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Florida Republican Representative Kelli Stargel (Lakeland) was one of the strongest voices among Republicans on a recent House panel pushing to rush a version of the Senate’s Amendment 6 through to the house – resulting in its new existence as HB 7189.

On Monday March 29th, Representative Stargel will play host to a mass of Polk County Teachers and education supporters prepared to tell her just what they think about this most recent attack on Florida’s teachers.

March 29, 2010 Tired of Tally Rally Details

The event, planned by the Polk Education Association (PEA) and titled the “Tired of Tally Rally,” will be held on Monday March 29th, 2010 from 11:30 AM to 1:30 PM at Representative Kelli Stargel’s office located at 2000 East Edgewood Drive, Lakeland 33803-3639.

PEA organizers encourage local public school teachers, their friends and supporters to show up for this rally wearing red shirts and holding home-made signs.  For more information, contact the PEA Office at 863-533-0908.

Technorati Tags: HB 7189, Kelli Stargel, Polk County Teachers, Polk Education Association, Senate Bill 6

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Sponsored by Senator John Thrasher (R-Jacksonville), this bill (and its house companion HB 7189) makes fundamental changes in how teachers are hired, fired and paid.

While many on both sides of the aisle agree that more flexibility and accountability is needed, this legislation is perceived by many as an attack on public school teachers. Florida would be the first in the nation to tie teacher salaries so tightly to their students’ standardized test scores.

The Senate has rammed through legislation that will have a huge and immediate impact on the quality of classroom instruction, especially for the most at-risk kids. Teaching-to-the-test will be far more rampant, and we’ll lose our best teachers. Click here to tell the Florida House to stop this bad bill now.

Facing salary cuts, contract termination and even the loss of their teaching certification if student gains are deemed insufficient, the best teachers are unlikely to be willing to work in low-performing, high-risk schools with the students most in need of their expertise.

Your can see the bill and its history on the Florida House of Representative’s website here: http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=44566&SessionId=64

Here are some of the more controversial elements:

School districts are required to base 50% of teacher’s pay each year on student gains on standardized tests.

But there is no special provision made for teachers with disadvantaged students, which means there is no consideration given to the large number of factors affecting student performance over which a teacher has no control (home environment, for example, which effects everything from reading ability to whether they went to bed on time and had a decent breakfast before test day). The bill also doesn’t address the fact that the lowest-performing students also tend to be the most transient — the makeup of a teacher’s classroom can change as much as 80% in the course of a year. How do you decide which kids’ scores affect which teacher’s paycheck with that kind of turnover?

School districts will no longer be allowed to consider teaching experience or advanced degrees in determining salary.

In fact, they will face financial penalties imposed by the state if they choose to do so. If the goal is to increase teacher quality, why remove incentives for teachers to seek graduate education? And why remove incentives for experienced teachers to remain in the public schools? Critics suggest that these measures punish all teachers, especially the best, rather than just ineffective ones.

Teachers will no longer have tenure and will be granted only annual, single-year contracts.

They can be fired if their students’ gains on standardized tests are insufficient. They can even lose their teaching certificate. Just as with salaries, the legislation makes no provision for teachers working with high-risk students.

The bill would also eliminate programs that address regions with critical teacher shortages and that provide loan forgiveness for teachers willing to serve in low-performing schools.

If you truly care about Florida’s education system, it’s ability to truly help students, and to hire and retain superior educators, please take time to call or email Florida House Speaker Larry Cretul and tell him that you oppose SB 6 and HB 7189.  Contact information for Speaker Cretul is as follows:

Larry Cretul (R) – Florida House Speaker

Capitol Office
420 The Capitol
402 South Monroe Street
Tallahassee, FL 32399-1300

Phone: (850) 488-1450
Email: larry.cretul@myfloridahouse.gov
Reprinted by permission from CivicConcern.org

Technorati Tags: Florida Education, Florida HB 7189, Florida SB 6

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While the stock market rallied – posting its biggest gains since November – Florida mortgage rates climbed a bit; showing us once again that as money flows back into riskier stock investments, it flows away from mortgage bonds and thus, rates rise. Supply and demand – gotta love it.

