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Navarre Florida Short Sale – Approved by Freddie Mac, Chase

Written on February 21, 2012 by Wendy in Short Sale Approvals

This waterfront home in the Holley area of Navarre Florida was just approved as a short sale. The log home needs some work, is on over two acres, and on a bayou leading to East Bay. It went under contract in 74 days. Here are the details of the Chase short sale approval.

Lienholder: Chase
Other Liens: none
Original Mortgage: Appr $280,000
Market Value: Appr $128,000
Approval Time: 90 days

Notes: This Chase short sale had to go through layers for approval. The seller was originally offered a Freddie Mac HAFA short sale, which was later denied by Chase. Subsequently, it was approved by Freddie Mac, and also a mortgage insurer (MI) for a cash contribution from the seller of $1500. Why? The seller made a good income. What was the end result for the seller? Complete waiver of deficiency. If you didn’t know, Florida is called a “deficiency state”, where a creditor can take many years to collect on a judgment. Check with your attorney before you attempt a short sale, and hire a Navarre Florida short sale agent.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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Windward Short Sale, Bluewater Bay Florida – Approved Compass Bank

Written on February 16, 2012 by Wendy in Short Sale Approvals

Windward Bluewater Bay Short Sale
This home in the Windward subdivision of Bluewater Bay, Niceville, Florida was just approved for short sale. Find the details below.

Senior Lien: Wells Fargo
Balance: $275,000
Junior Lien: Compass Bank
Balance: $115,000
Original Purchase Price: $485,000
Market Value: $290,000
Status: Short Sale Approved by both lienholders

Notes: Wells Fargo uses the Equator Platform for short sale processing. It is an online program where the short sale listing Realtor uploads seller financial documents, preliminary settlement figures and more for analysis by Wells Fargo. Other lenders share this platform, such as Bank of America and GMAC, but Wells Fargo’s requirements are more tedious.

This was my first short sale with BVVA Compass Bank, the junior lienholder. It was interesting. The institution’s personnel are pleasant. Their short sale policy, however, requires that the file be in their internal “charge off” department before they will negotiate any terms. They will not speed up their internal timelines to process a short sale, without exception. It is not the case that they have a plethora of files, it is just their timeline, which can take months, and they stick to it. This caused a long delay in the process, as we had Wells Fargo approval in about 45 days. Compass does its short sale processing through email, fax and phone, and it is fairly easy to get ahold of a human being. They appear to favor promissory notes and cash contribution combinations, but will negotiate.

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 sales

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834 Church St., Santa Rosa Beach, FL – Chase Short Sale Approved

Written on January 26, 2012 by Wendy in Short Sale Approvals

Santa Rosa Beach short sale agent

This Church Street home in Santa Rosa Beach Florida was originally purchased as a short sale in 2009. For the second time, it is being sold as a short sale, just approved by J.P. Morgan Chase. The mortgage was backed by Ginnie Mae, and was a USDA loan, which offers mortgages to rural areas throughout the U.S.

Lender: Chase
Mortgage Type: Ginnie Mae USDA
Balance: appr $220,000
Junior Liens: none
Sale Price appr $200,000
Seller Cash Contribution: -0-
Seller Promissory Note: -0-
Deficiency: none

Although Chase’s short sale approval letter did not specifically address a waiver of deficiency, the Chase negotiator quoted me USDA loss mitigation guidelines, which state there is no pursuit for the balance of the unpaid note. I researched online and found the following information about USDA loans sold as short sales, which the USDA calls “pre foreclosure sales” or “PFS”:

“A borrower who successfully sells the property securing the loan using the PFS option is relieved of the mortgage obligation. The borrower shall not be pursued for deficiency judgments by either the Servicer or the Agency.”

Other things to note about USDA short sales - you must have a hardship, and be at least 31 days late on your mortgage payment or facing “imminent default”. For more information about Ginnie Mae or USDA short sale help in Santa Rosa Beach, Florida, email me at itswendy@rulnickrealty.com

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303 N Holiday Rd., Miramar Beach FL – Short Sale Approved in 60 Days

Written on January 12, 2012 by Wendy in For Sellers, Short Sale Approvals

This home at 303 N Holiday Rd., Miramar Beach Florida was just approved for short sale. This was the second buyer for this home in Holiday Shores, as the first buyer defaulted (failed to close). There was only one mortgage holder. According to Bank of America, the property did not qualify for the HAFA program, so we did a traidtional short sale. Here are the details:

Lienholder: Bank of America

Mortgage Balance: $244,000 appr

Reason for Short Sale: Income reduction

Appr Sale Price: $175,000

Seller Cash Cont: -0-

Seller Promissory Note: -0-

Waiver of Deficiency: Yes

Time for Approval: 60 days

Notes: Bank of America initially asked the seller for a cash contribution. To obtain a waiver, we had the seller write an additional letter explaining why a cash contribution could not be made. This was uploaded into the Equator system and the Holiday Shores short sale was then approved.

