Short Sales Outnumbering Foreclosure Sales in a Big Way.
The Orlando foreclosure crisis is nowhere close to being over, but the light at the end of the tunnel is getting brighter every day. Orlando short sales are a win-win for everyone involved. Short sales [which occur when homeowners sell their homes for less than what they still owe], also close much faster than foreclosure sales, and they relieve lenders of the responsibility of maintaining vacant homes as well as not having to worry about the properties getting vandalized.
It makes you think,… with soo many benefits in it for the lenders the question is why weren’t they doing this the whole time?
New Developments in Orlando Real Estate
There have been some changes made in the rules of Orlando short sales lately. For starters, lenders no longer have a choice. The Federal Housing Finance Agency announced this month that mortgage servicers will be required to review and respond to short sale offers within 30 days and make final sale decisions within 60 days. All of this is supposed to take place in June of this year, meanwhile, lenders are scrambling to train enough staff to handle the demand for new short sale files.
A Win-Win Situation for Orlando Homeowners
By going the short sale route both the lenders as well as the homeowners win. Homeowners get to walk away from debt-free, the lender re-cooperates some of their money back and everyone gets to move on with life.
Doing a short sale is usually the best option for people. Statistics just from our own office indicate that 90% of the time homeowners choose the short sale route after consulting with one of our Orlando short sale specialists and all the options have been explained to them. With all the incentives being offered by lenders these days, it just makes the most sense in most cases.
With lenders being much better equipped to process short sales now, it’s absolutely the fastest way for borrowers to walk away from their distressed properties. Also, credit repair is much easier to achieve when you’re dealing with some late payments on your record as opposed to a foreclosure.
Cash for Keys for some homeowners.
For many homeowners, banks are offering cash incentives for the homeowner to agree to a short sale. We’ve gotten our clients from $3,000.00 up to $20,000.00 back at closing. This is a tremendous help for homeowners in making the transition into a new homeless financially painful.
Short Sales are better for Orlando neighborhoods.
Banks are terrible property owners, foreclosed homes often stay vacant for months and even years, meanwhile, the home deteriorates due to lack of maintenance. To make things worse, vacant houses might as well have targets painted on them in certain neighborhoods. Thieves go after things like fixtures, appliances, copper pipes, etc. Banks are unknowingly cannibalizing their own assets with foreclosures.
Short sales put new owners in vacant homes much faster than foreclosure sales. This is good news for Orlando neighborhoods that have been hit hard by the mortgage crisis. New homeowners are typically pretty excited about being new homeowners and the first thing they usually do is work on the curb appeal of their new home. Many times this creates a domino effect and before you know it, surrounding neighbors will also want to improve their curb appeal.
Ask me anything, I’m here to help.