Three key factors impacted last week’s Florida mortgage market:

1. Bank balance sheets looked better than we feared
2. Discussion started on new bank valuation methods
3. Traders began to feel that “the worst is over”

We’re likely to see the rally move into this week as well, especially after a  60 Minutes interview with “Uncle” Ben Bernanke in which he pledged to save big banks from failure and that the recovery will likely begin later this year.  An interesting aside: This was the first interview with a sitting Federal Reserve Chairman in history.

Eyes on the Fed This Week

Wall Street will fix its focus on the Federal Reserve this week as it wraps up a two-day meeting Wednesday after which the Fed will issue its standard, post-meeting press release at 2:15 P.M.  No Fed Funds rate is expected.  However, the markets will surely watch Fed’s language for clues about the next phase of monetary policy.

As a rule, when the Fed hints that inflationary pressures may build, mortgage rates rise.  Perhaps as a sign of what’s to come, in the above interview, Bernanke alluded to inflation and the need to control it in the future.

Low Florida Mortgage Rates Still Attainable

Even with last week’s small increase, mortgage rates remain low and favorable for high-credit scoring borrowers.  We’re still in a volitlie market, so if you’re nervous about rates rising, it may be best to lock early in the week — before the Fed’s Wednesday announcement.

Apply for a Florida  Mortgage Today

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Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL 33884	Mobile: 863-604-3019 Fax: 888-496-0265 Email: kevin.s@sigfunding.com http://www.floridahomeloanspecialist.com
Building effective relationships one step at a time…

Technorati Tags: Ben Bernanke, Chairman of the Federal Reserve, Federal Reserve System, Florida, Florida Mortgage, Mortgage, Stock Market, Wall Street

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Boone Middle School TSA Needs Your Help

Despite what hardships or cutbacks we might be having to make right now as Internet marketers (yes – real estate industry bloggers really do qualify as such), we are truly fortunate to work in an industry that we love and supports ourselves and families.

I am a firm believer of passing on some of that fortune, that’s why I want to tell you about the Boone Middle School Technology Student Association – a co-curricular technology club of which I am the Chapter Advisor.

Boone Middle School is in Haines City, Fl. It is a Title 1 school, which means that the vast majority of their students come from low income or at risk homes.

The Technology Student Association is a great program, and it has a history of taking kids that have little or no direction and giving them something to be passionate about, something to enjoy.

Fact: Many of our best academic competitors were once troubled or at-risk kids.

I’m involved with the organization as an educator because it reminds me of myself at that age – all geeked out and constantly interested in technology. Unfortunately, we didn’t this awesome program at my school!

Boone TSA is raising funds to cover costs associated with getting to State competition. Six of our kids have already qualified, but as most come from lower economic backgrounds – their parents can’t swing sending them to the 3-night overnight conference – to be held in Orlando.

Should you wish to donate – please click the “Donate” button in the Sprout Widget above.  Oh – and be sure to watch the video to get a real sense of what these kiddos are up to! It will definitely boost your morale re: the future of our Great Nation!

Please use any, and or, all your power as Internet marketers to spread the word about this very very deserving cause!
Sincerely,

Kevin Sandridge
Florida Mortgage Blogger

Apply for a Florida  Mortgage Today

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL 33884	Mobile: 863-604-3019 Fax: 888-496-0265 Email: kevin.s@sigfunding.com http://www.floridahomeloanspecialist.com
Building effective relationships one step at a time…

Technorati Tags: boone, boone middle school, charity, donate, fund raising, middle, school, technology student association, tsa

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I want to say right off the bat that I am not a Florida foreclosure attorney, and that this article is meant to be used for informational purposes only.   Please be sure to consult a legal professional who understands the finer points of Florida foreclosure law before making any final decisions or determinations. Now, on with my post…

Foreclosure is something no one wants to face, but it’s all too common a situation for many Florida families today.   As such, I wanted to provide a little bit of information about Florida foreclosures, how they’re structured, and where you might want to look in the unfortunate case you and your family may be facing one.

The Initial Foreclosure Process

Florida foreclosures begin when lenders record a notice with the court, known as a Lis Pendens – stating that they plan to begin the process against a borrower.   At this point, your lender will contact you – usually via mail – to let you know that they have initiated the foreclosure process.

