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Although short sales in Orlando have dwindled in recent years, Central Florida still ranks as one of the top regions in the US having the most short sale listings.
Ironically, “short sales” can take a very long time to complete. These are homes in which the bank is willing to entertain a lower amount than what’s owed on the mortgage, in order to recoup most of their money.
More than 1 in every ten homes that were sold in the Orlando area in the last quarter of 2016 area was a short sale listing. The only other areas that had a higher short sale rate in the state of Florida were Fort Myers and Lakeland.
When short sales first became popular after the market crash of 2007, banks were willing to accept a much bigger loss than is the case today. This meant that investors and rehabbers like me were enjoying much larger profits than is the case with short sales today.
These days banks want as close to full market value as they can get. Many times these listings only make sense if you plan on moving into the house and making repairs yourself.
As an Orlando real estate investor, I make several offers on short sale listings every week most of which get denied for being too low. When buying a property as an investment home to resale you have to consider all the costs involved like repairs, closing costs, marketing, staging, etc. After doing the math, I can tell you that most short sale listings right now in Orlando are way… way overpriced for investors to make any money on them.
Banks are realizing that if they just let the home go to foreclosure, they can sell it for closer to market value instead of accepting a low-ball offer from an investor. Orlando short sales are ending up being auctioned off online auction these days more than ever. This strategy also allows these lenders to expose their property to anyone in the world with a computer.
Orlando’s continued distinction for short sales is a clear indication of how depressed this area’s housing market was just a few short years ago. At that time, there were more Orlando short sales and foreclosures than there were traditional sales. It has taken several years to push these distressed Orlando properties out of the pipeline.
Now that market conditions have been steadily improving, more homeowners are able to sell their homes at a profit. And for homeowners that are a bit underwater are starting to see the light at the end of the tunnel that will allow them to hang in there instead of having to come up with the difference at the closing.
For homeowners that are deeply underwater that are still at risk of losing their home to foreclosure, a short sale is still their preferred alternative because it does a lot less damage to the homeowner’s credit. They can also walk away with less debt and even come away with a few thousand bucks in their pocket for relocation costs.
I can tell you from experience as an Orlando Realtor and investor that short sales are no longer the deals they once were. Banks are being harder negotiators than ever and if they don’t get their number, they have no problem foreclosing.
Buyers who want to use the home as their primary residence and are willing to pay close to market value can still get a slight discount buying an Orlando short sale. However, for most retail buyers when they hear the word “short sale”, they usually pass because they know that short sale lenders can take a long time to respond and there’s never a guarantee that they will accept your offer.
If you owe more on your Orlando home than it can sell for, or you can no longer afford the mortgage payments, a short sale may provide a structured way to sell the property and avoid completing a foreclosure.
This guide explains how short sales work in Orlando and Central Florida, what lenders require, how long approval may take, the risks involved and the steps homeowners should take in 2026.
Quick Answer
A short sale occurs when a mortgage lender approves the sale of a property for less than the total debt secured by the home. Orlando homeowners generally consider a short sale when financial hardship and insufficient equity make a traditional sale impossible. The lender must approve the purchase price, expenses and settlement terms before closing.
What Is a Short Sale in Real Estate?
A real estate short sale happens when the proceeds from selling a property are not enough to pay the mortgage balance and other approved obligations in full.
Because the mortgage lender would receive less money than it is owed, the transaction cannot close without the lender’s written authorization.
The word “short” refers to the sale proceeds being short of the amount owed. It does not mean that the transaction will be completed quickly.
Simple Orlando short sale example
Suppose an Orlando homeowner owes $360,000 on a mortgage, but the home’s realistic market value is approximately $325,000.
After real estate commissions, title charges, property taxes, association balances and other closing expenses, the lender may receive considerably less than $325,000.
If the homeowner cannot bring enough money to closing to cover the shortage, the homeowner may ask the lender to approve a short sale.
The Consumer Financial Protection Bureau describes a short sale as a loss-mitigation option in which a home is sold for less than the outstanding mortgage debt.
Who must approve a short sale?
Approval may be required from several parties, including:
The primary mortgage servicer
The owner or investor behind the mortgage
A second-mortgage or home-equity lender
A mortgage insurance company
An FHA, VA, USDA or conventional loan program
A homeowners or condominium association
Judgment, tax or other lienholders
Every lien or secured claim affecting the property must be resolved before the sale can close.
