post-World War II record of 10.8 percent.

Foreclosure filings fell 6 percent in May from April, according to RealtyTrac Inc. More than 321,000 households received at least one foreclosure-related notice last month – 18 percent more than a year earlier – but the smallest annual gain since June 2006.

Despite the drop from April, it was the third-highest monthly rate since Irvine, Calif.-based RealtyTrac began its report in January 2005, and the third straight month with more than 300,000 households receiving a foreclosure filing.

One in every 398 U.S. homes received a foreclosure filing last month, according to the foreclosure listing firm’s report.

The mortgage industry has resumed cracking down on delinquent borrowers after foreclosures were temporarily halted by mortgage finance companies Fannie Mae and Freddie Mac and other lenders.

“It would not be a huge surprise to see the numbers level off a little bit at this point,” said Rick Sharga, RealtyTrac’s senior vice president for marketing.

Banks repossessed about 65,000 homes in May, up from 64,000 in April, due to big increases in several states including Michigan, Arizona and Nevada.

The Obama administration announced a plan in March to provide $50 billion from the financial industry rescue fund as an incentive for the mortgage industry to modify loans at lower monthly payments.

But the effectiveness of the relief plan remains unclear, with questions lingering about how much the lending industry will cooperate. Many housing counselors say it hasn’t made much of a difference so far.

After banks take over foreclosed homes, they usually put them up for sale at deep discounts, pulling down prices for other sellers. Nationwide, sales of foreclosures and other distressed properties made up about 45 percent of the market in April, according to the National Association of Realtors.

On a state-by-state basis, Nevada had the nation’s highest foreclosure rate in May with one every 64 households receiving a filing. California took the No. 2 slot previously occupied by Florida. California’s rate was one in every 144 households.

In Florida, one in every 148 households received a foreclosure filing. Rounding out the top 10 were Arizona, Utah, Michigan, Georgia, Colorado, Idaho and Ohio.

Among large cities, Las Vegas led the way with one in every 54 households receiving a filing. Four California metropolitan areas – Stockton, Modesto, Riverside-San Bernardino and Merced – were next, followed by Cape Coral-Fort Myers, Fla.; Bakersfield, Calif.; Orlando, Fla.; Vallejo-Fairfield, Calif.; and Miami.

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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 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.

Avoid Foreclosure

The cost to file for a foreclosure in Florida courts just took a sizable jump due to legislation that takes effect this month.Florida has a backlog of more than 300,000 cases clogging the judicial system.

Banks and other lenders will have to pay for the fee increase, which is part of a package of laws predicted to generate $220 million for the state’s court system.

Prior to June, the filing fees were $295 and they are not set at a sliding scale. For properties valued at less than $50,000, the fees increased to $395. For homes and businesses between $50,000 and $250,000, new fees are $900. And for properties over $250,000, fees jumped to $1,900.

Circuit Judge Cynthia Z. Mackinnon said the increase was the largest in “many years” but is understandable considering the state’s financial woes. She supported the Legislature’s decision to tie the increase to the amount of the defaulted loan.

While some experts have said the fee increase might make lenders more reluctant to legal actions on defaulting property owners, Greg Hallam, former president of the Mortgage Bankers Association of Florida, said the new fees mean more to the state coffers than to banks.

“I honestly don’t think that would matter to a bank,” Hallam said. “The new fees are minimal to banks. If you can get out of a foreclosure with less than a $20,000 loss, it’s a party.”

The state is home to one of every six loan defaults in the country, according to California-based RealtyTrac, with 119,200 foreclosure-related court filings during the first quarter alone. State court officials have said

There are alternatives to losing a home in foreclosure, Mackinnon said. “The Ninth Circuit’s mediation program, stimulus money and these increased fees will hopefully all work to both parties’ advantage, and more of these cases will get worked out,” the judge said.

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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 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.

DAVENPORT, Fla. – June 3, 2009 – When Joe Isserles moved his wife and four sons, one of whom is comatose, into a rental home in Davenport earlier this year, the landlord failed to mention that the house was in the final stages of foreclosure.Florida, which also has one of the nation’s highest foreclosure rates.California renters. Florida has no such organization. “They may not be as sympathetic of victims as homeowners, because they are not losing equity. But they are generally paying rent, losing deposits, forced out on short notice and treated unfairly by banks.”Seminole County condominium unit she was renting only to find a foreclosure notice on the door. She learned that, even though she was paying her full rent on time, the landlord had not used it to pay the mortgage.Davenport north to Clermont to find another place.Orlando International Airport. “And when I received a letter in the mail that the house was sold, I was shocked.”New York and California, Florida has few laws to protect renters’ rights. Relief may be on the way, however, in the form of a new federal law passed earlier this month by Congress.

