Orlando Realty Consultants

Sometimes homeowners can afford to keep making the payments but they know that they’re over paying and they just want out of a bad investment. Today we discuss what the possible scenarios are for people who want to short sale their home without falling behind on the mortgage so that they won’t damage their credit

 

 

 

 

 

To submit a topic or a question to our “Top Orlando Realtors” Podcast fill out the form below and we’ll do our best to talk about it on the show.

Top Orlando Realtors Podcast Episode:004

Hello and Welcome to the show If , you’ve been here before, we are happy to have you back .

Anyone can submit a question or suggest a topic for the show, just go to http://orlandorealtyconsultants.com/blog/ and fill out the contact form.

I’m your host John Conde / Orlando Realtor and I hope everyone is still hanging in there with their New Year’s resolutions. I heard somewhere that most people don’t make it through January without breaking that resolution so if you’re still in the game then you’re doing better than most, so keep it up!

We currently have client in the Dr. Phillips area that has a pretty unique situation going on.

His name is Dave and he is allowing me to talk about his case on the show as long as I don’t mention his last name. So Thank you for that Dave.

To make a long story short, Dave had a great job, got laid off, fell behind on his payments and is now facing Orlando foreclosure. Dave wants to know if the bank can come after his other assets after the foreclosure sale of his house.

He doesn’t have much money in the bank, so he’s not worried about that. What he does have, is every toy that a man could want.  He has a ski boat, motorcycles, cars, RV, you name it..he’s got it, and everything is paid for.

Now, the best thing to do is stop Orlando foreclosure before it starts. Dave waited longer than he should have and only decided to take action after the lender had set a foreclosure date.

The sooner you take action, the better chance you have of stopping that foreclosure.

Unfortunately in this case, foreclosure was eminent. And being that he has well over $100,000 in assets, he has a legitimate concern because these assets or objects, are all he has left and he needs to sell them so that he could have some money to live.

Unfortunately, here in Florida, the lender can absolutely come after your other assets.

This usually happens when the bank takes a huge loss at the auction, especially if it’s a large loan.

And unsecured assets aren’t the only thing that people need to worry about, lenders can also garnish your salary and personal bank accounts.

 

You see, problems that can occur from a foreclosure sale don’t happen until after the sale has gone through.

Here in Florida, lenders can solicit the court for a “deficiency judgment” so they can try and collect the rest of the money that’s owed to them. Once they have a deficiency judgment in their possession, banks can go after any of your personal assets like a car or a boat.

The good news is that Florida lenders don’t usually go after someone’s assets following a foreclosure sale. Especially if they don’t see much to tap into. Collecting on judgments takes a lot of time and can cost the bank a lot of money.

Banks tend to pay more attention to jumbo loans because the larger the loan the bigger the loss.

In these cases the lenders will dig deeper checking your bank accounts…. especially if the accounts are with the same bank as the mortgage.  And Depending in the situation, banks can try to freeze or garnish these accounts.

There is another risk for smaller loan holders that can also occur. Most of the time,

Top Orlando Realtors Podcast Episode:003

Diego Fontana in the BVL area of Kissimmee asks…”How do they decide the value of a Short Sale property“The valuation of a property, in my opinion is the single most important factor of the whole short sale process.

Here’s the way it works. We start by submitting an offer to the bank, the bank will then order what’s called a BPO on the house AKA a Brokers price opinion.In some cases, the bank orders a full on appraisal, but most of the time it’s going be a BPO

The person that does the BPO is usually a local realtor hired by an agency that’s been hired by the bank.

So the realtor goes out to the property, takes some pictures, does some research. then based on things like

• recent sales in the area

• repairs that the home needs

• and even upgrades that the house may have,

They take all these things into account to create the BPO report. So this is the realtors opinion of what the property’s worth.

Whatever, the BPO comes in at will be the negotiating point between the lender and potential buyer.

The BPO happens…

Now At this point there are 3 things that can happen that will dictate what follows.

The BPO comes in at a fair valuation, everyone’s happy, and we proceed to closing.

or…

The BPO comes in really low, so low in fact.. that the bank insists on another one being done… and although it doesn’t happen too often, it can and does happen on occasion.

or…

The BPO comes in super high and the buyer threatens to walk.

When this happens, the Orlando listing agent has to Do whatever it takes to get the bank to order a second BPO

We do this by making a report of our own… called a CMA or comparative market analysis

This report has even more information than a BPO does.

The sole purpose behind sending them a CMA is to get the bank to order another BPO or if we’re lucky they’ll just use our report.

In the end, after all the dust settles, the lenders are the ones that decide how much they are willing to accept for the property.

So Diego, there you have it. I hope that answers your question.

That’s our show for this week, join us next week for the 3rd episode in our short sale series.

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In this episode Lucille from Metrowest asks if her lender will come after her for the remaining balance of the deficiency between her full payoff amount and what the property sells for if she decides to short sale her home. 

 

 

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Top Orlando Realtors podcast Introductory episode

In this episode you will learn

 

*   About Orlando Realty Consultants

*   About The Show

*   How to Get Your Questions Answered On The Show

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