By now almost everyone is familiar with the term \u201cOrlando Short Sale<\/a>\u201d that owns real estate in Orlando. In a nutshell\u2026 It\u2019s when the bank agrees to take a substantial discount on what is owed on a delinquent mortgage.
Our office has been receiving a ton of calls and emails lately from sellers that are upside down on their mortgage all asking the same question. \u201c Are we still in time to do a short sale on our home without being taxed by the IIRS for the deficiency?\u201d The simple answer to this question is yes, as long as you get it closed before 2013. However, there are many other things to consider besides the \u201cMortgage tax relief act of 2007\u201d.
6 things that could kill your Orlando Short Sale<\/a><\/p>\n
1-\u00a0\u00a0 \u00a0The Bank refuses to take accept the short sale offer- These days this doesn\u2019t happen that often. However, Some lenders are just not realistic when it comes to what the property is actually worth and they will just flat out refuse to do a short sale.
2-\u00a0\u00a0 \u00a0Stubborn Homeowners Associations- In the state of Florida, HOA\u2019s will be paid 1 year of dues if a property goes to foreclosure. However, for some reason, that I\u2019m still trying to figure out, there are HOA\u2019s out there that would rather let the property\u00a0 go\u00a0 to\u00a0 foreclosure and collect a year of delinquent dues instead of collecting an amount that is\u00a0 much more than that. It\u2019s almost\u00a0 like the HOA\u2019s take it personal that a homeowner can\u2019t pay and they want revenge!
3-\u00a0\u00a0 \u00a02nd mortgages not giving enough of a discount- When you do an\u00a0 Orlando Short Sale on a\u00a0 house that has 2 or more mortgages, the amount that you offer to that second mortgage holder as to be approved by the first mortgage holder. If the frst mortgage holder only wants the second to get $2,000.00 and the 2nd mortgage holder wants $5,000.00 guess what? That\u2019s right\u2026 it\u2019s a deal killer.<\/p>\n
4-\u00a0\u00a0 \u00a0The BPO Comes in Too High- Part of the process when doing an rlando\u00a0 short sale is for the bank to order a BPO [Brokers Price Opinion]. Kind of like a mini appraisal, a BPO is usually performed by a local realtor that goes into the house and records details of the house damages, upgrades, etc. Based on all of this information the BPO agent will determine what they\u00a0 think the house is worth. Unfortunately, I\u2019ve had BPO\u2019s done on properties where judging by their valuation of the property, they must have been either
5-\u00a0\u00a0 \u00a0intoxicated or the more likely scenario, they want the property to get foreclosed on in hopes that they get the listing on the property from the lender as an REO listing.
6-\u00a0\u00a0 \u00a0The buyers back out or are unable to close- Usually, you\u2019ll know way ahead of time if you\u2019re dealing with a legitimate buyer as opposed to a tire kicker because of a Deposit and proof of funds or a pre-approval letter. However, for whatever reason, a buyer will sometimes just not want to go through with the deal at the last second or their financing falls through. Unfortunately, It\u2019s just the nature of the Orlando Real Estate business.<\/p>\n
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