Senior Lien: Chase
Original Mortgage Balance: $262,000 approximately
Loan Type: VA (Veterans Administration)
Junior Lien: none
Market Value: $180,000 approximately
Time for approval: 120 days
This Pensacola Florida VA Compromise sale had a few hurdles before it was approved. First, a little background…. A VA Compromise Sale is a short sale where the mortgage is guaranteed by the Veteran’s Administration. To ascertain the value of the property, the VA will perform a VA Liquidation Appraisal. This appraisal is valid for six months, and the net proceeds from a purchase and sale agreement must be at least 85.05% of the appraised value. This property had an initial appraisal done in January for another contract, but that buyer walked. The appraisal was still valid in May when the next contract came in. By the time Chase got around to sending the file to a negotiator, the liquidation appraisal was about to expire at the end of July. They forgot to order a new appraisal and had to send the VA Compromise Sale back to their “processing” department where we were required to begin the process anew. This caused about a six-week delay in the approval process. The next issue occurred when the new appraised value was for $220,000, far more than the market value of $180,000. To contest this valuation, I challenged the VA directly with other comparable sales and a contractor’s repair estimate of almost $20,000. The VA speedily reduced their appraised value and the VA Compromise Sale was approved.
It’s Wendy… It’s Sold!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-650-7883 ext 204
Email Wendy: [email protected]
Wendy Rulnick, Broker, has been featured in “Kiplinger Personal Finance Magazine” and “Florida Realtor Magazine”. Wendy Rulnick sells real estate in Destin, Santa Rosa Beach, Miramar Beach, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Panama City Beach.