Federal Incentives for Short Sales

Obama administration is now coming out with a stream-lined national standard for short sales!

The mortgage servicing industry in coming weeks will see details of an incentive program aimed to prevent foreclosures by encouraging servicers to pursue short sales and deeds-in-lieu of foreclosure.

US Treasury Department sources confirmed to HousingWire the Treasury expects to issue details on the short sale and deed-in-lieu program later this month.

The program is being finalized and will be announced as soon as possible, according to testimony Wednesday by Federal Housing Administration (FHA) commissioner David Stevens.

He said at a House Financial Services subcommittee hearing that the Making Home Affordable (MHA) Program is on track to provide modifications and refinancings to millions of homeowners, but noted other foreclosure alternatives exist.

“Because we know that the MHA program will not reach every at-risk homeowner or prevent all foreclosures, on May 14th the Administration announced the Foreclosure Alternatives program that will provide incentives for, and encourage, servicers and borrowers to pursue short sales and deeds-in-lieu (DIL) of foreclosure in cases where the borrower is generally eligible for a MHA modification but does not qualify or is unable to complete the process,” he said, according to prepared remarks.

He said the program will simplify the process of pursuing short sales and deeds-in-lieu, which will encourage more servicers and borrowers to participate in the program. The program will standardize the process, documentation and short performance timeframes.

“These options eliminate the need for potentially lengthy and expensive foreclosure proceedings, preserve the physical condition and value of the property by reducing the time a property is vacant, and allows the homeowners to transition with dignity to more affordable housing,” Stevens added.

Distressed sales — including short sales and foreclosures — accounted for nearly one-third of all house re-sales in recent months, leading to the National Association of Realtors to offer a short sales and foreclosure certification program to realtors.

At the same time, tech vendors and mortgage service providers are looking to fill the demand for short sale-related products and services. Equi-Trax Asset Solutions recently launched a new current listing search offering that searches a servicer’s portfolio to determine short sale and modification opportunities.

Source: HousingWire.com - Diana Golobay

New Blog of Interest - Florida Realty Resource

Florida Real Estate Resource Blog

http://blog.orlandorealtyresource.com/

The purpose of this blog is to provide useful real estate information, which will assist both buyers and sellers. We will provide you with valuable market updates, statistical data and new trends as they develop. Many consumers find it difficult to locate the information they need when looking to buy and sell a home. This site is being provided as a free service to assist buyers and sellers in the Florida housing market make informed real estate decisions. In order to better educate and inform buyers and sellers, we will continue to develop and provide a set of comprehensive FREE Florida Real Estate Reports as a FREE No-Obligation service to our visitors. In the hope, you who visit this site and in turn, consider us in order to assist you in the purchase or sale of your home.

We truly hope that you find our blog postings, information, tools and resources helpful and we look forward to building a potential business relationship in the future.

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Orlando ranks No. 8 in August foreclosures

The local foreclosure rate in August placed the Orlando-Kissimmee area among the nation’s top 10 metro areas, said RealtyTrac’s August foreclosure report.

Orlando-Kissimmee had the eighth highest rate with one in every 87 homes receiving a foreclosure filing last month. The Cape Coral-Fort Myers area was the only other Florida metro in the top 10, placing No. 9 with one in every 88 homes getting an August filing.

The Sunshine State continued to hold the second spot in the nation in foreclosures, the report said. About one in every 140 Florida homes received a foreclosure filing — including default notices, scheduled property auctions and bank repossessions — in August, second only to Nevada’s rated of one in every 62 homes.

Meanwhile, Florida posted 62,401 August foreclosure filings, a more than 10 percent jump from the previous month despite a 5 percent decrease in bank repossessions. Florida also saw a 12 percent jump in August default notices when compared with the previous month, while 13 percent more auctions were scheduled in August than in July.

Only California had a higher number of total filings, with 92,326 filed during the month.

Nationwide, 358,471 foreclosure filings were reported in August, nearly 1 percent less than the previous month but up nearly 18 percent greater than August 2008. RealtyTrac also reported one in every 357 U.S. homes received a filing in August.

Six states accounted for 62 percent of the nation’s total foreclosure activity in August, despite decreasing bank repossessions in all six states.

The RealtyTrac U.S. Foreclosure Market Report tracks properties with at least one foreclosure filing reported during the month. Data is collected from more than 2,200 counties nationwide accounting for more than 90 percent of the nation’s population.

Source: Orlando Business Journal

Can’t Afford the Rent on Orlando Homes?

If you’re looking at Orlando homes to rent but think you can’t afford them, you might want to take another look. This is especially true if you have a good credit history. When it comes to finding tenants, landlords have never been more willing to play “Let’s Make a Deal."

Sitting Pretty
Why would any landlord be willing to make a deal? The reason topping the list is, of course, the economy. With so many people having lost their jobs, finding tenants who can afford the rent on time isn’t easy. Second, many renters are trying to save money by having roommates. Thirdly, because of the marketing slump there are plenty of homeowners renting out their Orlando homes rather than selling them. Lastly, because of the first-time buyer tax credit, many potential renters are becoming homeowners instead.

