Although some homes are recovering the majority of their values before the economic collapse form their highs in 2006 and 2007, there are some neighborhoods that will not regain their values for years to come. In Florida, this is especially true in some areas like portions of Tampa Bay. This leaves a lot of home owners upside down. In other words, their home values are less than their mortgages. What options do these home owners have? Since the economic downturn, a lot of people have lost their job. Some people are still underemployed resulting in a lower income to pay their bills. Thus, a lot of home owners are still facing foreclosure.
When facing foreclosure, the worst thing that you can do is nothing. You need to take action because your future can depend on it. The lender will file a lawsuit to take to title back on your home. Since this law suit could take months to complete and incur legal costs during the process, the lender would like to resolve this prior to taking title. If the property is foreclosed upon, the lender may file for a “Deficiency Judgment” for the write down of the mortgage as well as fees incurred to gain title against the former home owner. Your financial future is at risk!!! Not only will a foreclosure affect your ability to purchase another home, it could hurt you on purchasing anything that requires credit like a new automobile or a major appliance. A short sale might be the answer to your problem.
A short sale can be the best answer for both the lender and home owner. A short sale will have less of an impact on your credit score than a foreclosure. If the lender does not have to foreclose on the home (saving the lender on attorney fees, carrying costs, maintenance expenses, etc.), most lenders will waive the deficiency judgment against the previous property owner. Additionally, some lenders are even willing to pay for moving expenses.
If you are interested in buying a new home or an existing home, please contact me (Alan Lane with Keller Williams Realty at 2119 W Brandon Blvd, Brandon, Florida 33511) and I can help you find a new home in the Tampa Bay Area. My email address is email@example.com or call me at 813.205.9280. If you are just starting your search, you can search the MLS for homes on my website at this link.
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