If you, as the borrower, do not respond to this notification/court action, by the specified deadline, the county clerk may find you in default.   Should this happen, your lender may then ask the court to make a final ruling in the case.   If the court rules against you, the ruling will include the total amount owed to the lender and will let you know exactly when the foreclosure will take place.

It should be mentioned here that the last thing your lender wants is to take on your property.   What they want is your payment.   In most cases – especially in today’s housing and economic environment – your lender will contact you by phone prior to initiating the foreclosure process to inquire as to why you haven’t made your payment(s). This is assuming that you haven’t already contacted them – which you should… immediately!

I say this because there is no law that requires your lender to contact you before the begin the foreclosure process on your Florida home.

Remember, in all things relationship/financial:
Open communication = GOOD… Ostrich head in the sand approach… BAD.

Notification of Sale and Foreclosure Auction

There is usually some lag time between the time your are first notified about the pending foreclosure and the actual court ruling.   Many factors can extend this time period, and I encourage you to contact a Florida foreclosure attorney to determine exactly what steps you should take once you are initially notified.

Should the court rule that your foreclosure move forward, the actual foreclosure sale date will be set for sometime between 20 to 35 days after the ruling date. You should be notified by the clerk of the court as to the time, date, and location of the sale, and this notice will also be published once per week for a period of about two weeks – followed by a second notice 5 days before the actual sale.

Typically, the sale (auction) of your Florida home via foreclosure will be overseen by the clerk of the court and will take place sometime around 11: 00 on the sale date.   If a winning bidder is established,   they must pay a 5-percent deposit and agree to pay off the remaining balance by the end of the day.   If that bidder fails to follow through, a new sale is scheduled a minimum of 20 days later.

The Florida foreclosure process may be swift, or it may linger on for a while – depending on the number of foreclosures in the pipeline.   Here in central Florida, multiple auctions are not uncommon.   Once a bidder successfully pays for the property, they receive a certificate of sale from the clerk of the court, and the deal is done.

Note: As recently as February 26, 2009 – the Huffington Post announced that a chief judge for the ninth circuit in Orange County, Florida — an epicenter of the foreclosure crisis — ruled Wednesday that mortgage providers must negotiate with borrowers before foreclosing on their homes.   While this may not mean that you will necessarily be able to avert foreclosure, it does offer up some hope that the light at the end of the tunnel is still at least flickering.

Now, go call your Lender!

Related articles by Zemanta

• Central Florida Short Sale Seller Testimonials (brokerbryant.com)
• In Florida, Despair and Foreclosures (nytimes.com)
• Florida Foreclosures and the Importance of the Home Inspection (brokerbryant.com)
• International Buyers Investing in Florida Real Estate. (brokerbryant.com)
• Foreclosure Rates Still Climbing (abcnews.go.com)
• Housing Fix Could Help Many – but Not All (mymortgageinsider.com)
• MetroI4News.com – Winter Haven Florida Housing Report for January 2009 (metroi4news.com)

Technorati Tags: Business, Economics, Featured, Finance, Florida, foreclosure, Huffington Post, Lis Pendens, Mortgage, Real Estate, United States

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So, What Can I Expect with My Florida Home Appraisal?

It’s the question all Florida Realtors and Mortgage Brokers should be able to answer as the new year approaches.   Things   with Florida home appraisals are changing.   Read on to find out how…

Fannie Mae is establishing additional appraisal requirements to go along with the existing Uniform Standards of Professional Appraisal Practice (USPAP).   The NEW Form 1004MC - “MARKET CONDITIONS ADDENDUM to the APPRAISAL REPORT” – will be required on all Florida appraisal reports for single to 4-family home loans dated on or after April 1, 2009. However, as I will explain, many appraisers and lenders are asking for the   information found on the 1004MC now!

Basically, the 1004MC asks for more information about market trends, supply and demand, marketing times, prior listings, and the like.

I’ve provided answers to some of the questions I’ve been asked most about the 1004MC.   I hope they help to clear some things up for everyone.

