The realization you owe more in mortgage debt compared to your home’s present market value is indeed frustrating. After all, the effort you made to secure a nice home for your family while enjoying equity in exchange for your hard work: you are now faced with the problem of what options to consider in order to address your present situation.
Before you even think about the possible options, it would be smart to look at what is going on in the Hillsborough housing market.
Based on a report from a real estate tracking firm, about 1,569 homes in Hillsborough County were foreclosure sales for the period covering January to March. Average selling price was $127,739. This number represented about 43 percent of all the total home sales which shows how these foreclosure sales are dominating the market. Statewide, there were 35,410 foreclosure sales with average sale price of $121,394.
According to experts, home repossession due to mortgage default will be at its peak during the first 6 months of this year. Such a situation will naturally take a toll on the banks with a growing inventory of real estate owned properties. Obviously, they will need to find a way to manage their inventory in order to minimize home price deterioration.
In addition, the report also revealed that short sales are now considered to be the most efficient option for lenders, in terms of saving money. A Florida short sale will involve about 21 percent discount from the home market’s value compared to a 38 percent discount given during a foreclosure sale. Nationally, lenders offer 34 percent discount in a foreclosure sale versus a 15 percent discount in a short sale.
Based on the information above, you might want to consider a Hillsborough County short sale especially if you are about to default, have an underwater or upside down mortgage and definitely do not want to go through a foreclosure. A short sale is the best solution particularly if you are looking for a way out of this mortgage mess without your credit score suffering much.
In order to find out what you need to be approved for a short sale, consult a Realtor who is an expert on such transaction.
http://tampabay.bizjournals.com/tampabay/stories/2010/06/28/daily22.html