Who May Qualify for a Short Sale?
A lender will generally consider a short sale when the homeowner has a documented financial hardship, cannot maintain the mortgage and does not have enough equity to complete a traditional sale.
Common financial hardships
Job loss
Reduced income or work hours
Divorce or separation
Medical expenses or disability
Death of a borrower or household income earner
Business failure
Unaffordable mortgage payment increases
Necessary employment relocation
Military transfer
Major property damage
Increasing insurance, HOA or property ownership costs
A hardship does not guarantee approval. The lender will normally evaluate the homeowner’s financial condition, the property’s market value, the expected sale proceeds and the lender’s likely recovery through foreclosure.
Do you have to be behind on mortgage payments?
Not always. Some lenders may evaluate a homeowner who is current on the mortgage but facing an imminent and documented hardship.
Eligibility depends on the mortgage investor, loan program and servicing guidelines.
Homeowners should not intentionally stop making payments simply to appear eligible for a short sale. Missed payments may cause late fees, collection activity, credit damage and foreclosure.
A short sale may not be necessary when:
The property has enough equity for a traditional sale
A loan modification would make the payment affordable
The homeowner can reinstate the loan
A repayment or forbearance plan is available
The homeowner can pay the shortage without creating further hardship
The lender will not release the mortgage lien on acceptable terms
Bankruptcy or another legal solution requires immediate review
How the Short Sale Process Works
Every mortgage servicer has its own requirements, but most Orlando short sales follow the same general process.
1. Review the property’s value and total debt
The first step is determining the home’s probable market value, mortgage payoff, liens and estimated selling expenses.
This review helps establish whether the property is truly underwater and whether a normal sale is possible.
The homeowner and Realtor should also review:
Foreclosure status
Upcoming court deadlines
Property condition
HOA or condominium balances
Second mortgages
Judgments and other liens
2. Contact the mortgage servicer
The homeowner should contact the mortgage servicer and request information about available mortgage assistance and loss-mitigation options.
The servicer may provide a short sale package, borrower assistance application or online submission portal.
The lender will usually require financial statements, income verification, bank records, mortgage information and a written explanation of the hardship.
An incomplete package is one of the most common reasons for delays. Missing signatures, incomplete statements and expired financial records can stop the review.
4. Price and list the Orlando property
The home should be priced according to current Orlando-area market conditions, comparable sales, property condition and buyer demand.
The list price should not be based on the mortgage balance. It should also not be intentionally set far below market value to attract an unrealistic offer.
The lender may order:
A broker price opinion
A professional appraisal
An automated valuation
An interior or exterior property inspection
If the buyer’s offer is substantially below the lender’s valuation, the lender may reject the offer or demand a higher price.
5. Obtain a qualified buyer
The homeowner may accept a purchase offer subject to third-party short sale approval.
A strong short sale offer should include:
A fully signed purchase contract
Proof of funds or mortgage preapproval
A realistic closing date
Clear short sale contingency language
Buyer acknowledgment of lender approval
Reasonable inspection and financing terms
The homeowner can accept the buyer’s offer, but only the mortgage lender can approve the shortage and authorize the release of its lien.
6. Submit the offer to the lender
The Realtor or short sale negotiator submits the contract, estimated settlement statement, buyer qualifications and homeowner’s financial package to the servicer.
The lender reviews:
The homeowner’s hardship
The purchase price
The property’s market value
Estimated net proceeds
Requested closing expenses
Junior liens
Association balances
The homeowner’s income and assets
7. Negotiate the short sale terms
The lender may approve the offer, reject it, request additional documents or issue a counteroffer.
A verbal approval is not sufficient. The homeowner should receive and carefully review the lender’s written approval letter.
The approval letter should identify:
The approved buyer
The approved purchase price
The lender’s required net proceeds
The expenses the lender will allow
The final closing deadline
Whether the mortgage lien will be released
Whether the remaining balance is waived
Whether the lender requires a contribution
Whether relocation assistance is approved
A release of the mortgage lien does not always mean the lender has released the homeowner from personal liability for the remaining debt.
9. Complete financing and closing
After written approval, the buyer completes any remaining inspections, financing, appraisal, title and insurance requirements.
Short sale approval letters normally include a firm closing deadline. If the transaction does not close before the deadline, an extension or additional lender review may be required.
