How HAFA helps Tampa Property Owners Sell Faster

If you own a Tampa property that you want to sell using a short sale method, there is a new plan that may be helpful. The Home Affordable Foreclosure Alternatives (HAFA) Program has been created by the federal government as part of the Making Homes Affordable plan. Short sales are often accompanied by problems that result in delays. Lenders take too long to approve the sales; homeowners lose because their credit is destroyed. Prospective buyers say the process is aggravating and lengthy. This may be a possible solution for those who would like to sell their Tampa property much faster.

The HAFA Program aims to reduce or eliminate the impact experienced currently by those who choose a short sale. Particularly the credit problems that are experienced and debt forgiveness are being focused on in an effort to protect borrowers in distress. The program will provide financial incentives to lenders to complete the short sales and the borrowers can even receive relocation assistance. For those who own Tampa property, the program may make the loss of their home somewhat less stressful.

The relocation assistance includes $3,000 for releasing the lender from any liabilities associated with the Tampa property. The chance to reestablish their credit within two years so they may purchase another home as well as the elimination of a foreclosure on their credit are incentives as well.

An investor or a lender can receive $2,000 or more for the completed transaction. In addition, there is a 20% savings realized when a home is sold in a short sale rather than a foreclosure. The realtor receives protection for their commission, which is often reduced by lenders to save money.

The waiting period for a short sale to be approved or disapproved is currently from three months to a year or even longer. This results in many prospective buyers walking away after deciding they have waited too long. Under the new program the lender would have 10 days to approve of disapprove the sale of the Tampa property.  

Requirements for participating in the HAFA Program are the homeowner must have a mortgage on the Tampa property that was in effect on or before January 1, 2009. The unpaid balance must be $729,750 or less. They must be experiencing a hardship that affects their financial outlook. The mortgage must be delinquent or will be delinquent in the near future. In addition, the Tampa property must be a primary residence and have been occupied by the owner for the last year.

Nathan Bangs

Nathan Bangs & Associates – Seller Line 813.739.5965/ Buyer Line 813.739.5925

Tampa Realtor - Top Selling Tips

Finding a Tampa Realtor to help sell your home can be a beneficial way of avoiding the mistakes often made. These mistakes can slow down the process and cause delays that could have been avoided. They can end up costing money if you have to sell your home for less. The best way to avoid the loss of time and money is to allow a Tampa Realtor to use their expertise to help sell the home.

One of the things they will look at is the recent sales in your area. Comparing your home to others in the area will give the Tampa Realtor a good idea of the price that should be asked. Your home may have beneficial aspects that others do not. These aspects may include quiet neighborhoods, updated appliances, good location and proximity to shopping.

The aspects that make your home stand out to prospective buyers can be listed by your Tampa Realtor on the Multiple Listing Service. However, if you have made many improvements that will be a selling point, you may want to make a list and have this available for your open house.

Many times sellers price their home according to what they think it is worth. Pricing the home based on what is owed or how much you would like to make can end up meaning reductions. Telling buyers they can pretty much negotiate the price to suit themselves is the wrong message. Allowing a Tampa Realtor to look at all aspects and suggest a price can help the home to sell without the need to reduce the price.

Another area of expertise that is available when using a Tampa Realtor to help sell your home is staging the home. From the curb appeal to the inside, the home should be pleasing to look at - whether it is in person or photos that will accompany the listing. This can mean the difference between prospective buyers coming to see your home or passing it up for another one that looks more interesting.  

When you are ready to sell your home, a Tampa Realtor can provide the help needed to get the best price. In addition, the home may sell faster saving you time and money.

Nathan Bangs

Nathan Bangs & Associates – Seller Line 813.739.5965/ Buyer Line 813.739.5925

Top 4 Things NOT to do if you Fall Behind on your Tampa Property Mortgage

Getting behind on your Tampa property mortgage is not the end of the world, but there are certain things you should not do if this happens. Many people today have fallen behind due to the economy and some due to circumstances beyond their control. Loss of income or a reduction in pay can increase the chance of falling behind on the payments for the Tampa property. The following four things that you should definitely not do can be very beneficial if you find yourself in this situation.

1) Do not ignore the situation. This will only make it worse. There are options available and you should check into them. Ignoring the situation and allowing a foreclosure to proceed will damage your credit and make it very difficult to get any type of loan for a long time.

2) If you are considering selling the home, do not price it way below the market value. Find out the selling price of homes in your general area. If a prospective buyer is pushing you to accept their offer on your Tampa property, chances are the deal is more favorable to them.