As a Florida Realtor or Florida Mortgage Broker, Why Should I Care?

You should care because the new information requirements of the 1004MC can cause significant delays in closing your client’s Florida home loan on time.   It’s not enough to say “Hey, that’s the Appraiser’s job, not mine!”

Folks, this falls into the “Help the Appraiser Help You” category.   I’m not suggesting that you try to influence their decision in any way whatsoever.   I’m just saying that customer service matters as much to our internal customers as it does to those we service externally.

Streamlining the Florida Home Loan Process by Helping Out Your Appraiser

You need to bone up on this addendum so you can be sure your client’s Florida home loan comes through with as few glitches as possible.   Here are some points to keep in mind:

• Banks and other lenders are becoming more stringent than ever, and as an informed Realtor or Florida Mortgage Broker, YOU can do a lot to be sure your client’s loan goes smoothly.

• The 1004MC requires detailed information that hasn’t previously been requested.   Keep in mind that this issue pertains to both Fannie and Freddie products.
• You need to understand how appraisers reach their   conclusions about the area’s market conditions AND how these conditions affect the value of your client’s property.   Knowing what appraisers must include on their reports will help you understand why a value (versus the sales price) has increased or decreased.
• Collecting this information early on not only helps the appraiser, but can help you when listing homes.
• YOU can help provide the necessary information to speed up the appraisal and the entire lending process. Be the Super Hero!

Here are some answers the most frequently asked 1004MC questions I have received from my Realtor clients to date:

When will the Market Conditions Addendum go into effect for Florida home appraisals?

Lenders are already requiring much if not all of the information listed on the 1004MC.   However, the “official date” for the addendum to take effect is April 1, 2009.

Note: If your Florida home appraiser isn’t already requesting this additional information, you can expect them to start any time now.

What if my client’s Florida home has been listed more than once within the past 12 months?

Appraisers are required to report details if the property has been listed multiple times. As a Florida Home Loan provider or Realtor, you can help make sure this information is readily available ahead of time.

Note: Even now, Florida home loans are being held up at closing when this information is not available.

Is it necessary to disclose seller concessions for use on the Florida home appraisal?

Yes.   All concessions, whether seller or third-party of any kind, must be listed on the appraisal. This also applies to any concessions updated or added AFTER the appraisal completion.

Note: You will have a big problem at the closing table if the concession dollar amount on the HUD-1 does not match the figure in the appraiser’s comments.

Can the Florida appraiser still parse out smaller acreage totals for comps if my client’s is buying or selling the only large lot in the area?

No.   If large acreage is not normal for the area, appraisers can no longer parse out a small acre total from a larger one to make a comparable analysis.   For example, they may not take out 4-acres from your client’s 24-acre parcel to determine value against another nearby 4-acre parcel.

Appraisers must count the entire value of the land, which might really mess up its value.   However, you can remedy any pricing difficulty by successfully applying for a new land parcel description that legally separates the home’s lot from the rest of the acreage prior to closing.

Will Florida Appraisers still have to check with third parties to evaluate Florida homes listed as new construction?

No.   And this should be seen as good news!   Appraisers may now use information provided from the Builder or Realtor instead of verifying with a third party service.   The only stipulation is that there must be HUD-1′s available to verify sales prices associated with new construction comps. (Check with your title company for help with this.)

So… You Got All of That?   To Help Keep Things Straight – Here’s a Short Recap of What Florida Appraisers Will Be Looking For:

• The percentage of listings vs. actual sales over the past 6 months
• Number of days on the market
• Information on all seller concessions in relation to what is “usual and customary” for your area
• The area’s median sales price vs. list price
• The average listing price vs. sales price
• The extent of foreclosures in the area

So do yourself, and your Florida home loan clients a great service by collecting as much of this information for your appraiser as possible. They’ll thank you for it!

