Relocating to New Tampa

Relocation can be stressful, but it can also be an adventure. Buying a house in a city you’re not familiar with yet is a huge decision and working with a Realtor who is knowledgeable is really important. Much of your research can be done online, but there are some things that just can’t be conveyed without a human perspective from someone who has an understanding of the area. If you only have a few weeks to find a home, you can’t afford to waste time looking at homes that won’t work for you. For example, many homes look fantastic in pictures, but it’s imperitive to know if there are lawsuits pending or problems with the HOA. Cory Lake Isles is a perfect example of this. The community is beautiful, but there are some problems with the developer not paying off the CDD bonds on some of the homes in there. A good realtor will also know what amenities are offered in different communities and which developments have higher than normal fees. Some communities have a high HOA fee, others have a CDD (community development district) fee added in to the taxes. Some communities (like Hunter’s Green) appear to have fabulous amenities, but only members of the country club can use most of them and with that comes a pretty hefty fee.

If you’re looking to relocate or if you have any questions about communities or homes in the New Tampa area I would love to hear from you!

Hunter’s Green Short Sales – Info for Buyers

Purchasing a short sale doesn’t have to be a crazy experiece as long as you have realistic expectations.  Everyone has already heard about the long wait and most people are at least somewhat preparerd for that.  Short sales are almost always sold “as-is” and aren’t usually in perfect condition, but that is expected.  What some people don’t realize though, is that in deed restriced communities such as Hunter’s Green, Cory Lake Isles, Grand Hampton, Heritage Isles, Tampa Palms, or Live Oak Preserve, the HOA can (and will) require that the home be brought up to their standards and they can set very strict time limits for doing this. 

One of the short sales I completed in Hunter’s Green (representing the Seller) was a very nice custom home in one of the gated villages.  It was in ok condition overall, but it did need some maintenance, especially to the exterior.  The caged pool had some tears in the screened enclosure, the lawn had several dead patches, and the roof had a tile that had slipped out of place.  The Buyer was prepared to fix these odds and ends and they did have an inspection done so they knew what the problems were with the home were.  The day of closing, the Buyer received a list from the Hunter’s Green HOA showing everything that was required and the new owners were given 10 days to do it.  The list included pressure washing the roof and replacing the screen on the pool enclosure, painting of the entire exterior and trim of the home, pressure washing the driveway, trimming all landscape and trees, replacing the sod (not plugging, actual replacement), painting the mailbox, and putting new mulch in the plant beds around the entire perimeter of the home.  While these were probably all things the new homeowner was planning on doing eventually anyway, having only 10 days to complete everything came as a bit of a shock to them! 

Many times Buyers think they will be able to gradually fix a home after they purchase it, but if there’s a strict HOA be prepared (both financially and time-wise) to bring the home up to speed QUICK!!  Most people don’t have a lot of money left right after closing on a home after paying the down payment, escrow reserves, and moving expenses, but if you’re purchasing a home in a deed restriced community such as Hunter’s Green – be prepared.  The Hunter’s Green HOA is very strict and can be irritating at times, but these strict standards are also what ensures the beauty and value of the community.

To avoid having any unpleasant surprises at or just after closing, I recommend contacting the HOA and asking for a list of any code citations on the home you are purchasing.  Adhering to their rules and timelines is much easier if you’re prepared for it ahead of time!

For homes currently listed in Hunter’s Green see the interactive map below and please let me know if you have any questions!  Loree Nichols 813.454.7532 or Loree@welovetampa.com

Hunter’s Green Short Sales in New Tampa – For Sellers

Hunter’s Green is experiencing fewer short sales that other New Tampa Communities such as Cory Lake Isles, Heritage Isles, Live Oak Preserve, and Grand Hampton.  The main reason for this is because the community of Hunter’s Green was already almost fully developed prior to the real estate boom.  There were still quite a few sales in Hunter’s Green between 2005 and 2007, but not like the other communities where almost ALL of the sales took place during that period.  Still, many people in Hunter’s Green refinanced their homes or took out home equity loans and those that did are probably in a situation now where they have little or no equity and could not sell their home for what they owe. 

