st petersburg short sales and foreclosures

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Understand your Credit Score when facing a short sale or foreclosure

Let me present the bad news first.  In any short sale or foreclosure your credit score will be hurt, Short sale by about 200 points; in a foreclosure about 400 points.

Hopefully you have realized this website is not about how terrible short sales are, this site is designed to help you through a difficult and emotional time and we want to make sure you come out of this with enough knowledge to correct and repair your credit as soon as possible.
Please read this article to the end as our goal is for you to understand credit scores when facing a short sale and what you can do to increase your credit score as soon as the short sale is complete.

Short Sales in  St petersburg | money house

Now for the good news!
There ARE ways for you to improve your credit score after a short sale!
When creditors look at your credit report they are looking to determine if you are a high risk or low risk borrower. They are looking for people that are most likely to repay their debt on time.  Your goal is to return your credit score to a higher score as soon as you are able after the short sale.

To improve your credit score after the Short Sale: Understand your credit score and how it is calculated.
There are 3 major credit bureaus – Experian, Equifax and TransUnion.  These companies are continually updating your information.  They collect data from public records and all the companies that you have and do business with.  With this information they compile a report, which is your credit score.
Every year you are entitled to request a credit report from all three of these agencies without having to pay for it.  Request these reports annually, review for accuracy, and dispute any discrepancies immediately to all agencies.

There are several criteria that are used to measure your credit score:
Payment history
holds a lot of weight.  So, please strive to always pay your bills on time, as this criteria is the major criteria and carries the hugest weight in calculating and therefore increasing your credit score after the short sales. Set yourself reminders, open your mail each day, write checks a day earlier so it won’t matter if the post office takes a day longer.

Decrease your amount of debt compared to your available income. Just wait a few more month till you buy the new car or mattress or vacation and use these month and the money you have NOT spent to pay down you r credit cards.

Also, try to keep your credit card balances low and your credit limits high.  Call the card company every few month and see if they can increase your limits. a good rule of thumb is to keep your credit card balance less than 20% of your  credit limit it.

Length of your credit history is calculated by how many credit cards you have, how long you have used your credit cards taking into account your management of paying. Beware of opening too many cards because each time you do your creditors inquire and can affect your score negatively. Conversely closing credit cards can also affect your credit score as that decreases your available credit

After the short sale pay all your bills on time, have a written budget and try to stick to it as much as you can. Yes, again a Short Sale will hurt your credit score BUT it isn’t as bad as a foreclosure and it absolutely isn’t the end of the world ! Trust me, I have worked with a lot of people that went through a Short Sale situation and they were surprised how fast they got their credit score back up.

For more detailed information check out this website.  (be aware it has advertisements) BUT they are clearly marked as such. http://www.wikihow.com/Repair-Your-Credit

Please give a quick call 727 410 7777 or send the form below with any questions you might have. When you list your property as a Short Sale with us, you are not alone. We will walk you through the short sale process step by step and we are always here for you to listen, give you feed back, bounce ideas around and give you helpful tips.

St Petersburg Short Sales | Short Sale as a “strategic” move?

A lot of people have not heard that word before but then again, a lot of people actually do a strategic Short Sale here in St Petersburg.

handsThese are the people that still have a job, their finances are still in order but they are very frustrated that their property value has gone down so much over the last few years. In 2007 they bought a home for $800,000, paid $100,000 down and financed $700,000 at 7% interest only. Now at the end of 2011 their house is worth $500,000 they pay $5000 each month in mortgage, taxes and insurance alone.

These St Petersburg homeowner just don’t see how they can ever repay their mortgage or even recover the $100,000 down payment. They have tried to apply for a loan modification but the Bank just laughed at them, they have tried to refinance to get a lower interest rate but of course no bank would touch them and on top of everything else they see the lenders like Bank of American is offering St Petersburg homeowners up to $20,000 in cash if they do a Short Sale in St Petersburg.

Something is fundamentally wrong with our system and these people just have had it.  Yes, their credit rating  will go down for a little while, but than again, what do you really need a good credit rating for in this economy.

A good credit rating used to be worth a lot but now a days ?  So, we actually see a lot of strategic Short Sales in St Petersburg especially with Properties over $300,000. Pick up the phone now and call us at  727 410 7777. No strings attached, we make an appointment and talk aboutbuying or selling a St Petersburg Short Sale and the options you have.       We are St Petersburg Short Sale Agents and are glad to assist you.

