Orlando Homeowners Beating Foreclosure to the Punch

Thousands of Orlando homeowners have suffered during the foreclosure crisis since 2007. However, lenders have also felt the pain through all that’s happened and are still feeling it today.

The truth is that in a pre-foreclosure situation, Orlando homeowners have the upper hand over the lenders. It can take a lender sometimes over a year or two to take a property to foreclosure. However, under these circumstances it’s actually more cost effective for the lender to let the homeowner stay for free and maintaining the property than it does to have the property maintained while it sits vacant and a sitting duck for vandalism.

You see, lenders have absolutely no interest in being property managers…especially if those properties are vacant and losing money by the day! Lenders have very limited options on what they can do at this point without the homeowners cooperation. If the lender threatens to foreclose, they are well aware that the homeowner has several options available to them such as filing for bankruptcy. This is the last thing that the lender wants because they know that it this process can drag out for a long time resulting in the bank  being stuck and not a being able to liquidate the property.

Another technique that has become popular in Orlando real estate is when the homeowner tries to sue the bank for wrongful foreclosure. Whether the homeowner has grounds for filing legal action against the bank or not, by filing a lawsuit they stop foreclosure proceedings and are able to buy themselves several months and sometimes even years without having to make a single mortgage payment.

Short sales are a better option for everyone

Most of the time it’s better  for everyone involved to sell the property as an Orlando short sale. First of all, the lender can avoid paying thousands of dollars to the foreclosing attorneys while recouping a large percent of their money.  Secondly, the homeowner is able to get out from under an upside down mortgage and avoid having a foreclosure on their credit. Lenders are even offering money back to the homeowner through programs like HAFA  [Home Affordable Foreclosure Alternatives] as an incentive for them to agree to a short sale.  In some cases homeowners are able to get anywhere from $3,000.00 to $30,000.00 depending on who the lender is and the amount of the loan.

3 Important tips for homeowners that have fallen behind on their mortgage

1- Maintain good communication with your lender. Let them know what your situation is and what you plan on doing moving forward. Ignoring the situation or pretending it doesn’t exist is the absolute worst thing that a homeowner can do.

2- Don’t panic, take action! Florida law requires that lenders inform homeowners in writing of any intended legal action against them. The Florida foreclosure process can take anywhere from 6 months to a year.

3- Talk to an Orlando real estate expert. It’s free to consult with a top Orlando real estate agent and by doing so you can figure out a plan that works best for you. By taking action you will be in charge of your situation as opposed to letting the lender take charge.

This article was written by John Conde, Orlando Short Sale Realtor