Shortly after they paid $1,200 rent for April, there was a knock on the door.

“It was a representative from Coldwell Banker representing Chase Bank, saying the bank took over the loan because the homeowners hadn’t paid the mortgage in a year,” Isserles said. “The next morning, the sheriff showed up to padlock us out.”

The Isserleses are among countless renters across the region and the country who have become unwitting victims of foreclosure – paying rent to landlords who pocket the rent money rather than use it to pay the mortgage. The houses go into foreclosure, and evicted tenants are left scrambling for a home.

No one has tracked the number of renters affected by the continuing wave of foreclosures, but research companies such as RealtyTrac Inc. and other groups estimate that 20 percent to 40 percent of all foreclosed homes are not occupied by the owner. Some of those may be vacant or seasonal, but many are likely rentals. And experts say the proportion is likely higher in

The state is home to one of every six loan defaults in the country, according to California-based RealtyTrac, with 119,200 foreclosure-related court filings during the first quarter alone.

“Renters are losing their homes,” said Dean Preston, executive director of Tenants Together, a nonprofit group that represents

Unpleasant surprise

Unlike defaulting homeowners, renters don’t see the eviction notices coming. Muffet Robinson, spokeswoman for the Coalition for the Homeless of Central Florida, said she returned one day last year to the

“I didn’t really understand that, because that didn’t really seem honest to me,” said Robinson, who struggled to find another apartment on short notice. “It’s hard enough to move when you’re planning on it.”

Picking up and moving quickly can be particularly difficult for a family such as the Isserleses. Tristen Isserles has been comatose since nearly drowning in a swimming-pool accident in September 2007, when he was 14 months old. Taking him to Easter Sunday church services required briefly unhooking him from ventilators, loading him in the family’s sport utility vehicle and carting him into the congregation in a Radio Flyer-style wagon.

To permanently relocate him and all the medical equipment he needs to survive is even more challenging. When his parents were not working jobs as a resort concierge and a time-share marketer, they were scouring neighborhoods from

The upheaval could have been avoided if the landlord had told them the bank was about to take ownership of the house, Maria Isserles said.

“They were already in the final stages of foreclosure when they rented the house,” she said. “I couldn’t imagine somebody being so cold and heartless. … How can you do this to a family with a sick child?”

The landlord, Alfred Sundar, said in a telephone interview that he knew he had defaulted on the loan but thought he had reached a settlement with the bank that would allow him to keep the rental house.

“I submitted all of the paperwork to the bank, and the bank said it was going to work with me, that I would pay $1,440 a month,” said Sundar, who drives a shuttle bus at

He said he has a daughter with severe medical conditions and understands somewhat the plight of his tenants.

“If I knew the bank wouldn’t work with me, I would have never rented it to them,” he said of the Isserles family.

Some compensationThe Coldwell Banker agent who first knocked on the Isserleses’ front door to ask them to leave said the family’s plight was unfortunate but noted that the bank is giving them six weeks to relocate instead of the 48-hour notice many renters get. And the family is getting compensated for being forced out.

Joe Isserles said the bank offered him $1,500 to leave the house, in an arrangement known in the mortgage business as “cash for keys.” After explaining that he and his wife had invested time and money cleaning and painting the rental, he was able to get $3,400. But they must be gone by Monday.

Unlike states such as

Effective immediately, tenants who pay rent on time can remain in their homes until their lease ends plus an additional 90 days – unless the bank sells the property to someone who intends to reside in it. Even without a lease, a renter may stay in a house for as long as 90 days after the foreclosure is complete, though that provision in the law is set to expire at the end of 2012.

“Really, it’s the first major piece of legislation that protects renters from foreclosure,” said Taylor Materio, spokeswoman for the National Low Income Housing Coalition.

The Isserles family, meanwhile, has found another home nearby where it can relocate. This time, Joe Isserles said, he did the homework to make sure the family wouldn’t get another unwanted knock on the door.

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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 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.