I’ve completed several successful short sales in Hunter’s Green and one of the problems that arose in each case was an HOA lien.  Hunter’s Green doesn’t have a CDD, but the community does have a significant HOA fee.  On short sales that have a CDD, the fee is lumped in with the taxes and when it goes to the lender for short sale approval, the lender rarely questions it.  But with an HOA it’s a different story.  Home Owners Associations, like the one in Hunter’s Green, can and do put liens on the home for unpaid fees as well as any fines and attorney’s fees.  On one short sale I did in Hunter’s Green, the homeowner was behind on their HOA dues by about $2500, but the homeowner didn’t have the means to properly maintain the home and lot to the strict standards of the HOA and they received fines for things such as not pressure washing their roof, not trimming their trees,  not having enough mulch in the plant beds, and parking in their driveway (in Hunter’s Green you are NOT allowed to park in the driveway, your car must be parked inside the garage and the garage door must be closed).  Each of these instances and/or HOA violations came with a fine and together with late fees and attorney’s fees, the total lien on the home was almost $20,000!  The homeowner had tried for months to negotiate these charges with the HOA board, but the board was not willing to reduce the fees for the homeowner.  With the short sale though, the board was willing to reduce the fees to about 25% ($5,000) to release the lien.  The Seller’s lender agreed to pay these back fees because they had to be taken care of for the title to convey to the new owner and the current homeowner did not have the means to pay them.

I still run into people who think that if they do a short sale they will have to come to closing with a check, but this is simply not true!  I was in Hunter’s Green just this last weekend talking to a homeowner who was going through a divorce and needing to sell her house.  When I asked her if she needed to do a short sale, she said her mortgage was about $240,000 and her home was worth about $180,000, but she didn’t have enough money to pay a Realtor so she was going to try to sell the home herself.  With a short sale, the homeowner DOES NOT PAY the Realtor, rarely pays for any liens attached to the property, does not pay for past due taxes, and sometimes they even get a nominal amount back from the lender to facilitate moving!!

If you think you might be in a position to short sale your home in Hunter’s Green and have any questions, please don’t hesitate to contact me at 813.454.7532 or Loree@welovetampa.com

Need to short sale your New Tampa Home?

• Do you owe more than your home is worth?
• Are  you having trouble making your mortgage payments?
• Do you want to AVOID FORECLOSURE?
• Do you want to sell your home, but there isn’t enough equity to pay for closing costs and Realtor fees and you’re not able to bring money to the closing table?

I’ve  helped many homeowners walk away from their homes without having to pay anything at all.  In fact, I’ve actually been able to get the banks to pay the homeowner for moving expenses in some cases!  If you have a home in New Tampa or Wesley Chapel and it is in danger of foreclosure please give me a call.  I have both experience and specialized education to handle short sales.   Communities such as those in New Tampa (Grand Hampton, Hunter’s Green, Live Oak Preserve, Heritage Isles, Tampa Palms, Arbor Greene, Cory Lake Isles, Seven Oaks, Lexington Oaks, etc.) have pretty substantial HOA fees which can complicate a short sale.  You really need to use a Realtor who has experience to get these negotiated or included in the short sale. 

There are a lot of short sales in Grand Hampton, Heritage Isles, Live Oak Preserve and Cory Lake Isles just due to when the majority of the homes were purchased (2005-2006).  A short sale is nothing to be embarrassed of.  The market declined significantly and by working with your Lender, you are doing the responsible thing and making the best of an unfortunate situation.  Many of my neighbors in Grand Hampton are doing short sales and it’s a much better alternative than foreclosure.  With so many short sales in these New Tampa communities, it’s just about impossible to compete and sell your home in a traditional sale.  Many of the homes have dropped to half of the value they were purchased for!  This might be manageable on a $100k home, but on a $500k home  or even a $300k home it could take a decade or more of huge mortgage payments just to be right side up in the mortgage again.