All of these points add up to a high amount of vacancies, which put landlords in a pickle and have renters sitting pretty.

Taking Steps
Many landlords are trying everything they can to keep their rentals occupied to help pay for the maintenance on the buildings. The steps they’ve taken include such things as:

-Lowering rents
-Giving a month or two of free rent
-Lowering deposits
-Offering upgrades
-Offering storage and parking at lower rates
-Relaxing pet policies
-Allowing more leniency for breaking the lease

Let’s Make a Deal
So what can you do to take advantage of the renting situation? What points can you base your bargain on?

-Start with a good credit rating. If you have a history of paying on time, you have a chance at negotiation.

-Pay attention to the average rent in the area. If the rents on the Orlando homes you’re looking at are higher than average, you have a point to negotiate.

-Look at one-bedroom homes first, if they will work. Many two- and three- bedroom homes are taken by individuals sharing rent and families. There may be a surplus of one-bedroom houses, so you might have a better chance of snagging one of them.

If you’re looking for an affordable place to rent or buy, we can help. Call us at 407-876-5771 for more information.

Do Orlando Foreclosures Make Good Rental Real Estate?

Even, perhaps especially, in an economic downturn, people are trying to make a living in the real estate market. “Flipping” houses used to be a great way to make a little cash, but not now. Many are now looking at long-term cash prospects, such as renting property, and Orlando foreclosures seem to be a good start. But are they? Let’s take a look.

Finding a good rental property isn’t easy. It’s not like shopping; you can’t go into a real estate store and grab the first house off the rack that looks good on you. It’s a process of investigating, gaining knowledge and being realistic. This is especially true when looking at Orlando foreclosures.

Homeowners who suffered foreclosure were unable to pay the mortgage. We all know that. What people usually don’t think about is that the homeowners were probably also unable to pay for upkeep. This means that you, as the buyer, have a larger possibility of buying a money pit rather than a moneymaker. Keep this in mind as you look over a few tips for finding good rental property:

Location – Since you’re looking at foreclosed properties rather than properties that are already set up for renting, you can’t check established rental records. However, you can ask your real estate agent for a list of areas with less people moving out and more moving in. As well, look at areas with surrounding retail development. New shopping malls, theatres and restaurants will bring in more people to an area.

Addition and subtraction – It’s time to do the math. Ask your real estate agent for what the going rental rates are in the area you’re looking at. You’ll need to find out if the rent you can charge will take care of expenses as well as bring you profit. Figure the yearly income you can expect to make and then subtract mortgage payments and operating expenses. If your math produces a negative balance, don't buy the property.

Taxes – Once you pay expenses, your income is taxable. Now, while you can depreciate rental property, you can’t depreciate the land it’s on. Talk to a real estate agent or accountant to decide whether it’s worth it or not.

If you follow these three tips and remember to pay attention to the amount of repair needed, you might just find some fantastic deals on Orlando foreclosures. Take a little time to make sure renting is for you, and then get started.

If you’re looking for potential rental property, we can help. Call us at 407-876-5771 for more information.

Foreclosures in Orlando, Title Searches and Title Insurance

When you’re looking to buy a home, and especially when you’re looking at foreclosures in Orlando or anywhere else, title searches are important.

Many buyers make the mistake of settling for a quitclaim deed without doing a title search. Unfortunately, the person who signs the quitclaim deed may not be the actual person holding the title. If there are any liens on the title, the new owner may get an unpleasant surprise at closing. With foreclosures in Orlando, the possibility that there is a lien on the title is even greater.

What is a title search?
Title searches are performed by title companies or lawyers. These companies and attorneys search the public records for information on the property’s ownership. The goal is to find out if there are any problems with the title.

What kind of information can a title search give you?
A complete title search will cover such things as:

How many mortgages the property has
Any liens, such as judgments or mortgages, on the property
Taxes owed on the property

The purpose, other than finding current information, is to establish chain-of-title - who owned the property at what time, who they sold it to and so on. Title companies look for proof that any encumbrances have been taken care of, as well as easements, rights-of-way and anything else that can affect the title.

Why get title insurance?
Most title companies also offer title insurance. Title insurance, depending on the company, provides a guarantee that the title is clear, as well as insuring that you can’t be held accountable for forgery, fraud, defective records or incorrect signatures that occurred before you received the title. It also guarantees that there is no encumbrance or judgment on the property.

Foreclosures in Orlando are a good bet for a great home or investment property. However, make sure you know what you’re getting by having a title search done. As well, spend the money on that one-time fee for title insurance. It may be the best investment you’ve ever made!

Thinking of buying a home? Let us guide you easily through the entire process, from negotiating the price to having a title search performed to signing your closing papers. Call us today at 407-876-5771.