Orlando Short Sales & Foreclosures » Short Sales & Foreclosures

Is A Short Sale Right for A Struggling Orlando Homeowner?

admin — Sat, 19 Jun 2010 03:15:58 +0000

Is A Short Sale Right for A Struggling Orlando Homeowner?

In today’s crumbling real estate market, many homeowners in the Orlando area are struggling with monthly mortgage payments and may soon face foreclosure. Negotiating revised loan terms would appear to be a good option however loan modifications are failing for many borrowers within a few months of the new arrangement. Another option to consider as a better choice is arranging a “short sale” with the company holding the mortgage. A short sale means the lender will accept less to pay off the loan than the balance owed. In most instances, the mortgage company will only negotiate a short sale through a licensed real estate agent and will not work directly with the homeowner. An experienced short sale agent will know how to work successfully with a lender and guide the homeowner through the process.

Avoid Foreclosure by Doing a Short Sale

admin — Mon, 14 Jun 2010 14:30:32 +0000

Orlando Homeowners in Trouble have many options!

Facing foreclosure in the Greater Orlando area is not only a financial crisis; it can also be an emotional crisis. So this is a time to take stock and examine your options.

There are several reasons why Orlando homes go into foreclosure. Perhaps the home was purchased at the peak of the real estate market and just before prices started to fall. Another scenario might be that the mortgage was interest only, so no equity was built up. Or perhaps the mortgage was an ARM and now the interest rates have risen, making it difficult for the Orlando owner to handle the mortgage along with daily expenses. The reason is part of the past, and these Orlando owners must now deal with the future. The first item on the agenda should be to avoid foreclosure.

If you can still pay your mortgage for the foreseeable future and don’t need to sell your Orlando home, then your best bet might be to wait out the market until the market is more favorable.

If you are unable to pay your current mortgage but could if refinancing was in the picture, you should negotiate with your Orlando lender. If they decline to refinance your mortgage then you should contact one of the government agencies offering assistance to homeowners who find themselves in your situation. This solution might include the agency working with your lender to strongly encourage them to refinance your home rather than foreclose.

The reasons your lender might not want foreclosure is because it really represents a no-win situation for both parties. A foreclosure is expensive and takes a great deal of time, and the lender ends up with an Orlando house they really don’t want, and when it goes to auction it likely will sell for far less than it should.

Steps in an Orlando Short Sale

A short sale is an involved process, but in a nutshell the Orlando seller needs to establish a selling price with the help of an Orlando Short Sale Expert, find a buyer and with an offer, in hand, and present the offer to the mortgage holder. Along with the offer you must disclose your finances, as well as a hardship letter that details why payments can no longer be made. Check with your lending institution to see if there is other information that is required. If the offer is ultimately accepted then you have taken the first step in your financial recovery.

Why a short sale is in your best interest. This is a step above foreclosure. Both show up on your credit report, but the short sale is less of a black mark than a foreclosure. While foreclosure is a legal settlement where lawyers and possibly their fees are involved, a short is between you and your lender, and you will be more able to buy another Orlando home, obtain credit cards at a better rate or even renting an Orlando home sooner than if you had gone through foreclosure. There is also a tax provision that waives income tax took effect 12/20/07. The provision excludes forgiven mortgage debt on a principal residence for the period of January 1, 2007 through January 1, 2010. Previously forgiven mortgage debt was considered the same as taxable income. Speak with your CPA for further information.

Is A Short Sale Right for Your Situation?
Find out today: If you live in Central Florida, contact The Orlando Property Group, your experienced short sales agents, specializing in real estate in Lake, Seminole, Orange, and Volusia Counties.

Seaching for a great real estate value in Central Florida? Need help with a short sale?
Call or email me TODAY to go over your options!!!!!!

“It’s only a buyer’s market if you’re ABLE to buy!”