Please call me if you are in a situation where you owe more than your home is worth.  I can help and depending on your goals (staying in the home as long as possible, selling the home as quickly as possible, etc.) we can devise a plan together to make this a win-win situation.  There is NO FEE to do a short sale with me and NO CANCELLATION FEE should you change your mind.

New Tampa Short Sale Myths

This is a list of the most common misunderstandings I’ve run into with short sales:

1.  Short Sales are difficult and rarely get approved.  This is simply not true.  They are more involved than a regular sale, but they aren’t that difficult, especially for the Seller.  It is the Realtor and Title company that have the additional follow up duties.  The homeowner has to complete an initial package including a hardship letter, tax returns, bank statements, paystubs, and a simple financial worksheet and authorization letter but that’s a small amount of work for getting a huge amount of debt off your plate!

2.  You have to be behind on your payments before your lender will consider a short sale.  When short sales first began to gain momentum, this was true.  However, I work with several lenders who actually encourage short sales and solicit their at risk customers trying to get them to do a short sale even if they aren’t late on payments!  The truth is, most lenders would much rather sell short than foreclose.

3.  Buyers are not interested in short sales.  This may have been the case a couple of years ago, but in my area (New Tampa) it seems like at least half of the properties for sale are short sales.  Homes that aren’t short sales are many times overpriced and can’t compete with the fire-sale prices of short sales.  Homes that have been foreclosed on and are bank-owned often have bidding wars and end up selling for more than they’re listed for.

4.  Listing your home as a short sale is embarrassing.  Are you kidding me?  Every other home for sale is a short sale.  The market dropped and our economy is in terrible shape right now.  There’s nothing embarrassing about working with your lender to sell a home that is worth less than you paid for it.  Now foreclosure on the other hand……there are public notices posted, you are served with court papers by the Sheriff, and eventually you are evicted if you don’t leave first.  THAT might be embarrassing, but a short sale is not.  There’s nothing embarrassing about taking action!

5.  I’ve already been served with a Lis Pendins, it’s too late to do a short sale.  The foreclosure process is anything but quick and most banks will put the foreclosure sale on hold once a complete short sale package is submitted.  A complete package must include a legitimate offer that is backed up by a preapproval letter or proof of the buyers funds.  I’ve been able to stop sales that were only a few days from being sold at the courthouse!  Banks DO NOT want your house back.  They don’t want the holding costs, additional fees and court costs, maintenance fees, etc. 

6.  I can only do a short sale on my main residence, not investment properties.  Investment properties can be sold short just like a primary residence.  The difference is that with a primary residence you will not have to pay taxes on the amount written off and with an investment property you might have to.  This depends on if you are considered “insolvent” or not.  Insolvency is when your total debt is higher than the total amount of your assets.  The IRS website has a worksheet you can fill out to see if you can be considered insolvent.

7.  It’s very difficult to do a short sale if there are 2 mortgages on the property.  It seems like banks have really gotten better with this in the last year or so.  Second mortgage holders usually get between $1-3k and leave it at that.  If the home is foreclosed on they will get NOTHING and sometimes we have to remind them of that during negotiations, but for the most part the lenders I’ve worked with have accepted an amount of $3,000 or less and approved the short sale.  One client I worked with had a second mortgage of $50,000 with Suntrust and the negotiator demanded that they sign a promissory note for $30,000 initially but ended up taking $2,000

8.  Any Realtor can help me with a short sale.  With a short sale it is extremely important to find an experienced Realtor.  More than with any other sale, a Realtor in a short sale can make or break the deal.  The Realtor has to be organized and submit the package to the lender.  He/she has to consistently follow up on the file and make sure nothing is overlooked.  Sometimes the foreclosure department doesn’t communicate with the short sale department at the bank so the Realtor must keep checking the public records to make sure the bank hasn’t accidentally set a sale date while reviewing the short sale package.  The Realtor can also have influence over the BPO (brokers price opinion) which is sort of like a mini-appraisal.  Of course it’s unethical to try to persuade the person doing the BPO to  make the home appraise at a certain price, but there is nothing wrong with letting them know what your offer is for and how you came to that number and show any comps that support it.

