Short Sale v.s. Foreclosure – What’s the Difference?

Short Sale v.s. Foreclosure – What’s the Difference?

Whether you’re a buyer or a borrower / seller, a short sale and foreclosure each present different advantages and difficulties.

What Is A Foreclosure In Orlando Florida?

In simple terms… “A foreclosed home is one in which the owner is unable to make his mortgage loan payments and the bank repossessed the home” (source).  If you stop making your house payments… your lender has the right to foreclose on your property so they can attempt to recoup their money that was lent to you. 

A home is typically foreclosed on when a borrower fails to make mortgage payments. The lending institution assumes ownership and possession of the property, evicting the borrower. These properties are then sold at auction or more traditional means utilizing the service of real estate agents. A foreclosure can damage the credit rating of a borrower, and make it very difficult to obtain a mortgage for many years.

Depending on the state that you live in… a foreclosure can work in different ways. Check out the foreclosure process information over here at the HUD Government website.

What Is A Short Sale?

In a short sale, the home is still owned by the borrower.

The definition of a short sale is… “A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens’ full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt” (source: Wikipedia)

In some cases, a short sale is an option agreed upon by borrowers and lenders. In a short sale, the home is sold for less than the outstanding balance of the mortgage. The unpaid balance (known as the deficiency) may or may not still be owed by the borrower.

This option typically takes some time, as a few different lending institutions may own the mortgage. All parties who have a stake in the property must agree to the terms of the sale, and a potential deal could fall through if even one lender doesn’t agree.

Short Sale vs. Foreclosure – Your Options

While both options can have ramifications, a short sale often has less of an impact on the borrowers creditworthiness. A foreclosure could impact a borrower’s credit score by 300 or more points, where a short sale may only dent the credit score by 100 points.

Borrowers who are foreclosed on are often ineligible to purchase another home for 5-7 years with a traditional mortgage, where under certain circumstances, a short sale borrower can purchase immediately.

As many Americans struggle with an economy that has yet to completely recover from the 2008 crash, folks are having a hard time making monthly mortgage payments. Choosing between being foreclosed and initiating a short sale (or a 3rd option…  selling your Orlando house fast  )is an easy choice for a borrower having troubles paying their mortgage on time.

Sometimes, lenders are willing to work with borrowers to complete a short sale, to avoid the fees and time consuming process of conducting a foreclosure.

Our suggestion is always this.

1. Talk with your lender and discuss ways that they can work with you on your loan. We offer this service where we can help guide you in the right direction if you run into issues with your lender… just reach out to us on our Contact page and we’ll discuss your situation.
2. Attempt a short sale or other program your lender may have that forgives part of your loan, creates a new / more affordable monthly payment so you can get back on your feet, etc.
3. If the bank isn’t willing to work with you very much… your best option may be to sell your house. Work with a local real estate house buyer service like Eugene Hoffman LLC to sell your house fast for an all-cash offer. If you’re interested we can look at your situation and make you a fair offer on your house within 24 hours. Just fill out the form on our website over here >>
4. Foreclosure. Last resort is to let the house fall into foreclosure. This is the worst possible scenario. It’ll harm your credit and you could still be left with money owed to the bank even after the foreclosure is finished.

By knowing your options, you may be able to dodge a significant impact to your credit score, allowing you to purchase a new home when your situation improves. A foreclosure on your credit report makes that possibility extremely difficult for 5-7 years, so if you have the opportunity, a short sale can be the better option.

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http://investorsgoldmine.com

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We Buy Houses For Cash In Orlando – See How It Works

There might be a number of different reasons why you need to sell your Orlando Florida house fast.

It may be that you’re moving to a different state, or maybe even a different country.

It may be that you have some personal issues like going through a divorce, bankruptcy, you’ve lost your job… or any other reason that has pushed you to make the choice to sell your house.

Whatever is motivating you to sell your house at this time, we’re here to help you get through it through our local Orlando FL house buying program where we can buy your house for cash here at Eugene Hoffman LLC.

Here’s Why We Buy Houses For Cash In Orlando Florida

There are lots of reasons local Orlando home owners decide to work with us.

Imagine this scenario for a second to show you just one way we can help local home owners get out from under a house quickly.

There’s 48 year old woman who needed to sell her house.

She had recently lost her husband to cancer, and he didn’t have any sort of insurance protection. No health Insurance, No Life Insurance. With so many bills to pay, this lady, whom we’ll call Sherry decided to make some serious changes where she could.

She settled on the fact that the best thing to do was to sell the house, settle the debts, and move to another state where she had family and she could move on with her life.