Looking for specific information regarding Orlando Florida real estate prices and communities? Get Your Free Market Snapshot

Read Also: Orlando Florida Facts & Resources

We’re experts at putting people together with homes they love and can afford. Contact us today for information on Orlando and Seminole County real estate, Orlando & Seminole County homes for sale, Orlando & Seminole County relocation information, a free market analysis of your Orlando area or Seminole County home or statistics on homes in Orlando & Seminole County Florida or the surrounding Central Florida area, including Seminole County, Orange County, Lake County and Volusia County. We’re always available to answer your questions.

What is a Short Sale

admin — Sun, 02 May 2010 01:38:50 +0000

What is a Short Sale?
You have heard the term Short Sale, but do you really know what it means? In today’s Real Estate market you often hear the term “Short Sale” and you surmise it isn’t something good, but wonder “What is a Short Sale?“.

The end result of a Short Sale in Real Estate is that the mortgage lender agrees to accept an offer from a buyer that is less than the remaining amount that the seller owes on the mortgage. In essence the mortgage lender is forgiving the difference between what is owed and what the house sells for. In today’s market the owner often owes more than the house is worth, which complicates the process even more. Even if this is the case, price might end up being more in line with the market value and not below it, because the lender is looking to keep the loss on the property to a minimum

For the mortgage holder who is in financial difficulty a short sale can be a process that will help them sell their home more quickly in today’s Real Estate market. But, before a short sale can be considered the mortgage has to be in default, with the owner no longer making mortgage payments. In addition, a letter of hardship must be presented to the lender before this process can be started.

For the prospective buyer it may be an opportunity to purchase a home at a discounted price. On the other hand it is a more involved process, in that you are dealing with the mortgage lender who has the final say in the deal. Typically short sales take longer to negotiate and you have no guarantee that your offer will be accepted. Be prepared to be patient.

Orlando Area Short Sales

Modified Loans May Still Lead to Short Sales

admin — Mon, 22 Mar 2010 03:30:40 +0000

Modified Loans May Still Lead to Short Sales

Will Loan Modifications Help Homeowners in Orlando, Florida?

In areas like Orlando, Florida, hard hit by increased foreclosures and decreased home values, loan modifications held out some hope for slowing the real estate market’s downward spiral. However, initial early data may indicate many struggling homeowners should opt for short sales instead of modifications, and their lenders may now see short sales as a better option, too.

According to the latest data released Monday by the federal bank regulator, Office of Thrift Supervision and Office of the Comptroller of the Currency, loan modifications may not be the answer to the real estate foreclosure crisis. Of homeowners who worked with their lenders to modify their loan terms, more than half fell behind on the new payment arrangement.

Ruth Simon, writing for the Wall Street Journal-Real Estate section, says such “high default rates raise questions about the effectiveness of efforts to work with troubled borrowers…” The numbers tell the tale: Loan modifications were given to nearly 73,000 borrowers in the first quarter of 2008 with another 114,000 modifications in the second quarter. Reports from the first quarter to September 30 indicated that nearly 36 percent of the revised loans were past due only three months after the modification, and over half were two months past due six months after the modification. Although some of the homeowners were able to bring their loans current after they fell behind, over 41 percent were at least 60 days past due eight months after their new payment agreement.

Successful Short Sales in Orlando

admin — Wed, 10 Mar 2010 01:29:35 +0000

Short Sales Can be Successful
Short sales may be the number one niche in the real estate market right now, but many agents are loath to handle such transactions. They insist that banks do not want to approve short sales, the process is too time-consuming, and it’s difficult to get everyone to cooperate.

However, short sales experts say agents have a tough time because they often neglect BPOs and property valuations, fail to review the bank’s guidelines, submit incomplete files or lowball offers, and do not follow up.

To position themselves for success in short sales, agents must assemble a team of escrow officers, BPO specialists, processors, negotiators, and underwriters with experience in short sales. They should market to homeowners who might consider a short sale, obtaining lists of individuals behind on their mortgages and sending postcards or making in-person visits to let them know their options.