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Breaking news: HUD: Home Buyer Tax Credit Loans Still on Track (REALTOR® Magazine)

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

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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 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 Sales Soar

Once homes hit a psychological barrier, buyers jump off the fence, such is the case in the hometown of Disney World, Orlando, Florida, where the latest stats show home sales up 47 percent year over year in March 2009. The surge is a result of the average housing price dropping 37 percent.

Orlando homebuyers are getting back into the market and taking advantage of the improved affordability. Lower prices, record low interest rates, and a vast selection of homes give homebuyers increased buying power, making it an excellent time to buy a home. This is especially true for first-time buyers who are eligible for the $8,000 first-time homebuyer tax credit.

The housing market has benefited from the depressed prices (averaging $137,000) and a large supply of bank-owned houses for sale — nearly half of the 1,653 houses sold in March were bank-owned. The market is currently in normal absorption rate at about a 7-month supply with more than 12,000 homes on the market.

Homebuyers are starting to snatch up the good buys, decreasing the number of days on the market. Homes of all types spent an average of 104 days on the market before being sold in March 2009, and the average home sold for 92.66 percent of its listing. In March 2008 those numbers were 128 and 93.12 percent, respectively.

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 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.

The Treasury Department recently released its Home Affordable Modification Program Guidelines (part of its Making Home Affordable initiative), which include eligibility requirements to determine which homeowners qualify for relief under the plan. Following are the eligibility requirements as specified in the guidelines:

• Mortgage must have originated on or before January 1, 2009.
• Home must be an owner-occupied primary residence (verified with tax return, credit report, and other documentation such as a utility bill) – this program is not designed for investor-owned properties.
• Home must be a single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law).
• Home may not be vacant or condemned.
• Borrowers in bankruptcy are not automatically excluded from consideration.
• Borrowers in active litigation regarding the mortgage loan can qualify for a modification without waiving their legal rights.
• First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:

1.      1 Unit: $729,750

2.      2 Units: $934,200

3.      3 Units: $1,129,250

4.      4 Units: $1,403,400

• Foreclosure actions are suspended (not cancelled) during the trial period or while borrowers are considered for alternative foreclosure prevention options. If homeowners fail to qualify, foreclosure proceedings may resume.
• No minimum or maximum LTV ratio for eligibility purposes.
• Loans are eligible for only one loan modification under the program.
• Subordinate liens (such as second mortgages or home equity loans or lines of credit) are not included in the Front-End DTI calculation, but they are included in the Back-End DTI calculation. Back-End DTI is used to determine whether the borrower will be required to undergo credit counseling as a condition to modification.
• Servicers should follow any existing express contractual restrictions with respect to solicitation of borrowers for modifications. Applicants will be accepted into the program only until December 31, 2012 (the program expiration date), but incentive payments will continue up to five years after the date of entry into the Home Affordable Modification Program. Monitoring will continue through the life of the program.

When discussing this program with homeowners in your area, it’s a good idea to point out the following:

• Eligibility requirements are simply government guidelines. Guidelines may change, and lenders make exceptions, if it is in their best interest to do so. In other words, homeowners should not count themselves out. If they are having trouble making their house payment, they should explore the loan modification option. Sometimes, the only way to determine whether you qualify is to apply.
• Not all servicers, lenders, or investors are required to participate in the program at this time. The program is designed for Fannie Mae and Freddie Mac mortgages, but the plan’s incentives may encourage servicers, lenders, and investors to modify other types of mortgages, as well.
• The individual servicers that agree to participate in the program are required to sign a contract agreeing to abide by the program guidelines. If the servicer does not contract under the program, they are not eligible for incentive payments.
• Homeowners should consult a specialist who works with lenders on a daily basis to review their situation and determine whether the homeowners are likely to qualify for whatever workout options are available through the lender. Sometimes the only way to determine whether a homeowner qualifies is to submit an application.

First Time Homebuyers

It is an historic time for first time homebuyers. The government, in an effort to stimulate our economy, is giving away money to first time homebuyers.  It sounds to good to be true, but I assure you it’s not.  I have provided a quick link to the Federal Housing Tax Credit for First-Time Home Buyers website, as well as a quick video that explains the credit.  If you have any questions about this great stimulus, don’t hesitate to contact us directly.  Don’t wait too long, this will only last through the end of the year.

Federal Housing Tax Credit Explained

Orlando Investors looking to acquire houses through short sales in the Orlando area just might be in for some good news.

