Tampa Short Sales

Banks now realize the scope of the real estate market Problem.

If your payment is too high and your property is severely upside down, procrastination is your biggest enemy. We have had a great success rate helping our clients solving their real estate problems.

Own a new tampa home in as little as 2 years.

Fannie Mae guidelines state that if you short sale a home you can qualify for another Fannie Mae loan in as little as 2 years.

Loan modifications are a temporary fix for most people.

A high percentage of borrowers re-default on their mortgage after going through a modification. Loan modifications might only serve as a bandaid and 5 years from now your property may still be underwater.

Lenders that Sell Short Sales Faster and for Less

According to RealtyTrac: http://www.dsnews.com/articles/lenders-that-sell-short-sales-faster-and-for-less-according-to-realtytrac-2012-04-20

Pursuing a short sale is often thought of as a painstaking process, and it’s not uncommon to hear of complaints about slow responses from servicers and last minute rejections on offers. Fortunately, not all lenders/servicers are the same when it comes to dealing with short sales, and RealtyTrac compiled a list of data revealing which institutions tend to move through the process quicker and for less.

Fannie Mae, Freddie Mac, and FHA had the shortest timelines at 193 days in January 2012, a decrease compared to a year ago in January 2011, when short sales averaged 248 days. Ally Financial came in second at 321 days, reducing its timeline as well from 393 days a year ago.

PNC Financial Group was third, taking 353 days, though the bank takes longer than it did a year ago when the it took 206 days. Wells Fargo came in fourth (385 days). Bank of New York Mellon took the fifth longest (402 days), followed by Bank of America (403 days) and Sun Trust (404 days). The short sale timeline includes the time a property starts the foreclosure process to the time it’s sold as a pre-foreclosure property.

Recently, Fannie Mae and Freddie Mac announced new guidelines to take effect in June requiring servicers to respond within 30 days after receiving a short sale offer or a borrower application. Bank of America recently announced that its providing a decision on a short sale offer in 20 days.

In terms of pricing, Fannie Mae, Freddie Mac, and FHA sold homes for the least amount in January 2012, averaging $128,642, a drop from year ago prices in January 2011 when they averaged $160,982. Deutsche Bank’s average price was $132,996, followed by Sun Trust Banks ($144,024), and CitiGroup ($148,411), and PNC Financial Group Inc ($149,332). Bank of America Wells Fargo were the bottom two on the top 10 list, averaging $158,632 and $167,371, respectively, for January 2012.

As for the number of short sales, Bank of America completed the most in January 2012, with 5,276, followed by Chase (2,967), Wells Fargo (2,788), MERS (1,429), and Bank of New York Mellon (1,401).

Fannie and Freddie Set Timeline Requirements for Short Sales

According to: http://www.dsnews.com

Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days.

The GSEs issued new guidelines Tuesday that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to the short sale process and expedite decisions related to these pre-foreclosure sales.

Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA).

Addressing real estate practitioners’ No. 1 complaint about short sales, FHFA directed Fannie Mae and Freddie Mac to establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions.

To Read More Click on the following link: http://www.dsnews.com/articles/fannie-and-freddie-set-timeline-requirements-for-short-sales-2012-04-17?utm_source=twitterfeed&utm_medium=twitter

Bank of America Looks to Speed up Their Short Sale Approval Time Frame.

Bank of America is set to roll out a new short sale process and are creating new documents, to reduce the approval process to 20 days. This is really fast for a short sale. One of the major complaints about short sales has always been that they take to long. Not every buyer has the luxury of waiting 6 months to find out whether or not a bank is going to approve their offer. This is a great deal for Bank of America and hopefully other major banks such as Wells Fargo, Chase, Citi and PNC all take up on their own initiative to speed up their short sale approvals as well.

 

 

 

Short Sale Time Frames Are Faster Than Ever

Recently we have been noticing that short sales are getting approved a lot faster than they have been in the past.

Major banks like, Wells Fargo, Bank of America  and Chase have all improved their short sale processes and are getting a decision made on them faster than ever.

We are currently doing a short sale with Chase in which we got a decision in less than 20 days. Unfortunately the offer was too low, but if we would have had a better offer, we would have most likely been able to get the short sale approved withing 30-40 days which is very fast for this type of transaction.