If you need to short sale your Miramar Beach Florida home, consult with an attorney and an experienced Miramar Beach short sale agent.

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Citi – VA Compromise Sale Approved in The Meadows – Navarre FL

Written on January 11, 2012 by Wendy in For Sellers, Short Sale Approvals

Navarre VA Compromise Agent

This home in The Meadows, in Navarre Florida was just approved as a VA Compromise Sale. The gorgeous 2008 property with in-ground pool and three car garage, went under contract in about 30 days. We prepared the VA short sale package for Citi Mortgage, faxed it, followed up and received approval for our seller in 24 days!

What is normally included in a simple VA Compromise Sale package?
Hardship Letter
Dodd-Frank Certification
Two years tax returns
Financial worksheet
Proof of Income
Bank Statements
Preliminary Settlement Statement
Listing Agreement
Buyer Proof of Funds
Contract (purchase and sale agreement)
Authorization to speak with listing broker

What are the benefits of a VA Compromise Sale?
The borrower will not have to pay back the shortfall (if there was no fraud, misrepresentation or bad faith when the loan was obtained)
There is currently a $1500 relocation bonus paid to the VA borrower at closing

What are the negatives of a VA Compromise Sale?
You cannot obtain another VA mortgage loan unless you pay back the government loss
Your credit will be reported as “Paid in full for less than the full balance”
You may owe federal taxes depending on current tax law and your total financial picture

One of the key differences between VA Compromise Sale program and traditional short sales is that you must have a hardship. Nowadays, so-called “strategic” short sales are more common, where the borrower no longer wants the property, has no financial hardship, so participates in the loss by contributing cash or agrees to a promissory note to obtain a short sale. This is not the case with a VA mortgage. You must be at risk of default, and not have your own cash available to contribute.

More questions about VA Compromise Sale? Email me at itswendy@rulnickrealty.com

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

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Town of Santa Rosa 10-Home Subdivision Approved for Short Sale

Written on December 12, 2011 by Wendy in Short Sale Approvals

This was one of the most unusual short sales I’ve ever gotten approved. It all started when an investor with a PNC mortgage called me about his property in Santa Rosa Beach Florida. He had purchased the new construction home sight-unseen seven years ago in the Town of Santa Rosa. It was in a small subdivision with nine other homes, all identical floor plans. The current owners of these houses had been presented with an “investment” opportunity at a hotel event. They were told they could buy these new construction homes and “flip” them for a profit when they were finished. They were also told there would be no payments due, just their credit used to buy these homes. (This is a mortgage fraud RED FLAG). Of course, no mortgage payments were ever made. The construction was never completed. Contractors were not paid. Only some of the homes even had a certificate of occupancy. All of them needed substantial work to finish. They had been abandoned and boarded up for several years. They were purchased for about $400,000 each, and now were worth around $50,000 each.

When this seller called me and told me about the situation, I contacted the other owners who were in the same predicament. They each listed with hopes to obtain short sale approval. Luckily, we got an offer for all ten homes from one buyer. The buyer obtained professional bids to bring all the homes up to code and into move-in condition. The repairs were approximately $10,000 to $40,000 per home. I negotiated back and forth between the sellers, PNC and the buyer’s agent until we reached agreeable terms and short sale approval last week.

PNC is issuing each seller a waiver of deficiency.

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Port Dixie, Shalimar Florida Short Sale Approved – Seterus and CCO

Written on October 31, 2011 by Wendy in Short Sale Approvals

This home in the Port Dixie neighborhood Shalimar Florida has been approved for short sale. There were two mortgages, Seterus(formerly LBPS), and CCO Mortgage for a total encumbrance of about $227,000.

Senior Lien: Seterus
Balance: $190,000
Junior Lien: CCO
Balance: $37,000
Property Value: $140,000

This short sale was approved by Seterus in just four weeks. They allowed 6% of the junior lien balance to be paid to CCO. CCO took 120 days to approve the sale. Their reason for the delay was understaffing. They required the seller to make a payment prior to closing. Both lenders issued a full waiver of deficiency. After approving the short sale, Seterus changed the locks on the house anyway. This required a counter-lock change to give buyers access to do their home inspections. All in a day’s work.

If you are considering short sale to avoid foreclosure, contact a Shalimar short sale agent. We can write your success story together.