If you are considering purchasing a Short Sale, here is a selection of our listings for your consideration:

Seaching for a great real estate value in Central Florida? Need help with a short sale? Call or email me TODAY to go over your options!!!!!! Looking for specific information regarding Orlando Florida real estate prices and communities? Get Your Free Market Snapshot Read Also: Orlando Florida Relocation Resource Guide Read Also: Business 2.0 Magazine has named Orlando the number 1 hottest market with America’s best jobs. Read Also: Orlando Florida Facts & Resources Read Also: Orlando Florida City – Everything You Need To Know! If you are wanting to sell your Seminole County or Orlando area home in the next 6 to12 months, now is the time to begin putting your plan into place while time is still on your side. Please contact us for any real estate assistance you may need. We’re experts at putting people together with homes they love and can afford. Contact us today for information on Orlando and Seminole County real estate, Orlando & Seminole County homes for sale, Orlando & Seminole County relocation information, a free market analysis of your Orlando area or Seminole County home or statistics on homes in Orlando & Seminole County Florida or the surrounding Central Florida area, including Seminole County, Orange County, Lake County and Volusia County. We’re always available to answer your questions.

There may be help for troubled Orlando homeowners on the horizon!

admin — Sun, 28 Feb 2010 03:09:06 +0000

There may be help for troubled Orlando homeowners on the horizon!

Congress sits poised to dole out the next $350 billion in bailout funds to banks as more and more people loose their homes to foreclosure. Congress has now indicated they may even include some type of much needed help for homeowners desperate to save their homes, in this plan. By adding very appealing incentives for servicing companies, congress aims to attract more lenders to work with borrowers and stem the tide of foreclosures.

The “Hope for Homeowners” program, a foreclosure prevention plan, might also be changed to make it more attractive to lenders.

Negotiating a loan modification is almost hopeless, when banks started pooling and marketing loans as bundles, it made lenders unable to directly work out new terms with borrowers. There are just too many parties that have to agree on the terms, to get the process done in a timely manner. Lots of times too the lenders make more money by foreclosing.

This plan hopes to entice lenders to make loan modifications, and lessen foreclosures thereby helping homeowners keep their homes.

These new changes will give homeowners on the verge of foreclosure some new opportunities and some much needed hope and help to get through this crisis.

Orlando, Florida Short Sale Home Buyer Tips: An Interview with Chris Myers of the Orlando Property Group

admin — Sat, 13 Feb 2010 02:27:16 +0000

Orlando, Florida Short Sale Home Buyer Tips:
An Interview with Chris Myers of the Orlando Property Group

We were interviewed by Kevin Sandridge of the blog site, www.floridamortgageblogger.com. Kevin is one of Orlando’s premier mortgage broker’s, and through doing business together, we’ve come to respect his industry knowledge greatly. Below is the interview.

Home sales numbers in the Orlando, Florida area are up, and there’s one single reason why… bargains in this area haven’t been available like this for over 30 years! However, the help of an experienced Real Estate Agent is a must if really want to ensure a smooth transaction on your next Orlando, Florida area home purchase.

Once again, I headed straight to Orlando, Florida Short Sales Real Estate expert Chris Myers, with the Orlando Property Group to ask exactly why he thought this just might be the best time to enter the housing market here. This is what he had to say:

Kevin Sandridge (KS): “Chris, thanks so much for taking time out to talk with us here at the Florida Mortgage Blogger about the Orlando real estate market. I know our readers always love the information and insight you provide.”

Chris Myers (CM): “My pleasure, Kevin. It’s always nice to stop by.”

KS: “So Chris, there’s a little bit of a buzz generating lately around whether now is really a good time to enter the housing market here in the Orlando, Florida area. Why do you think this is?”

CM: “You’re right, Kevin. There has been a noticeable upswing in buying activity in the area, and I think one of the main reasons is that there are a lot more homes in the Orlando area for folks to choose from. Whether they’re trading up to accommodate a larger family or moving into the area to take on a new executive position, buyers can basically take their pick of excellent properties in prime locations inside Orange, Osceola, Seminole, Volusia, and Lake Counties.

All told, there were nearly 25,000 properties for sale in the Orlando area in October, including single-family homes, condos, town houses, duplexes, and villas. It’s just a matter of people finding a home that fits their budget in a location they like.”

