Orlando real estate information

Apr 11, 2013

Is the current increase in home prices sustainable or has the market been manipulated?

Nationwide reports of increasing home values leaves many unanswered questions. Is there really a sustainable recovery in homes values or are values been distorted due to supply side manipulation? Over $9 billion has been pored into the single family foreclosure market by investors, creating what could well be a temporary supply side shortage of single family homes. Institutional investors looking to build large portfolios of rental properties, continue to reduce the availability of REOs (Bank Owned Properties) and foreclosures available for sale to the general public. In addition, lenders are slow walking the availability of REOs to the home buying public, suspicious at a time when there is a general increase in demand. REOs are also listed for sale at low prices with the sole intension of generating multiple offers, instigating bidding wars resulting in high prices normally not supported by appraisals. These factors have created an abnormality in housing supply, leading to the inability for many normal homebuyers finding suitable homes available for purchase.

The numbers of first time homebuyers, the engine that drives a sustainable housing recovery has been declining. Should the recent rapid increase in home prices continue to exert downward pressure on the numbers of first time buyers entering the market place the housing recovery cannot be sustained. A true recovery of the housing market must be driven by increasing demands from normal homebuyers, a recovery driven by investors is likely to be only temporary.

There are still a large number of home going through the foreclosure process that will sooner or later be added to the REO inventory. Should a significant number of these homes enter the market quickly they could well stabilize home prices and help in sustaining this fragile housing recovery.

For more information about Orlando foreclosures and short sale properties subscribe to receive our monthly distressed property list.

By OD Blogger Real Estate No comments Tags: , , ,

Apr 10, 2013

Bidding Heats Up on Orlando Short Sales and Foreclosures

The median sale price of Orlando homes rose to $133,000 in February 2013 a 4 percent jump from January’s median price of $128,000. Pending sales of foreclosures and short sales in February accounting for almost 75 percent of all home sales in the Orlando Metro area.  Buyer demand continue to drive up the prices of foreclosures and short sales, for which heated bidding wars are now routine.

Short sales, which take much longer to process from contract to close, made up 61.79 percent of pending sales in February 2013 with bank-owned properties accounting for 12.25 percent. Non distressed  properties (not bank owned or short sales) accounted for 25.96 percent of February pending sales.

The average interest rate paid by Orlando homebuyers in February, 3.21 percent, set yet another record as lowest average interest rate since ORRA began tracking the statistic in 1989. A year ago, homebuyers paid an average interest rate of 3.92 percent. First-time buyers who earn the reported median income of $37,352 can qualify to purchase one of the 2,873 homes in Orange and Seminole counties currently listed in the local multiple listing service for $199,676 or less.

Search our MLS listings for Orlando foreclosures and short sale properties for sale or subscribe to a monthly distressed property list.

By OD Blogger Real Estate No comments Tags: , , ,

Apr 4, 2013

Pending Foreclosures Presents Risk to Florida Housing Recovery

Florida housing recovery continues to pick up steam as consumers confidence in the economy grows. According to major home price indexes, prices have increased about 9 percent over the past 6 months.  Combined with the reduction of downward pressure on home values due to declining REOs and Foreclosure inventories, the prospects for continued price increase is encouraging.  However, there could still be some stormy winds ahead.

Florida, one of the hardest hit states during the housing crisis still has a backlog of over 377,000 old foreclosure filings in the state federal courts thru 2012.  There are also reports, that one in every five mortgages in the state of Florida is in some form of delinquency.  Should the recent settlement between the Federal Reserve/Comptroller and  mortgage servicers ending the robo-signing scandal increase the pace of foreclosures over the next 12 months, there could be a cool off in Florida home prices.

Find Florida Foreclosures First

By OD Blogger Mortgage, Real Estate No comments Tags: , , ,

Feb 27, 2013

Orlando Home Sales Continues Upward Trend

 

 Week In Review Feb 17, 2013
Counties: Lake, Orange, Osceola & Seminole

 Single-family existing homes

 

  • Sales of single-family homes increased to 314 from 306 during the week of Feb 17, 2013
  • Median sale price of single family homes increased to $149,950, up 4.5%.
  • Single-family home foreclosure transactions decreased to 68 from 69 last week.
  • Single-family home short-sale transactions increased to 66 from 61 last week.
  • Single-family inventory decreased by 42, and now sits at 7,472.

Condos, townhomes, and villas

  • Sales of condos, townhomes, and villas remained constant at 98 during the week of Feb 17, 2013
  • Condo, townhome, and villa foreclosure transactions increased to 20 from 19 last week.
  • Condo, townhome and villa short-sale transactions decreased to 11 from 20 last week.
  • Condo inventory decreased by 47, and now sits at 2,079.