 

New Tampa is filled with short sales in Tampa Palms, Hunter’s Green, Arbor Greene, Cory Lake Isles, Heritage Isles, Cross Creek, Live Oak Preserve, Grand Hampton, Northwood, Meadow Pointe, Seven Oaks, the Hammocks, and more.  With lenders including Suntrust, Bank of America, Option One, Wells Fargo, Wachovia, BBT, EMC, and others.  Short sales are here to stay for at least a few more years.  Hopefully they will become shorter and shorter and fewer and further between, but for now they’re part of life.

Grand Hampton Short Sales

Many of the homes for sale in Grand Hampton are short sales because many of them were built in 2005 and 2006 and prices were higher then across the board.  There are some beautiful homes in this community and resort-like amenities.  The entrance is beautifully landscaped and it is gated and guarded.  There have been a few foreclosures in the community, but for the most part people have listed their homes as a short sale if they couldn’t make their payements.  A short sale is a much better alternative to a foreclosure for both the homeowner, lender, and community.  A short sale is better for the homeowner because it is less damaging to their credit and they won’t spend the rest of their life with a foreclosure on their record.  A short sale is better for the Lender even if the home sells for the same as a foreclosure because the Lender won’t have the added expense of going through the legal system to foreclosure, plus the home will many times be occupied and cared for while by the homeowner while the home is being marketed and shown.  Homes that are vacant tend to deteriorate quickly especially in Florida if there is no air conditioning to control the inside climate.  Vacant homes are also a target for vandalism so it’s much better to have the home occupied.

The HOA fees are on the high side in Grand Hampton, but unlike some of the other New Tampa Communities, residents actually get something for that.  There are 2 beautiful pools (one with an awsome water slide), a fitness center, playground, basketball court, tennis courts, mini-putting range, and basic cable and internet are INCLUDED in the HOA fee.  If you are a homeowner thinking about doing a short sale on your home in Grand Hampton, one thing to consider is that the HOA fees have to be paid before the property can be sold to the Buyer.  Sometimes this can be negotiated and the Lender will pay this, but sometimes the Lender will insist that the homeowner pay any back HOA fees that are past due, so even if you cannot make your mortgage payment it’s a good idea to try to keep up with the HOA dues if possible. 

Most of the investors who bought in Grand Hampton have either already done a short sale on their property or let it get foreclosed on.  This means most of the people who are selling their Grand Hampton homes now (as of March 2010) are owner occupied properties.  This is important  as a Buyer because short sales are generally approved more readily on owner occupied homes.

If you are behind on payments or under water on your mortgage for you Grand Hampton home please call or email!  I can help.  Loree@welovetampa.com  813.454.7532

What first-time buyers in Tampa need to know about the tax credit

The extention of the tax credit is a beautiful thing if you’re a first-time homebuyer in Tampa Florida and can make a purchase by April 30, 2010.  Following are the answers to the most common questions I receive from potential buyers:

What is the deadline for making a purchase and receiving the credit?

To qualify for the tax credit Buyers must have an executed binding contract in place by April 30th, 2010 and close on the property by July 1st, 2010.  What this means is that even if you fall in love with a short sale, as long as there is a contract in place, you will have until July 1st to close on the property – which is great news especially in Hillsborough and Pasco counties where short sales make up a huge part of the inventory.

How much money can I get?

The maximum for first-time buyers is $8,000 or 10% of the purchase price, whichever is less.  For repeat buyers that have owned their current home for more than 5 years, the maximum credit is $6,500.

Are condos eligible for the tax credit?

Yes, they sure are!  As long as the property you are purchasing will be your primary residence, the tax credit can be applied towards the purchase of a home, townhome or condo.

How is the credit obtained? 