KS: “There sure seem to be a lot of great deals out there. I imagine a lot of first time home buyers might be looking to take advantage of homes that are either in pre-foreclosure or foreclosure status. What are some things they should be careful of when looking at these types of homes?”

CM: “That’s a great question, Kevin. There are several areas that deserve special attention from short-sale buyers. These include, but aren’t limited to:

The time required to complete short-sale transactions
The home’s condition and “as is” nature of the short-sales contract
How to finance their short-sale purchase
How to contend with multiple short-sale offers

The Timing of Your Orlando Area Short Sale

The first thing buyers interested in pre-foreclosure status homes need to understand is the waiting period involved with many Orlando area short sales. Even the smoothest transactions can take months to complete. It’s not at all out of the question for short sales to take up to three or four months before receiving an answer from the bank”

The Physical Condition of Your Orlando Area Short Sale Home

The home’s condition is another thing to take into consideration. The majority of pre-foreclosure and foreclosed homes are sold on an “as-is” basis. This is not necessarily a bad thing. Often, they are only in need of some minor cosmetic repair. Other times, however, they can lean more towards your “handyman special” and come without any major appliances. The key here is for buyers to be sure and negotiate time enough to properly inspect the Orlando area home you’re considering and, if necessary, provide a means to cancel the contract should the home’s condition be completely unacceptable.

Financing Your Orlando Area Short Sale

As with any home purchase, you’ll want to be sure you get all of your ducks in a row in terms of financing your Orlando area short sale. There’s a conception out there that FHA loans can’t be used to purchase short sales. This is untrue. They can in fact be used. Actually, as you and I have discussed, Kevin, FHA is in some cases even willing to waive their 90 day seasoning requirements if the home a buyer is purchasing has moved into foreclosure.

Contending with Multiple Offers

The Orlando, Florida area has an unbelievable number of short sale opportunities available right now. We’ve all heard the “buy low, sell high” stock purchase philosophy. Well, the same philosophy applies to the housing market. The US housing market is currently 3.8% undervalued. The Orlando market is in far worse shape value wise. According to a December 3, 2008 Orlando Business Journal article, the October median home price here in Orlando, Florida was $177,900, 25 percent less than the $238,500 reported in October 2007.

KS: “That’s amazing – and a real chance for folks in the right financial position to gain a great deal of built in home equity at the time of purchase! Just look at the picture -home affordability is near an all time high, interest rates are holding steady at very attractive levels.

CM: “That’s it, exactly, Kevin. And the thing here is that savvy investors are absolutely on top of this situation. So much so, that nearly every well-priced Orlando, Florida short sale I’ve seen or been a part of recently has had multiple offers on it. Short sale buyers in our area need to be prepared to act immediately if they find the perfect house. They also need to be ready to offer the seller’s asking price or even a little over the asking price in some cases, as attractively priced short sales can often become the focal point of some pretty fierce bidding wars.”

Establishing the Asking Price in a Florida Short Sale

KS: “Chris, one question I hear often from my clients concerns setting the sales price of a home in a short sale. Who typically decides the asking price for short sales here in the Orlando area?

CM: “In most cases, Kevin, the banks or lenders holding the note make the final determination as to how much money to ask for the home. Most banks are willing to do what it takes to sell them quickly, and they understand the power of market value. However, their main objective is to recoup as much money for themselves as possible, so they aren’t apt to just give the home away for a song.

My advice to people interested in buying a home here in the Orlando, Florida area via a short sale is this: Don’t get greedy if the house is already priced well. Have your real estate agent do a market analysis to determine the home’s true value and go from there. But remember, the bank will be far less willing to negotiate a lower price if multiple offers start pouring in.”

KS: “OK. So get your offer in early, and make it as competitive as the situation dictates. Got it. But what about up front money? Let’s talk briefly about what making an offer and whether good faith deposits are encouraged.

At the peak of the last housing market boom, sellers were fielding multiple buyer offers at once. Often, buyers who failed to put down good faith deposits were left out in the cold. Since we’re now in a buyer’s market, can you talk a bit about whether good faith deposits are still a must?”