Through our local “Cash For Houses” program, our company Eugene Hoffman LLC, can make you a fair all cash offer on your FL house.

With the example above, “Sherry” can get her house sold in as little as 7 days, all cash (we don’t need to wait for bank approval… we buy houses with our own cash and can close fast).

No waiting months for the property to sell.

No paying real estate agent commissions. 

No fixing up the house to parade dozens of potential buyers through it.

We buy houses for cash in Orlando FL and surrounding areas and would love to make you a fair no-obligation offer on your house.

Need To Sell Your Orlando Area House Fast?
Get Your Fair Cash Offer Below Or Call (407) 781-7312 Today!

Click here to fill out the Inquiry form and receive an unbeatable cash offer for your home.

Selling your home can be a stressful process, but it doesn’t have to be. When you’re ready to sell, keep in mind that we can buy your house for cash in Orlando FL. If selling your house the traditional route just isn’t working for you or isn’t an option…  give Eugene Hoffman LLC a call at (407) 781-7312 and we’ll evaluate your situation and make you a fair offer no matter the condition of your house.

At the very least, you will have something to compare against an offer from anywhere else.

Eugene Hoffman LLC's Websites

http://eugenehoffman.com

http://investorsgoldmine.com

http://wecanbuycash.com

www.investorsgoldmine.com | Oviedo Flip (32765) $185K | ARV $235K

www.investorsgoldmine.com

Oviedo Flip (32765) $185K | ARV $235K

$185,000 3 bd, 2.5 ba, 1753 sqft

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Hot Oviedo flip Located in desirable Alafaya Woods with “A” rated schools and easy access to UCF. The house itself is in decent condition and there is a tenant in place that is moving out at closing, unless you want him to stay and workout work a deal.

The roof is in good shape and the shingles were replaced 5 years ago. A new A/C is needed, kitchen cabinets and bathroom updates. The floors are tile and are OK for rental, but for a flip they might need to be replaced. Paint outside is ok, and inside needs fresh paint. The grass is cut. Other than that, the house needs mostly cosmetics making this an easy fast flip in one of the hottest areas around where deals for investors are far and few.

Click to see comparables, these are all without pool. ARV is around $230-240k with a decent rehab. Rents go for around $1325-1500 making this a great “buy & hold” as well. Feel free to drive by first and please do not disturb tenant. More pictures coming soon.

Assignable

Alafaya Woods, Annual HOA: $183

Est. Flip Rehab: $15,000 – $20,000 +/-

Est. Rent Rehab: $5,000 – $10,000 +/-

Est. ARV: $230,000 – $240,000

Property Details

Price:

$185,000

Address:

1031 Weaver Dr

City:

Oviedo

State:

FL

Zip Code:

32765

Year Built:

1986

Terms:

For Sale

Property Type:

Home

MLS #:

Off-Market

Square Feet:

1753

Bedrooms:

3

Bathrooms:

2.5

Basement:

Garage

Const. Type:

Block

Call (407) 781-7312 for more details

www.InvestorsGoldmine.com | (32818) Flip $77K | ARV $120K 3 bed 1 Bath 1000SF

www.InvestorsGoldmine.com

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(32818) Flip $77K | ARV $120K 3 bed 1 Bath 1000SF

$77,000 3 bd, 1 ba, 1000 sqft

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Off market flip or cash flow opportunity in Northwest Orlando! This is very cheap for what it is. You could put some small renovations into this property and relist it quickly for a quick profit or you could make some larger changes and get a higher ARV. It all really depends on what your end strategy will be.

Clearview, No HOA

Est. Rehab: $15,000 – $25,000

Est. ARV: $115,000 – $125,000

www.Investorsgoldmine.com | (32703) Seminole $180K Appraised at $200K 3 bed 1 bath

www.investorsgoldmine.com

(32703) Seminole $180K Appraised at $200K 3 bed 1 bath

$179,900 3 bd, 1 ba, 2451 sqft

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Partially remodeled 3 bedroom 2 bath home with deeded access to Bear Lake. Sited on a three sided corner lot. Seminole County Schools, Lake Brantley H.S. Teague Middle School and Forest City Elementary. The home features a 20’ x 20’ tiled recreation room with a pool table and fireplace ideal for entertaining. Home has been recently appraised at $199,000.00. Roof is 4 years old, electric has been updated and the A/C is 6 years old. Great investment being sold below appraised value.

