Short Sales in Orlando Florida; are they really SHORT to a Greedy Bank?
In Orlando Florida, maybe the SHORT SALE is a real deal, maybe the short sale is just market value and maybe the short sale's bank response comes back at a greedy price...it all depends. Each bank is different, and each mitigator for the bank has its own set of ideas...there are never two short sales in Orlando Florida that are the same.
I wish I did not know so much about short sales in Orlando, but the Orlando market is flooded with short sales, so as an Exclusive Buyers Agent I do show Orlando short sale properties as long as the home buyer understands that there are no guarantees and they could end up spinning their wheels waiting for the bank to respond with who knows what?...or even want more than market value.
A few years ago when shorts sales in Orlando started popping up, it was a relatively simple short sale process with the buyers ...not so anymore and the rules have changed. It is my experienced opinion that banks are now routinely asking for more money than the buyers reasonable offer and sometimes even more than the property is worth.
Perfect example: Short Sale Property in Orlando Florida listed for $535,000...a nice property, with another buyer bidding...so my buyer offers full price at $535,000 and seller accepts. About 4 months later, after doing a BPO ( mini appraisal) and letting the offer sit in the pipeline while the market struggles even more, the bank responds that the short sale offer is too low and they want $570,000. ($35,000 more) Buyer is not happy, but agrees to the price and starts the mortgage process...the mortgage appraisal comes in at only $525,000. Buyer refuses to over-pay for the Orlando short sale and after a couple of months of the bank trying to squeeze more money, bank finally agrees to settle for $525,000, after the seller agreed to come to the closing table with some of their own money. Gee thanks...bank finally let the buyer buy this Orlando Short Sale at market value.
Here's the best part: I mistakenly, later find out that the banks OWN APPRAISAL only came in at $510,000....$60,000 LESS than they counter-offered. Greedy bank? you bet! While the bank may be taking less than the mortgage balance, they sure are trying to get market value or more money for the Orlando short sale than it is worth.
This is not an isolated short sale in Orlando story. Last month a different bank wanted more than the short sale appraisal and then would not budge...I guess banks think that every buyer has "mattress money" hidden that they will lay on the table for the short sale. Not so with this buyer, they walked away and the short sale property is still on the market. Wonder what the bank will get when the property finally goes into foreclosure and the vandals take what they can sell? Certainly LESS than the price the bank fixated on.
So while buying a Short Sale in Orlando Florida may seem enticing to the buyer, not all is what is should be. Banks are getting greedy...to refuse a short sale offer at market value and want more money makes them GREEDY SHORT SALE BANKERS!