Think Again about Short Sales

So, you are over your head with a mortgage and  a line of credit. You have started to wonder if a short sale is the answer to your problems, think again.

Homeowners defaulting on mortgages today may be surprised to learn years from now that they still owe thousands of dollars and a collection agency is coming after them to get it. That’s because lenders have been quietly selling second mortgages and home equity lines left unpaid after foreclosures and short sales. The buyers are collection agencies, which in some states have years to make a claim. If they win court judgments, these collectors could have years to pursue borrowers with repayment plans and even garnish their wages. The only way around this is filing bankruptcy or certain debt reduction programs.

There is an entire industry gearing up to buy their debt at deep discounts and collect what they can. It’s a big business and investors are coming out of the woodwork.  Again we are talking about second mortgages and lines of credit. Most states do not allow a lender or third party to collect on the unpaid balance of the first lien for homes that are sold in foreclosure or short sales.

Nationally about 3.4% of these seconds and lines of credit are in default. Investor who default may be liable for both the balance of the first and second.

Tampa Palms Closed Sales

Two trends to watch. Distressed sales are now mainly in the town homes and condos. Most of the condos in Tampa Palms were former apartments and really do not make good condos. It will take a long time to absorb that inventory. Second new inventory coming on the market for the most part is priced to sell. Sellers don’t want to be on the market for months only to reduce there price. Below are sales for the period 2/1/10 – 3/15/10. All are closed sales.

17106 Carrington Park Dr. #612   1 bed, 1 bath, 780 sq. ft.           $41,000.00

16253 Enclave Village #16253  2 beds, 2 baths, 1270 sq. ft.          $65,100.00

15350 Amberly Dr.  #1811  2 beds, 2 baths, 1480 sq. ft.                 $75,000.00

15350 Amberly Dr.  #423  2 beds, 2 baths, 1223 sq. ft.                   $83,000.00

15912 Halsey Rd.  4 beds, 2 baths, 2 car, no pool, 2102 sq. ft.    $235,000.00

16005 Selby Wy.  4 beds, 2 baths, 2 car, pool, 2193 sq. ft.           $250,000.00

16307 Royal Prk. 4 beds, 3 baths, 2 car, pool, 2731 sq. ft.            $345,000.00

5004 Langdale Wy. 5 beds, 3 baths, 3 car, pool,  3808 sq. ft.     $485,000.00

5004 Waterkey Wy. 4 beds, 3 baths, 3 car, pool, 3605 sq. ft.       $550,000.00

5003 Waterkey Wy. 5 beds, 3 baths, 3 car, pool, 4205 sq. ft.       $862,030.00

For further information or complimentary market analysis please give me a call  or send an email:

homenet@gte.net    or Liz at 813=956-6487

WIND MITIGATION DISCOUNTS

WIND MITIGATION inspections is twofold. To assess a home’s vulnerability to hurricane damage, and secondly to earn insurance premium discounts.

THE original intent of wind mitigation legislation was to encourage Floridians to harden their homes against the forces of Mother Nature. BUT the program has lost its initial focus. Rather than motivating people to take necessary efforts to make their homes stronger, the program has become a vehicle by which homeowners can earn premium discounts without taking any actions. 55% of homeowners were eligible for insurance premiums discounts without making a single improvement. In addition there has been a growing concern over the accuracy of wind mitigation inspections.

Insurance companies have determined by audits of their books of business that current policyholders are being unjustly awarded significant discounts. As a result of these facts there is movement now by many insurance companies to modify their underwriting procedures concerning wind mitigation inspections. The intent of these changes is to reserve premium discounts for those policyholders who have truly modified their homes.  Insurance companies are also going back over issued policies to see if they have given the homeowner to large a discount. If they have they will be sending out invoices for additional premiums due.