NEW TAMPA —
Michael Ceparano has seen the ugly side of this sprawling suburban community at the northeast end of the city.
Amid its lavish, well-maintained neighborhoods are distressed homes on the market in need of major repairs. Some foreclosed and short-sale properties are stripped of basic materials and the fixtures that make a house a home.
Ceparano has seen houses with kitchen cabinets ripped from walls; dining counters missing their surfaces; doors removed from hinges; and appliances snatched from kitchens.
Fixtures have been pried off walls and ceilings at some of the distressed homes he lists. Plumbing is yanked out and flooring removed.
Yet while some potential homeowners cringe at the sight of such conditions, other buyers are willing to take a chance on finding their dream home at a bargain price in one of the city’s most desirable areas, Ceparano said.
Ceparano is a New Tampa-based broker associate who has negotiated hundreds of short sales throughout the state. Short sales occur when a lender agrees to sell a home for less than what is owed on the mortgage.
* * * * *
The Live Oak Preserve resident has seen many short sales and foreclosures in serious disrepair, including some in New Tampa and Wesley Chapel.
In 2010, he listed a short sale property in West Meadows, where the house had been stripped down to bare walls.
“If you could unscrew it, unbolt it, or roll it up, it had been taken,” Ceparano said.
Kitchen fixtures, countertops and appliances were missing. The water heater, air-conditioning unit, flooring, electrical outlets, door handles and pool pumps had been removed.
Ceparano didn’t know who took the items or why, he said. It was his job to list the house and attract potential buyers.
The house sold for $210,000, or $61 per square foot, Ceparano said. The new buyer received about a 40 percent savings in an area where other properties were selling for about $100 per square foot.
Ceparano considers short sales good investments for buyers with time, patience and money to do repairs.
“If you can wait it out and don’t need to move right away, short sales are the way to go,” he said.
Short sales are a good option for homeowners who owe more in mortgages than their homes are worth, and want to get rid of their properties and minimize debt.
* * * * *
In a short sale, a homeowner asks the lender to take over the mortgage to avoid foreclosure. To attract potential buyers, the lender agrees to sell the house for less money than the homeowner owed.
The purchase could take from a few weeks to months to complete. The homeowner still owns the property and has the ability to decline a sale approved by the lender.
In a foreclosure, the lender takes back the home because the owner is unable to pay the monthly payments. Homeowners compound their financial problems when they default on home loans. Their credit rating suffers, making it difficult to get future loans.
In New Tampa, short sales outnumber foreclosures, records show.
Last week, of the 721 properties on the market in New Tampa’s 33647 zip code area, 273 were short sales and 51 were foreclosures, according to data from a listing service used by area real estate agents. The rest were properties available for sale through traditional services.
Of the 1,139 properties sold in New Tampa in the past 12 months, 252 homes were short sales and 222 were foreclosures, the listing service data shows.
Throughout Hillsborough County, 30 percent of single-family home sales were short sales or foreclosures last year, county records show.
For some buyers, the prospect of finding a bargain in New Tampa or Wesley Chapel trumps the cost associated with improving the house to meet community standards. Many families are drawn to the area because of quality schools and the suburban lifestyle.
Jon Bunag, who lives in central Pasco County, bought a short-sale property in mint condition two years ago. The single-family home cost $165,000, a bargain in an area where comparable houses generally went for about $200,000, he said.
“Would I do it again? Absolutely,” said Bunag, a husband and father of two young boys.
Bunag was prepared for a tug-of-war contest with the lender about the price, he said. But the process went smoothly, lasting about four months.
Not every experience is so agreeable.
A couple recently submitted an offer on a short-sale home in Tampa Palms, Ceparano said. The three-bedroom, two-bathroom house needs a new roof, mold removal and a litany of interior upgrades and exterior repairs.
Last week, the bank presented a counteroffer, asking for $25,000 more than the couple wanted to pay. Ceparano hopes the bank is willing to compromise.
Convincing lenders to accept the actual fair market value for distressed homes is a major challenge, Ceparano said. Working with buyers to get them approved for loans is another.
* * * * *
Ceparano worries about plans to eliminate the Mortgage Debt Forgiveness Relief Act at the end of the year.
Since 2007, the act has protected homeowners from having to claim forgiven debt on personal residences as income on their federal taxes. The policy is set to expire Dec. 31.
Ceparano said he worries millions of homeowners who are “underwater” on their loans, owing more on their mortgages than the homes are worth, will face paying thousands of dollars in taxes, should they lose their homes.
In the meantime, Ceparano said his best advice to potential buyers is to make cash offers whenever possible. Cash buyers tend to get better deals.
Cash deals for distressed home sales represent about 25 percent of Ceparano’s business, he said.
Ceparano, the owner of BuyAndSellTampa.com, also serves as chairman of the Live Oak I Community Development District in the Live Oak Preserve development.
He has cash offers on the Tampa Palms house and another home in need of repairs in Wesley Chapel’s Meadow Pointe community.
The 2,700-square-foot home, tucked in a quiet subdivision on the Hillsborough-Pasco county line, has sat empty for about a year. The kitchen is empty, except for an old stove. The kitchen cabinets and countertops have been removed.
Pieces of installation poke through holes in the vaulted ceiling where speakers used to be. A door leading to the garage is missing. There are holes in the drywall, and thick cardboard covering cracked windows.
“This would be a great house if was fixed up,” Ceparano said.
The four-bedroom, three-bathroom house has a cathedral ceiling, a Jacuzzi tub and a large walk-in closet in the master bathroom.
“I think someone is going to get a great deal on this house,” Ceparano said, flashing a smile.