Mortgage Woes for Orlando Homeowners? Consider A Short Sale

Written by admin on 25 January 2009

This is not a good time to sell a home in the Orlando area, but what if you need to sell now for a variety of reasons such as a divorce, illness, a necessary move, or job loss? Or maybe you had an adjustable rate mortgage and the increase in your monthly loan payment has made it impossible for you to keep up. For many Americans who are barely making it each month, especially those who bought during the housing boom when prices were at their highest and lending standards were at their lowest, any financial bump in the road means they’re falling behind on their monthly obligations.

Unfortunately for Orlando homeowners, you find your home value has dropped, and you’re “upside down” on the mortgage, meaning you owe more than the home will sell for in today’s market. If you sell your house for less than it’s worth, you are obligated to make up the difference between your proceeds from the sale and the balance due. Instead of walking away with a profit, you have to come up with additional funds. But what if you don’t have the cash to payoff the lender? If this is your situation, consider a short sale.*

If time was on your side, you could wait for the economy to recover, but a recent report by PMI Insurance predicted home prices in Orlando would continue dropping through the third quarter of 2010. Your best bet to sell now is to contact a Realtor® who specializes in short sales in the Orlando area and can negotiate on your behalf to get the lender to accept less than the balance due.

The good news for Orlando homeowners choosing the short-sale route is that lenders are beginning to see the value of accepting reduced payoffs rather than foreclosing on more properties. Compared to a short sale, the lender has more expenses with a foreclosure including a trustee’s sale, trustee’s fees and legal fees. Plus when a property is declared in foreclosure, the mortgage is considered “non-performing” which makes it a negative and harder to sell on the secondary market. So, with more lenders recognizing the benefits of the short sale, homeowners who work with a experienced Realtor® are finding it easier to sell their homes and move on with their lives. A successful short sale is a win-win for both lender and seller.

*A short sale will adversely affect credit history but it’s not yet determined if it will have the same impact as a foreclosure. Contact your financial planner, attorney or accountant for consequences of short sales or foreclosures.

Is A Short Sale Right for Your Situation?
Find out today: If you live in Central Florida, contact The Orlando Property Group, your experienced short sales agents, specializing in real estate in Lake, Seminole, Orange, and Volusia Counties.

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If you are wanting to sell your Seminole County or Orlando area home in the next 6 to12 months, now is the time to begin putting your plan into place while time is still on your side. Please contact us for any real estate assistance you may need.

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