3) Never give a potential buyer the authorization to negotiate with your lender. The chances are they will offer the lender a deeply discounted pay-off amount for the Tampa property. Even if they offer a fair price and negotiate with the lender for a pro-longed period of time and the deal does not work out, you could be left with very little time to find another solution.

If you do decide to allow the potential buyer to negotiate with your lender, do not do so without first consulting with a lawyer or a real estate professional. Never sign a contract without the advice of a professional. If a short sale is being done on the Tampa property, the professional representation that you receive will be paid by the lender. Make certain someone is looking out for your interests.

4) Do not deed your Tampa property to anyone without making certain the loan is paid in full. Talk to your lender, consult with an attorney (not the one that represents the buyer) and protect yourself. Since the lender provided the loan for the property to you, the responsibility for the mortgage is yours and until this money is repaid, it will remain your responsibility.

Nathan Bangs

Nathan Bangs & Associates – Seller Line 813.739.5965/ Buyer Line 813.739.5925

Foreclosed Tampa Property? 4 Ways you could be in for a Visit from the Tax Man

For many, the dream of owning Tampa property became a nightmare when the home was foreclosed on due to problems experienced with the economy. Adding insult to injury, the IRS may tax the difference between what was owed and what the home sold for at foreclosure. This is one reason the Mortgage Forgiveness Debt Relief Act was passed by Congress in 2007. Providing relief from this debt helped many experiencing the loss of their Tampa property. However, it did not cover all liabilities.

1. If the Tampa property that was foreclosed on was a multi-million dollar home, only $2 million is exempt from taxes. The remainder will be taxed as income. Although this seems to be one situation that many do not empathize with, the amount that could be considered income by the IRS could be huge. This amount could be millions if the home sold for a substantially lower price than what was owed.
2. For others who refinanced their Tampa property and took cash, the price could be high as well. If the cash was spent on anything other than improvements to the property, it can be taxed as income. This includes paying off credit cards, buying a new car or truck, taking a trip or just spending the money on bills.
3. Rather than a cash-out refinance, the Tampa property owner could have applied for and received a home-equity line of credit. This is covered by the same rules that apply to the refinance. If you claim the money was used for improvements to the property, make certain you have receipts to prove where the money was spent.
4. Did you buy Tampa property for a vacation home or for investment purposes? If so, the taxman may be at your door if your home was foreclosed on and sold for less than you owed. The vacation property must have been a principal residence for two of the last five years to be exempt from taxes. The vacation home that was foreclosed on may have been a bargain when it was purchased but by 2010, the median price had fallen by almost half. This could add up to a significant tax liability.

Nathan Bangs

Nathan Bangs & Associates – Seller Line 813.739.5965/ Buyer Line 813.739.5925

FINALLY! Fewer Homes Listed as Foreclosures by Tampa Bay Realtors

Tampa Bay Realtors are seeing fewer foreclosures as there seems to be a turning point in the housing crisis. During the first three months of 2011, foreclosures declined 27% when compared to the first three months of 2010. The report was released by RealtyTrac and shows only 681,000 properties received notice of a foreclosure sale, an auction or a default notice. Tampa Bay Realtors say fewer homes are being repossessed, but it is not due to loan modifications because banks are not modifying as many loans.

The reason behind the decline is not clear. Hope Now, in February, 2011  modified 87,000 home loans. The number that were modified in December 2010 was much higher at 110,000. This is a group of mortgage investors, community associations and others that have been working to help homeowners avoid foreclosure.  

The feeling is that banks have not been filing as many foreclosures as their paperwork processing was under scrutiny for dubious procedures. The number of filings would have been far higher for the quarter - about 900,000 rather than 681,000 if there had not been a phasedown while they addressed issues regarding the “robo-signing” accusations.

Tampa Bay Realtors say Florida is not the only hard-hit area with filings that have dropped. The decrease was 59% in Cape Coral, FL when comparing the first three months of 2011 and 2010. Las Vegas, which was hard hit with the collapse of mortgages the past several years had a decrease of 8%.

Florida is eighth in the rankings for the quarter and ninth for the month of March, which is a drop say Tampa Bay Realtors. The states with the highest foreclosures are Nevada, Arizona and California, at first, second and third. The numbers are for the quarter as well as the month of March. A default, foreclosure or auction notice was only received by 1 in every 191 households during the quarter compared to 1 in every 31 homes in Las Vegas.

