They come from different circumstances, with varied expectations, each with a story all their own. And now their story includes being the first to ride the Orlando Foreclosure Bus Tour. The cast of more than a dozen characters on board includes Jennifer Stiriz, 24, who currently rents in Bella Vida, but is looking for a home for her husband and two children.
Scouting the market for the past two years, her dilemma is finding a house that meets both their price range and their personal threshold for a comfortable home. Cindy Freeman of Bithlo is on the lookout for her 26-year-old daughter’s first home. Although her daughter makes a decent wage as an X-ray technician, she has a bit too much debt to qualify for a home on her own. Meanwhile Joe Stevenson of Avalon Park is an investor.
As head of his own flooring company, he is willing to put the work in on a fixer-upper, then turn around and sell. Then there are the professionals joining the ride-along, including representatives of the tour sponsor, the Z House Realty Group, including owner Janice M. Ziesig and several agents. And there are other professionals on board — a home inspector, real estate attorney and mortgage broker — all offering information and expertise to assist serious buyers in their quest for the American Dream.
During a brief overview of the tour in Z House Realty’s Internet Coffee Café on Woodbury Road, where home buyers are welcome to conduct their own market research online, Ziesig tells the group that the tour will showcase some of the greatest deals among the thousands of properties in Central Florida that have been repossessed by various lenders.
“We’re looking at bank-owned homes only,” she announced at the start of the full-day tour. “Keep in mind, there are a ton of other properties out there.”
The facts underscore that this is a buyer’s market. A quick search reveals that in Orlando there are currently 1,110 homes in preforeclosure, 259 in foreclosure and 401 taken over by the bank. In Oviedo there are 39 in preforeclosure, 7 in foreclosure and 16 owned by the bank. With everyone anxious to begin, they’re off.
Homes: lost and found
The first two houses on the 10-home tour are located in the older section of Waterford Lakes known as Huckleberry. The lead-off home is priced at a modest $219,000, but Ziesig explained that is only a starting point for negotiations.
Banks do not want an inventory of homes for sale, she said, and are therefore more than willing to listen to counteroffers. Despite the price, it is easy to see why this house remains unsold. The home is in a state of disrepair, having been looted by the previous owners before they left. Ziesig said it is not unusual for houses to be missing appliances or light fixtures, or even experience damage at the hands of an irate owner being forced out of their home.
Some homes are found without doorknobs, faucets, outlet covers or even built-in shelving; in some cases these items are removed for their value, but sometimes just for spite. “A lot of people are very bitter when they go into foreclosure.
They’re angry,” Ziesig said. “They just want it to cost money for someone to fix.” But according to real estate attorney Karen Spell of Preferred Title, all bankowned homes share a significant advantage. In contrast to preforeclosure homes or others laden with debt, there are no unexpected title problems with bank-owned properties.
However, Spell advised that the purchaser still have a title company do a preliminary title search to check for potential liens on the home, as the new owner will inherit them. Less than two years ago, developers of a planned mixed-use development at Curry Ford and Young Pine roads were lauded by Orange County officials for reducing the size of its project, adding condos and apartments to the plan and eliminating the possibility of a big-box store.
Now, due to the collapsing housing market, developers are asking to change back to a larger commercial footprint that would allow a major retailer. But residents don’t approve of the change of heart. Formerly known as the Weber Lakes planned development, the Young Pine Road project is seeking to develop the entire parcel for 152,000 square feet of commercial use, including the 4,432- square-foot McDonald’s that already exists.
Previously, the development was approved for 30,000 square feet of commercial space and 168 multifamily units. Going back to the original plan in 2002, the 14-acre site was targeted for 185,000 square feet of commercial space. “Based on the market, there is not a demand for apartments,” said Olan Hill, a consultant for the developer.
Hill explained that developers had been in talks to build a SuperTarget on the southwest corner of Curry Ford and Young Pine roads, but the proposal fell through when the big-box retailer didn’t want to wait for approvals, announcing a desire to pursue other options.
Despite the turnabout, developers are still requesting the additional commercial space, including a provision that would allow a big-box store. Hill acknowledged that if the land-use plan is approved, SuperTarget could re-enter the negotiations. “If they can’t find another parcel, they may come back to us,” he said.
A big-box development is defined as anything larger than 75,000 square feet. For comparison purposes, a typical Publix supermarket comes in at about 50,000 square feet. Some nearby residents say they are not against a larger shopping center, but don’t want to live across from a big-box store.
Others do not want any change at all. “What we have now is a 30,000-squarefoot neighborhood shopping center. I want to maintain what we have,” said Debra Pierre, a resident of River’s Pointe on Curry Ford Road. Another big-box on the way? Developers request more commercial space for project at Curry Ford, Young Pine roads In fact, Spell said it is a prudent approach for buyers to surround themselves at every turn with professionals to protect against unforeseen problems.