Referenced: Leslie Petersen – MortgageCurrentcy.com

Additional Resources

• Back To Basics – How Do We Make Appraisals More Reliable? (appraisalnewsonline.typepad.com)
• Fannie Mae Relaxes Standards For Refinancing [Refinancing] (consumerist.com)
• The Appraisal Foundation Offers Online USPAP Course (appraisalnewsonline.typepad.com)

Technorati Tags: Fannie Mae, Featured, Florida, Florida Home Loans, Florida Homes, Home Appraisals

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New figures for average state teacher salaries were recently released.     While the state ranked 29th overall – up one spot from 28th since the 2006-2007 rankings –   Polk lags behind Florida’s   salary average by about $2,500.

The national average was $52,308. The average teacher salary in Florida in 2007-08 was $46,930, putting it at No. 29 nationally, and behind Georgia ($51,560), North Carolina ($47,354), Kentucky ($47,207) and Louisiana ($46,964) in the South.

News of future cuts is circulating around the state, and Polk County will see its share of cutbacks, as recently reported in a Lakeland Ledger news story about the Harrison Performing Arts Center facing budget cuts for the 2009-2010 school year.

Technorati Tags: Florida, teacher salaries

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OK folks – time to dish out some of that Holiday Spirit!

Care2.com has just announced their 2nd Annual running of America’s Favorite Animal Shelter contest:

“A New Year of Hope for Animals.”

We spend a lot of time within our respective networks talking about the sad state of economic affairs, families losing their homes, and good people being, quite literally, shut out in the cold with no place to live.

As you consider these things, I urge you to think about the many animals who will find themselves left with no home, no family, and no one to love them.

Then, I want you to go one further… Take Action!

Take time to visit the Care2 and Adopt-a-Pet.com website and vote for your favorite local animal shelter. Shelters in the United States and Canada will share a pot worth $25,000 donated by Care2, but what’s so cool about this contest is that there are so many winners!   Heck, they’re even picking random weekly winners to receive $500 cash awards!

"Yeah, yeah, yeah... the treat goes right in here!"

Give Some Link Love to a Florida Bird, Rabbit, Horse, or… (Dah Damp!)… Gator!

An important thing to note here is that this contest also includes groups that provide aid and assistance to animals other than dogs and cats – like birds, rabbits, horses, and yes… even alligators!

Here’s How You Vote for Your Favorite Florida Animal Shelter or Florida Animal Rescue Group

• Visit Care2.com/animalsheltercontest and choose your favorite animal shelter or rescue group.
• Email or call your friends to let them know about the contest so they can vote, too!
• Remember to tell them that the shelter or rescue group with the most votes wins $10,000.

But Wait… There are More Ways Your Florida Animal Shelter Can Win!

• Second and third place winners receive $1,000, and groups that garner 4th through 20th place each get $500.
• Each week, groups who gain five or more votes that week will be selected at random to receive $500.
• The top 20 super voter recruiters will earn their favorite shelter a $500 pet product gift certificate.

So, what are you waiting for, Florida Animal Lovers?   Get started voting and spread the word!

Technorati Tags: Animal Shelters, Florida, Florida Homes, Florida Homes, foreclosure

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Every Wednesday, the Mortgage Bankers Association (MBA) puts out its Weekly Applications Survey, a comprehensive analysis of new mortgage applications submitted over the past seven days.

This week,   — the MBA’s report will confirm what most of us already know – a frenzy of mortgage activity has come onto the scene due to plunging mortgage rates. Hopefully, you’re one of many Americans making hay with today’s low mortgage rates.   If so, I hope   you read and understand this statement:

When your rate was “locked,” it was done so with an expiration date!

Most likely, that  rate lock was for thirty (30) days. Now, if you feel that 30 days feels like a comfortable amount of time, I offer you these words from our good friend Mr. Lee Corso of the ESPN College Football Game Day program:   Not So Fast My Friends! . ..Especially if your rate locked before this past Thanksgiving, as these lock periods will lose a total of 14 days due to weekends and holidays – not to mention the 4 days you lose because of the Right To Cancel clause.

For this reason, your 30 day lock will actually provide 12 “working” days to underwrite and approve your mortgage – which is not a whole heck of a lot of time at all.   To make matters worse, most underwriting departments – even at large lenders – have suffered such large personnel cutbacks that they are woefully understaffed and are hardly capable of handling even a modest work flow in a timely fashion.   The fact that December is a prime vacation month doesn’t help things much either!

