Short sales and foreclosures have become epidemic among the vast majority of regional real estate markets, with Orlando being among the hardest hit. One recent fiscal year showed 75% of all properties sold were short sale transactions or otherwise involving bank-owned real estate. In a six month period from September of 2009 through March of 2010, nearly 80% of the properties moved where short sale or bank-owned. During recent periods of data collection, it has become apparent that the number of short sales is less than the number of foreclosures, though both exceed the national average. Measuring the value of data on properties sold – otherwise known as sales record – can be deceiving when the number of short sales and foreclosures is not taken into consideration. In Orlando, though a very good sale record is persistent, the percentage of bank owned properties is exceedingly high. Short sales pose problems for a region in terms of overall property value, but buyers and sellers with savvy strategies and quick action can occasionally capitalize on the situation.
Homeowners facing a foreclosure situation may be able to salvage their credit and get out of a precarious financial situation by acting on a short sale opportunity. Short sale specialists working independently or with real estate agencies are excellent resources for determining when a short sale is the best option for a homeowner’s circumstance. In addition to preserving credit, short sales prevent the stigma of foreclosure that will forever be a hindrance to those hoping to own again. Committing to an Orlando foreclosure offers relief of stress and ongoing financial strain that comes with an unreasonable or unmanageable mortgage situation. It is sometimes the smartest business decision to walk away from a mortgage with a short sale and cut losses as opposed to enduring the ongoing decline in value seen over the past couple of years.
Conversely, buyers who are eager to jump into the Orlando real estate market may benefit from a short sale in terms of short and long-term value. For individuals and families who were previously excluded from neighborhoods in Orlando due to the high cost of luxury real estate, jumping at the chance to purchase a short sale home will likely cost far less than starting with a smaller property and attempting to build equity. Luxury real estate is commonly the hardest hit during a time of economic uncertainty, and Orlando’s luxury real estate market is no exception. Buyers who may have been just out of reach of their desired property or neighborhood may see doors opening when a property is listed as a short sale. Lenders handling short sales are most often attempting to retain as much money as possible while hastening the process of getting the property off their books.