According to Hope Now, the combination of the drop in foreclosures along with a drop in the number of people who are delinquent on their payments by 60 days or more is a positive step. When there are fewer homes being foreclosed on, the number of homeowners who end up losing their homes should decrease as well.

Nathan Bangs

Nathan Bangs & Associates – Seller Line 813.739.5965/ Buyer Line 813.739.5925

Tampa Foreclosure Scams and how to Avoid Them

Have you been approached by someone who has told you that they can save your Tampa foreclosure? If you have talked to anyone that has offered help that sounds a little ‘too good’, you may be in danger of being taken advantage of by a scam artist. The onset of housing problems resulting in foreclosure has resulted in scam artists who are taking millions of dollars from unsuspecting homeowners in exchange for false promises.

What should you look for to avoid becoming the victim of a scam artist? Tips that will help are as follow:

• One of the basic things to do is to find out exactly whom you are dealing with when it comes to your home. Check to see if they are a member of an agency, such as HUD.
• Do not sign paperwork for anyone promising to pay off your home loan. As a matter of fact, you should never sign anything without reading it and making certain that you understand it to make sure you are not signing over your home.
• If a Tampa foreclosure is imminent, do not believe anyone who tells you that you do not need a professional to sell your home. A realtor, title company or a lawyer is necessary to help with selling your home.
• Never give the payments on your mortgage to anyone other than your lender unless this has been approved by the lender. Do not end up losing your home and your money to a scam artist.
• There are counseling services available through HUD approved agencies. Helping you to negotiate with your lender regarding your Tampa foreclosure is free if you use a HUD approved counseling agency. Call 1-888-995-4673 to find out more about this service.
• Do not sign over the deed to your home to anyone. The only exception is if you are working with your lender in an effort to forgive your debt.

Be on your guard against the scam artists who are on the prowl. If you are facing a Tampa foreclosure, talk to your lender as well as a counselor. Make certain you are not taken advantage of when it comes to your home.

Nathan Bangs

Nathan Bangs & Associates – Seller Line 813.739.5965/ Buyer Line 813.739.5925

4 Tampa Home Down Payment Gift Rules you should Know

If the purchase of your Tampa home will include a gift as part of the down payment, you should be aware of the rules regarding this money. Lenders have certain requirements that must be followed to allow the use of gift money. With new rules set forth by lenders regarding down payments, this is often the only way buyers with limited funds may be able to afford the purchase of their Tampa home.

Percentage of the Gift

The amount that may be gifted on a yearly basis is $11,000 without notifying the IRS. In addition, some lenders require the purchaser of the Tampa home to contribute 5% of the down payment from their own money. This shows the lender that the buyer is more apt to protect the investment. The FHA is an exception to this rule, allowing the entire amount to be gifted, since their program is for first-time homebuyers and low income.

Source of the Gift

Lenders will often allow only close family members to gift the money. If it is from a parent or a sibling, the money is more likely to be a gift - at least in their way of thinking. This is to try and ensure the money is not actually a loan.

The Gift Letter

When using a gift of money for part of the down payment for the Tampa home, the lender will require a letter from the person gifting the money stating this fact. The letter will need to be notarized and show the agreement between the recipient and the person gifting the money. It must be signed and dated and the amount must be shown.

The Financial Documentation

The lender will also require documentation from the gift givers bank showing the amount of money withdrawn. A financial statement or teller’s receipt will suffice. The recipient will also have to produce proof that they deposited that amount into their bank account.

The rules have changed for many who want to purchase a Tampa home and each lending institutions will have their own requirements. Check with the one you will be using to see what they require when using a gift for the down payment on the home.  

Nathan Bangs

Nathan Bangs & Associates – Seller Line 813.739.5965/ Buyer Line 813.739.5925

How to get Pre-Qualified for your Tampa Home Purchase

What does pre-qualified for a Tampa home mean? Is this necessary? Times have changed and pre-qualification is necessary for today’s buyers. Pre-qualifying for a home can provide many benefits for those who are considering buying a Tampa home. The following information will explain how and why this is necessary today.

