Orlando Short Sale Expert
Gitta Urbainczyk (P.A., E-Pro, RECS, CLHMS, Broker Associate)
Orlando is getting hit with an amazing amount of home foreclosures and more
and more people are falling behind in payments. The reasons are many. The
bottom line is that we are on the downslide of the real estate bubble.
Over the next two to three years, circumstances will be tough for many
people. The ripple effects of the real estate bubble are going to affect
many and adjustable rate mortgages are going to be the Achilles heel. I
don’t think there are too many solutions to the mortgage and real estate
crises hitting the country, short of interest rates going back to a 1%
level. This, plus allowing the entire real estate bubble to erect itself
out of the ashes, is perhaps the only solution. Unfortunately, I know this
is not going to happen. In the meantime, we need to deal with the millions
of home owners facing foreclosure. When you have missed the first payment or
you are about to be unable to make your next payment, actions need to be
taken to avoid foreclosure. There are some potential remedies. Your goal is
to avoid foreclosure and/or a foreclosure showing up on your credit. First
of all, here are three things you should never do.
1. Ignore it and hope it goes away.
2. Pay a fee for someone to take on a short sale of your home.
3. Deed your home over to an LLC, then allowing the LLC to deed the
home to a trust owned by an investor (a sure sign of a rip-off!). First off
all there are legal issues with deeding a property. Second, if the investor
cannot find a buyer, you will find yourself in big trouble. This market is
ripe for the scam artists. Play it safe. Speak to a real estate
professional familiar with short sales, a real estate attorney, or to
someone whose interest is not to buy your home but to help you prevent
foreclosure and loss.
Note: Also, Fannie Mae and Freddie MAC will no longer buy mortgages where
the title has been kept in an LLC or trust without the short sale lender and
the end lender being aware of what is going on. No more smoke and mirrors
allowed.
Alternatively, here’s what you need to do if facing a foreclosure situation:
1. Speak to your lender and explain to them the situation. Find out
if there are alternatives to foreclosure. Ask the following questions:
- Can payments be adjusted down?
- Can you keep your current payment so the adjustable rate does not
kick in? - Can you add your arrears to the back of the mortgage?
- Can they do a deed in lieu of foreclosure? (be careful - on your
credit this still shows as a foreclosure) - What other options are there?
- Ask if they will accept a short pay and you assume the balance to
be paid off later? - Ask for a forbearance agreement where payment is re-scheduled over
a period of time. (Keep in mind, the Lender needs to approve this and it
does not always work.)
2. Understand what your options are. Find the best information on the HUD website: www.hud.gov
3. Speak to a real estate professional qualified in the short sale process and see what can be done. Go to www.florida-foreclosureresolutions.com
4. File bankruptcy. I am not an attorney and we do not give legal
advice. You are best served in this instance by speaking to an attorney
that handles bankruptcy traction. If you have to do a BK, do it after the
home is sold in a short sale. From a credit standpoint, it will look better
to only have a BK and not a foreclosure.
5. Be aware, there is no guarantee a lender will grant a short sale
or give you a forgiveness of debt. However, based on our experience, it has
happened in all cases we have been involved with.
Doing a short sale on your property is the next option, one which a) causes
less damage to your credit rating compared to foreclosure, and b) is very
viable and will show your lender you are actively trying to resolve this
issue. They will normally work with you to avoid foreclosure. When you have
signed on with us to short sell your property, my team will take over the
entire process and handle all of the paperwork, allowing you to go on with
your life. It does not matter how much you owe and whether you have one, two
or three mortgages. We can deal with any situation and sell off your home
before the Sheriff knocks on your door! Remember, time is of the essence.
We will not be able to help you when the sheriff auction sale is only three
days away, so contact us as soon as possible before things get out of hand.
Here are a few of our recent success stories.
Lake Mary, Florida - In this case, the home was on the market for $335,000
for one year and did not sell. The seller went through a divorce and
subsequently fell behind on payments, facing foreclosure. We settled
successfully and closed property after only four months for $275.000. The
bank paid $5,000 in closing costs, as well as outstanding HOA dues. They
also paid a settlement to another lender, settling for $1,000 on a $7,500
car lien. The seller was elated to have avoided foreclosure as well as
having debt forgiveness.
Heathrow, Florida - This property was on market over one year at a price of
$265,000. During that time, the price was reduced to $219,000 and even
marketed as FSBO. After only four months, we successfully settled with the
bank and closed the short sale for $215,000 with debt forgiveness.
Orlando, Florida - The sellers of this particular home were already six
months behind in payments and facing imminent eviction for non-payment of
mortgage. This family of three was in big trouble. We successfully sold the
home within three months, preventing eviction and allowing the seller to
walk away with $4,000 cash-in-hand!
Orlando, Florida - The seller called us and was 4 months behind in payment
due to job related illness and his wife lost her job due to the closing of a
supermarket where she worked. They had the home on the market for a long
time and could not find a buyer when they called us. We were able to find a
buyer for the property and close within 60 days and rescued the seller’s
equity and credit and the family walked away with cash in hand before
foreclosure could take place.
Sanford, Florida - This seller was facing foreclosure due to non-payment of
mortgage also. This was due to various financial issues. They also had
other auto liens in the amount of $38,000 on the home. The home was also in
disrepair and in imminent danger of foreclosure. I was able to sell the
home within two months to a cash buyer. As well, the seller settled the
majority the lien and walked away with $19,000 to start a new life.
Call Gitta Urbainczyk P.A. now for assistance 407-330-2181
Disclaimer -
1. Gitta Urbainczyk P.A. and Keller Williams Heritage Realty is not a
Law Firm, nor do we give Legal Advice. We strongly encourage all legal
questions be directed to a FLORIDA Real Estate Attorney.
2. Gitta Urbainczyk P.A. and Keller Williams Heritage Realty is not a
CPA, Accounting Firm, or Tax Attorney, nor do we give Accounting / Legal /
Tax Advice. We strongly encourage all Accounting / Legal / Tax questions be
directed to a CPA or Tax Attorney.
3. Gitta Urbainczyk P.A. and Keller Williams Heritage Realty is a
licensed professional regulated by the Department of Business and
Professional Regulation of the State of Florida providing real estate
services including Loss Mitigation Service in which we negotiate real estate
transactions including mortgage loans / other Liens with Lenders and Lien
Holders. All advice given through Gitta Urbainczyk P.A. and Keller Williams
Heritage Realty, is given based on the years of experience with Real Estate
Negotiation, Loss Mitigation, Foreclosure Process, Banking and Lending, and
Closing Procedures.
Ernst Urbainczyk
REO Manager
Gitta’s Real Estate Team
Keller Williams Heritage Realty
407-832-9072
