Kissimmee Foreclosure Filings on the Rise

  Kissimmee real estate saw a huge spike in foreclosure filings last month, showing that the halted foreclosures from “robo-signing” issues in late 2010 are finally coming to the forefront, showed a new report from Realty Trac.   In the month of January alone Lake, Orange, Osceola and Seminole  counties  reported a whopping  3,537 foreclosure filings, or one in every 266 households. That’s almost twice as many filings as there were in December 2011. That puts the Orlando area at No. 14 for the most foreclosures among the nation’s largest metro areas.
    That means that there will be a whole lot of people trying to do an Orlando short sale. Once the foreclosure proceedings begin, the homeowner needs to take action one way or the other. Although many homeowners will attempt a loan modification, most of them will come to the realization that their best option is to stop the foreclosure by doing a short sale on their Orlando home.
   Lake County was the only county to see a drop in foreclosure filings with a reported 362 filings last month, which was 10 percent less than the 403 posted in December 2011.


The other counties foreclosure count was as follows:
• Seminole reported 566 filings in January 2012, which was 97.9 percent more than the 286 reported in January 2011 and 45.8 percent up from the 388 posted in December 2011
• Osceola had 657 filings last month, 89.9 percent more than January 2011’s 346 and 76.6 percent up from December 2011’s 372
• Orange posted 1,952 filings, about 47 percent higher than January 2011’s 1,327 and 30.5 percent more than December 2011’s 1,496.


      Experts predict that more foreclosures were coming, once issues were resolved by banks, who in September 2010 halted thousands of filings when it discovered the automated steps used to repossess delinquent borrowers’ homes wasn’t being checked thoroughly.


      If you or someone you know is in Foreclosure, get advice from an Orlando Short sale Expert to find out what is the best plan of action for you to take.  Contact us to set up a Free consultation with one of our Orlando real estate experts.

Big Cash For Keys!

Bank of America, JPMorgan Chase, and Wells Fargo have all started offering cash incentives to their delinquent customers in Florida who agree to a short sale. It’s not unusual for a lender to give a small cash bonus to foreclosed customers who leave their properties in good condition, which has become known as Cash For Keys. What is different about these new programs at the nation’s top three mortgage lenders is that the amounts are significantly higher, up to 20,000 dollars.

The banks cite the length of time that foreclosure takes as their reason for encouraging customers to make short sales. In Florida, it is an average of 619 days, 30 percent longer than it took just one year ago. Short sales, while still not a particularly short process, are much more efficient and overall more beneficial for everyone involved.

In short sales, homeowners are protected from potential deficiency judgments and severe credit hits, while the banks themselves are able to recoup something, instead of nothing, from defaulted loans. They also save money that would otherwise be spent on the eviction process. It is the smarter business move. Real estate agents win, too. They gain a listing, a sale and a commission.

Encouraging short sales is also a public relations boon for banks reeling from a recent lack of confidence from consumers. By helping people to avoid foreclosure, they present a more beneficent image. That improves their overall bottom line by bringing in new customers.

It may be smart business to offer a cash incentive for a short sale, but it really does help people, too. Those facing foreclosure frequently don’t know where they are going to live once their home has been taken away. They are often so strapped for money that they cannot afford a typical first-and-last-month’s upfront payment on a rental property. The cash makes a big difference in helping people to land on their feet. Some may even be able to use it as a downpayment on a more affordable home.

A short sale, relative to a foreclosure, is easier emotionally and psychologically, too. There’s the comfort of knowing that the debt is gone, and with no risk of legal action. A person can truly start fresh. There’s less embarrassment, and the impact on credit is less than it would be for a foreclosure.

More banks are looking into offering significant cash incentives to their delinquent customers who choose short sales. It makes good business sense for them, since they do not lose as much money as they would in a foreclosure. It also is a way for them to give something back to the community and earn goodwill.

The government also has a program, the Home Affordable Foreclosure Alternatives (HAFA), that provides cash, up to 3000 dollars, for short sales. To get the government credit, homeowners must meet certain minimum criteria, including that the loan be owned by the Freddie Mac or Fannie Mae. Through the end of 2012, there is also a federal tax break for short sales.