Lets face it, we have another 4 to 5 years of short sales, foreclosures and bank owned properties in the Tampa Bay area.  It is unfortunate, but it is reality.  The bulk of the homes that are currently on the market are short sales so it is important for Realtors to educate the buyers on the short sale process.  If a buyer is in a hurry, then a short sale probably isn't a good option for them because it could take three months or more for the bank to either approve or disapprove an offer.  The buyers also needs to understand that they could be bound to their offer for the time it takes the bank to respond so they could be in limbo for a quite a while. 

You could qualify for a short sale if you are a homeowner who is in danger of defaulting on your loan, you owe more than the home's market value or you are already in the foreclosure process.  Lenders would rather loan money to other qualified buyers instead of paying $40,000+ to foreclose on a home.  A short sale is a win-win for the homeowner, the bank and the buyer because it gets the homeowner out of the home debt-free, the bank saves quite a bit of money and the buyer is getting a great deal on a new home.  

Foreclosure should be an absolute last resort if you are behind on your payments.  Besides a short sale, there are many other options available that will allow you to retain ownership of your home. 

• Refinance - with the new lower rates, this could save you thousands.  The only downfall is you must have a good credit score so if you are already behind on your payments, this may not be an option for you.
• Repayment Plan - catch up on missed payments by paying more than one full payment per month until your account is current.
• Forebearance Plan - allows the suspension of all or part of client's monthly payment for a specified time period, based on lender agreement.
• Loan Modification - allows changes to the original terms of client's promissory note which may include an combination of the following:  an adjustment to the interest rate; an extension of the term of the loan; or an increase in the loan amount by the amount past due.
• FHA Refi - allows the forgiveness of certain principal along with forebearance and repayment plan.  Housing Bill allows lenders to write down loans to 85% of FMV and borrowers get FHA 30 year fixed at 90% of FMV.  Borrowers must then share 50% of appreciation with FHA.
• Bankruptcy - may allow changes to the original terms based on loan modification.

For more information, please contact me at info@buytampafl.com

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