Short Sale Document Checklist
Exact requirements vary by lender, but Orlando homeowners should be prepared to provide the following:
Signed borrower authorization form
Mortgage assistance or loss-mitigation application
Hardship letter
Recent mortgage statements
Recent pay stubs or income verification
Complete bank statements
Federal tax returns, when requested
Profit-and-loss statement for self-employed borrowers
Monthly income and expense worksheet
HOA or condominium statements
Information about judgments and liens
Listing agreement
Signed purchase contract and addenda
Buyer’s proof of funds or mortgage preapproval
Estimated closing or settlement statement
Comparable sales and market analysis
Provide every requested page, including blank pages when the lender asks for a complete statement. Documents may need to be updated if they expire during the review.
How Long Does a Short Sale Take in Orlando?
A short sale may take several months from the initial preparation through closing.
Some straightforward transactions move faster, while files involving multiple mortgages, HOA liens, probate, bankruptcy, title defects or foreclosure deadlines may take much longer.
Many Florida short sales take approximately four to eight months, although no Realtor can guarantee a lender’s approval timeline.
Typical Orlando short sale stages and estimated timing
Stage
Typical activity
Estimated timeframe
Initial review
Evaluate property value, mortgage debt, liens and foreclosure status
Several days to 2 weeks
Document preparation
Gather and submit the homeowner’s financial package
1 to 3 weeks
Property marketing
List the property and obtain a qualified buyer
Varies
Lender review
Review hardship, offer, valuation and settlement terms
30 to 120 or more days
Negotiation
Resolve price, liens, expenses and approval conditions
2 to 8 or more weeks
Approval to closing
Complete financing, title, insurance and final requirements
2 to 6 weeks
What can delay a short sale?
Missing or expired financial documents
Multiple mortgages or judgment liens
Unpaid HOA or condominium balances
An unrealistic purchase price
A lender valuation dispute
A buyer who becomes unwilling to wait
Mortgage servicing transfers
Probate or divorce complications
Bankruptcy proceedings
Municipal or title liens
Delayed responses to lender requests
Who Pays the Costs in a Short Sale?
In many approved short sales, ordinary selling expenses are paid from the sale proceeds rather than directly by the homeowner.
However, the lender controls which expenses it will allow and may limit or reject certain charges.
Potentially approved expenses may include:
Real estate commissions
Title and settlement charges
Recording expenses
Florida documentary stamp taxes
Prorated property taxes
Approved HOA or condominium balances
Buyer closing-cost assistance
Limited repair-related credits
The lender may require the homeowner to contribute money or sign a promissory note as a condition of approval.
Florida Deficiency Judgments and Short Sales
A deficiency is the unpaid portion of the mortgage debt remaining after the lender applies the proceeds from the short sale.
A short sale does not automatically eliminate that balance.
Florida law may permit a mortgage lender to pursue a deficiency under certain circumstances. Homeowners should carefully review the approval letter and obtain legal advice when necessary.
The strongest outcome is generally an approval letter stating clearly that the lender waives or forgives the remaining deficiency and releases the homeowner from further liability.
Do not assume that vague language provides a complete waiver.
Short Sale Tax Consequences in 2026
Mortgage debt canceled in a short sale may be treated as taxable income unless an exclusion or exception applies.
A lender may issue IRS Form 1099-C reporting the amount of canceled debt.
Federal mortgage-debt rules have changed over time. Homeowners should not rely on older online articles stating that all forgiven mortgage debt is automatically tax-free.
Speak with a qualified accountant or tax attorney before completing the transaction.
Orlando Realty Consultants does not provide legal, credit, accounting or tax advice.
Short Sale vs. Foreclosure
A short sale and a foreclosure can both result in the homeowner leaving the property, but they are not the same process.
A short sale is a negotiated sale involving the homeowner, buyer and lender. A foreclosure is a legal process used by the lender to enforce the mortgage.
Short sale and foreclosure comparison
Issue
Short Sale
Foreclosure
Who initiates it?