One of the most important things to stress here, if you are doing a short sale, make sure you are working with a team of real estate professionals who have done short sales before and know what documents are required to get the job done. This is also important because these short sale specialists will know what programs you qualify for and what programs to get you enrolled in. For example, FHA’s Preforeclosure Program or the HAFA Program (Home Affordable Foreclosure Alternatives Program) require certain documents and requests to your lender.

There are also new incentives to short sale your home that could possibly put $5,000 – $20,000 back in your pocket. One of these programs is called the HAFA Accelerator Program. Make sure you are informed about short sales before you begin to do one.

 

 

Things You Should Know About Short Sales

Recently our company spoke with a Realtor and their buyer was expecting that their short sale was only going to take 30 days to close. If you are looking to do a short sale in Tampa, here are a few things you should know.

There is nothing short about a short sale

The average short sale can take 90-120 days after all parties agree to the terms of the sale. Keep in mind that you will also have to play by the rules of the lender. As we now know banks can be very difficult to work with. Banks take their sweet time and they often drag their feet. Negotiations can take a long time and getting appraisals done can take even longer.

There are no guarantees in Short Sales

It is very typical to wait months for an answer from the bank. It could take 3-4 months to hear back from the lender and they may ask for a higher offer. If you are a buyer looking to move into a home sooner than that, a short sale might not be for you. Most short sales do not close because buyer’s expectations are not set right. A short sale takes time and it requires that all parties be patient. If you are looking to get a great deal on a home via a short sale in Tampa, keep in mind that this process takes time.

Make sure you have a team of professionals that are experienced in Short Sales

When you are seeking a mortgage professional or an attorney, you want to make sure they have done a short sale before. This is not a traditional market therefore things will not be carried out in a traditional manner. Find a mortgage professional that has experience doing short sales or that will have an expert doing the processing for them. This way you will ensure that your deficiency gets waived, if you are eligible, you will get all the benefits that the banks are offering to do a short sale and the job will get done right. It is important to have an experienced professional on your side.

Florida Homeowners May Receive $5,000 to $20,000 in Relocation Assistance When Doing a Short Sale

Bank of America encourages distressed homeowners to explore a short sale as a viable option for avoiding foreclosure. To that end, for a limited time they are offering enhanced relocation assistance to help motivate homeowners to engage with them on a pre-offer short sale. An additional benefit for these pre-offer programs – such as the Home Affordable Foreclosure Alternatives (HAFA) and Bank of America’s proprietary program – is that deficiency may be waived for the homeowner.

Eligibility:

  • Homeowners with property in Florida
  • Short sales initiated without an offer between September 26 and November 30
  • The customer will have to be eligible for one of the without offer programs such as the HAFA program or our proprietary program (specific investor participation and eligibility criteria do apply to these programs)
  • Successful closing of the eligible short sale by August 31, 2012
  • Minimum relocation assistance is $5,000 and maximum is $20,000, with the specific amount calculated based on the unpaid principal balance

Exclusions:

  • Ginnie Mae, FHA, VA and USDA loans are ineligible for participation
  • Lot loans are ineligible for participation
  • Properties outside the state of Florida are ineligible for participation
  • Short sales initiated with an offer are not currently eligible for the enhanced relocation assistance

Foreclosure Costs Continue to Mount for Bank of America and JPMorgan Chase

The legal costs of the foreclosure process for two of the nation’s largest banks, Bank of America and JPMorgan Chase, more than doubled for the second quarter, according to disclosures from both institutions. Bank of America reported litigation expenses of $1.9 billion for the second quarter, with most of the funds going to mortgage and foreclosure related issues. It amounts to a 242% increase from the first quarter numbers. Chase reported litigation expenses of $1.3 billion for the second quarter, a 325% increase from the $400 million spent in the first quarter.

As the investigation continues around the country for many of the largest servicers, into the gross mishandling of foreclosures, a deal has yet to be reached between the state’s attorneys general and the large banks. Chief Financial Officer of Bank of America, Bruce Thompson and CEO of JPMorgan Chase, Jaime Dimon, both chimed in on the subject. “I think everyone realizes this would be a good thing to move forward. As we look out at what’s out there, during the second quarter we did provide some litigation reserves to help address any cash type penalties. We believe we have reserves we can direct toward the settlement”, said Thompson. Dimon told investors directly that he wishes to end negotiations, and put the matter behind so that the company, as well as the economy, can move forward. “I would do anything to get it done today, but our counsel advises us that it could take quite awhile. Delaying foreclosures and all the uncertainty around mortgage is not a good thing for the economy”. Dimon continued “We’ve got to get the settlement right. We’re not going to do it and be subject to double and triple jeopardy”.

