The Do's and Don'ts of Purchasing a Tampa, Flordia Short Sale

Given the current real estate market, it’s a great time to purchase a short sale. With many Tampa, Flordia homes destined for foreclosure, some homeowners are having to sale their home at a lowered price to avoid losing it altogether. A short sale is when a home sells for less than what the owner still owes on his or her mortgage loan. In a short sale, the seller will not earn money from the sale; rather, a short sale prevents outright foreclosure and the lender pardons any outstanding debt.

Similar to foreclosures, Tampa short sales offer great buying opportunities. Continue reading to learn how to purchase a short sale at a bargain price.

Work with a Licensed Tampa Realtor
Work with a knowledgeable Tampa realtor who has worked with short sale properties before. Don’t hesitate to ask as many questions as you can, so that you become knowledgeable about short sales, too.

Choose a Desirable Property
Sometimes lenders may not list the home as a short sale. A good way to find out if the home is a short sale is to look for wording on the property’s information sheet that says ”Lender Approval Required”. These are most likely short sale properties. Also keep in mind that, the longer the home has been on the market, the more price reductions it may have and could also be a short sale.

Check the Property
Buying a short sale property means that you may not have the chance to have it inspected. If you get an opportunity to tour the home, bring an expert to help you estimate the value of the Tampa property and identify potential issues that might be expensive to fix.

When you buy title insurance on the short sale, be sure that the insurance company performs a detailed check on the property. This exposes any debts, liens, or back taxes on the property. Make sure that the title is clear, or you may end up owning someone else’s financial problems.

Make an Offer
One difficult aspect of buying a Tampa short sale is that your offer needs to be as close to the appraised property value as possible. The seller and bank, however, often do not tell you the appraised value. The final decision to accept or reject your offer is up to the lender. Even if the seller accepts your offer, the lender may reject it if they feel it does not meet the market value.

Be Smart
It will take time to get answers, because every decision needs lender approval, and inquiries go through a hierarchy of lending supervisors. Be patient, and if you hear that your offer was refused as too low, simply make another offer at a higher price. Even if you make a higher bid, you can still get a good deal on a Tampa short sale since many homes in today’s market When your offer is accepted, you can usually close within 30 days.

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