A short sale Tampa in which a homeowner sells their home as a short sale is defined as a transaction in which the proceeds ‘fall short’ of what is owed for the mortgage to the lending institution or bank.  At the present time, the number of short sales in 2009 is approximately double what it was in 2008.

A short sale is a way for a homeowner to avoid foreclosure; however it does put a blemish on their credit reports which many homeowners do not realize.  Of course this mark on your credit report is less damaging than a foreclosure in many ways; however the homeowner does need the lending institution’s approval for the short sale.

What many homeowners do not realize when they enter into a short sale is that it will take many months for approval of the short sale by their lending institution.  Sometimes a homeowner will go through several contracts on their home before their bank or mortgage company accepts a contact for short sale.  Banks are not required to accept any offer of payment lower than what the property is worth.

A Tampa short sales company suggests that buyers who are interested in homes being offered for short sale should investigate the financial situation of the seller. By making sure the homeowner and their real estate agent has spoken to the lending institution, a home buyer will be able to protect themselves and know the bank or financial institution is aware of the homeowner’s intention of selling the property as a short sale – less than what they owe the bank.

Many banks and mortgage institutions are not set up to accept less than what a property is worth; however, President Obama recently announced several incentives to encourage short sales which would help lessen the foreclosure crisis under the new Foreclosure Alternative Program. This program will give borrowers, who qualify, up to $1,500 to help with their relocation expenses in addition to almost $1,000 to junior lien holders to release their liens on the property. These incentives are meant to help stimulate the housing economy with new borrowers.