Heather the Realtor - Orlando Area's Top Real Estate News

The topic of hot debate, what's the difference between a short sale and bank owned property (REO)?

This is a great question. There are two big differences. A property being sold as a Short Sale is still owned by the current home owner. They are in default on their mortgage and instead of being foreclosed on and ruining their credit more, they ask the bank to accept a sale and take less then what is owed to bank, it's the banks choice to take this or not and some banks are not offering this option anymore. A Bank owned property or REO (Real Estate Owned) is a property that has already been foreclosured on and has been taken back by the bank and being sold by them.

I have put together a pros and cons list of purchasing a bank owned and short sale property in and around the Orlando area.

Short Sale PROs:

From my stand point there are very few pros

1. These homes are often times in move in ready condition (home owner often times still live there)


Short Sale Cons:

1. Average time frame it takes to just get a response to an offer: 3 months but can take well over 6 months

2. The price you see has nothing to do with the price the bank is williing to accept. Hopefully the agent did their home work, but if an appraisal comes back $70,000 higher then the list price, be sure the bank will want that appraised value, they have no incentive at this point in the game to sell the property for less then what it's worth.

3. There are often times more then one loan on the property meaning that the short sale process involves more then 1 bank, double the time and work.

4. Since we are in a declining market the average depreciation right now is 1% a month. So lets say it takes 4 months to get a response to an offer you made back in February. You cant change your offer price and now the property might worth 4% less then what you offered. Not such a good deal anymore.

5. Sellers usually have no money to make repairs to a home and the bank isnt going to either.


Bank Owned Pros:

1. Response time. Banks normally respond to your offers in 24-48 hours.

2. Price is generally below market value, sometimes way below, meaning you truly get an outstanding deal.

3. Most times your appraisal will come back at asking price or sometimes $30,000 higher, meaning instant equity.

4. Even though properties are AS-IS you can still get new roofs put on and major FHA items taken care of before closing.

5. The price on the listing is a price the bank will accept no guessing.


Bank Owned Cons:

1. Some bank owned homes need TLC - New flooring, paint or missing appliances and fixtures that were taken out by angry home owners.

2. Since the prices are great there are often times bidding wars, so be ready. Homes normally have multiple offers on them within the first few days of entering the market.

Im sure each agent will have their own take. I started with short sales back in 2006 when very few of them were being done and things were different but as the market started to slide so did the process and my view point of them, so I got into listing REO properties for the bank and selling them to my buyers. I have the knowledge and experience of working both sides of these transactions and feel I come from a point of experience and not just perception

Heather Joubran at 407-810-6304 or send me a text or write me an email  Heather@HeatherTheRealtor.com   or if you are bored twitter me the message LAKE MARY REALTOR

As a full time buyers agent here in Orlando I have worked with just about all types of buyers, from the first time home buyer to the seasoned veteran. I have assisted clients who are Orlando natives and those that have come as far as Denmark. One thing remains true patience is needed when purchasing a home.

As a professional in my field of Real Estate my job is to educate home buyers and make the process as easy as possible. With the market being flooded with bank owned properties and short sales this becomes especially true.  It's a whole different beast then a regular resale.

Here are some common concerns and questions my buyers have had recently that may just help you when it's time to purchase a home.

1. The bank has verbally approved my offer but we haven't received the executed contract back yet, are they trying to get a better offer?

This is very common for most buyers to feel this way. They become upset and frustrated with the bank and the process and it can leave a bad taste. Please know that no deal is final until you have both signatures on the contract, but bear in mind that generally on a bank owned property if the bank says they are taking your offer, they are taking your offer. They aren't holding out for more money, they have a process they must go through to get the contract signed. Once the offer is verbally approved it often times goes from the Asset Manager that the listing agent deals with to an upper level manager who has the authority to sign contracts to get signed. This person may have 100 or 1000 of contracts just like yours from around the US, so it can take sometimes 2 weeks to get the contract back. In the meantime the listing agent has to leave the property active on the market, because without the signed contract they cant put it pending.

2. Why would the bank come back with almost a full price counter to my low ball offer?

Banks price their homes with a value that would sell the home in 30 days or less. Meaning these properties are generally below or at market value. If the home just entered the market the bank has no intention of just giving it away. Now if you want to get a low ball offer accepted wait til the house has been on the market 90 or 120 days and doesn't qualify for anything but cash and you have a good shot of being able to low ball the bank. Otherwise realize that if the home is new on the market it's priced where it needs to be and there are probably other people in line to purchase the home at full price or even over. (most my buyers dont have this scenario, they are fully educated and prepared for today's market and getting their offers accepted.)