“We want you to be informed. There are good deals out there, but sound decisions need to be made. Then you are more assured to have a happy-ending closing, rather than a nightmare,” Spell said. The second home, with four bedrooms and 1,700 square feet, is in even worse shape. With a lawn overgrown by weeds and the home in shambles, its dilapidated appearance befits a foreclosure that has remained vacant for an extended time.
Having been on the market for nearly a full year, it is priced to sell at $199,999. But the flooring needs repair and lighting must be replaced; there is mold and mildew everywhere. In fact, the air-conditioning unit is encased in mold, requiring either a thorough cleaning, for a minimum of $500, or complete replacement.
Mary Frame, who arrived from Birmingham, Ala., just two week earlier, plans to continue renting in Avalon Lakes, but is researching the housing market to help others who are relocating to the area. Her husband, a construction manager for Southern Company Services, and his coworkers will spend two years building a combined cycle unit at the Stanton Energy Center on South Alafaya Trail. “It’s a pretty area; lots of opportunity,” she said.
“I’m going to pass on the information I learn here so they can make good decisions.” The next house defies the stereotypical image of a foreclosure. The Lake Kehoe Preserve home, located in a gated community off Lake Underhill Road, is open, airy and in immaculate, move-in condition. At 3,441 square feet, with four bedrooms and three baths, the home is a steal, selling for $83 per square foot, or $284,900, down from the original asking price of $364,000 just last November.
Surveying the damage
Still another home announces its drawbacks to the on-board inspector, who relays the message to the group, even before disembarking from the bus. There, along the cinder-block garage, is the unmistakable sign of water stains, and cracks indicating even greater damage.
“This home is not watertight. See how water goes right through the block and the paint washes off,” said Kim Douglas Moore of Douglas Inspection Services, as he wipes his hand across the surface. He added that this moisture, and subsequent mold, can probably be found behind the drywall inside the home, as well.
Discolored floor tiles, of a blue or purple hue, are another indicator of unwanted, damaging moisture. Moore also is able to decipher the story behind the cracks in the wall, saying the garage has shifted over the years due to water accumulating underneath the foundation. The grading of the yard, which slopes back to the building, is the culprit, he said.
Stevenson, however, doesn’t see insurmountable problems; he sees possibilities. The investor noted that if the three-bedroom, 1,512-square-foot home can be purchased for $100,000, instead of the $150,000 asking price, it could provide a profit. “The bank has been sitting on it for quite a while. If you fix it up and rent it, you can make some money,” he said.
Meanwhile, Moore sees other evidence of damage — and repair — throughout the Park Manor neighborhood. Many roofs have different colored shingles, indicating they have been replaced, likely after the hurricanes in 2004. Many lawns are also in need of some attention. Park Manor is an older neighborhood that is showing its age, especially facing the pressures of the current market. Ziesig said there are a number of homes here that rent out to tenants.
The final home of the morning tour, with more to follow after lunch, is in the newer Cypress Lakes subdivision off Chuluota Road. With a quarter-acre lot, fenced-in yard, pool and spa, this represents another “good buy,” according to Ziesig. Built in 2003, this one-story, fourbedroom, 2,873-square-foot home is available for $319,200. While the price doesn’t fall within the affordable range of some on board, it is encouraging to others.
In fact, the Foreclosure Bus Tour has left a positive impression on everyone. “This is so educational, especially the inspection part,” Stiriz said. “I also didn’t realize the banks were so willing to negotiate. “This program opens a whole new window for everybody. I found out on this tour there’s a lot more opportunity for us to buy.”
Which is exactly what was intended by Ziesig, who is a UCF graduate and wellacquainted with the East Orlando housing market. Her goal from the start was to educate consumers with what she describes as a “rolling classroom.”
“You don’t have to buy a house on the tour, we just want to give out knowledge,” she said, noting that none of the houses on the Feb. 22 tour were listed with Z House Realty Group. “We’re excited because we’re teaching; it’s not just looking at houses.”
Another underlying purpose is providing information to help people save their home from foreclosure by looking at a number of financial options that include preforeclosure sales, deed-in-lien foreclosure, refinancing, finding a tenant to help with payments or renegotiating with the lender. “There are so many things you can do if you talk to the bank. Instead, many people hide from the bank,” Ziesig said.
“I believe people should be able to save their homes if they know what they’re doing.” The next monthly Orlando Foreclosure Bus Tour ($45 per person) is scheduled to roll through town on Saturday, March 15. Lunch is included. For more information or reservations, visit www.OrlandoForeclosureBus.com or call 407-208-1221.
