For buyers, foreclosures often offer deeper discounts but come with more risk, repair costs, and competition, while short sales may offer cleaner condition homes and negotiated pricing but require patience due to lender approval timelines.
What Buyers Should Know Before Choosing
When considering a purchase under special sale conditions, understanding how a Foreclosure and a short sale differ is critical. The right choice depends on your goals, risk tolerance, financing ability, and timeline.
This guide breaks down both options in simple terms, with Orlando-specific context and practical advice for buyers.
What Is a Foreclosure?
A foreclosure occurs when a homeowner fails to make mortgage payments, and the lender takes back the property, often selling it at auction or as a bank-owned (REO) listing.
Typically cheaper than market value
Homes are sold “as-is”
Can require significant repairs
Quick closing possible if buying bank-owned
What Is a Short Sale?
A short sale happens when a homeowner sells their property for less than the outstanding mortgage balance, with lender approval. The sale proceeds pay the lender part of what is owed, and the lender agrees to release the lien.
Requires lender approval
Negotiated sale price
May include seller concessions
Condition varies property to property
Key Differences at a Glance
Feature
Foreclosure
Short Sale
Price Potential
Often lower
Often discounted
Lender Involvement
Minimal pre-sale
High – must approve
Property Condition
May be poor
Varies, sometimes better
Timeline
Faster once bank owned
Can be slow
Buyer Competition
High (investors)
Moderate
Pros and Cons for Buyers
Foreclosure Pros
Potential for deeper discounts
Quick closing once bank owned
Often listed publicly
Foreclosure Cons
Property condition often unknown
Little to no seller disclosures
May require cash or stronger financing
Short Sale Pros
Negotiated pricing with lender
May include seller help with closing costs
Condition may be better than foreclosure
Short Sale Cons
Lengthy lender approval process
Higher uncertainty/timeline
Offers may be countered or rejected
Practical Steps for Buyers
1. Get Pre-Approved First
Before pursuing either option, secure mortgage pre-approval so you know your purchasing power and can act quickly when the right property hits the market.
2. Work With an Experienced Realtor
A knowledgeable Orlando real estate agent can help with strategy and avoid costly mistakes, especially when negotiating complex sales like foreclosures and short sales.
3. Understand Inspection Risks
Always schedule a home inspection even when buying foreclosures or short sales. Plan for potential repairs and negotiate accordingly.
Common Buyer Mistakes to Avoid
Assuming every listed foreclosure is a bargain
Waiting too long on short sales without strategy
Not factoring repair costs into your offer
Failing to check HOA, title liens, or back taxes
How It Works in Orlando, Florida
The Orlando market has a range of distressed properties, from older foreclosure inventory to short sales in transitional neighborhoods. Local buyers need a Realtor who knows how to read market signals, work with lenders, and structure offers competitively.
In Orlando, bank-owned properties can attract investors with cash offers, while short sales may appeal to buyers with patience and financing in place. Understanding local pricing trends and neighborhood appeal is essential to beat competition.
For more tips on negotiating price and terms in Central Florida, see our guide on Real Estate Deal in Orlando.
Is a Foreclosure or Short Sale Better for You?
There’s no one-size-fits-all answer. Foreclosures may offer lower prices but higher risk, while short sales can offer price negotiation but with a slower process. Your timeline, budget, and risk tolerance should drive the decision.
Summary
Both foreclosure and short sale homes can be good deals for buyers. The key is knowing what you’re walking into and having the right support to make smart choices. In Orlando’s dynamic market, local expertise makes the difference.
Frequently Asked Questions
Can I finance a foreclosure or short sale?
Yes, but financing requirements may differ and inspections matter.
Which option usually costs less?
Foreclosures often have lower list prices, but condition and repair costs vary.
Is the short sale process always slow?
It can be slow because lenders must evaluate financials and approve offers.
Do short sales allow inspections?
Yes—buyers should always inspect before closing.
Does foreclosure mean no disclosures?
Often, yes. Foreclosures typically come “as-is,” so inspections are crucial.
Can I make an offer on a short sale with contingencies?
Yes, but the lender may prefer stronger, less contingent offers.
Do foreclosures attract investors only?
No; owner-occupants can buy foreclosures too if they have proper financing.
How do I know if a property is a short sale?
The listing will usually state it’s a short sale, and your agent can verify with the seller’s agent.
Work With Orlando Realty Consultants
Choosing between foreclosure vs short sale requires strategy, insight, and local experience. Orlando Realty Consultants helps Central Florida buyers navigate complex deals with confidence and clarity.
Orlando Realty Consultants
📞 Phone: 407-902-7750
📍 Service Area: Central Florida
Contact us today for a customized buying strategy aligned with your goals and timeline.
A short sale in Orlando is a real estate transaction where the sale price of a home is less than the full amount the homeowner still owes on the mortgage. Both the seller of the property and their mortgage company must agree to a short sale. Most lenders these days will agree to the terms of a short sale and also agree to release the lien they possess on the property.
Depending on what the lender agrees to, a short sale doesn’t guarantee that the borrower will be released from the obligation to pay the remaining balance on what’s owed on the loan AKA the “deficiency”.
This is why it’s extremely important that when you hire a Realtor to do your short sale, you don’t hire just any Realtor. Make sure you hire an Orlando Short Sale Specialist. This will ensure you have the best chance at success when doing your short sale.
By agreeing to do a short sale, lenders avoid a drawn-out and costly foreclosure and the homeowner can walk away free of their debt. Before deciding on a short sale, we recommend that you find out all the options that are available to you to see what works best for you.
