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 or how much it will cost?
If you are a seller wanting to list your home as a short sale you should know the following:
You are not responsible for paying a Realtor’s commission or any of the customary seller’s closing costs if the bank approves the sale of your home as a short sale. The total cost of selling your home typically runs approximately 10% of the purchase price, but those fees are absorbed by the homeowner’s bank.
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. They operate very much like the big bank they are – cumbersome policies that are slow to change.
2nd Mortgages – BOA 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 BOA 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. BOA 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. BOA 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, BOA 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 short sale advice please contact a Realtor in the Tampa Bay Area who can help you buy or sell a short sale
or call 813 784 7744 Rae Catanese