Click here to see the current Short Sale listings in Pinellas County

 

St Petersburg Short Sales | Short Sale as a “strategic” move?

St Petersburg Short Sales | Weigh all you options carefully before filing bankruptcy

We are St Petersburg Short Sale Agents  and we get the question often “do you think I should do a Short Sale or simply file for bankruptcy with my St Petersburg home?

Short Sales in  St petersburg | cash investorWell, if it was us, we would do a Short Sale anytime over a bankruptcy and depending on the outcome of the Short Sale you might not even need to file for bankruptcy anymore.

It might sound like a tough questions to some people, to us  it isn’t. Please keep in mind, we are  Short Sale Realtors here in St Petersburg and not  Lawyers  or Accountants, so we cannot give you legal advice but PLEASE check with your Accountant and a Short Sale Lawyer before you file for bankruptcy.

See, it doesn’t have to be the one or the other.  Of course, if you get your advice from a bankruptcy Lawyer, there is a very high possibility that they recommend a bankruptcy because they will not get paid if you don’t.  Please keep this in mind when you make a decision.

We always recommend talking to a St Petersburg Short Sale Realtor before making any decision. Ask all your questions, talk about your options, understand the Short Sale process and only then can you make an educated decision.

A Short Sale is not a walk in the park but it is not a horror story either.  We have had a lot of clients over the last few years that were every scared about their St Petersburg Short Sale but in the end they all said that it was easier than they thought and all were happy that we helped them through this tough time.

Call us today 727 410 7777 and make an appointment, you will see how much better you already feel after talking to a professional that knows the St Petersburg real estate market and that knows Short Sales.

St Petersburg Short Sales | Weigh all you options carefully before filing bankruptcy

Can I Do a  Short Sale?
A homeowner will choose to sell a home as a short sale if the home’s value is less than what he or she still owes the bank on mortgage. Lenders will generally accept to take a loss on short sales since they incur more losses on foreclosed homes in their portfolios.

The Basics of a  Short Sale
In a short sale, you sell your Treasure Island home for less than what you owe the lender. If you have a second mortgage or home equity line of credit, then more than one lien holder can be involved in the short sale and you have to wait for both lenders to agree to take a loss on the sale. Your Treasure Island short sale depends greatly on the bank or lender’s approval and you have to learn to wait patiently for their approval, which could sometimes take months.

Characteristics of a Short Seller
Sellers of short sale homes usually owe a large mortgage or multiple mortgages, because they refinanced or borrowed against their Treasure Island home and got loans at temporarily low interest rates. Sellers are often anxious to get out of volatile loan arrangements, which significantly increased their payments and made it unaffordable. Most sellers of short sales also obtained loans at low or no-down payment schemes, meaning the loan covered almost all, if not the entire sale price of the home. If you have experienced one of these cases, then your loan is most likely underwater and you may qualify for a short sale.

Financial Hardship
As a short seller, you must first be able to prove your financial hardship as the main reason why you can no longer make your mortgage payments. You may qualify for a short sale for the following reasons which are considered as financial hardship:
• loss of employment
• salary reduction or reduction of hours
• serious illness of the borrower or a family member that adds up to the monthly expenses
• death of spouse
• divorce
• relocation for a job
Lenders may accept other reasons if they are beyond your control. The key to proving your financial hardship is providing a detailed hardship letter, supporting documents, and a list of expenses showing that your monthly obligations are greater than your current sources of income.
Specific Requirements
Generally, lenders require that your total monthly obligations make up about 50% of your gross income in order to prove your financial hardship. You should also have a debt-to-income ratio of above 36%, which is the healthy debt-load. You should also be at least 30 days behind on your mortgage and are not qualified for a loan modification. A loan modification changes some terms in your loan to make your payments more affordable. It also requires a financial hardship and proof that you can afford the new lower payments.
If you feel you are qualified for a short sale or want to know if you are, you can call us and speak to our St. Petersburg short sale agents to get their help and advice.

Click here to see the current Short Sale listings in Pinellas County

St Petersburg Short Sales | I have a mortgage and an equity line, can I still qualify for a short sale?

In a St Petersburg Short Sale, yes, you can have more than one mortgage in order to qualify for a Short Sale. It is a bit difficult, but possible.