Benefits of A Short Sale
Less Credit Damage Than Foreclosure When you compare the impact of foreclosure vs. a short sale on your credit, a short sale harms your credit much less than a foreclosure will. For example, you’ll be eligible for either Fannie Mae or Freddie Mac home financing after only two years following your short sale. However, after a foreclosure, it will take you at least 5 years to be eligible for the same financing.
This is because of the way the mortgage underwriting rules were changed after the financial crisis of 2008.
Cash Back To Sellers
Just about all short sales in Orlando are sold “as-is” which means you won’t have to spend a dime on fixing the place up. In addition, all lender fees, commissions, property taxes, etc. on both sides of the transaction will be paid for by the lender.
In most cases, we’re able to get our clients anywhere from $3,000 to $30,000 at the closing for relocation costs
A Fresh Start
A successful short sale gives distressed homeowners a clean break from their financial hardship. Over 50% of homeowners that opted for a loan modification instead, wound up going into default again and ultimately ended up doing a short sale. Loan modifications are usually modified to benefit the bank in the long term and most of the time you still end up paying the entire amount of what you owed in the first place.
The Sale Date Can Be Negotiated
If a homeowner is in active foreclosure, the lender together with the judge will eventually schedule a sale date of the home at the hearing. You should show up for this hearing with written proof from your Orlando Realtor that you are actively pursuing a short sale on your home. Have your Realtor go with you and provide an MLS printout of the listing, contract, as well as any communications you’ve had with your lender thus far. From my experience as a short sale realtor, they will almost always push the foreclosure sale date a maximum of 120 days giving you ample time to close the transaction.
Easier To Rent A House
Foreclosures, bankruptcies, and evictions are all red flags to landlords who will probably deny you as a renter. However, while your short sale is being negotiated, you’ll have plenty of time to find a rental to move into. Remember, landlords are creditors also and if they see that you’ve been proactive in doing the right thing in your situation rather than just letting your home gets foreclosed on your chances are much better for them to approve you for their rental.
If you or someone you know needs short sale services in Orlando FL, Call us at 407-902-7750 or visit our site. There’s never a charge for our services and most of the time we can get cashback to sellers.
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.
Diego Fontana in the BVL area of Kissimmee asks…”How do they decide the value of a Short Sale property“? The valuation of a property, in my opinion, is the single most important factor in the whole short sale process.
Here’s the way it works. We start by submitting an offer to the bank,the bank will then order what’s called a BPO on the house AKA a broker’s price opinion. In some cases, the bank orders a full-on appraisal, but most of the time it’s going to be a BPO The person that does the BPO is usually a local realtor hired by an agency that’s been hired by the bank.
So the realtor goes out to the property, takes some pictures, and does some research. then based on things like • recent sales in the area • repairs that the home needs • and even upgrades that the house may have
They take all these things into account to create the BPO report. So this is the realtor’s opinion of what the property’s worth.
Whatever, the BPO comes in at will be the negotiating point between the lender and potential buyer. The BPO happens… Now At this point, there are 3 things that can happen that will dictate what follows. The BPO comes in at a fair valuation, everyone’s happy, and we proceed to close. or… The BPO comes in really low, so low in fact.. that the bank insists on another one being done… and although it doesn’t happen too often, it can and does happen on occasion. or… The BPO comes in super high and the buyer threatens to walk.
When this happens, the Orlando listing agent has to Do whatever it takes to get the bank to order a second BPO. We do this by making a report of our own… called a CMA or comparative market analysis This report has even more information than a BPO does.
The sole purpose behind sending them a CMA is to get the bank to order another BPO or if we’re lucky they’ll just use our report. In the end, after all the dust settles, the lenders are the ones that decide how much they are willing to accept for the property.
So Diego, there you have it. I hope that answers your question.
That’s our show for this week, join us next week for the 3rd episode in our short sale series.
In 2014 new housing developments in Orlando became increasingly more expensive throughout the year and we can expect to see more of the same in 2015 according to Orlando Realtors. This is in part due to newly retired couples looking for a permanent move as well as vacationers wanting to have a new home away from home.
Prices on new homes in Orange county are scaring some buyers away. In fact, when compared to Lake and Osceola counties, Orange County leads the way in price per sq ft. for relatively the same quality home. Builders say that retirees and vacationers have been able to tap into their investment savings in recent years and use them to reinvest in Orlando real estate.
The rising prices of new homes in Orlando have been evident in both the high end as well as lower-end homes. New home builders see the trend and continually try to offset the higher prices by offering incentives to buyers that struggle to qualify for mortgages, especially the people that lost their homes in the market crash of 2007 to foreclosure or short sale.
Reducing the number of upgrades, less customization on the homes as well as reducing closing costs to a minimum are the most popular ways to discount pricing. Even with builders scrambling to find ways to keep costs down and increase buyer incentives, higher prices may still price many potential home buyers out of the Orlando real estate market.
However, even with the higher-priced homes, closings on new homes in Central Florida overall have continued to increase during the past year. South Orlando seems to be Central Florida’s strongest area for new home building with over 1,200 housing starts in the third quarter of 2014.
Approximately 1/3rd of those homes were in the Lake Nona area development which was the most activity for single-family residences for the quarter. Overall during the third quarter of 2014 builders began building more houses than they had sold.
New Homes In Orlando Falling Behind Schedule
This may be the cause for other developments like “The Point at Hunters Creek” formerly known as “Kailey’s Ridge” to fall way behind schedule. This development located in the much sought-after community Hunters Creek was to consist of 134 single-family homes built by bothRyan Homes and Surrey Homes and was expected to have homes for sale by October of 2014.
We’re now in January of 2015 and the new development has only gotten as far as clearing the land and paving the streets. Many potential buyers that have been patiently waiting to secure one of these new homes have opted instead to buy an older home in the community.
