Homebuyers tell me they “only want to look at short sales”. My initial response is why? You can read a previous post here about Can I get a short sale for 20% less than asking price?

Short Sale Disadvantages: The question today is a short sale worth the months of waiting just to find out that the seller’s bank isn’t going to accept your offer?

The loss mitigation reps have hundreds of cases assigned to them and are paid on performance. A “kick out” price is determined by a supervisor and the loss mitigation rep is given a monetary incentive to get anything higher for the mortgage

It is an enormous frustration to investors doing short sales when lenders take months to make a decision and just don’t seem to care.

Advantages to by a bank-owned property versus a short sale:

1. Bank-owned homes can close quick! 30 days on average.

2. Banks are motivated to move the property and some our offering some great incentives, including closing costs assistance.

3.  If you are going to use the home as your primary residence, First Look Initiative Gives Homebuyers 15 Days to Buy Homesteps® Homes Without Investor Competition

Here’s some statistics for short sales in the Tampa Bay area reported by Jeff Harrington at Tampabay.com.

All told, 52 percent of all bay area sales were distressed. The breakdown: 30% were foreclosures, and 22% where short sales. It seems the trend is to purchase homes that have already been foreclosed on.

By Rae Catanese, Prudential Tropical Realty-Tampa, Fl

You can reach Rae and search for all homes for sale here

Thinking of buying or selling a short sale house in the Tampa Real Estate Market? Have you heard horror stories on how much time it will take?

I originally published this article in 2009 and we all thought the short sale process would get better. Well, here it is 2011 and I’m not seeing any real improvements on how the banks are handling the overload here in the Tampa Bay area, where almost half of our houses are distressed short sale or foreclosure listings.

1sts Mortgages – Short Sale file handling runs about the industry average of 60-90 days +/-. Banks are normally not flexible when homeowner hardship is unique. Operates very much like the big bank they are – cumbersome policies that are slow to change.

2nd Mortgages – BofA continues to present the most difficult challenges in the servicing industry on Short Sale proposals on home equity 2nds. Our experience is that it takes a cash contribution from the homeowner of 80 cents on the dollar, or 10 cents+/- on the dollar cash and a note for the balance of the deficiency to get BofA to approve a Short Sale on a HELOC. BofA does not seem to respond favorably to documentation demonstrating the borrowers inability to meet the contribution demands.

Update: Hooked on recourse. BofA is very frequently inserting “reservation of right” language in their approval letters. That means they are reserving the right to pursue the borrower for any deficiency balance after the short sale closes. We are seeing it on firsts as well as seconds, and we are seeing it on purchase money debt as well. Bo A is actually telling distressed purchase money borrowers that they will be punished for staying the course and working to get a short sale done — because if the homeowner were to just walk away, BofA would not have the right to so much as wave at them on the freeway. Who is coming up with this stuff? At a time when we are hearing how we should pull together, the largest bank in the United States wants to be sure to kick borrowers while they are down.

If you need advice please contact a Realtor in the Tampa Bay Area who can help you buy or sell a short sale.  813 784 7744 Rae Catanese, Prudential Tropical Realty.

Towers of Channelside Update- Many of you have been patiently waiting for the new pricing and release of condos in The Towers of Channelside.

Now that the bank has taken over, your opportunity to buy at amazingly low pricing is here.

FOR A LIMITED TIME ONLY:

Bank Released New Pricing

Price Ranges are as follows:

1 bedrooms 1.5 bath 160K- 213K 1,136 sf

1 bedroom-1.5 bath w/Den 223K 1,281 sft

2 bedrooms 2.5 bath                      199K-304K 1,363 sf

2 bedroom-2.5 bath                       199k-  356K 1,571 sft

3 bedrooms 3 bath  249K-395K 1,778 sf

3 bedrooms 3 bath                         340k-364-K                    1,973 sf

3 bedrooms 3 bath    w/den        360k-364k 2,166 sf

Jr Penthouses starting at           500K                                2,696 sf

Grand Penthouse Call for pricing           4,849 sf

Maintenance fees are approximately .46 cents per sq ft and include:

Chilled Water Unit which replaces majority of A/C cost in your unit; management of Association, Concierges, 24 Security Officers; Pool & Landscaping & all exterior building maintenance; Waste Removal & Water/Sewer. Brighthouse agreement: High Speed Internet, Standard Cable TV; Voice Over Internet Protocol-Unlimited local and long distance telephone calling within US

Rising 29 stories into the sunlit sky, The Towers of Channelside have it all. Dive into each and every captivating view, from the bustling, metropolitan skyline, to the sparkling, pacifying waters of beautiful Tampa Bay.

