After taking nearly three months to approve the sale, the bank then took another two weeks to determine that the buyers only had 30 days to close. If the buyers couldn’t close in 30 days, they would be assessed a $1,350 fee and a to-be-determined per diem penalty. “Any mortgage person can tell you that getting a loan to close in 30 days is going to be difficult,” Catanese says. “This is especially true for those that are using FHA financing, which is now taking 45 days.”

Fortunately, Catanese and her buyers were able to convince the bank to give them 30 days to close without the penalties. But the problems didn’t end there. After the lender took nearly two weeks to set up an FHA account and schedule an appraiser, the buyers decided to change lenders, fearing that their bank would not be able to close and they would lose the home. Two days before close, everything seemed to be going smoothly, until Catanese found out that the sellers had received a notice of foreclosure. For the buyers, this means they have until the end of the month — or eight business days — to close on the home before they lose it for good.

TIP: Even under the best circumstances, short sales take a long time to close and may take extra effort from the buyer. If you want to buy a short sale, be sure you have plenty of patience and an agent who has experience with the process.

If you need help buying or selling a short sale home, please give me a call 813 784 7744 or Contact me here.

Rae Catanese, Realtor-Prudential Tropical Realty

The South Tampa real estate market is HOT, HOT, HOT. Yes, now is a good time to list your home for sale.  Don’t believe me?  Here’s why….

My phone has been ringing off the hook with frantic buyers trying to find something to purchase. They almost don’t believe me when I tell them there’s only a few listings currently active on the market that meet their criteria, and to be honest, I don’t believe it myself.

Let’s look at our MLS listing inventory of townhouses and condos for January 2012 in the South Tampa Neighborhood:

My search criteria are as follows:

• Search price up to $200,000.00
• South Tampa: North of Gandy Blvd.to I-275. (Yes, I had to go North of Kennedy)
• Minimum of 1 bedroom units and up
• Garages, square footage, or any other item a buyer may have on their “wish list”, like granite countertops or gated communities, were not taken into consideration as criteria.

Using the parameters above, between January 1^st 2012, and today, January 24^th, there were 96 condos and townhouses listed in MLS as active on the market. Now only 72 of them are still active.

The same time last year, we had 260 units on the market. That means our inventory has decreased by 63%. Even more shocking is the average list price has gone from $105,851.00 to $142,450.00 in just one year.

Another problem is financing. Currently in South Tampathere are only 5 condos listed under $200,000.00 that are approved for FHA financing. Yes, I said 5! FHA financing is desirable for many homebuyers because FHA only requires 3.5% down.  If you don’t have 20% to put down for a conventional loan, then I would suggest looking at townhouses instead, as they are FHA approved.

Another trend we are seeing is that non-distressed, and bank-owned properties are moving fast. Buyers prefer to take advantage of historically low interest rates now, rather than waiting for the rates to go up. Keep in mind, a buyer cannot lock in a rate on a short sale until the seller’s bank approves the offer which can take over 90 days in some cases.

If you are a homeowner and have been thinking of selling your property but thought it wasn’t a good time, you may want to reconsider. The fact is that we’ve got too many buyers and not enough listings.

Contact a Tampa listing agent to find out what your home is worth here.

Here’s The Top 3 Myths Of Loan Modification Programs And What You Should Know Before You Start!

 Maybe you’ve heard a good option for foreclosure is a loan modification.  Maybe you’ve even gotten letters in the mail by an attorney trying offering their services asking you to pay money upfront.

 Here are some critical things to know if you are considering a loan modification that can save you a lot of time, money and aggravation.

 “Will the bank will reduce my balance?”

Banks add on all the missed payments, fees, and penalties to the back end of the loan making you even more “upside down”. Can your home ever be worth what is owed?

“My attorney says they can fix everything”

Attorney’s have a role, but unless are willing to make up all the back payments, attorneys can only delay the end result, foreclosure! Does it make financial sense to pay an attorney to hold onto a home that is upside down?

“The bank agreed to do a trial loan modification”

What does this really mean? This is just another form of debt collection by the bank.  According to bankrate.com, less than 13% of trial loan modifications become permanent.

Warning:  Banks do not stop the foreclosure process during your trial loan modification.

So, what if you’ve already been accepted for a trial loan modification, you have made your payments and then you’ve been declined a permanent modification.  By his time, the foreclosure process has already been filed leaving the homeowner with no other options.

If you would have done a short sale upfront, you would actually be saving money by not making the temporary reduced payments and paying an attorney. Maybe a better solution is to bypass this tedious and costly process and list your home as a short sale.

Strapped for cash? There are no upfront costs for a consultation with an attorney who can advise you on your best legal options.