The homeowner voluntarily lists and sells the property
The mortgage lender files a legal action
Control over the sale
The homeowner participates in pricing, marketing and reviewing offers
The homeowner has limited control as the case progresses
Lender approval
Required before closing
The lender proceeds through the Florida court system
Public court action
A short sale alone does not create a foreclosure lawsuit
Florida foreclosure is a judicial court process
Deficiency risk
May be negotiated in the approval letter
May remain after foreclosure, subject to applicable law
Credit impact
May be significant, especially when payments are missed
Generally considered a major derogatory credit event
May help the homeowner avoid completing a foreclosure
Provides more control over marketing and move-out timing
May resolve an unaffordable mortgage
May allow negotiation of the remaining deficiency
The lender may approve normal selling expenses
Some programs may provide relocation assistance
Potential disadvantages
Lender approval is not guaranteed
The process can take several months
Extensive financial documentation may be required
The lender may counter the purchase price
Credit may still be damaged
Forgiven debt may have tax consequences
A deficiency may remain after closing
The property may need to be sold as-is
Alternatives to a Short Sale
A short sale is one form of mortgage loss mitigation, but it is not the only possible option.
Reinstatement: Paying the past-due mortgage balance and permitted charges.
Repayment plan: Spreading the past-due balance over additional monthly payments.
Forbearance: Temporarily reducing or pausing payments under a lender-approved plan.
Loan modification: Changing one or more mortgage terms to create a more affordable payment.
Traditional sale: Selling the property normally when sufficient equity exists.
Deed in lieu of foreclosure: Voluntarily transferring the property to the lender under approved terms.
Bankruptcy consultation: Obtaining legal guidance when broader debt or foreclosure issues exist.
The best option depends on the homeowner’s goals, property equity, mortgage status, financial hardship and foreclosure timeline.
Common Short Sale Mistakes
Waiting too long
Starting after a foreclosure sale has been scheduled leaves less time to market the property, secure a buyer and obtain lender approval.
Listing a property for sale does not automatically stop foreclosure.
Hiring an agent without short sale experience
A traditional listing and a short sale are not the same. The agent must understand lender packages, valuations, liens, approval letters and buyer retention.
Pricing the property incorrectly
Overpricing can prevent offers. Severe underpricing may result in a lender rejection or counteroffer.
The price must be supported by current Orlando-area comparable sales and the property’s condition.
Submitting an incomplete package
One missing signature or bank-statement page can delay the review. Financial documents may also need to be updated during the process.
Ignoring second mortgages and liens
The first lender’s approval does not automatically clear second mortgages, judgments, municipal liens or association claims.
Assuming the deficiency is forgiven
A lender’s agreement to release its mortgage lien does not necessarily mean it has waived the remaining debt.
Accepting an uncommitted buyer
A buyer who does not understand the short sale timeline may cancel before the lender completes its review.
Abandoning the property too early
The homeowner generally remains responsible for maintenance, security, utilities, insurance and association obligations until ownership transfers.
How Short Sales Work in Orlando and Central Florida
Mortgage lenders use national servicing guidelines, but the successful marketing and negotiation of an Orlando short sale depends heavily on local real estate conditions.
A condominium near Downtown Orlando should not be valued the same way as a single-family property in Hunters Creek, a townhome near UCF or an investment home in Kissimmee.
Local buyer demand, property condition, insurance availability, HOA finances and rental restrictions may all affect the transaction.
Central Florida issues to address early
HOA and condominium balances: Past-due assessments, attorney fees and association liens may exceed the amount the mortgage lender will approve.
Property insurance: Roof age, electrical panels, plumbing and other insurance issues may affect buyer financing.
Deferred maintenance: Serious repair problems may affect property value and loan eligibility.
Tenant occupancy: Leases, deposits and access may complicate investment-property sales.
Municipal liens: Open permits, code violations and municipal balances may create title problems.
Foreclosure litigation: Florida is a judicial foreclosure state, so homeowners should not ignore court filings or hearing dates.
Example of an Orlando short sale
Assume an Orlando home is worth approximately $315,000, while the mortgage payoff is $338,000.
The homeowner also owes property taxes, HOA charges and transaction expenses. Even an offer at full market value would not generate enough money to pay every obligation.
The home is listed at a market-supported price, and a qualified buyer offers $312,000.
The mortgage lender orders a valuation, reviews the hardship package and analyzes the proposed closing statement.
The lender may accept the offer, demand a higher price, reduce approved expenses or require a homeowner contribution.
If acceptable terms are reached, the lender issues a written approval letter with a final closing deadline.
This example is simplified. Actual outcomes depend on the mortgage program, liens, property value, lender and homeowner’s financial circumstances.
Short Sale Information for Orlando Buyers
A buyer may be able to purchase a short sale property at a competitive price, but a short sale is not automatically a bargain.
The mortgage lender will compare the offer to the property’s market value and may counter an offer it considers too low.