Through advanced high-speed connections, forward thinking architecture, and progressive home systems, The Towers of Channelside create a complete living environment offering comfort and flexibility for anyone looking for the best in Tampa Bay.

Please contact me to schedule an appointment.  Also provide the best number to reach you.

813-784-7744 or email: realtyrae@yahoo.com Rae Catanese, PA-Real Estate Agent

Towers of Channelside Condos

BANK OWNED PROPERTIES Q&A

Q. What is a bank owned property or REO? More commonly referred to as a FORECLOSURE

A. It is NOT a short sale.  The bank has already foreclosed on the property.  The bank is the seller/owner.

Q. How do I make an offer?

A. Through a Real Estate Agent.   You will need proof of funds or preapproval.  If a specific bank’s preapproval is required, please contact bank immediately.

 Q. Will banks pay for buyer closing costs?

A. Many will, however, in many cases there are competing offers.  Keep that in mind when presenting your offer.

 Q. Are there seller disclosures?

A. No. Once bank accepts the offer they will prepare bank addendums.  Typically you have 24-48 hours to review addendums and accept the terms of the addendums.  As with all addendums, they will supersede the state contract.

 Q. What does highest and best offer mean?

A. When there multiple offers presented to the bank the bank will ask you to reconsider your offer and present your highest and best offer.  The bank solely decides whose offer they would like to accept. 

 Q How long does it take for the bank to respond to our offer?

A. Usually between 24-72 hours however that does not include weekends.

 Q. How long does it take to get my contract and addendums signed?

A. This varies dramatically from bank to bank…from 2 days to 2 weeks.

 Q. How long does it take to close on a bank owned property?

A. Between 30-45 days if financing and 20–30 days if purchasing cash.

Q. Will the bank provide the HOA/Condo Docs to the buyer?

A. No, the buyer is responsible for all obtaining all docs and should be noted on the contract.

 Q. Will the bank provide clear title?

A. Buyer will receive clear title and bank will pay off any current liens or assessments.

 Q. Will I get keys and garage remotes?

A. You will get keys to property, however, it is strongly recommended that you rekey locks.  Banks use master keys and many individuals have access to bank owned properties.

Please call me at 813 784 7744 to learn more about how to find these properties, make offers and the purchase process.

Rae, Catanese- Real Estate Agent

When I started thinking about a title for this article I came up with quite a few.  The METHOD of the Short Sale was 2nd choice. Although, we are finding there is NO Methodology in the Tampa Real Estate Market.

Putting in an offer on a Short Sale Home in the Tampa Bay Area?

Buying a short sale home is painful to many who can expect wait 45 days to 9 months to hear if the bank accepted their offer. 

I can certainly without a doubt, say that there are no rules when it comes to what the banks will or will not do.  Every bank is different about the way they handle things.  Some are using mitigation companies to negotiate the offer, and some are not.  Banks each have their way of handling paperwork and disclosures which makes our job as Realtors even more challenging.

What Realtors and Sellers are doing to get offers on short sales:

A price you see listed on any website is not necessarily the price you can buy that home for.  If you’ve seen wording or disclaimers stating “listing price may not be sufficient to cover all closing costs…” that is when you  know the home is listed as a short sale.  Try telling people who are qualified to buy a home, that we don’t know if the price listed is a real sales price. Otherwise known as “bank approved short sale”.

I’ve seen some listed for an unbelievable prices. When I contact the listing agent, I have to ask if that price “has been approved by the bank”.  Otherwise, the seller agrees to list the home for what ever they want.

What happens next??? Sellers are submitting multiple offers to the bank and the bank is then forced to either take one or foreclose on the home.  Once the bank gets offers at the low ball price, it speeds up the short sale process.

How many properties are on the market in the metro Tampa Bay Area?  (approximately 33,000.00 in the Pinellas, Pasco and Hillsborough Areas)

I’m finding there are several situations that would lead more people to buying a foreclosed home.  First, they are probably getting a better deal after the bank owns the property.  The bank will respond to most offers within 48 hours, 2 business days.   You will also know if there are any other offers in the mix.

Most buyers I am working with are telling me that they want to stay away from short sales.

Rae Catanese, PA

Prudential Tropical Realty- Tampa, Fl  813 784 7744