Information courtesy of the Orlando Regional Realtor Association

 

By OD Blogger Real Estate No comments Tags: , , ,

Jan 11, 2013

Learn More About Foreclosures and Relocation Assistance

Home Affordability Foreclosure Alternative also known as “HAFA” is a Federal program designed for homeowners who are unable to obtain loan modifications. HAFA provides financial incentives to lenders who approves short sales or take a deed-in-lieu of foreclosure.

A short sale occurs when a property is sold for less than the mortgage balance owed. Buyers get clear title to properties because lenders agree to release mortgage liens even though the sale proceeds are not sufficient to pay off the mortgage loans. The remaining balance of the loan is called a “deficiency”. Lenders may obtain  “deficiency judgments” court orders requiring sellers to repay the outstanding mortgage balance after the sale of the home. The HAFA program requires lenders to wave the rights to deficiency judgments.

A deed-in-lieu of foreclosure is also supported by the HAFA program. In this case, borrowers transfer ownership of properties to lenders by signing a deed in lenders favor. Under HAFA lenders would also wave the rights to deficiency judgments on unpaid balances.  

Eligibility requirements must met in order to be considered for short sales or deed-in-lieu of foreclosure  using the HAFA program. Borrowers may also be eligible for relocation compensation.

Should you be interested in learning more about short sales or deed-in-lieu of foreclosures, please post your questions in or comment section below or contact one of our foreclosure experts.

By OD Blogger Loans, Mortgage, Real Estate No comments Tags: , , ,

Oct 6, 2012

Florida Supreme Court Rules on Non-Residents Homestead Exemption

The Florida Supreme Court ruled with an unanimous vote that a Honduran couple living in Key Biscayne with their children is entitled to homestead exemption.

The state’s highest court rejected arguments from attorneys representing Miami-Dade County Property Appraiser Pedro Garcia, whose office denied homestead exemption to the couple in 2006. The appraiser said that the couple didn’t adequately show that they actually live in the Key Biscayne condo full time as permanent residents.

The court, overruling the appraiser, said that the state constitution also allows homeowners in Florida to claim homestead exemption if another person legally or naturally dependent on the owner lives there permanently.  The court found there was no question that the couples children who were born in the United States and had no other apparent residency lived in the home permanently.  

The court also found that the state homestead exemption statute has an invalid phrase limiting homestead exemption to anyone who resides thereon referring to the property. Similar language was removed from the Constitution in 1968 invalidating the requirement that homeowners actually reside on the property, as long as they have a dependent that does.

The case may have broader implications. Thanks to this ruling from the Florida Supreme Court, International and out of state property owners may be able to claim Florida homestead exemption.  Many Internationals and out-of-state Florida homeowners have children attending Florida schools, both public and private who may have claim to U.S. citizenship.

In its ruling, the court stressed that each case must be decided on its own merit and the burden was on the property owner to provide. The court wrote, we emphasize that the result we reach in this case is dependent on the fact that it was demonstrated that the property is being used as the permanent residence of the owners’ dependent, minor children, and the evidence establishes that.

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By OD Blogger Real Estate No comments Tags: ,

Sep 6, 2012

FICO® Score

Let’s Talk About FICO® Score

FICO® (Fair Isaac & Company) credit scoring system is used by Experian to compile credit profiles and assign credit scores used to evaluate consumers credit worthiness. Although there are 2 additional credit scoring systems used by Trans union and Equifax, FICO® is the best known and is considered synonymous with credit scores.

Your FICO® score will be a major factor in determining the monthly payments on your home purchase, so let have a look at some of the factors used in calculating your score. 

    1. Payment history: is probably the most important factor used in calculating FICO® scores. Information relating to bankruptcy, foreclosures, collections and late payments will be evaluated.   The most recent 2 years history has the greatest impact.
    2. Access to credit: the number of open credit lines and the balances on those lines are also important factors. It is better to have a few strong lines with balances at or below 60% of the maximum credit limit.
    3. Quality and credit type: some of the accounts evaluated by credit bureaus during the calculation of credit scores are mortgages, car payments, student loans, credit lines, credit cards plus any other accounts reported to the credit bureaus (rental payment history is in the process of been added as an evaluated account).  Both open and closed accounts are evaluated with seasoned accounts (accounts with payments of 12 months or more) given higher relevance.

FICO® scores ranging from 620 to 740 and above are considered acceptable by most Mortgage Lenders.  Scores above 740 often qualify for the best interest rates.  Contact a Mortgage Professional for assistance in improving your FICO® score.

By OD Blogger Consumer Credit, Real Estate No comments Tags: , , , , ,

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