1. The first thing pre-qualifying for a home loan does is to allow you to know how much you can afford to pay for a Tampa home. Instead of running around looking at homes that are out of your price range, you can choose to see the ones you can afford. This saves your time, your realtor’s time and home seller’s time. It also lets you know if you can pre-qualify for a loan at all.
2. How do you get pre-qualified for a loan in the first place? Choosing a lender is the first step. This will involve carefully interviewing several and asking for advice from others who have purchased a home. Your bank may be a choice. Whatever you decide, it is a good idea not to allow the lender to run your credit unless this is the one that will be providing your loan. Too many credit checks can lower your credit score.
3. Once you have made the decision on a lender for your Tampa home, make certain you bring all the required information for the pre-qualification process. They will need financial information, job information and current rental and tax information. Bringing all the required paperwork the first time will allow your pre-qualification to be processed much faster. Since this is pre-qualification, you will still need to be qualified, so do not make any major purchases and pay your bills on time so your credit does not suffer.
4. One of the advantages of pre-qualification is letting sellers know that you are a serious buyer. The pre-qualification process is not difficult, but it is not simple either. The seller and your real estate agent know that you would not have gotten pre-qualified if you were not seriously considering buying a home.
5. When you have been pre-qualified to purchase a Tampa home, your lender will write a letter stating that you are qualified to buy a home up to a certain amount. You should keep this amount to yourself. This allows you more leverage in the purchase of a home. The seller does not know how much you can pay so they will not reject an offer based on the fact that they know you can pay more.

Nathan Bangs

Nathan Bangs & Associates – Seller Line 813.739.5965/ Buyer Line 813.739.5925

Buying or Selling a Tampa Bay Property? Get the Score on your Credit Score!

The Tampa Bay property you are interested in purchasing will generally require a lender. Do you know what impact your credit score has on obtaining this loan? Many Americans do not. A study recently conducted determined less than half of consumers do not know that their credit score can mean paying less or more for the money they borrow to buy Tampa Bay property.

The survey, which included test questions, was asked of 1000 people in America. The average score on this test/survey was a D-. Americans know that a credit score is used to determine the loan approval, but they do not know that it can mean they will often pay tens of thousands of dollars more for credit. If you are considered a high credit risk the amount you borrow to purchase Tampa Bay property can be considerably higher than someone who has good credit.

In addition, they did not know that certain information was not used to figure the credit score. Many believed that their age, marital status and income was used to arrive at the final score given them by the credit companies. Only 33% knew that their age was not used in deciding their credit score. Only 40% knew that their marital status did not matter when the credit score was figured.

When purchasing Tampa Bay property, the number of credit scoring systems is also confusing. A good score with one system may be a bad score on another system. The criteria used to figure the scores is different, therefore a 700 on FICO is good and on Vantage it is not considered good. In addition, the number of people who do not understand how their credit is affected by their score is high as well. 48% do not understand this aspect.

The Tampa Bay property you want to buy may cost you more than you realize if your credit score is low according to FICO and Vantage. Educating yourself about credit is important and can save you money. Go to www.freecreditquiz.org and see how much you know about your credit.

Nathan Bangs

Nathan Bangs & Associates – Seller Line 813.739.5965/ Buyer Line 813.739.5925

2011 is the Year for Affordable Tampa Bay Real Estate

Tampa Bay real estate may be becoming affordable again. According to sources, such as Mood’s Analytic’s, housing today is more affordable than it has been in years. The WSJ, the S&P/Case-Shiller home-price index says that for the first time in 35 years, the cost of a home is approximately the same as 19 months of pay. The good news is Tampa Bay real estate as well as other markets across the country are becoming more affordable to buy than they are to rent.

The signs are all in place that indicates that home buying is a good choice at the present time. The prices have decreased approximately 31% from the 2006 high. What does this mean for prospective purchasers of Tampa Bay real estate? If you were one of the many that were waiting for the right opportunity to purchase a home, this is probably the best time.

The best way of doing so is to keep a tab on resources. Even though this is a good time to buy, a home is going to be the biggest investment you make and you do not want to get in over your head. The best method is to get together a substantial down payment before deciding on a home. Work with an agent and see what they have available. While you may have been keeping track of Tampa Bay real estate, they will have the details about all the area homes for sale.

Plan to stay in the home you purchase for a few years at least. This will allow you the opportunity to build equity. The more you consider the options you have before making any decisions, the better the chance of making the right choice. When considering Tampa Bay real estate, make certain you consider needs, such as number of bedrooms and bathrooms, location and neighborhood. Make a list of the necessary features and take it with you when you go to look at properties.

If you are in the market for Tampa Bay real estate as a home rather than an investment, this is a good time to consider properties. However, do not make the mistake of choosing a property that will be difficult to keep up with the payments and maintain. There are also stricter borrowing guidelines that have been going into effect regarding down payments and interest rates, so keep abreast of these as well.

Nathan Bangs

Nathan Bangs & Associates – Seller Line 813.739.5965/ Buyer Line 813.739.5925