It’s Wendy!

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Grove by the Sea, Santa Rosa Beach FL – Short Sale Approved

Written on October 19, 2011 by Wendy in Short Sale Approvals

This Grove by the Sea home near Seaside Florida in Santa Rosa Beach was just approved for short sale. Located in a subdivision of mostly larger homes, this property needed work. The air conditioner did not function, there was some water damage to the floors, and the landscaping was a jungle. Bank of America had two mortgages on the property, and it had to be sold twice before final approval. Here are the details:

Senior Lien: Bank of America – $350,000
Junior Lien: Bank of America – $280,000
Sold Price: $319,900 appr
Cash Contribution: $2500
Promissory Note: -0-

Originally under contract several months ago with the final buyer, Bank of America countered the price significantly higher. The buyer withdrew his offer, and the property was placed back on the market. After the valuation expired, the price was reduced again to market value. The same buyer made another offer. This time, Bank of America accepted it. They originally asked the seller for a cash contribution and promissory note, which is common nowadays with investment short sales. The seller agreed. When the final approval was issued, Bank of America removed the promissory note, and issued a full waiver of deficiency.

If you are considering short sale to avoid foreclosure, consult an attorney and an experienced Santa Rosa Beach short sale agent.

It’s Wendy!

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Vericrest and SLS Approve Holiday Isle, Destin FL Short Sale

Written on October 15, 2011 by Wendy in Short Sale Approvals

This Holiday Isle home in Destin Florida has been approved for short sale. A large home at over 3000 square feet, and yards from the Gulf of Mexico, it was originally purchased for a million dollars in 2005. Here are the short sale details:

Senior Lien: Vericrest Financial

Senior Balance: $845,000

Junior Lien: Specialized Loan Servicing (SLS)

Junior Lien Balance: $130,000

Contract Price: appr $450,000 – less than half the mortgage balances!

The Vericrest portion of this Destin short sale was processed on a software platform called Res.Net. Similar to Equator, but not as user-friendly, Res.Net required me and my team to enter weekly “market” reports on the property detailing showings and market competition and sales. At time of contract, we were required to actually upload our pre-ordered title work and provide details photos, similar to an appraisal or Broker Price Opinion. The figures from the preliminary settlement statement (HUD-1) were entered into the system, but fields were not clearly labeled so it was difficult to figure out. Even the Vericrest negotiator stated Res.Net was not user friendly to them, either, and asked me to directly email her several times instead of using the software.

Vericrest approved the short sale and agreed to pay SLS about $11,000 to release its lien. Both lienholders issued a full waiver of deficiency.

Do you need to sell your Destin Holiday Isle home to avoid foreclosure? Be sure to contact an attorney and an experienced Destin short sale agent.

It’s Wendy!

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Crestview Florida HAFA Home Sold in Countryview Estates

Written on October 10, 2011 by Wendy in Just Listed, Short Sale Approvals

This short sale home at 1243 Ego Dr. in Countryview Estates, Crestview Florida just sold using the HAFA program. What is HAFA? It is the “Home Affordable Foreclosure Alternatives” Program that is sponsored by the Treasury Department to help homeowners who cannot make their mortgage payments, need to sell and don’t have enough equity to cover the mortgage balance.

ARE YOU ELIGIBLE? You might be eligible for HAFA if your lender participates in the Home Affordable Modification Program (or your mortgage is underwritten by Fannie Mae or Freddie Mac which have slightly different qualifications). HAMP offers you the opportunity for assistance by lowering your payments or delaying payments to keep you in your home. You must meet the HAMP requirements as follows, to be part of HAFA, whether or not you choose a modification. These qualifications are:

1) You have missed payments or are about to default

2) The home is or was your primary residence

3) You got your primary mortgage before Jan. 1, 2009 and your balance is less than $729,750 (higher balance on 2-4 unit properties)

4) Your property can be vacant or rented up to 12 months prior to the Short Sale Agreement (SSA), as long as you can prove the property was the primary residence and have not purchased another home in the last 12 months.

5) You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

The senior mortgage holder for this Crestview home was Bank of America. They outsourced their HAFA processing to a company called UTLS, but also use other vendors. The junior lien holder was HSBC. The short sale was approved in 90 days, and the sellers received a $3000 relocation credit. One of the other advantages of HAFA is that there is full waiver of deficiency.

1243 Ego Dr., Crestview Florida sold for $149,900

If you need a HAFA agent to help you with your Crestview Florida short sale, give me a call!

It’s Wendy! Wendy Rulnick, Broker/Owner Rulnick Realty, Inc.

itswendy@rulnickrealty.com

850-650-7883

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