Property Details

Price:

$179,900

Address:

6088 LINNEAL BEACH DR

City:

Apopka

State:

Florida

Zip Code:

32703

Year Built:

1967

Terms:

For Sale

Property Type:

Home

MLS #:

G4834381

Square Feet:

2451

Bedrooms:

3

Bathrooms:

1

Basement:

2 Car Carport

Const. Type:

Block

www.investorsgoldmine.com | What You Need To Know Before Buying A Turnkey Property In Orlando

www.wecanbuycash.com

What You Need To Know Before Buying A Turnkey Property In Orlando

by Eugene on November 5, 2016 in buyer, Case Studies, Company News, orlando-income-properties, orlando-investment-properties, owner-financing, private-lending-trust-deeds, Real Estate Articles, Real Estate Market Statistics, Real Estate News, Wholesale PropertiesEdit

Are you thinking about buying a turnkey property in Orlando? Make sure you read this blog post to find out what you need to know before buying a turnkey property in Orlando or the surrounding area. This information could help you find the right investment and avoid the wrong one!

There are different kinds of investments but we believe that one of the best kinds of investments for most real estate investors is a turnkey property. That’s because turnkey properties are already cleaned up, rented, managed, and cash-flowing right from day one, which means you start generating returns earlier than you would with a flip or a distressed property that you need to do all the work on before you start seeing any income.

To help you find the perfect turnkey investment, here’s what you need to know before buying a turnkey property in Orlando.

#1. Cash flow

You’ll want to know how much it cash flows. Cash flow can vary, but ANY cash flow can be good. (Even Robert Kiyosaki’s very first property was only cash flow positive $25 a month!) The key is not necessarily a specific cash flow amount but more about the consistency of the income. If you want cash flowing properties, be sure to talk to Eugene Hoffman. Get in touch by calling us at (407) 781-7312 and we’ll share our current inventory of cash flowing turnkey properties.

#2. Expenses and fees

As with any investment, there will be expenses and fees. It’s good to know what yours will be. Are there HOA feels? If you’re holding them inside an LLC, will there be corporate fees? If you’re buying the property inside an IRA, will there be fees to the Self Directed IRA custodian? There’s nothing wrong with fees; it’s just good to know what they are.

#3. Insurance

All real estate should have insurance, especially if you’re dealing with tenants. No matter who you buy your properties from (us or anyone else), make sure you ask them about what insurance comes with the property and whether anything else is needed.

#4. Management team responsibilities

One of the best parts of turnkey investing is getting a cash flowing real estate investment that you don’t have to manage yourself! The management team will take care of many things to help make this hands-off investment. That said, you should be aware ahead of time of what they will and won’t do. Will they proactively tell you when someone needs to be repaired or do you need to ask? Will they pay for utilities and taxes or will you get the bill? There is no right answer, you have to figure out what works for you, but just be aware ahead of time so you don’t get any surprises.

www.wecanbuycash.com | “Help! My Last Tenant Trashed My Orlando House”

www.wecanbuycash.com

“Help! My Last Tenant Trashed My Orlando House”

by Eugene on November 5, 2016 in rental-property, sellersEdit

If you own a rental property but had a tenant trash it when they leave then make sure you read this article because we’re addressing the all-too-common problem that landlords have when they say, “Help! My last tenant trashed my Orlando house!”

Do you own a rental property? Did you have a tenant leave it in less-than-perfect condition? It happens! In fact, it’s an experience that probably every landlord has faced at least once. If you looked at your empty rental property and said, “Help! My tenant trashed my Orlando house” then here are some things you can do about it…

Is it worth going after the tenant?

You need to first assess the damage and decide if it’s worth going after the tenant. Unfortunately, it often isn’t worth the hassle because it may be a time consuming and even expensive effort to get the tenant to pay you back. However, if the damage is significant enough, you may choose to do this.

Is it worth repairing the damage?

From holes in the walls to missing toilets – we’ve heard of just about everything you can imagine! Sometimes a bit of drywall and paint will fix the problem, in which case you may want to fix it up and rent it out again, and then just accept the inconvenience as the cost of doing business. However, if the damage is not worth repairing yourself then you might be interested in a couple of other options:

You could rent your house to a handyman

One little-known option that is actually really helpful is to find a handyman who wants to rent the house. In exchange for a discount on rent (or even free rent), they can fix up the house for you to make it a nice rental property again. Make sure you have a timeline all spelled out, though, to avoid then staying too long without a lot of work getting done.

You could sell the house

Another option is to sell the house and move on from owning a frustrating rental property. However, be aware that if you try to sell the house on the open market, you may have to fix it up first in order for the agent to list it. Another option is to sell privately to a house-buying team like ours. (We buy houses in as-is condition and we’ll fix them up ourselves).

To get a fair cash offer for your property, no matter what condition it’s in, just get in touch with us and we’ll give you a no-obligation offer and we can even buy your property from you fast