A short sale happens when a lender agrees to accept less than the balance remaining on a home. It is a way for sellers to avoid foreclosure and sell their Orlando homes.
It seems like a good idea for people who owe more on their home than it’s worth, but that doesn’t mean it is right for everyone. Should you consider a short sale on your Orlando home?
Pros to doing a short sale:
• You will be able to sell your property, get out from under a mortgage you cannot afford and lower your debt.
• You can still sell your property in a declining real estate market, even if you owe more than the home is worth.
• Buyers sometimes get good deals on the property or may be able to buy a home at market value in a popular area they couldn't previously afford.
• While a short sale isn't ideal, it is typically better than a foreclosure which stays on your credit report for 10 years.
• If your home goes into foreclosure and is sold at auction for less than the mortgage, you can still be held responsible for making up the difference.
Cons to doing a short sale:
• The lender may refuse to do the short sale, or they may still hold you responsible for the remaining debt.
• The bank’s loss is considered taxable income for you, and you may have to pay taxes on the amount.
• Short sales do stay on your credit report and may make it difficult for you to a get loan in the future.
• You may have to find a real estate agent willing to work for a smaller commission.
• Short sales take longer to close than traditional home sales.
We can help you decide if a short sale on your Orlando home is right for you. Call us today at 407-876-5771 for more information about your selling options.
Monday, March 8, 2010
Buyer Beware: Worldwide, National, Orlando Homes and Scams
Whether you’re looking at Orlando homes, homes across the nation or homes abroad, there's always the possibility of getting caught in a scam.
Many potential homebuyers and renters choose to go it alone and find the home of their dreams without professional help. While this method of house hunting works for some it definitely doesn’t work for all, and the consequences often far outweigh the benefits. Yes, the same can apply for home sellers as well!
Real Estate Scams
Here are a few real estate scams to watch out for:
• Down Payment Assistance Programs are wonderful gifts for potential buyers of Orlando homes. However, there are certain rules that have to be followed for this down payment gift to be legal. For instance, as a gift, the homebuyer doesn’t have to pay it back. Some unscrupulous companies offer Down Payment Assistance Programs but expect the money back. This isn’t a gift; it’s a loan, and illegal if the program is listed as “down payment assistance."
• Property flipping scams happen when a con artist buys a home and sells it as an investment opportunity with zero down payment, no closing costs, low interest rate, etc. Although it sounds like a great deal, it becomes a scam when the house is severely overpriced and the buyer pays way more than the house is worth.
• Craigslist is an excellent resource for those wanting to buy or sell something. However, it is also a great source for con artists, who have turned their eyes to the real estate market. The scammers take information from legitimate listings on other websites (such as REALTOR® websites) and post it as their own on Craigslist. They often mention that they had to move for some reason, but can still rent/sell the home. All the buyers or renters have to do is send them their personal information and the first month’s rent or down payment.
It’s easy to get caught up in the excitement and forget to protect yourself. Be cautious when looking for Orlando homes or selling them. Always check references and backgrounds. As well, if the home seller is in another country or another state, ask them if they’d be willing to use a local real estate agent. Then be sure to verify the agent’s credentials.
If you want to buy or sell a house and need a professional, we can help. Call us at 407-876-7551 for more information.
Many potential homebuyers and renters choose to go it alone and find the home of their dreams without professional help. While this method of house hunting works for some it definitely doesn’t work for all, and the consequences often far outweigh the benefits. Yes, the same can apply for home sellers as well!
Real Estate Scams
Here are a few real estate scams to watch out for:
• Down Payment Assistance Programs are wonderful gifts for potential buyers of Orlando homes. However, there are certain rules that have to be followed for this down payment gift to be legal. For instance, as a gift, the homebuyer doesn’t have to pay it back. Some unscrupulous companies offer Down Payment Assistance Programs but expect the money back. This isn’t a gift; it’s a loan, and illegal if the program is listed as “down payment assistance."
• Property flipping scams happen when a con artist buys a home and sells it as an investment opportunity with zero down payment, no closing costs, low interest rate, etc. Although it sounds like a great deal, it becomes a scam when the house is severely overpriced and the buyer pays way more than the house is worth.
• Craigslist is an excellent resource for those wanting to buy or sell something. However, it is also a great source for con artists, who have turned their eyes to the real estate market. The scammers take information from legitimate listings on other websites (such as REALTOR® websites) and post it as their own on Craigslist. They often mention that they had to move for some reason, but can still rent/sell the home. All the buyers or renters have to do is send them their personal information and the first month’s rent or down payment.
It’s easy to get caught up in the excitement and forget to protect yourself. Be cautious when looking for Orlando homes or selling them. Always check references and backgrounds. As well, if the home seller is in another country or another state, ask them if they’d be willing to use a local real estate agent. Then be sure to verify the agent’s credentials.
If you want to buy or sell a house and need a professional, we can help. Call us at 407-876-7551 for more information.
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