In Pinellas County, the number of short sale listings was 3829 in November. This is 43% increase from the year before. From the peak of the real estate market, Tampa Bay home values have dropped 46.3%. This has led to many homeowners seeking to sell their homes through a process called a short sale, wherein the bank agrees to accept less than the full balance of the mortgage owed, so that the homeowner may sell his or her home.
There are issues for the homeowner who short sells his property, including potential liability for a deficiency on the mortgage, the possibility of tax liability for “the forgiveness of indebtedness” and the difficulty of dealing with the mortgage company.
Keller Williams Realty in Tampa discloses that if you are dealing with Bank of America or Chase, the process of short sale can take about six months. One problem in consummating a successful short sale is that many loans made during the real estate boom were packaged into securities and sold to investors.
Short sale properties usually sell for less than nondistressed homes and condos. The median sale price for nondistressed homes and condos in Pinellas County in November was $160,000 and in Hillsborough and Pasco County the median price was $175,123. The median sale price for short sale homes and condos in November in Pinellas County was $127,000 and in Hillsborough and Pasco County was $125,000.
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