Truth about Orlando Short Sales
The unvarnished truth about Orlando Short Sales
The truth about Orlando short sales is something that many buyers do not want to hear. They assume that the bank wants to get rid of the debt on the property and will let it go for pennies on the dollar.
Not so. Read on…
First lets understand what are Orlando short sales. A short sale is a property that is worth less than the mortgages on it. In order to sell it for less than what is owed, the lender has to approve the sale. They have to agree to take less money than is owed on the short sale.
There is a difference between Orlando Short sales and an Orlando bank Foreclosure. A foreclosure the bank owns. On a short sale the bank does not own the property, the owner does. The bank just has to approve the sale. Sometimes there is a first mortgage and a second mortgage on the property and both banks have to agree to how they will share in the loss. If the lenders do not agree, than there is no sale.
More than likely the seller is in default on the mortgage, and will eventually be foreclosed on, but not necessarily so. Maybe or maybe not.
Pricing Orlando Short Sales
Most home buyers think that the short sale must be a bargain. Not exactly.
There are many agents that don’t understand short sales and many agents that refuse to show short sales because they take too long to close. Listing agents know this, so they try to make the home more desirable. They price the property lower than market value in the hopes that it will stimulate buyers wanting to look at it.
If activity is slow, agents will keep dropping the price until a buyer finds the short sale property desirable and makes an offer.
The banks responds to short sales
Banks are not on any schedule to respond to an offer. The bank may respond quickly in less than one month, or they may take a year to give an answer. In some cases you never hear back from the bank. Contrary to popular belief, that bank is not eager to sell the property as a short sale.
More facts about the sales price
- Typically the bank wants more money than your offer.
- The bank may want you to pay additional monies to the negotiator…usually $2,000-3,000.
- If there is more than one mortgage on the property, it becomes harder.
- Bank may ask you to pay the back debt to the HOA which could be $10,000+ or -.
- There is no way to pre-determine what the bank will take.
- Bank can agree to something and then change their mind
Who buys Orlando short sales?
- Someone who is not in a hurry
- Someone who does not need to buy on a schedule
- Someone that does not need a house
- Someone who is willing to gamble and wait
Orlando Short sales are not for the average person, the impatient, or those that think banks must be reasonable because they are not. A short sale will test even the most devoted of buyers which is why most buyers walk away before they get a final answer from the bank. Call a Buyers Broker for help, experienced at closing short sales. 407-539-1053