Buyers have several options.  You can apply the credit towards your 2009 tax returns as long as you file before April 15, 2010.  If you’ve already filed for 2009 you can file an amended return. or you can apply the credit to your 2010 tax return.  So you can have it now or wait until next year, it’s up to you.

Do I have to truly be purchasing my first home to qualify for the credit?

No.  To qualify for the tax credit as a first-time buyer, you cannot have owned a home during the three years prior to closing on this new purchase.  To qualify for the $6500 repeat buyer credit, current homeowners must have owned the home they are selling for 5 consecutive years within the last 8 years.

Are there any income limits?

The income limits were actually raised when the new law went into effect.  To get full credit, your modified adjusted gross income must be below $125,000 for a single filer or $225,000 for those who file jointly.  You can make up to $145,000 and $245,000 and still receive a partial credit.  If you make more than that you’re out of luck.

HAFA goes into effect April 5, 2010

HAFA is a program that will go into effect April 5, 2010.  This is a program that will help homeowners who tried the HAMP modification program, but either didn’t qualify, or are again behind on their payments.  The HAFA program will be a fast-track short sale program that will benefit both homeowners and investors.  Homeowners will be given money to move with and investors will be able to close on the homes much quicker.  Too bad this wasn’t in place during the first time homebuyer frenzy!!

For more information on the HAFA program click here.

Short Sale Timeline – Just how long does it take?

As a Realtor in Tampa, Florida, I’ve had quite a bit of experience with short sales over the last couple of years and there’s usually nothing short about them!  Some lenders are quicker than others and some situations can be more or less complex.  The agent handling the short sale has a huge impact on the length of time it takes to get approved.  The responsiveness of the Sellers can also make a huge difference.  Bank of America is notorious for being the slowest in the industry.

There is a general process that all short sales follow.  The short sale package is submitted to the lender, the lender does a BPO (Broker’s Price Opinion), the file gets assigned to a negotiator, and a decision is made.  However, some Lenders seem to be able to do this efficiently and quickly, while with others it takes weeks or even months before a BPO is ordered or the file is even looked at by a real human being.

The first step in any short sale is for the Seller to complete an authorization letter allowing the Realtor who is handling the sale to speak with the Lender.  This is called 3rd party authorization and this does NOT give the Realtor the ability to make any decisions or changes to the loan or deal, it only allows them to speak with the Lender and get updates on the short sale progress.  Without this 3rd party authorization, the Lender cannot disclose any information regarding the loan.  Most Lenders require 24-48 hours to get the authorization into their system so it’s best to submit this right away even if the rest of the package isn’t complete yet.

Next, the short sale package should be organized and submitted to the Lender.  Your Realtor should call the Lender before submitting this to verify the particular Lender’s requirements.  In most cases, this package consists of:

• a hardship letter explaining the homeowner’s situation and asking the Lender to allow a short sale.
• a simple financial worksheet showing the Seller’s monthly income and expenses.
• 2 years tax returns (all pages).
• 2 months bank statements (all pages)
• 1 month paystubs
• listing agreement
• sales contract (if available yet)

These items should be submitted together and as organized as possible.  I usually prepare a cover sheet with bold lettering specifying the property address, loan number, Seller’s information, title comapany information, and of course my contact information.  Some Lenders have their own forms and package that will need to be completed in addition to the above mentioned items.  Bank of America, Chase, and Citibank (to name a few)  have their own short sale package that is required.  Bank of America has moved to the Equator online system and requires all of this information to be uploaded to their website.  The homeowner must call Bank of America to request the short sale and they must log in online and complete the Buyer’s portion of the program on their website.

