A countless number of families were living in big, beautiful homes that they could not actually afford because they were targeted by predatory lenders only a few years ago and then the subprime mortgage crisis hit the country, which many say is the root of the financial crisis facing America today. Foreclosures in Tampa, Florida are at a record high because homeowners could not afford to pay their ever increasing mortgage payments – if they signed up for an adjustable rate mortgage (ARM). Even people in houses with fixed rate mortgages were finding it difficult to make their monthly payments when gas prices were above $3 a gallon and jobs were being shipped overseas or downsizing of many businesses.
Other homeowners, not wanting to ‘give’ their home back to the bank or lending institution opted to sell their homes on a Tampa short sale. This means the homeowners sold their house for less or ‘short’ of what they owed the mortgage company. The homeowner still owes the balance left or difference between the short sale and the balance due; however, some consider this to be a better solution then a foreclosure in terms of what is placed on their credit report.
Although it is difficult, extremely difficult, to have extended credit after a foreclosure, it may be a little easier to receive a break from a lending institution after a short sale. A short sale shows the bank that a homeowner is trying, that they are attempting to repay their debit.
The latest numbers, collected in September of 2009, showed of the top 25 Core-Based Statistical Areas, Tampa-St. Petersburg-Clearwater Florida had 375 houses selling under a short sale agreement out of the 3,980 total houses on the market in those areas. And 757 of that total number of houses for sale were sold as REO – real estate owned. These numbers are significant for a couple of reasons; one because data like this has only been collected for a short period of time, there was no real need for it before, and two, it shows that more homeowners are settling for less money on their homes simply to ‘get out from under’ a mortgage’s sometimes ‘debilitating’ debit.
19 Davis St,
Burwood East VIC 3151,