CM: “Good faith deposit, or escrow deposit is actually required in order to make an offer on an Orlando, Florida area short sale. However, the actual amount of that deposit is negotiable. Typically, sellers are looking for earnest money deposits of about $1,000. It may be a buyers market, but only if your able to buy. Seller’s recognize this and want to know you’re not only willing to buy, but capable as well. It also shows them that you won’t simply walk away, after they’ve taken the home off the market.”

KS: “So I take it that, just as with a typical new or existing home purchase, you agree with me that buyers should get pre-qualified for a Florida home loan before beginning their Orlando, Florida area short sale shopping experience?

CM: “Absolutely. It’s imperative that a homebuyer get pre-qualified before beginning their home search. That’s really the first step. In fact, when someone calls us about a property, we help them get in touch with the right Florida home loan professional to make sure their financing is in order.

Many homebuyers think they know their credit score, or what they can afford, but when the price is broken down into monthly payments, and things like taxes and insurance are factored in, they sometimes find they don’t want to spend as much. It goes the other way, too. Buyers think they may be in the position of paying one amount, but discover through the help of their Florida home loan specialist that they are actually comfortable buying more home than they originally thought.

In any case, I can’t stress enough how important it is for everyone – homebuyers or not – to understand where they are in terms of their credit report. The credit bureaus freely admit that data entry error and other errors occur in the area of credit reporting.

Good credit is the key to financial stability and long term wealth, and you know, Kevin, just how much of an impact 10 or 20 points can make in terms of the long term money folks will pay out over a 30 year fixed rate mortgage. Too often I’ve seen good people end up with lower than expected credit scores due to information about late payments or other derogatory data being added to their credit reports erroneously. Meeting with a qualified Florida mortgage broker early on in the home purchasing process gives people the time required to combat this type of situation should it arise.

I’ll end by saying that even in situations where people have met with a Florida mortgage broker and were pre-approved for a Florida home loan, they still need to follow up to be sure nothing has changed on their credit – or that the program they qualified for is still active. Lending standards have changed so dramatically lately, that the only way to know where you stand for sure is to consult a qualified Florida mortgage broker.

Selecting the Right Realtor to Handle Your Orlando, Florida Area Short Sale Purchase

KS: “That is some valuable advice, Chris. And is basically what I tell all of my clients and referral partners as well. I’d like to round things out by asking you to provide some insight into how home buyers interested in Orlando, Florida short sales should go about selecting the right Realtor?

I imagine that, just as with the legal profession – where a lawyer may specialize in criminal defense or patent law, Realtors have their particular strong suits as well. Some may deal primarily with luxury homes and short sales, such as yourself, while others specialize in commercial real estate or conventional residential real estate. What qualifications should folks interested in Orlando area short sales be looking for in a potential Realtor, and what are some questions they should ask?

CM: “That’s such an important question, Kevin. You’re absolutely correct in that Realtors do tend to specialize or achieve professional comfort zones with specific types of real estate transactions. The thing you most definitely do not want to do is trust your short sale purchase to a real estate professional who is learning as they go. We’ve outlined many of the “built in” challenges that come with just about every Orlando area short sale – including

longer than average wait times to close,
gauging the condition of a short sale home,
price negotiation and financing, and
the need to contend with multiple sales offers on the property you may want to buy.

Quite simply, the care and feeding of a short sale is not something you want to entrust to someone who does not have a proven track record for success with them. Between the timing involved, paperwork they entail, and the sometimes repeated negotiations required to close an Orlando area short sale – you want a real estate professional on your side who can close the deal. Here are some key things to look for:

First, it’s important to choose someone you can trust. You’ll be working with your Realtor throughout the short sale process, and you’ll have to be comfortable sharing information about your finances – but also your hopes, dreams, and the fears you may have regarding the short sale purchase itself.
It’s also important in today’s market that you have an agent who’s skilled in short sales and foreclosures, as many of the homes you’ll be viewing (some say about 40-50% of Central Florida homes) are in some stage of distress. These types of sales can be very tricky, and it’s crucial that your agent possess the knowledge and experience required to serve your best interests.
Lastly, though I truly believe that most Realtors are honest, hard working professionals who keep their clients’ best interests as a priority, we are in a tough economy. The most smoothly managed short sales are not without some significant challenges or obstacles, and there are cases where even the most seasoned short sale real estate professional may have to circle the wagons in order to get the deal done. I’d hate for someone to lose out on purchasing a home that really fits their family’s unique requirements simply because they didn’t select a Realtor with proven short sale experience.

