Ridge Property Preview

Considering a Short Sale?

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:

• Your property is worth less than the total mortgage you owe on it.
• You have a financial hardship, such as a job loss or major medical bills.
• You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:

• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
• Help you set an appropriate listing price for your home, market the home, and get it sold.
• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
• Ease the process of working with your lender or lenders.
• Negotiate the contract with the buyers.
• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:

• A hardship letter detailing your financial situation and why you need the short sale
• A copy of the purchase contract and listing agreement
• Proof of your income and assets
• Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

• If you have only one mortgage, the review can take about two months.
• With a first and second mortgage with the same lender, the review can take about three months.
• With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

• You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
• Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Agent Follow Up

Usually I'm not one to complain but I'm noticing more and more that Real Estate Agents are very difficult reach. For example, I had a couple in from NY and they wanted to see houses on Saturday. I called on 10 houses and only received ONE call back from an agent. Now I'm not saying that everyone should work on the weekend but I think follow up is very important in this industry.

Agents are the primary link and the routers of information for buyers and sellers. When an agent ignores phone calls or forgets to follow up it makes it difficult for the people who are interested in the properties. I really respect the professionals who are able to either return the call the same day or at the very least send an email or text message.

With the unlimited amount of technology and communication devices agents should respond as soon as calls come in. Once that number gets stored on a To-Do list or remains in the top 10 call list there's a good chance its going to be forgotten about.

34 Osprey Street

Warm and inviting is what this 4 bedroom 2 bath home will say to you the minute you pull up. Nestled in the beautiful Subdivision of North bay Hills in Safety Harbor. Relax by your pool and enjoy the view of the Pond with a Fountain and your nicely manicured back yard... Home has had a lot of updates in the last three years, kitchen Cabinets have been re faced and doors all replaced as well as counter tops, sink, Faucet, Oven, Microwave and pull outs in cabinets for easy access and storage. The Roof was replaced in August 2005. Water Softener and Water heater have been replaced as well. Enjoy the savings on your water bill with your Pond fed sprinkler system... A City Park with tennis courts, play ground, etc just two short blocks away... Do not let this one get away...

Selling Doesn't Have to be Tough in this Market
Although a few years ago sellers were rolling in the dough when buyers were offering above and beyond the asking prices, this isn’t the case right now. But that doesn't mean it’s a bad time to sell. Having a few simple ideas in mind can help you market and sell your Tampa real estate quickly.

• Find a GREAT agent!
This doesn't mean you should use your neighbor's third cousin down the street because they need a break and it’s someone that somebody knows. Finding a great agent is like interviewing an employee. This person is working for you for a set amount of time and if they don't deliver could potentially be fired. You will want to set out to find the best agent you can to market and sell your home. Many agents are in the business for a quick buck and sometimes waits for another buyer to come along. You have to ask yourself who you want representing your home sale but more importantly, who you want marketing the heck out of it to get it sold!

• Questions to ask a potential real estate agent

1. How will you market my home?
2. Are you familiar with my neighborhood?
3. How are you different from other agents?
4. Can you provide references?
5. Will you be able to help me find resources and professionals I may need?
6. What guarantees are offered?
7. What are your policies with cancelling agreements?
• Stage as if your home was a model home

The best way to do this is simply check out the new developments in your area. Take a tour through new homes and see how furniture is laid out and decor is strategically placed. There are no personal items or belongings. All the decor is neutral and move in ready. Try and set up colors and items in your home in this way for buyers to feel like they could move right in. This atmosphere will bring in buyers as long as you have the last tip covered.

• Price to sell!
This can be handled well IF you have the first tip covered. A great agent will research all the comparable sales and active listings in your area. The key is to be lower than the best priced home in your area. If you offer something they don't for a better price, your home is likely going to be the one buyer’s choose. Once a great agent gives you all the information on pricing it is still up to you as the seller to price your home.

Tax Credit for Unemployed Veterans and Young Workers

Employers planning to claim the newly-expanded tax credit (WOTC) for eligible unemployed veterans and unskilled younger workers hired during the first part of 2009 have until August 17 to request the certification required, according to the Internal Revenue Service.
Newly-revised Form 8850, now available on IRS.gov, is used by employers to request certification from their state workforce agency.
The American Recovery and Reinvestment Act, enacted in February, added unemployed veterans returning to civilian life and “disconnected youth” to the list of groups covered by the credit.

Though eligible unemployed veterans and younger workers who begin work anytime during 2009 or 2010 may qualify a business for the credit, certification by the state workforce agency is required.
In general, an unemployed veteran is a person discharged or released from the military during the five years preceding the hiring date who received unemployment benefits for at least four weeks during the one-year period ending on the hiring date. A “disconnected youth” is a person age 16 to 24 on the hiring date who has not been regularly employed or attending school and who meets other requirements.

The WOTC offers tax savings to businesses that hire workers belonging to any of 12 targeted groups, including unemployed veterans and disconnected youth. The other 10 include people ages 18 to 39 living in designated communities in 43 states and DC, Hurricane Katrina employees, recipients of various types of public assistance, and certain veterans, summer youth workers and ex-felons. The instructions for Form 8850 detail the requirements for each of these groups.
The certification requirement applies to all groups of workers except employees who were Hurricane Katrina victims. Normally, a business must file Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. But under a special rule, businesses have until August 17, 2009, to file this form for unemployed veterans and disconnected youth who begin work on or after January 1, 2009 and before July 17, 2009.