So, the best way for you to help your Florida mortgage broker close your loan within the official 30-day rate lock time frame is to be as responsive as possible to the process:

• Return, by fax if necessary, all pay stub, insurance declaration pages, bank statements (all pages, even that blank one at the end!), etc. to your mortgage broker the same day they’re requested
• Appraisers are getting busy again, so be sure to schedule your required appraisal as soon as possible
• If a closing date is scheduled, stick to it.   Delaying your closing date by even one day can negatively impact your rate lock.

Folks, mortgage rates are at near 3-year lows, and the number of homeowners refinancing their loans is growing.   As few of them have increased personnel, lenders and their underwriting departments will become more and more overburdened.   If you’re looking to refinance your Florida home loan, now is the time.   If you already have a loan in process, stay on the ball to keep your 30-day rate lock from expiring.

I hope you enjoyed this article. As your Florida Home Loans Specialist, I’m here to answer any questions you might have about the mortgage industry. If I can help you locate financing for your Florida home purchase or assist you with a refinance, please do not hesitate to contact me at 863-604-3019.

Technorati Tags: Florida, Florida Mortgage, Mortgage Advice, Rate Lock

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With the considerable declines we’ve seen in the Orlando, Florida real estate market and record numbers of foreclosures making headlines each day, you are in the   minority if you still haven’t heard the word “short sale.” The term isn’t new, but for many, it still represents a fair amount of confusion – especially when considering its relationship with foreclosures.

• Foreclosures take place when a lender takes possession of a home from a homeowner (borrower) because the borrower fails to pay as agreed.
• Short sales take place before a home goes into foreclosure when lenders agree to make arrangements with the borrower to settle their mortgage for less money than was previously agreed.   In doing so, these lenders agree to take a loss.

Through the short sale process, lenders avoid the legal process of foreclosure and borrowers keep from having a foreclosure listed as a derogatory item on their credit record.   For Florida homeowners who are fighting to make their loan payments and remain unable to get their lender to agree to a loan modification, a short sale may make more sense than a foreclosure.

Short Sales don’t go through the legal process in the same way foreclosures do.   For this reason, bargain hunting home buyers may see the short sale as the easier pathway to home possession. However, it’s important to note that the short sale process can be very complicated at best.   This, coupled with the fact that every lender has different requirements for closing short sales, means that you should definitely map out the pros and cons of this type of transaction before you make an offer.

Orlando, Florida Short Sales Expert Chris Myers Shares His Expertise

I had the opportunity to speak with Orlando, Florida Realtor and Short Sale Expert Chris Myers today about the recent history of short sales in our area.   He stated that during the real estate market bubble of 2005 and 2006, many Central Florida home sales were based on local buyer frenzy.

“Buyers engaged in bidding wars at the drop of a hat, which resulted in outrageously overpriced home sales prices,” said Myers.   “What was really happening, it turns out, was that a house of cards was being formed under what appeared to be a strongly supported uptrend in home values.”

Myers continued by stating that “appraisals for refinances were based on these exorbitantly high sales prices, and when the market cooled, many homeowners found they “cashed out” too much of their home’s falsely perceived equity and owed more than their homes were worth.   This situation is known in the mortgage industry in being upside down on your mortgage.”

Myers then explained that at this point, the homeowner has to decide if they can keep making payments on their home or consider alternative action.   Often, those who feel they can no longer remain in the home opt for short sales instead of foreclosures, which makes sense from a long standing credit rating preservation standpoint.”

“However, just because a lender agrees to a short sale and thus, to take from you less money than you owe on your mortgage, doesn’t mean they are willing to take an absolute bath,” said Myers.   “Lenders quite often insist on pricing these homes at values that are fairly competitive within fair market limits, which means they may not represent the “steals” buyers are looking for.

At this point I had tons more questions for Chris, and he graciously answered them each one by one. I’ve taken the opportunity to break them down for you below.  

What was clear after our conversation is this:

If you’re considering buying or selling a home through a short sale, it is absolutely imperative that you contact a Realtor like Chris Myers who possesses considerable short sale experience.   He’ll take you through the steps necessary to complete a successful transaction.

