Tampa foreclosures are popular with investors and many of the best deals on processed foreclosures may be quickly purchased. The average homebuyer can find substantial discounts on Tampa short sales, which are becoming more prevalent. It’s important to understand the differences in these discounted home-buying opportunities and you may want to consult a local real estate agent, before entering these unique home-buying situations.

The general belief is that both Tampa foreclosures and short sales are the exactly the same. Although they are both dealing with properties the owners can no longer afford, repossessions and short sales are names for different stages in the lenders process. With a short sale the bank has negotiated the sale prior to foreclosure in an effort to sell the property before any court proceedings have been started as a way to save additional costs; whereas a foreclosure is when the bank has used legal proceedings to take the property away from the defaulted homeowner. In a foreclosure preceding the property then ends up as Real Estate Owned or REO which means it is the property of the bank or lender.

Many homebuyers are ill-equipped to negotiate these types of transactions on their own and there can be many surprises or delays, unless you have the expert advice needed to properly take advantage of these substantially-discounted properties. Because Tampa housing values have decreased significantly in recent years, many amateur investors have become involved in purchasing Tampa foreclosures. As a home buyer, you may be surprised to know that short sales make up a significant percentage of current home sale transactions.

There are advantages to purchasing a Tampa bank owned home, because short sales take much longer to complete. Bank-owned homes can close within 30 days on the average, but short sale negotiations can drag on for months, since there is a backlog of these transactions to be reviewed by lenders.

According to statistics recently published, 35% of the current home sales are seen as distressed sales, and 29% were from short sales and only 6% were sales from bank owned properties. Although it can take extra time to purchase a foreclosure home in comparison to a conventional home purchase, there are many foreclosure properties still on the market today.

There are a lot of discounted homes available in the Tampa area, even conventional home sales with many properties being offered at below market prices. But the foreclosed market is booming and the short sale market offer the deepest discounts especially if you are prepared to take on a property that has more risks, as they may need some major renovation or repair.

Many people want to know how long it takes to purchase short sales. Although there is no strict answer to that question, you will find that some banks are faster in their responses, and others much slower. However, the average time seems to range from 60-90 days. Although half of the homes on the market may be from a foreclosed or short sale situation, there has not been any real improvement in how the banks are coping with the influx of bank owned properties.

The Tampa housing market seems to be taking a positive turn, as less distressed sellers are listing their properties and there are fewer lender owned properties being offered. As the banks catch-up on the backlog of files the turnaround time is decreasing for a lot of the discounted home buying opportunities. However, patience is still necessary if you wish to take advantage of these discounted opportunities.

About: Lance Mohr is a Realtor in Tampa, FL with more than 13 years of experience. If you have any questions or are looking for an honest, hard working Realtor give me a call. For more information on Sunset Lakes homes for sale or Valencia Gardens homes for sale please visit our website at Tampa2Enjoy.com.