KS: “Wow. Well said, Chris, and once again you’ve provided us with some invaluable information for those looking to buy homes here in the Orlando, Florida area via the short sale process. Thank you so much for your time today, and we hope to have you back again very soon.”

CM: “Thank you Kevin, it’s always a pleasure.”

KS: “Remember folks, whether you’re buying a home to live in or you’re looking for one as an investment, work with an experienced real estate agent who knows the local Orlando, Florida area. Your Realtor® can prepare a Comparative Market Analysis (CMA) to help you make informed decisions. An agent who specializes in short sales and foreclosures can explain the benefits and pitfalls of buying properties in those categories, too.

A good real estate agent is worth their weight in gold! If a real estate purchase in the Orlando area is in your future, either as a home owner or investor, talk with a Realtor® now about the advantages of taking action in today’s affordable market.”

If you’re currently in the market to buy a home, and are wondering if now is the right time to pull the trigger, check out this article Chris Myers wrote detailing whether now is the right time to buy an Orlando, Florida area home.

Is A Short Sale Right for Your Situation?
Find out today: If you live in Central Florida, contact The Orlando Property Group, your experienced short sales agents, specializing in real estate in Lake, Seminole, Orange, and Volusia Counties.

Seaching for a great real estate value in Central Florida? Need help with a short sale?
Call or email me TODAY to go over your options!!!!!!

“It’s only a buyer’s market if you’re ABLE to buy!”

Looking for specific information regarding Orlando Florida real estate prices and communities? Get Your Free Market Snapshot

Read Also: Orlando Florida Facts & Resources

Short Sale Rule Changes

admin — Sat, 02 Jan 2010 02:49:57 +0000

New Short Sale Rules Speed Up the Process

Financially stressed homeowners left hanging while their banks consider whether to approve the short sales of their properties may benefit from new federal guidelines that give lenders a 10-day limit in which to respond to purchase offers.

The rules announced earlier this month from the U.S. Treasury, which also allow financial incentives for both sellers and lenders, could figure prominently in Florida’s housing market.

The effect of the new rules will likely be somewhat limited because only banks that owe the federal government TARP bailout funds must comply. And according to Balanoff, even when certain banks do push for faster short sales, there is so little consistency among mortgage negotiators that he doesn’t expect the new deadline measures to be applied or enforced evenly.

Read more about the short sales rules »

More Economic Woes for Orlando: Disney Announces Layoffs

admin — Sun, 01 Mar 2009 05:04:51 +0000

A report by journalist John Couwels for CNN says Disney World has announced a major loss of income and is planning to layoff employees, maybe as early as this week. Even the Magic Kingdom can’t avoid the reality of the country’s economic slump and this year could be even worse. Officials expect tourism to be down from 8 to 10 percent in 2009.

Disney employs some 62,000 individuals, making it the largest single-site employer in the U.S. “We are bigger than the Pentagon,” says Disney spokesman Mike Griffin. Although he wouldn’t say how many cuts are anticipated, he indicated the number would be significant but affect only back office workers, so visitors to the park won’t notice any difference.

Merchants along International Drive near the Disney attraction, such as hotels, restaurants, and tee-shirt shops have been hurt by the drop in tourism. One gift shop owner, Aby Aly, said business is down by 35 percent. A local restaurant owner, Pom Moongauklang, is doing whatever she can to keep the doors open. She cut her employees’ hours rather than cut jobs, lowered prices and extended hours. She’s working 60 to 70 hours a week. “It’s killing me, but it’s working,” she said. She, like many business owners near Disney, are hanging on.