One of the largest holders of second liens in the U.S., the Bank of America, says it’s relaxing its policy on payoffs connected with short sales.

That’s important because large banks have been major impediments standing in the way of thousands of short sales, demanding money for home equity lines and second mortgages that would otherwise be worthless if the short sale property went to foreclosure.

Bank of America had been among the least cooperative of all banks in agreeing to short sale payoff terms, according to industry critics.

The company’s policy was blunt: Pay us 10 percent of what the homeowners owed on the equity line balance or second mortgage, or we won’t sign off on the short sale, which is necessary for the deal to go through.

Now the bank has adopted  “a less arbitrary, more rational” policy.

“What we’re saying (to short sale proposals) is — give us an opportunity to participate and gain at least some of the savings” that will go to the first lien holder — the primary lender on the property — by avoiding the high expenses and losses of a foreclosure.

Bank of America is now asking for five percent of the sale proceeds on the short sale, net of realty commissions, closing and other costs.

The bank believes that should open the door to more successful transactions, as well as more fruitful negotiations with buyers and sellers to avoid foreclosures.

The bank’s previous 10 percent policy meant they’d demand $20,000 on a $200, 000 equity line balance, or they wouldn’t bless the deal. But their new policy still means “they want $10,000 if the net proceeds are $200,000″ on a short sale, — even though the economic value of their holding may in fact be zero.

Bottom line for investors: If there’s a Bank of America second mortgage or credit line on the house you’re after in a short sale, work the new numbers. At least some of the time you might be surprised that the answer from the big bank is now ‘yes.’

And watch for other major banks to follow suit.

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 Real Estate see new life. Buyers are back!ALERT: Sales INCREASED 47.59% in March compared to March of last year.

ALERT: First time home buyers now receive an $8,000 INCOME TAX REFUND – no strings attached. This IRS offer is also available to anyone who has not owned a home in the past 3 years. HURRY – Must Close Before December 1, 2009.

Orlando Buyer

Q: The interest rate on my loan just adjusted to 9.25 percent last month. We are upside down on our house by 5 percent, so we aren’t sure we can refinance. I’m trying to do a loan modification, but am being told that I have to be late on my mortgage or the lender won’t work with me.

I am now current and don’t want to miss a payment just so someone will help me. The loan modification company I’m working with wants to charge me a fee of $1,700. Will this save my house? Should I spend this money?

A: I have good news for you. The good news is that President Obama’s new mortgage refinance program should help you if your mortgage is only 105 percent of the value of your property.

For example, if your house is worth $100,000, and your primary loan is $105,000, you can refinance your home as long as you have the income to pay the new loan. The home must also be your primary residence.

Lenders will work with you on this program to lower your interest rate so that it is no more than 31 percent to 38 percent of your gross monthly income. The nice part about Obama’s $75 billion loan program is that lenders and borrowers have an added financial incentive to keep paying these loans current.

Mortgage lenders will receive a “pay for success” fee of $1,000 for each eligible loan modification, plus additional fees of up to $1,000 per year (paid monthly) as long as the borrower pays on time. Homeowners will receive up to $5,000 (up to $1,000 per year for five years) to reduce the balance owed if they pay on time through these years.

The details of this plan were announced early last month. Please contact your lender as soon as possible. If your lender refuses to help, please call the Hope Now Hotline (toll-free 1-888-995-HOPE) and speak to a federally certified housing counselor.

There are many credit and loan companies out there claiming that they can help borrowers for a fee. Be careful in dealing with these companies. If you pay them almost $2,000, you may not necessarily be getting the best deal. You should first work with your lender, then call the Hope Now Hotline and talk to a housing counselor.

You need to become informed about your options. You may find that your current lender is now willing to talk to you. When you call your lender, ask to speak with their loan mitigation department, particularly if that wasn’t the department you were talking to. That department is the one that should be able to work with you on your issue. And, keep that $1,700 in your pocket for now.

Once you’ve discussed loan modification with your lender and they’ve denied you a loan modification most people think that there’s no hope and let the home go into foreclosure. There is another way to save your credit and keep a foreclosure off your record. That would be what’s called a Short Sale. That’s where we would negotiate with your lender to accept less than the full amount owed on your home so that you can sell it. We list your home with our listing agent and we have our professional negotiator, negotiate the transaction. Please contact us for more information. jerry@jerrylarose.com or 407-580-7011

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 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.