As important as it is that borrowers do everything they can to prevent foreclosure, this data and the positions of its leaders shows that it is also in the best interest of the banks. So the importance of borrowers becoming more educated on the short sale process, is just as important for the banks to grow in their ability to process them.

Lenders Are Working on Improving The Short Sale Process

Since the Department of the Treasury launched its Home Affordable Foreclosure Alternatives(HAFA) program in April of 2010, the overall performance in preventing foreclosures has been abysmal.  Some regulators in Washington, namely the Congressional Oversight Panel, have criticized the Treasury’s actions and the results it has attained thus far.  However,  some of the major servicers are beginning to step up, and produce some results through the program.

Leading the way, JPMorgan Chase has completed the most short sales and deeds –in-lieu of foreclosure since the program’s inception with 2,686.  Wells Fargo was close behind in second with 2,400, and Bank of America a distant third with 1,600.  As these numbers are dismal considering the size of these institutions as well as the sheer number of loans they service,  housing market professionals see some positive light in that servicers are beginning to do more short sales and deeds-in-lieu outside of HAFA.  When considering the largest servicing institutions cancelled close to 600,000 trial modification programs under HAMP, these numbers are hardly any real sign that the HAFA program is gaining much momentum. . . . . .not to mention the 1.4 million borrowers that were denied even a trial plan under HAMP.   Most would concur that privately negotiated short sales and deeds-in-lieu will control the market in staving off the foreclosure crisis.

 

Citigroup is paying borrowers an average of $12,000 after completing a short sale this year.

Hopefully this does not send the wrong message out to borrowers but the bottom line is that short sales are a win win situation for lenders and borrowers. CitiMortgage is paying borrowers an average of $12,000 after completing a short sale midway through the 2011 year.

Representatives from Citi are stating that servicers are putting more of an emphasis on streamlining the process and pursuing a short sale ahead of foreclosure. According to Citi, their short sale process in 2009 took an average of 4-5 months from listing to close. Due to guideline changes and improvements lenders are now reaching out to borrowers instead of waiting for them to ask the bank, short sales now take an average 2-3 months to complete.
Not only are the timelines shrinking to complete these deals, but the incentives paid to qualifying borrowers, serviced by Citi Mortgage, increased in recent years as well.

According to data from Citi, in early 2009, they offered an average $1,500 to qualifying borrowers. That went up to between $3,000 and $5,000 in 2010 and finally up to an average $12,000 so far in 2011.

Once again, hopefully this does not send the wrong message to borrowers out there who are struggling to make their mortgage payment and who find themselves in a property where the value has significantly decreased, but incentives exist to fix the current market conditions. If you live in the Tampa Bay area, have a loan with Citi Mortgage and are contemplating selling your home through a short sale contact us to explore your options.

Tampa Short Sales Will Continue On

This is good news for investors or home buyers and bad news for Tampa home owners.

CoreLogic , a firm based in Santa Ana, California, stated that home prices in April in the Tampa-St. Petersburg-Clearwater metro market were down 13.3% over the year.

The Port-Bradenton-Sarasota fell 10.9%; Values only fell 4.85% in the Cape Coral-Fort Myers area.

The Tampa Bay and Sarasota markets in particular were significantly impacted by foreclosure sales and short sales.

What to do? If you are a Tampa home owner, strategically walking away from your upside down mortgage is going to be the option worth pursuing. I once had a conversation with a home owner and a lender during a conference call and the exact words that came out of the home owner’s mouth was “How much longer can I bleed.” He bought his home for roughly $450,000 and in today’s market it is worth about $300,000. The borrower could no longer sleep at night knowing that month after month, payment after payment, he was ultimately just a glorified renter.

If you are upside down in your mortgage and you realize the devastating financial impact that staying with your current Tampa mortgage can have on your future, then you must consider alternatives. Contact one of our short sale experts and explore your options.

If you are a home buyer looking to buy a home in Tampa , make sure that you do your research, find experts that know how to process short sales and contact one. Short sales no longer have to take 8-12 months. Lenders are being forced to implement changes that will speed up the short sale process.

Contact us today and get a Free Short Sale Buyer Report or a Free Short Sale Seller Report. Find out what you need to know when buying a short sale or selling via short sale and explore your options.