Here is the reason why it might be a bit more difficult, since both mortgages have to approve the sale. Let’s just say you do have 2 mortgages with 2 different Banks. The first mortgage offers $5,000 to the 2nd mortgage. However, the 2nd mortgage wants $15,000. There are ways around that a few different ways.

  •       You could go back to the 2nd mortgage and re-negotiate
  •       You could ask the Buyer, if he would be willing to make a contribution towards the  2nd mortgage
  •        You as the Seller, if you have the funds available, make a contribution towards the 2nd mortgage

Each and every Short Sale negotiation is different. In some cases, the 2nd mortgage simply agrees to the amount given to them by the 1st mortgage.

Another important factor is timing. We are currently working on a St Petersburg Short Sale, where the 1st mortgage has approved the Sale and wants us to close in 25 days. However, we can’t since the 2nd mortgage has not approved the sale yet. Most likely, by the time the 2nd mortgage gets around to it, we’ll have to get an extension from the first mortgage. In these cases, it is a very fine line, since once you have an approval, nothing is worst than not being able to get the deal done while everybody is on board.

That is one of the reasons, why we always prepare our Short Sale Buyers, to have their loan application ready to go, so as soon as you’ll the receive the approval on your St Petersburg Short Sale you made an offer on, you as the Buyer need to be ready to go. If your lender told you, they will need at least 45 days in order to issue your new mortgage to purchase this St Petersburg Short Sale, you need to let your Short Sale Realtor know right away. Most Short Sale Banks once an approval has been issued, will only grant 30 days until closing.

As we said, each and every St Petersburg Short Sale is different. Call us at 727-399-9990, we’ll be glad to assist. St Petersburg Short Sales | I have a mortgage and an equity line, can I still qualify for a short sale?

Click here to see the current Short Sale listings in Pinellas County

 Short Sales| “abandoned” properties only because they are not occupied?

Short Sale St Petersburg Fl |

St Petersburg Short Sales, who determines that a property is abandoned? We got so mad the other day. We had a Short Sale listing in St Petersburg with the lender being Bank of America.

After years of doing Short Sales here in St Petersburg we have to say that Bank of America is usually the slowest lender to complete a Short Sale process.

We were very happy to see that this particular file was moving along nicely and faster than we thought. The Short Sale seller was also very cooperative in producing all necessary paperwork and it looked like this one was a walk in the park.

We keep telling our Short Sale buyers and seller that it is not “sold” until the actual closing date and to not get to excited just because we are making good progress. There are all kinds of last minute things that can happen in a Short Sale situation and it is not closed till we all sign the HUD 1.

Well in this particular case we must have forgotten our own good advice. We were really excited how smooth and fast everything was going until we got a phone call from the buyer’s agent 3 days before closing, telling us there is a note on the door saying “That XYZ property management company working on behalf on Bank of America has determined that the property is vacant and abandoned and therefore the locks will be changed within 3 days of this notice” Unbelievable!!!

Yes, the property was vacant since it was supposed to close 3 days later BUT the property was not abandoned. The grass was cut; the property looked great, there was a real estate sign in front of the house and our realtor lockbox on the door.

How on earth can you come to the conclusion that the house is abandoned???   We do not know how many calls we made to Bank of America but as always, nobody was in charge, it was out of their hands etc. We placed a not so friendly phone call to the property management company XYZ and were told that they have instruction from the Bank and they will change the locks but it would not be a big deal, they could send the keys to the buyer a few days after we prove that this  Short Sale was actually closed.

No Big deal? When the buyer shows up with a moving truck full of furniture and wants to move in the day of closing?  Long story short, we went to the property and replaced their note saying “Don’t you dare change the locks, we are closing on Friday and if the closing falls apart because the buyer can’t do a walk thru YOU will be held responsible”   Well,  guess this helped. We checked  the locks everyday till we closed and it was ok.  Things like this just do not show up in a Realtors job description.

St Petersburg Short Sales| “abandoned” properties only because they are not occupied?

Click here to see the current Short Sale listings in Pinellas County

You are not alone, Short Sales in Treasure Island and St. Pete Beach | Zip 33706

A lot of our Short Sale sellers are worried about things like, “What is the neighbor going to say? What will my friends think? What if people at work find out? How am I going to tell the rest of my family?