Some lenders order a BPO right away and some wait until there is an offer on the table.  GMAC ordered a BPO just a few days after I submitted the initial package and their representatives actually called me and asked me to lower the listing price!  Some Lenders do more than one BPO.  I know Bank Of America has been ordering 2 or even 3 BPO’s sometimes.  The BPO is extremely important.  BPO stands for Brokers Price Opinion and that’s exactly what it is………..a Realtor’s educated guess at the value of the home.  You notice the word “opinion” is there.  There are certain parameters used in finding comparable homes for a BPO.  Ideally, the comps used should be built within 10 years of the subject, be within +/- 20% in size, have the same number of rooms,  and be of the same style and quality.  However, the Realtor doing the BPO can choose which comps to use and it is quite subjective.  I ALWAYS meet the person doing the BPO at the home to point things out to them that they may not notice and also to share any information I have about the community as this can make a huge difference.  For example, some subdivisions that are right next to each other have significantly different HOA fees, amenities, or sometimes problems within the community or builders that are not known unless you are very familiar with the area.  Sometimes the BPO agents are from another part of town or even another city or county so it’s essential to meet with them and discuss the file.

Once the BPO is in, the file is reviewed to make sure it’s complete.  Sometimes this is done before sending the file to the short sale negotiator and sometimes it isn’t.  Different banks do things differently.  I have a file that I submitted to Chase last week that has already been assigned to a negotiator and the BPO has been completed.  I have a file with Citibank though that was submitted over a month ago and they’ve done two separate BPO’s but still haven’t assigned it to a short sale negotiator.  The file I have with Bank of America has had 3 BPO’s done over the course of about 3 months and the only way I can check on it is through their online system.

Once the file makes it to the negotiator it is reviewed again for completeness.  Many times it has taken a couple of months to get to this point and the Lender requires the package to be current (completed within 30 days) so they will require updated bank statements, paystubs, hardship letter, etc.  Once this is resubmitted, the offer is usually sent to the banks investors for approval.  Again, some “investors” respond right away while others can take 30-60 days.

Finally, the negotiator will contact the Realtor with either an approval or counter-offer.  If the deal is approved, the approval letter is normally good for 30 days.  The approval letter outlines the Lender’s terms of the sale.  For example, it will say the debt will be forgiven and the loan will be satisfied……..or I’ve seen a few (mostly on HELOC loans) where the Lender will write the debt off, but reserves the right to collect at a later date.  Some Lenders will try to require the Homeowner to sign a prommisory note for part of the debt also.  I’ve only run into this once, it was on a second mortgage and in the end the Lender agreed to forgive the debt.

Finally, we all get to go to closing!!!  The closing of a short sale isn’t much different than a normal sale.  In some respects it’s even a little LESS complicated than a standard sale because these properties are normally sold “as-is”. 

The shortest “short sale” I’ve been involved in took only 18 business days (EMC Mortgage).  The longest to date has taken over 6 months (Bank of America).  Most sales take around 90 days it seems.

Arthur Rutenberg Homes in Grand Hampton

 

Arthur Rutenberg is a well respected new home builder in Tampa. They build beautiful semi-custom homes with outstanding floor plans in most of Tampa’s luxury communities.  In Grand Hampton, Arthur Rutenberg (www.arhomes.com) currently has one model home, the Tradewinds VI.  The Tradewinds VI is a 3,152 square foot home with 4 bedrooms, 3 bathrooms, plus an office all with 12 foot ceilings.

Grand Hampton is Tampa’s newest master-planned community where people can coexist with nature for the best that life has to offer in private, club living. This collection of premier neighborhoods and more than 800 homes will be nestled among beautiful forested areas, wetland preserves, lakes and scenic Cypress Creek. Half of this 1,000-acre community has been set aside for natural conservation and open space. Enjoy a very active outdoors lifestyle and amenities that will include the 8,300-square-foot Grand Club Room facility, as well as tennis courts, an aquatic center, a golf putting course, a children’s playground and a creek-side canoe outpost. All homes include structured wiring to connect with the development’s eStreet services for digital cable, high-speed Internet and a community extranet.

Arthur Rutenberg is now offering new construction in two Grand Hampton neighborhoods, Outpost Point and The Hamptons, with homes starting in the mid-$300,000s, including homesite.

Please email Loree@welovetampa.com for more information on Arthur Rutenberg Homes in Grand Hampton.

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