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.

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

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.

Short Sale Approval Times

Short sales have become a way of life in the Tampa Bay area over the last couple of years and I don’t see this changing anytime soon. It can be extremely frustrating waiting for the lender to review and approve the file and it truly takes a group effort to successfully complete one. I’ve seen statistics saying that less than half of all short sales close, but that certainly hasn’t been my experience. I’ve only had one file not close and that was because the seller had three mortgages and a ton of assets. He was in a financial position such that he could have easily paid off the loans and in a case like that, the banks want to be repaid. Short sales are for people who cannot afford to pay back their loans and need to sell their homes, they’re not for people who have a high degree of assets and just don’t feel like paying back their loans.

I’ve done short sales with many different banks and each one has been different to deal with. I’m in the process of getting a short sale approved with Countrywide/Bank of America right now that I’ve been working on for close to 6 months and still isn’t approved, but I think it’s close. And I have another one with EMC that broke our own record and was approved start to finish in 18 business days! The one I did with Citimortgage took 2 months to be assigned to a negotiator, but then was approved in about 30 days. With Wells Fargo, they sent me a timeline showing the steps to approval, how long they would need for each step, and then they stuck to it pretty well and we got an approval in about 35 business days. My file with Wachovia took almost 3 months to be assigned to a negotiator, but once they got this done, they were great to work with and had the file approved in just a couple of weeks.

On each of these files, I followed the exact same process, but each one took a different amount of time for approval. Many agents hand the files over to a title company or attorney, but on mine I work together with the title company on each file. They do the majority of the follow up with the lender, but I still call the lender to check on it once a week. Doing it this way I know we’ve been able to service our clients better. For example, we had one file where the HOA told the title company they weren’t willing to negotiate any of their charges and the bank was offering a $1,000 to the seller at closing to help them move out. This $1,000 credit was being used up in paying the HOA fees and the Sellers really needed it to get an apartment. So, I had the Sellers speak with the HOA and get a list of things they were not in compliance on, it was mostly cleaning (pressure washing the side of the home) , weeding, and fixing a couple of boards on the fence. We made a deal with the HOA that if they fixed all of these things they would reduce the charges and my clients ended up getting back $800. If it had just been the title company working on the file they wouldn’t have gotten anything back. While $800 doesn’t seem like a lot, it is in some cases and the point I’m trying to make is that if you’re going to short sale your house, you need an agent that is on your side, has experience, and is willing to go the extra mile for you.

Can you just walk away from a Short Sale?

A Short Sale contract is no different than a regular contract with the exception of the 3rd party approval contingency. This contingency is related to the Lender approving the “Short” NOT approving the contract. The lender has no authority to approve the contract since they are not a party to the contract.

They do however have the authority to approve or disapprove the Seller’s request for a “Short” payoff.

A contract is binding and legally enforceable when:

It has a legal purpose
The parties are legally competent
The offer has been made and accepted
There is consideration
The parties have willingly consented to the terms

There may also be contingencies in the contract. Contingencies are conditions which must be met if a contract is to be performed.

Some contingencies may be to protect one of the parties:

Survey
Inspections

Some contingencies may need to be removed in order for the purchase to be completed:

Title
Short sale approval
Financing

The Short Sale approval is just one more contingency in the purchase contract. And just like any other contingency it should have a time period to be removed.

If it can’t be removed in the time allowed then the parties can either extend the time period or cancel the contract and return the escrow deposit.

If it can’t be removed at all because the Short Sale was denied then the contract becomes “null and void”. The Seller is now unable to perform. This is no different than when the Buyer’s financing is denied. He too is now unable to perform.

Here in the Tampa Bay Area, prices have fallen steeply making it necessary for many people to do a short sale if they want or need to sell.  Waiting for the Seller’s lender to approve the short payoff can be a true test of patience and a positive outcome isn’t even guaranteed!  You are however, bound by a legally binding contract to wait for the approval time stated in the short sale addendum before walking away and/or moving on to the next home if the contract has been signed by both the Buyer and Seller and has been properly executed by the dates and times specified in the offer.  Many Tampa Realtors seem to be confused by this and in turn confuse both the Buyers and Sellers, but it’s really quite simple.

Finding a rental home after a short sale

We’ve been doing a lot of short sales this year and one of the questions many of my clients have is how to go about finding a place to live now that they have imperfect credit. While this is a problem, there are SO many people in this same situation that many landlords understand they will not be able to find a tenant with stellar credit today. Anyone with perfect credit would be BUYING in a market like this! Many (if not most) people who have or are doing a short sale on their home are not paying the mortgage and are basically living there rent free for a pretty long time period. Hopefully you are saving the money you would normally be paying so when it does come time to move you have the funds to do it.
Some landlords will rent to someone who has done a recent short sale, but many of them require an additional security deposit which I think is fair. Most landlords I’ve spoken with regarding rental homes in Tampa want to see that you have a steady income and are capable of making your monthly rent payment but as long as you can show that and are willing to pay an extra deposit, you shouldn’t have a problem finding a nice place to live.
It is sometimes easier to deal with an actual owner as opposed to a rental company, but honesty goes a long way with both. If you are upfront about your situation landlords are much more likely to work with you.
As a potential tenant, you need to make sure the property you are renting isn’t in foreclosure. If you contact me with the property address I would be happy to check it against the court records and make sure it isn’t in Lis Pendins (litigation pending). I’ve run across several properties, especially on Craigs List, that were in foreclosure, but the owners were trying to rent them and make some money on the way out.
If you would like to have rental properties emailed to you as they come on the market, please send me an email with your requirements. I can set up an account for you that will automatically send you an email when a Tampa Bay rental property hits the market. I only work with rental homes in the 33647 zip code, but I would be happy to send you listings for homes, condos, or townhomes anywhere in Hillsborough, Pasco, or Pinellas counties.

Short sales with Countrywide

Countrywide Bank is notorious with Real Estate agents for being difficult to work with on short sales, but since they’ve been taken over by Bank of America, I’ve noticed a huge and very welcome change. I am pleased to say Bank of America has been great to work with on the short sale I was in the middle of with Countrywide. I’m a little shocked, but definitely glad to see progress being made by at least one lender.