If you are in financial trouble, have lost a job, facing divorce, or your house is totally under water and the prices won’t come back to where you need them for a few years, you should be thinking about listing your home as a Short Sale.

This is one of the few times in life when it doesn’t matter what friends, family or neighbors think. This is all about you and your financial future. Trust me, you are not alone, we have all been in though spots in li\fe and we just need to do whatever it takes to get out of the situation and move on.

A Short Sale for your home or condo in St Petersburg might be the answer. Do not worry about anybody else, YOUR life is on the line.

See the list below, you are not alone. Many homeowners here in St. Petersburg had to make this difficult decision and there is no shame in trying to get out of a bad situation and get a fresh start.

Call us today 727 410 7777  We will explain the Short Sale process to you in detail and I promise you will feel much better after you heard all the information. No strings attached.

  You are not alone, Short Sales in Treasure Island and St. Pete Beach | Zip 33706  

Subdivision WF Pool Gar/Car Prop Style Sq Ft Heated BR Full Baths List Price
Isle of Palms Y Private 3 Car Garage Single Family Home 3,508 3 3 $790,000
BELLE VISTA POINT 2ND ADD Y Private 1 Car Garage Single Family Home 1,644 3 2 $789,000
SUNSET VISTAS CONDO HOTEL ON THE GULF CONDO Y Private, Community None Condo-Hotel 1,740 3 3 $449,000
Capri Isle Y None 2 Car Garage Single Family Home 1,954 2 2 $425,000
SILVER SANDS BEACH AND RACQUET CLUB THREE CONDO Y Community, Private 1 Car Garage Condo 2,070 2 2 $400,000
Intrepid condo Y Private, Community None Condo 1,191 2 2 $349,000
GULF 5000 ASSOC INC CONDO Y Community 1 Car Garage Condo 1,420 2 2 $289,900
STARLIGHT TOWER INC CO OP (UNRECORDED) Y None, Community None Co-op 645 1 1 $265,000
VLG OF PARADISE ISLAND PH I CONDO Y Community 1 Car Garage Condo 1,750 2 2 $264,900
CAPRI LAGOON UNIT V CONDO Y None 1 Car Garage Townhouse 1,260 2 2 $250,000
VLG OF PARADISE ISLAND PH I CONDO N Private, Community 2 Car Garage Townhouse 2,025 3 2 $250,000
CAPRI HARBOR CONDO N None 1 Car Garage Condo 1,450 2 2 $239,900
BEAU MONDE CONDO Y Community None Condo 1,505 2 2 $233,275
SOUTH BEACH CONDO HOTEL Y Private None Condo 623 1 1 $204,999
JACARANDA BEACH VILLAS CONDO Y Community None Condo-Hotel 300 1 1 $199,900
GULF STRAND RESORT CONDO N Private, Community 1 Car Carport Condo 740 1 2 $190,000
LAGOON LANE CONDO N Community 1 Car Garage Condo 1,110 2 2 $189,000
CONSTELLATION THE CONDO Y Community None Condo 1,175 2 2 $180,000
NORMANDY PINELLAS CONDO Y None, Community 1 Car Carport Condo-Hotel 425 1 1 $175,000
BELLEVISTA BEACH 3RD ADD N None 1 Car Carport Single Family Home 1,080 3 2 $170,000
BELLEVISTA BEACH 5TH ADD N None 1 Car Garage Single Family Home 1,392 2 2 $169,900
SOUTH BEACH CONDO HOTEL Y Community Under Building Condo-Hotel 623 1 1 $169,290
JACARANDA BEACH VILLAS CONDO Y Community None Condo-Hotel 535 1 1 $169,000
CAPRI MNR CONDO Y None 1 Car Carport Condo 697 1 1 $164,900
POINTE CAPRI ADULT CONDO Y Community None Condo 670 1 1 $131,000
GULF WINDS APTS CONDO N Private, Community None Condo 780 2 1 $130,000
EL CERRITO CONDO N None None Condo 620 2 1 $129,900
THREE PALMS POINTE CONDO N Community None Condo 1,240 2 2 $120,500
PARKSIDE CONDO N None, Community None Condo 630 2 1 $69,900
CAREFREE APARTMENTS CONDO N None None Condo 580 1 1 $69,900
YUM YUM TREE THE CONDO N None Under Building Condo 489 1 1 $65,000