In the suburbs, away from the business district, more businesses have closed and neighborhoods are seeing increased foreclosures. This bad news for the Orlando area, however, means good news for home buyers. Sales prices and interest rates are at record lows. Homeowners are selling via short sales for less than the mortgage amount or falling into foreclosure resulting in further reductions in house prices. With the glut of houses on the market today, buyers can choose from thousands of homes and take advantage of bargain prices.

If you’ve been dreaming of owning a home in the Orlando area, now is the time. Whether your first home, a second home or downsizing for retirement, your dollar goes farther than you could have imagined, and this is your opportunity to find the perfect home in Central Florida.

Read Also: Orlando Florida Facts & Resources

If you are wanting to sell your Seminole County or Orlando area home in the next 6 to12 months, now is the time to begin putting your plan into place while time is still on your side. Please contact us for any real estate assistance you may need. We’re experts at putting people together with homes they love and can afford. Contact us today for information on Orlando and Seminole County real estate, Orlando & Seminole County homes for sale, Orlando & Seminole County relocation information, a free market analysis of your Orlando area or Seminole County home or statistics on homes in Orlando & Seminole County Florida or the surrounding Central Florida area, including Seminole County, Orange County, Lake County and Volusia County. We’re always available to answer your questions.

What to Expect With A Foreclosure

admin — Tue, 24 Feb 2009 21:39:07 +0000

If you’re an Orlando homeowner teetering on the edge of financial collapse, President Obama’s foreclosure relief program may not arrive in time to save your home. You may think foreclosure is an option but do you know what to expect? An article by David Colker of the Los Angeles Times offers some insight.

You could continue paying as long as you can scrape the money together, but Mike Hines, a speaker for NeighborWorks Homeownership Center in Sacramento, says that plan frequently fails. “There is a point where you are just throwing money into a ship that’s sinking, I’ve seen people run up $10,000, $20,000 on credit cards to try and save their house, and they lose it anyway.”

Hines says homeowners who call to negotiate with their lenders are usually routed directly to the collections department, but it’s good to get your attempt on record and keep track of all calls made by you or to you.

When you’re late, you’re late. The no-penalty grace period applies to the late fee not your status: One day past the due date and your officially delinquent. Calls from the collections department may begin. If your history shows payments made consistently 11 days past the due date with never a missed payment, you probably won’t be bothered, but it depends on you lender. Initial calls may be friendly but will quickly deteriorate into suggestions of selling your car, cashing in your 401k or borrowing from relatives so you can make your mortgage payment.

Esther Cadavid, chief development officer for the Los Angeles Neighborhood Housing Services, reports their organization provided counseling to 5,500 homeowners with mortgage problems. In spite of their efforts, the results were not promising. “About 6 out of 10 families that we saw were not able to save their homes,” Cadavid said.

If the worst happens and you’re not able to make your payments, the lender will initiate the foreclosure process and file a Lis Pendens with the County. This puts everyone on notice of a pending law suit which is soon followed by the actual suit. At that point the clock is ticking until you’re evicted and the property is offered for sale at the County Courthouse. You may still stop the proceedings by paying all past due payments, fees and penalties and bringing your mortgage current. Or, there’s a possibility of having the lender approve a loan modification but you’ll have to meet certain requirements including proof you can make the adjusted payment. And, of course, there’s the remote chance that the President’s relief plan will move faster than predicted.

What else can you do? Consider a short sale. Homeowners may find a quick sale of their property offers the best solution to their current mortgage woes. Learn the basics of short sales or talk with an experienced short sale agent to know if this option is right for you.

Is A Short Sale Right for Your Situation?
Find out today: If you live in Central Florida, contact The Orlando Property Group, your experienced short sales agents, specializing in real estate in Lake, Seminole, Orange, and Volusia Counties.

Seaching for a great real estate value in Central Florida? Need help with a short sale?
Call or email me TODAY to go over your options!!!!!!

Looking for specific information regarding Orlando Florida real estate prices and communities? Get Your Free Market Snapshot

Read Also: Orlando Florida Facts & Resources