Orlando short sale buyers should:
Obtain mortgage preapproval before making an offer
Confirm whether the seller has started the lender process
Understand that third-party approval is required
Budget for property inspections
Expect the property to be sold as-is
Keep financial documents current
Review contract deadlines carefully
Remain flexible about the closing date
Complete full title and insurance due diligence
Lender approval does not replace a home inspection, appraisal, title examination or insurance review.
What Orlando Homeowners Should Do Next
Locate your latest mortgage statement.
Obtain an estimated mortgage payoff.
Determine the home’s realistic current market value.
Identify every mortgage, HOA balance, judgment and lien.
Contact the mortgage servicer about loss-mitigation options.
Do not ignore foreclosure notices or court deadlines.
Consult an experienced Orlando short sale Realtor.
Speak with legal and tax professionals when appropriate.
Keep the property maintained, secure and insured.
The earlier the homeowner reviews the numbers and deadlines, the more options may remain available.
Frequently Asked Questions About Short Sale Information
What is the most important short sale information for a homeowner?
The most important point is that the mortgage lender must approve the transaction because the sale proceeds will not pay the secured debt in full. Homeowners should understand lender requirements, timelines, deficiency terms, tax concerns and foreclosure deadlines before proceeding.
Do I have to miss mortgage payments to qualify for a short sale?
Not always. Some lenders consider homeowners who are current but can document an imminent hardship. Eligibility depends on the mortgage investor and loan program. Do not intentionally miss payments without understanding the consequences.
How long does an Orlando short sale take?
Many short sales take approximately four to eight months, although the timeframe varies. Multiple liens, missing documents, lender valuations, buyer financing and HOA claims can extend the process.
Can a short sale stop an Orlando foreclosure?
A lender may delay foreclosure while reviewing an approved loss-mitigation application, but simply listing the property does not automatically stop a foreclosure case or scheduled sale.
Will I owe money after a Florida short sale?
Possibly. The remaining mortgage balance is known as a deficiency. Whether the lender waives, forgives or preserves that debt depends on the written approval terms and applicable law.
Will a short sale affect my credit?
Yes. A short sale and related missed mortgage payments may negatively affect credit. The exact impact depends on how the lender reports the account and the homeowner’s overall credit history.
Can I complete a short sale if my Orlando home needs repairs?
Yes. Many short sale properties are sold as-is. However, serious roof, electrical, plumbing or structural problems may reduce the home’s value and limit buyer financing options.
Who pays the real estate commission in a short sale?
The lender commonly approves the commission as an expense paid from the sale proceeds. The lender may limit the amount it will allow as part of the final settlement.
Can the homeowner receive money at closing?
A homeowner usually cannot receive undisclosed sale proceeds when the lender is accepting less than the mortgage debt. Certain lender programs may approve relocation assistance, but it must be disclosed and authorized in writing.
Do I need a short sale Realtor in Orlando?
An experienced short sale Realtor can price and market the property, organize the lender package, communicate with the mortgage servicer, manage buyer expectations and help negotiate approval terms.
Get Short Sale Help in Orlando and Central Florida
General short sale information cannot determine whether your property has enough equity, whether your lender will approve a short sale or how much time remains before foreclosure.
Orlando Realty Consultants helps Central Florida homeowners evaluate their options, prepare short sale packages, market distressed properties and communicate with mortgage servicers throughout the approval process.
We can help you evaluate:
Your estimated property value
Your mortgage shortage
Current Orlando real estate conditions
The documents required by your lender
Possible HOA, lien and title complications
A realistic listing strategy
The lender’s final approval terms
Call Orlando Realty Consultants at 407-902-7750 for a confidential short sale consultation.
Serving Orlando and Central Florida. Se habla español.
Don’t let the name fool you, Orlando short sales take a long time! The reason being is that a short sale means that the bank loses money so you can’t blame them for not being in a rush. This can however be helpful to the homeowner by allowing them time to get their house sold and avoiding foreclosure. If a lender approves a short sale on a home, it means that they are allowing the homeowner to sell their home for less than what’s owed on the mortgage.
Recently, the United States Treasury Department changed the rules to make the short sale process easier and more efficient. Usually, the short sale process will drag on for several months and even up to a year in some cases. And even then there was no guarantee that the lender would agree to a short sale. That’s why there are so few Orlando short-sale realtors willing to specialize in this area of real estate.
