A CASH purchase always “talks” but in the Orlando condo market it is the only conversation that will lead to ownership.
Lets start with the fact that in the year 2012, very few Orlando condominiums are finance-able, so “all cash” may be needed to purchase a condo in Orlando. The reason for this is that in the days of escalating prices and “easy” financing many investors bought multiple units with the intent of re-selling (flipping) to make a quick profit or to rent out for a positive cash flow.
When prices dropped, condo owners were unable to sell for a profit and owed more in loans than the money they could re-coup from a sale…add to that the Orlando Condo Market became saturated with desperate owners willing to rent their Orlando condo units for less than a fair rental rate which made renting the condo units a solution that did not cover the holding costs.
SO….owners started walking away from their Orlando Condo financial obligations. After all, they did not live there, so it was easy. The banks became overwhelmed with requests for “short sales” (selling the property for less than the mortgage) and daily foreclosures (repossessions by the Bank due to non-payment of mortgage), so the Banks/Lenders said “Enough!”, they are no longer going to finance properties that are so easy to walk away from and are now taking HUGE losses on. Banks have pretty much “black-balled” all Orlando Condos from their approved list to finance and now will not even finance their own condominium properties!
Add to that another problem: As Condo owners started sinking in debt on a business risk that failed, most stopped paying their maintanence fee, which left the Orlando Condo Associations no choice but to raise the maintanence fees in order to keep up the with the cost of necessary repair and upkeep. Some condo associations that were still financially deficient stopped fixing things and saved on watering the lawns…those Orlando condo communities look neglected…a few associations have filed bankruptcy…
All this turmoil has re-confirmed to the banks that they made the right decision not to lend money on condo units in Orlando, Florida.
HERE IS THE GOOD NEWS ON BUYING CONDO’S IN ORLANDO FLORIDA: If you have the cash to buy a condominum in Orlando Florida, the deals are absolutely incredible…I mean super bargains that will not be duplicated. You can get condo’s for 50%-80% LESS than they were selling for a few years ago, but these deals will not last long as Orlando condo sales have increased.