3. I am told I have to have things done in 24 hours or quickly, why can the bank and their title company take so long to do their job?

Unfortunately the only actions we can control are those of our own. As a buyer of property you never want the default to fall on your shoulders. You dont want to not have something done because of your actions, it can cost you 100s or 1000s of dollars. The bank on the other hand sometimes has free reign and if it's their fault we are late they cant come back on you as the buyer. So it's better to do what we are suppose to quickly and try to understand that the bank is servicing 1000s of others just like you every day and is doing the best they can, patience is the key here. I promise as your Realtor I will do everything in my power to ensure your deal closes smoothly and on time.

If you are a buyer around the Orlando area and are ready to purchase a home remember a little bit of patience is needed, especially in this market, but a skilled professional in the Real Estate Industry can increase your chances for a stressfree transaction.

Heather Joubran at 407-810-6304 or send me a text or write me an email  Heather@HeatherTheRealtor.com   or if you are bored twitter me the message LAKE MARY REALTOR

You heard right, you can now use your First Time Home Buyer tax credit as your down payment on a home .

WHAT? I heard that you couldnt do this. Well now you can.

Beginning July 1, those who quality for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on the purchase of their home, and then repay the amount borrowed when they get their tax refund. The program will operate through local county housing administrators, though details are still being worked out

Great news for Seminole County First Time Home Buyers looking for down payment assistance. SHIP maybe out of money but that doesnt mean you can't get DPA.

If you have been thinking about purchasing your first home but didnt have the down payment now you don't have an excuse. If you are ready to work with a professional who knows the ins and outs of the Orlando home market as well as down payment assistance programs then call me,

Heather Joubran at 407-810-6304 or send me a text or write me an email  Heather@HeatherTheRealtor.com   or if you are bored twitter me the message LAKE MARY REALTOR

Have you dreamed about living in Lake Mary/Sanford Area? Looking for newer construction? 

I have a Bank Owned Gem / Reo Property right here in the Sanford/Lake Mary Area. This unit is not yet on the local MLS and here is your chance to get in before the rest of the market. Community is Gated and features a pool and playground, easy access to I-4, 417 and all that Lake Mary has to offer.

All month payment includes (HOA, Taxes, interest, insurance and mortgage principle) for less then $900/mo, all you need is $2800 to move in. With this home purchase you qualify for the $8000 First Time Home Buyer Tax Credit available to Lake Mary Area Buyers.

Bonus, the bank is paying for 6 months of HOA payments!

   3 Bedrooms/2.5 Bathrooms  2 Car Garage - Covered Patio, SS appliances, New Washer & Dryer, Immaculate condition just like new!  $79,900 or mortgage payments under $410/mo

Oh yeah forgot to mention.... Seller may pay all closing costs

If you are a Lake Mary First Time Home Buyer looking for a steal of a deal, then look no further, contact me today and start packing!

Heather Joubran   407-810-6304   Heather@HeathertheRealtor.com

If you are a first time home buyer in and around the Orlando and Lake Mary areas there is great news for you. You probably already know about the $8,000 First time home buyer tax credit available to you if you purchase prior to Dec. 1 2009.

However here is the even better news. Until recently you could not use these funds as a down payment on a home, you would get the money after you closed and amended your tax return. Local and state government have devised a plan to allow you to borrow the $8000 upfront from the local county organizations to use for a down payment and then will repay them with your tax credit, starting July 1, 2009.

This is fantastic news for many first time home buyers in Central Florida and means the realization of home ownership for many more. The details are still being worked out but make sure to bookmark my blog or subscribe via rss or just email me and I will make sure you receive priority notice of the details.

The House and Senate just completed their 60th day in legislative session and have some exciting things on the horizons for buyers. However,  the 2009 regular session of the Florida Legislature has been extended for a full week to finalize the budget.  So while there is still some finalizing to do, all non-budget legislation had to be considered for final passage today if it was going to have a chance of becoming law. 
 
More details are coming but one of the final bills considered tonight was SJR 532. This constitutional amendment will ask voters to limit increases in property tax assessments on all non-homestead properties to 5 percent annually.

First-time homebuyers could benefit, too, with an additional homestead exemption up to $100,000.

HB 521, the bill that puts the burden of proving that a property tax assessment is correct on the appraiser, not the property owner, I think this bill is great but how biased would the tax assessor be when showing the true value.

And last but not least when the budget is finalized next week, there will be $30 million for downpayment assistance to help "front load" the federal first-time homebuyer tax credit. Sounds like great news to come.