blog/web-journal

A short sale , is defined as an ‘agreement’ to allow a home to be sold for less than the amount that is owned.  This can basically be a compromise for all parties.

For a lender, it can help avoid the hassle and expense of seizing and auctioning off real estate in delinquency.  For the owner, it can save some of the pain and major credit challenges associated with bankruptcy and/or foreclosure.

It is important to note that short sales occur at the sole discretion of the existing lender or servicing company.  Any potential would be buyer needs to understand this.  While a seller and buyer may come to some type of agreement on their own, the lender will have the ultimate say in granting final approval of this legally-binding arrangement.

Lenders are not looking to bail our borrowers who simply overindulged themselves during the recent boom.  A lender will only consider a short sale if the borrower has clearly suffered a serious financial hardship that is causing a potential default on the mortgage. 

Written declaration and supporting documentation demonstrating financial hardship, and the inability to make payments will almost definitely be required in order for a short sale to even be considered.  This may include tax returns, pay stubs, and liquid assets statements.  In addition, a borrower must be at least 91 days delinquent before a lender will even discuss a short sale.  Also, a lender’s hands may be tied depending on how the borrower’s loan was sold into the open market.

In addition, in the event a short sale is affected, the lender will most likely issue a 1099 to the seller for the difference between what is owed and the final amount the lender collects after the costs of the sale.  This means that the ‘deficiency’ can be considered as taxable income to the borrower. (It is also common for some lenders to attempt to get the existing homeowner to sign a note for the remaining amount.)

Should there be any liens against the property, then the lien holders will have to be involved in the process as well, not just the first lien holder.

With multiple parties involved, it is difficult to please all sides all of the time. Thus, there is no guarantee of success. 

Communication and patience are essential components of the process.

Florida now ranks No. 3 in the United State in regard to individuals seeking office space, and currently has the second lowest vacancy rate in the county.

Why is Central Florida so hot?  We’re inland, and not as hurricane vulnerable.  In addition, we have port access on both sides, which is key for the industrial segment of the market.

Commercial may ultimately be the driving force that carries the Central Florida economy through the next few years. 

US Hwy 27 & Sand Mine Road

(Behind The Berry Center)

A potential slow down in new home developments in the Four Corners area may begin to develop after next March.

Lack of schools will lead to this.  A new state mandate taking effect March 1, 2008 calls for classroom space to be available for a potential student influx before new subdivision plans can be approved.

Once the concurrency is in place, school capacity will be the determining factor in regard to growth.

Coming to Orlando in 2009 will be a new Waldorf Astoria hotel; to the tune of $500 million.

This will be the first  hotel of this brand to be built outside of New York City.  Look for it to be part of the large new luxury development in the Bonnet Creek area next to Walt Disney World. 

Private Mortgage Insurance

PMI is a policy that protects the lender by paying the costs of foreclosing on a home if the borrower stops paying the loan.  Although PMI protects the lender, the borrower pays the premium monthly.

Private mortgage insurance usually is required if the down payment is less than 20 percent of the sales price and only one loan is used.

Kissimmee Lake Front

…downtown…  …try it, you’ll like it…