Contact a Certified Short Sale Specialist Realtor in Tampa Bay that can guide you through the process of getting your home sold. Most people don’t know that Realtor’s fees are paid by your mortgage company, and you will be required to list your home with a real estate agent.

See Also: Common Short Sale Questions Answered

This is a guest blog post from Michelle Schaefferkoetter at Stewart Title in St. Petersburg, Fl

There are so many misconceptions about selling your home as a short sale these days, so I reached out to Michelle at Stewart Title to give our readers an insight on how the Short Sale process works and what you should be prepared for.

3 things that cause issues with short sales are:

1. The Sellers and Buyers are not fully prepared for the time frame involved, so be realistic and prepared to wait 60-90 days before you get a response from the seller’s bank. If the loan was a government loan, such as an FHA loan, there will generally be more complications because the government will have to be involved along with the lender.
2. A second mortgage can be a problem with a short sale. The second lender may have no interest in agreeing to the terms set between the primary lender and the seller, this can pose a real problem. The home cannot be sold without dealing with the second mortgage.
3. Contracts, addendums and financial packages may be incomplete or expired, and most likely be rejected. This can cause the bank to close out the file and restart the entire short sale process. We cannot stress enough the importance of having all of the documentation required by the Lender to them as soon as possible.

Common short sale questions:

Will I owe money if I sell as a short sale?

Every item on the Seller’s side of the HUD-1 statement will be scrutinized by the Short Sale Lender. Except in the case of a HAFA Short Sale, line 603 of the HUD-1 should always net to zero for the Seller. In most cases this means that the Seller does not bring any money to closing and does not take any money away from closing. On a rare occasion the Lender may require the Seller sign a promissory note to them for an amount to be paid back.

What if there is a lien on the home?

It is very likely that Sellers seeking a Short Sale may have liens and judgments against them that could affect closing the property, so it is important for the Title Company who handles your short sale to run a title search right away. This will allow more time for the Seller or their Attorney to negotiate any judgments, liens or encumbrances.

What role does a title company have in the Short Sale Process?

Short Sales require frequent communication between the Realtor, Title Company and Lender to make sure that closing documents satisfy all the requirements of the Short Sale Lender. Due to the large amount of short sales that the lender is already processing the escrow agent must be persistent in keeping in contact with the lender.

You also want to make sure a title company has Short Sale Certified Staff ready to process and close your files. What does this mean for you? This means they have invested time and money to become short sale specialists.

This is a very unique market and one that will be here for a while. The best thing you can do when it comes time to close is to choose wisely when it comes to hiring a title company. Unfortunately, an inexperienced escrow officer could cost you time, money and put your entire transaction at risk. Experience is crucial in every industry.

*Information courtesy of Stewart Title and America’s Home Rescue.

See Also:

If you are considering a short sale, or if you want to know if you qualify for a short sale, you may want to read 4 Questions To Ask When Contemplating a Short Sale and Tips for Selling Your Home as A Short Sale-Tampa, Fl

Email us for more information on selling your home as a short sale. We have Certified Short Sale Specialist Realtors  that will help you save your home from foreclosure.

During the holidays, you probably read or heard about the debate regarding the two month “Payroll Holiday” otherwise known as, the Temporary Payroll Tax Cut Continuation Act of 2011. If so, you know that it was passed by the Congress and quickly signed by the President.  To pay for this two month benefit, which will continue through Feb 2012, a significant change will quickly impact all Conventional Conforming loans and all FHA loans in the near future.

Let’s start with Conforming products. It has been determined that something known as a Guaranty Fee that all lenders pay to the Government Sponsored Entities (GSEs) will increase by 10 bps in yield (A unit that is equal to 1/100th of 1%). Effectively, that means all Conforming loans will increase almost .125% in rate. The GSEs are requiring this increase for loans delivered to them beginning in the second quarter of 2012. For us, it means we need to add this to our pricing soon …very soon. You will see the increase effective on Wednesday, Jan. 11, 2012.

So what does all this mean to you? Well, after the change is made, not too much. It is … what it is. We will go on pricing loans with base rates that will be slightly higher than would have been available otherwise. Customers who have not yet locked their loans need to quickly make an important decision. That is a decision the customer needs to make because the rates can vary from day-to-day.  If you’re looking to purchase a home in the Tampa Bay area you can find out how much you can qualify for here!

Now, let’s move to FHA. There will be a similar 10 BPS increase in yield to FHA programs, as well. But it will be handled via the Mortgage Insurance Premium (MIP). So we should expect changes in Upfront MIP, monthly MIP or both. We do not have the information as to timing from FHA as yet.

Interesting fact: I want to point out that it will require 10 years of the increase in rates (as noted above) to pay for the two months of benefits provided by this “Payroll Holiday.”

What are your thoughts on the Tax Cut Extension?

See Also: New Lower Minimum Loan Scores Allowed for FHA Financing