The other 60% of the current market are regular real estate sales. So how do they manage to sell their home?   They can sell quickly at today’s market price, and move on to the next property at a great value.  In most cases the properties do not have giant loans or the owners have had the property for many years (over 5).  They can afford to sell their Tampa real estate and are flexible enough to get it done.

If you fall into a situation where you need to move, but can’t sell (either because you’re not willing to take a loss or do not want to harm your credit), then leasing your home to a renter is a very viable option.

In an article provided by MSN, June Walbert of USAA explains some things homeowners should be aware of when renting a property.  This is great advice for any owner considering renting out their Tampa real estate.  “First replace your homeowners insurance policy with rental-home insurance. It covers the building and provides liability protection but doesn’t cover possessions, so it tends to cost about 20% less than a regular homeowners policy.” She also recommends including “a section in the lease requiring your tenants to buy renters insurance, which will cover their liability and belongings.”  In addition, she recommends that homeowners be aware of how reting will affect them at tax time.  “When you file your tax return, you’ll generally report rental income and expenses on Schedule E. You’ll be able to deduct your mortgage interest on the rental property, as well as insurance premiums, real estate taxes, advertising costs to rent the house, rental management fees, utilities you pay, travel to and from the property and legal and accounting costs.”

Smith & Associates Real Estate can assist with listing your Tampa real estate for rent and finding a tenant. We specialize in quickly locating qualified rental clients. Our experts will provide you with rental services that will allow for maximum exposure of your property. The steps would include having a property orientation, preparing the property offering, meeting and evaluating prospective tenants, preparing lease agreements prepared by a Florida eviction attorney ($50.00 fee), advertising, and processing of applications and credit checks. Please inquire with us about our fees. Smith & Associates Real Estate complies with all fair housing laws with applicants.

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Short sales constitute a good percentage of current Tampa real estate listings. Anyone who has ever been involved in a short sale knows that the short sale request process is like entering the wild west –  the rules change day by day and you never know what to expect. There has been a public outcry for regulation in regards to short sales since the Tampa real estate market (and the rest of the country’s) bubble burst.

In response, the federal government has released the Home Affordable Foreclosure Alternative (HAFA) Program which will take effect on April 5, 2010. HAFA is different from last year’s Home Affordable Modification Program (HAMP), in that HAMP was intended to help people retain their homes, while HAFA is intended to help people short sale their homes. HAFA offers guidelines by which homeowners can sell their homes for less than what is owed on the existing mortgage(s).  The program is supposed to streamline the short sale request process by using standard processes, documents and timeframes. In order to attract participation from lenders, lending institutions are offered financial incentives to follow HAFA’s guidance and use its standard forms. Nevertheless, the program is strictly voluntary and lenders do not have to follow the US Treasury Department’s promulgated guidelines. It is important to know that HAFA is not a law.

In order to be eligible for the HAFA program, borrowers must have applied for the HAMP program and their application was either denied or they were unable to keep up on the modified mortgage. The HAFA program utilizes documents that were already collected as part of the mortgage modification program and permits homeowners to get pre-approval for short sales. This is an improvement to the standard short sale because typically, lenders will only consider a short sale request if there is a buyer for the property. The HAFA program is limited to loans that were originated prior to January 1, 2009 on the borrower’s primary residence, which do not exceed $729,750 and which causes a financial hardship because the monthly payment exceed 31% of the borrower’s gross income.

Whether this new government program will help to move short sale homes in Tampa and thereby improve the Tampa real estate market remains to be seen.

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Here is the link to the complete article.

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There are common misconceptions about the process and how it affects the homeowner. The most common misconception I hear from clients is that if the homeowner wants to sell his or her home via a short sale, he or she can simply do it and do not need to obtain an approval from his or her mortgage lender. A short sale requires the approval of the lender because, unless the lender accepts what is less than owed on the mortgage, the lien will not be released.  If the mortgage is not released, the new owner will take ownership of a property encumbered by someone else’s debt. This presents various problems which would be better left for another discussion. These and other misconceptions continue to pervade the real estate conversation.

Seeking a short sale approval can be an overwhelming process as it requires a lot of documentation from the homeowner and certainly, a lot of patience from everyone involved. Most lenders require a hardship letter, tax returns, pay stubs, bank statements, and a financial statement. It is very important for the homeowner to provide complete documentation. Furthermore, it is vital that all documentation be submitted at one time, rather than by piecemeal because the individual documents will inevitably be misplaced. After the complete short sale request package is submitted to the lender, someone must follow up and track to whom the package is assigned to. Once the short sale package has been assigned to a short sale negotiator or loss mitigator, the homeowner (or his/her representative) must be diligent and attempt to keep in close communication with the negotiator or mitigator – the homeowner (or the representative) must remain tenacious.

It is also important to note that a short sale will negatively impact the homeowner’s credit score; however, in most instances, it is not as damaging as a foreclosure or a bankruptcy. Nevertheless, a short sale may present legal consequences and tax liabilities. Homeowners exploring the possibility of a short sale are strongly advised to seek the advice of an attorney and a tax professional.

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