I hate to beat a dead horse, but… each day we get folk calling in on Orlando condo conversions – foreclosed – that cost under $50K – and they want to finance them. When we tell them it will be very difficult, we get the “Oh that’s not a problem – I have a great credit score and good job” line.
But it’s not about good credit scores any more, or even how much you put down in many cases. It’s about whether the condo is FHA approved or Fannie Mae approved; whether it’s has less than 50% owner occupancy, or whether the association is more than 30% delinquent in HOA fees, or whether the condo in question has been blacklisted because of it’s zip code, or any combination of a myriad of factors that seem to change each week.
“But seriously, I have a great credit score!” they insist.
“Turn on the TV!” I holler. At which point they usually hang up in disgust.
Things sure ain’t what they used to be.
So let’s get it out in the open. When it comes to bank owned Orlando condos, especially condo conversions that are going for about 35c on the dollar, here’s the scoop:
- You need to pay CASH in most cases to be in the game – because no one’s going to give you a condo loan until the credit crunch eases – especially if you’re a foreign national – and especially on condo hotels.
- You need to put down a decent deposit to show the bank that you’re serious.
- You need to submit evidence of that cash (proof of funds) with your contract – because without it, the bank won’t even look at your offer.
- Understand that at around 35c on the dollar, the prices your seeing are not usually up for negotiation. These are not short sales. If you want it, offer the full price, or a little more – because the best deals are getting multiple offers and the bank will pick the best of the bunch, i.e. a full price, cash offer with a decent deposit and a 30 day closing.
Think I’m kidding? Try one. With the number of foreclosures flooding the market, we often see 4-6 offers from interested parties – and the banks will only play ball with serious buyers who know what they’re doing.
The Orlando foreclosure market isn’t a place for people who are just looking. It has become both competetive and fast paced. If you don’t know what you want, or you can’t perform, you’ll get short thrift from the banks and become frustrated quickly.
If all of this had made sense to you, and you’d like help with securing one of these deals – get in touch and we’ll lead you through the maze. You could find yourself with equity the day you close!
Fore more info see our dedicated Orlando Foreclosures page.