Do you hold a government position, are you in the U.S. Military or are you a Federal contractor? These and many other jobs often require a security clearance. If you are considering short sale or foreclosure, proceed with caution or your position may be at risk.
If you currently hold a security clearance, such as DOD “Confidential”, “Secret” or “Top Secret”, and work for the Federal Government, at Eglin Air Force Base or Hurlburt Field, you may already know a credit check is one of the standard procedures to obtain your clearance. A short sale, foreclosure, or deed in lieu of foreclosure, as well as missed mortgage payments, can all affect whether or not you retain your clearance.
“Why should I care?” you might ask, especially if you are not in the military. According to the Washington Post, over 850,000 Americans hold security clearances and one-third are NOT employed by the government. Also, those who hold security clearances are among the top wage earners in the United States. You don’t have to be a technocrat or engineer to require a security clearance. If you are a janitor, fire fighter, police officer, or administrator in a secure facility, for example, at an international airport, you may need a clearance.
Before proceeding with a short sale, I ask my potential sellers to check with their current or FUTURE security or personnel officer to find out how a short sale may affect their position. Even though many have received the “OK for short sale, but not foreclosure or deed-in-lieu of foreclosure”, a few have not. I recently had an airman from Fort Walton Beach Florida inquire about short sale. He told me his new position would be overseas with an international military group, representing the United States. I asked that he check with his security officer before proceeding with a short sale. The answer? “No way.” He would have lost his position if he had gone forward. Instead, he is going to rent out his property. (By the way, that potential seller had interviewed two agents, and I was the only one who mentioned this possibility.)
How about another “at risk” scenario? I had a former short sale seller apply for an overseas position in the Middle East as a U.S. contractor after short sale. All applications, interviews, etc., had been completed except for the credit check. The position was denied. Why? Short sale. I don’t want to frighten anyone away from short sale who needs a security clearance, as these are the less frequent outcomes. But, I want to put out a strong warning, consult your security officer before proceeding.
It’s Wendy!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com
Niceville Florida Short Sale Help
Wendy Rulnick, Broker, is a short sale and pre-foreclosure specialist and has been featured in “Kiplinger Personal Finance Magazine” and “Florida Realtor Magazine”. She has successfully helped hundreds of families avoid foreclosure through short sale along the Emerald Coast of Florida. Wendy Rulnick is knowledgeable in all aspects of short sale, including VA Compromise Sale, FHA HUD pre-foreclosure sale, HAP military PCS,HAFA, Bank of America Coop program and more. She is also co-founder of www.ShortSaleSuperstars.com and short sale instructor to agents across the United States. Wendy Rulnick sells real estate in Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Panama City Beach, Eglin AFB, Hurlburt Field.
My last HAP seller asked me why he had a bill for almost $1500 at time of closing from the U.S. Government title agent. I told him it was probably his mortgage proration. He said, “But I made my mortgage payment!” I said, “Yes, but that covered the previous month.” If your closing is mid-month, you would owe about two weeks worth of interest to your mortgage company, which will be collected by the title agent to pay your lender at closing. That goes for taxes and association fees, too.
the HAP closing, you will owe the year-to-date taxes that are due. The same applies to homeowners association dues. The government won’t pay those on your behalf.
