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.