Orlando Condo Foreclosures Drying Up

We’ve noted the Orlando condo dry up and the buyer’s market before – but there are still those who just don’t believe it, despite the fact that I tried to put a bid on a bank owned deal this morning, only to discover they already had a dozen cash offers.

The latest news from California is that their foreclosure inventory is also stabilizing. “Some houses go under contract fewer than 90 minutes after they are put on the market”, says Brad Geisen, founder of Foreclosure.com.

So you can either believe what you see on the news, or you can talk to real agents in the trenches and get the real scoop. Forget the national picture, there’s no such thing; look instead at what’s going on in your particular city and state – and let the data speak for itself.

Orlando condo foreclosures are a finite product and prices are already being driven up by investors in bidding wars.

So if it’s an Orlando condo you’re after, you better get moving because bottom is here. Expect to bid cash on 5 or 6 deals before you get one.

You might just be sick if you don’t.

4 Comments

  1. I’ll toss my thoughts out there on the state of the Orlando real estate market. Yes, the inventory of <$50K condos is decreasing (for now) as investors pick up theses units to be used as rental properties. Even though a huge number of condo units have already been foreclosed on in Orlando, there are still many original investors who paid $250K-$300K for these condo conversions in 2005-2007 which are now worth <$50K. Once these investors realize they are $200K or more underwater on their mortgages and that they are unlikely to ever break even on their investment, they will all be sending their keys back to the mortgage companies and walking away. Within the next year, there will be another huge flood of foreclosures on Orlando condos as these loans go bad. If you are still considering purchasing an Orlando condo because you think the $50K price looks appealing, I highly caution you to personally visit the condo community before handing over any money. Many of these cheaper condos are in poorly managed communities where the buildings and landscaping are not maintained well…not a place you’d want to live yourself and difficult to find a quality tenant willing to live there. For example, the pictures posted on this blog for “Legacy Dunes” were taken several years ago when the original condo conversion company had just completed a rehab. PLEASE visit Legacy Dunes today (or any condo conversion you’re considering in Orlando) and you’ll see the lawn is full of weeds and not mowed regularly, the building exteriors are stained with mildew, the pool areas aren’t kept clean and nobody seems to enforce any rules on the tenants who live there. Also, take a good look at what types of people are living in the community and the cars parked in the parking lot…and check with the local police for crime reports and sexual predators in the area. Yes, you might think the price seems good but do you really want to become a “slum lord” investor?

  2. Karen,
    Thank you for presenting another angle on this. I find that there are always two sides to these real estate stories and the truth is somewhere in between. You also have to consider what your HOA costs will be when others stop paying. We rent a condo in Southern California and alot of people in this complex have stopped paying and our landscaping ect. is beginning to slip.

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