What is a Short Sale?
An Orlando Short Sale is a property that has more debt on the property than the market value of the home. In order to be sold, the bank or lender will have to approve taking a “short payoff ” by agreeing to accept less for the mortgage than is owed.
Who owns the Orlando Short Sale Home?
The owner of the property still owns the home, not the bank. The bank is not the owner, they just need to approve the sale. The bank does not own the property until the property is foreclosed on through a foreclosure process. Only through a foreclosure does the bank become the owner, but bank is never the owner in a short sale.
Is an Orlando Short Sale Property also in Foreclosure?
More than likely a short sale property is in some stage of foreclosure. Typically, the owner has stopped paying the mortgage, so it is only a matter of time before the bank will repossess the property in a foreclosure process. The property can also go into foreclosure while you wait for a response from the bank. A Short Sale contract does not necessarily stop the foreclosure.
Is every Orlando Short Sale a good deal?
Maybe, or maybe not. Just because the property is selling for less than the mortgage does not guarantee that it is low priced. When money is tight and the seller is not paying the mortgage, more than likely any problems that come up with the house will remain unfixed, so there could be deferred maintenance. The bank may also ask the buyer to pay off the delinquent HOA or other debt that drives the buyers cost up.
How long will it take the bank to respond to an Orlando Short Sale Offer?
Usually 1-6 months, and sometimes the bank will not respond at all. The bank has no obligation to agree to even do a short sale. There could be two mortgages, with two different banks which will make negotiations more difficult. Both banks have to agree to do the short sale and they both have to agree on the money split or there is no Orlando Short Sale deal.
Will the bank approve my Orlando Short Sale offer as I submitted it?
More than likely “NO”. Usually the bank will want more money for the purchase price or more money from the seller. Also, banks are known to change their mind about what they agreed to and they can request different terms for the short sale than they previously stated. Until the bank approves the HUD (closing statement) they can be unreliable.
If the bank approves the Orlando Short Sale, does the seller have to sell?
No, seller might not agree to the banks deficiency judgement or bank may request that seller to come to closing with some additional moneies that the seller can’t afford. Seller could also file bankruptcy, or the seller may just give the property back to the bank (Deed in Lieu of Foreclosure). Seller may also decide that it is cheaper to just let the property go into foreclosure. The seller might be non-responsive and refuse to sign anything. With Orlando Short Sales, there are never any guarantees.
To learn more about an Orlando Short Sale or for a complimentary phone consultation, please contact the Buyer Agent experts at Buyers Broker of Florida 407-539-1053.