1. Homes Sell “As Is”
The idea of making repairs on a home up for short sale is out of the question for most lenders, since they’re already taking a financial hit.   They have the full expectation that you will accept the home in question “as is.”   For this reason, you absolutely must secure the right to order and pay for a general home inspection or – at the very least – specific inspections including but not limited to the homes roof, pest situation (especially important in the Orlando, Florida area), and sewer.   However, regardless of what these reports find, they are for your information only.   They’ll help you decide whether you want to move forward with the sale, but in now way will they provide you with any leverage when it comes to negotiating with the lender.

What to do: Order inspections to ensure that you’re prepared for any additional investments you may need to make after you close.

2. Lenders May Renegotiate Anytime
Lenders will do what they must in order to limit their financial losses.   Often, they include a clause in their   short sale contracts granting them permission to renegotiate the contract at any time. This can man something given that short sales can take months to close.   Lenders will want to take advantage of any upturn in the Orlando, Florida real estate market, a new law passing that may play things in their favor, or any other change that might enable them to increase the home’s ultimate sale price.

What to do: Locate an Orlando, Florida real estate agent who specializes in short sales who can keep you apprised of changing conditions that might negatively impact your short sale agreement.

3. Discounted Real Estate Agent Commissions
Agents working with short-sale properties may be accepting a reduced commission from the lender instead of what’s customary for your area. While this may not seem to affect you, it might come into play if you are working under a Buyer-Broker agreement and have agreed to pay a certain percentage to your agent. Your agent may expect you to make up the difference between what the lender pays and what you agreed to in your Buyer-Broker contract.

What to do: Before signing a Buyer-Broker agreement, discuss an adjustment to the commission rate for a short-sale property and include a clause or add an addendum later to cover this situation.

4. Higher Closing Fees
In the Orlando, Florida area, certain closing fees are normally paid for by or divided with the seller.   In a short sale, lenders do not tend to be this generous.   Remember, their main objective is to collect as much for the home as possible.   They won’t be too keen on giving away any of these proceeds to supplement your closing costs.   For this reason, you could end up with certain fees on your side of the balance sheet at closing.

What to do: Work with your real estate agent to make sure you are fully aware of any and all fees you will be responsible foe paying at closing.

5. Complications from Multiple Loans
More often than you might imagine, a homeowner selling through a short sale will have both a first and a second mortgage on the property.   This may have taken place as part of a piggy-back 80/20 loan, or perhaps they took out a home equity line of credit (HELOC) to pay off some bills or complete repairs on the house.   In any case, a second loan of any kind will make your short sale more complicated. The lender with the first mortgage may have to offer some payoff to the lender in second position.   At the very least, this may extend the time period you will require to close.

What to do: Make sure you are working with an agent who is experienced with Orlando, Florida short sales   and understands the potential complications involved with a multiple-loan situation. The first thing your agent can do for you is to research the title on your selected property to determine what lenders are involved and verify existing loan amounts.

6. Length of Time to Closing Date

There are no shortage of short sale eligible properties on the market here in Orlando.   For this reason, the lender or lenders – who are fielding such offers from all over the state and across the country – may be overwhelmed.   It may take these companies a few weeks or even months before they complete even the initial review of your short sale purchase offer.   Lender response times throughout the purchase process vary, and if Murphy’s Law factors in, if delays are possible, then there will be delays.

What to do: Although the lender may be bogged down with foreclosures, an experienced short-sale real estate agent will know the best way to work with the lender to minimize delays and can include a deadline for the lender’s response in your sales offer.

Summary

Considering these and other unforeseen challenges involved with Orlando short sales, one might wonder why you’d ever want to mess with one.   The reason why Orlando short sales are absolutely worth working through these anticipated complications is because you may find the perfect property at a great price!

Buying a home represents much more than purchasing a property: It’s a personal decision about where and how you choose to live your life. When you find that special home here in Central Florida, where you can imagine yourself enjoying a particular lifestyle and making memories that you will treasure for the rest of your life, the benefit of realizing those dreams outweighs potential pitfalls of buying through the short-sale process.

Technorati Tags: Florida, Orlando Florida, Real Estate, Short Sales

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