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Cheap Orlando Homes For Sale

This page is to highlight Bank Owned homes for sale and Short Sales in and
around the Orlando area. It's tough to get cheaper Orlando homes for sale than bank owned!

You want listings? Here they are:

Bank Owned Orlando area Homes For Sale

Orlando area Short Sales

What is the difference between a Short Sale and a Bank Owned sale?

A bank owned sale is when the lender has taken full possession of the property.

  • The primary difference to buyers is that a bank owned sale goes much more
    smoothly and quickly than a short sale.

  • Lenders will typically respond to offers within 24-48hrs and can close within 30 days.

  • Most liens were probably paid off when the bank took possession.

A Short Sale is when the home owner(s) simply cannot meet the financial needs of
the property and are forced to sell. Due to market conditions, the amount the home
owner(s) owe is far more than what they can sell it for.

The sale will come up SHORT of the full amount owed on the mortgage.

In many cases listing a house for sale will put a HOLD on the foreclosure process.

In order to perform a Short Sale the mortgage holder(s) must submit a Hardship letter, pay stubs, and past Tax returns.

Most lenders will not communicate with the home owners (or Realtors with
permission) about a short sale until they have an offer in writing. After they get
the offer it will take 30-90 days to consider the first offer.

The Loss Mitigation department will sometimes issue an appraisal on the property
to determine whether they will accept the offer or not. After the first offer, the
response time should be much quicker.

The buyer should be aware that short sales will often have other costs associated aside from the sales price.

If the owner(s) aren't paying the mortgage they may not be paying the HOA fees,
property taxes, or even water bills. While I can check public records for some liens it
won't become known how much is owed until the Title Company prepares the HUD1
Settlement Statement.

Since the owner(s) usually have no funds the buyer will
need to budget for items the previous owner may not have paid.

By comparison, Bank Owned homes *should* be clear of all liens if the title company did a proper job.

The reality is that there are ten times as many short sales as bank owned sales. As
long as you keep the above issues in mind, it's certainly possible to close on a short
sale and get a very good deal.

One of the most important facets of an offer on a short sale or bank owned is the Inspections Addendum.

Without a Sellers Disclosure there is no way to know the
history of the property.

Each lender handle sales in their own manner. Often they will require the buyer to
get Pre-Qualified with them or a lender they dictate. This is a very common
requirement.

Sometimes the lender will collect multiple offers and pick the best one after a certain
time frame. Some lenders may require a larger escrow deposit than market rates.
Virtually all bank owned and short sales are sold 'As Is' with right to inspect. Any
repairs will be your responsibility. Putting in realistic repair cost is
imperative.

Prices - Bank Owned listed prices tend to be more in line with what a lender will
actually sell the property for. In some cases they are quite specific accepting offers
of say $172,052.35 or higher. A Short Sale list price is an educated opinion of what
the house is worth based on the market conditions at the time. The home owner(s)
have zero say regarding offer acceptance or denial.

The lender may not accept a full list price offer if the price is below market rate!

Also, it's not uncommon for a nice property that is listed very attractively to sell for
over 100% of the listed price.

Pure investors are in competition with people who desire to live in the house particularly below the $250k price point.

What to take away from the above?

Bank Owned home sales and Short Sales can be great deals as long as the buyer
understands there are potential hidden costs and logistical frustrations involved
when buying such properties.

As a buyer you should expect the unexpected.

If you have any questions feel free to call or Email me!