Some short-sale agents remain skeptical and think that nothing will change. Orlando short sale specialist Jenny Zamora, Broker at Orlando Realty Consultants “I will be the first to shout from the rooftops if the short sale process becomes faster than what it is”.
These are some of the changes that are being put in place:
Potential buyers must submit a pre-approval letter from a lender together with their offer on the home.
Lenders have to either approve or deny a short sale offer within ten business days.
To protect the homeowner from being forced out, the short sale lender must give a 45 day closing period unless the seller agrees to a lesser amount of time.
If someone buys a house via short sale, they cannot sell it for at least 90 days. This scenario is fine for someone planning to live in the home but it presents a problem for investors looking to do a quick flip.
Orlando short sales done through the HAFA program [Home Affordable Alternatives Program] can’t be sold to a friend or relative or business partner of the seller.
A maximum of $3,000 can go to holders of junior liens to release a lien on their property
A lender may not foreclose while the house is being marketed for sale during the short sale process.
Lenders may no longer charge fees to borrowers who wish to pursue a short sale instead of a foreclosure.
Lenders may no longer lower realtor commissions after an offer has been received.
Jenny Zamora, Orlando Realtor, and short sale specialist are overall happy with the changes although she is doubtful these changes will increase her already outstanding turnaround time of 30-45 days to complete a short sale.
Recently, I had a potential buyer call me about moving to Orlando from New Jersey. This particular buyer was interested in the neighborhood of Hunters Creek, FL because he had a young family and he knew that Hunters Creek was voted the 21st best place to live in the U.S. just a couple of years ago. In our first conversation, he says to me “Whatever, you don’t show me any houses where there is a homeowners association”. I can’t say I was surprised to hear this, I hear it all of the time. There’s a lot of bad press about HOAs, especially when it comes to short sales and trying to negotiate with them on discounting the amount owed by a seller, but that’s a different subject altogether.
My first order of business as an Orlando real estate agent was to tell this buyer that every neighborhood in Hunters Creek is governed by an HOA. I then had to educate him on how communities like these put HOAs in place to protect their residents. Imagine if everyone was allowed to paint their house any color they wanted…Yikes!!! or what if residents didn’t have to pick up after their dogs? It would be total Chaos!
I knew that if I was going to keep him as a client I would have to do one of two things; either find him another neighborhood to live in or convince him that not all HOAs are evil. It forced me to do some deep research about HOA’s. See below.
What’s An HOA?
An HOA is an organization in a planned community or condominium that makes and enforces rules for the properties under its jurisdiction. An HOA survives by collecting fees, either monthly or quarterly to pay for the upkeep of the community’s common areas like soccer fields, dog parks, tennis courts, community centers, etc. They also enforce the community rules AKA “the Declaration of Covenants, Conditions, and Restrictions”. If there weren’t a set of rules in place, the neighborhood would be much less appealing. These are the rules that keep your neighbor from painting her house bright purple or parking their RV in the driveway. It’s true that sometimes HOAs can be overly strict in some cases, but it’s always in the best interest of the community.
What Do HOAs Cover?
It depends on what community you’re talking about because every HOA is different. You can find out what any particular HOA covers simply by contacting the one that runs the community that you’re interested in.
Who or What Runs The HOA?
The HOA is run by the Covenants, Conditions & Restrictions AKA the CC&Rs. This will decide how a HOA will function including but not limited to: what’s allowed, what’s not allowed, and how elections and assessments are managed. Typically, there’s a Board of Directors that are unpaid residents of the community that make sure that the community rules and restrictions are followed and enforced. Also, there’s a management company that’s hired to collect fees and schedule maintenance to common grounds like landscapers, park maintenance, etc.
What Happens If You Don’t Pay Your HOA Fees?
The HOA has the right to put a lien on your property for non-payment. If the homeowner doesn’t pay the fees for whatever reason, the HOA can actually have the ability to foreclose on the property. This may be hard to believe but it happens all the time here in Orlando. Even though the mortgage company is in the first position if it goes into foreclosure, the HOA has the right to receive up to one year’s worth of HOA dues under Florida law
Why Do Some HOA Fees Increase?
The short answer is inflation. The fees that you pay to your HOA are based on the budget that was determined for that fiscal year. The budget covers day-to-day operations, field maintenance, pest control, landscaping, etc. Also, there should always be a reserve for any unforeseen events that may come up. If the HOA determines that the fees charged won’t cover the needs of the community, then the fees will increase.
