A Destin Florida condo, located near the water in South Bay By The Gulf, was just approved for short sale. IBM Business Lender Process Services (LBPS), was the senior lien holder.
These were the challenges in the approval process:
1. LBPS wanted a promissory note and cash contribution from the seller.
2. The condo association’s balance exceeded $10,000. LBPS would only pay $6000.
3. There was junior lien with Wells Fargo
I explained to the condo association that accepting the lesser amount now and getting a new owner would benefit them in the long-run. (In Florida, SB 1196 says that associations can only get 12 months assessments or 1% of the mortgage balance, whichever is less, from the foreclosing entity, anyway.) They agreed. After I notified LBPS and provided a new HUD with lower association dues, they waived any seller contribution. As for the junior lien, Wells Fargo, that really wasn’t an issue. The seller negotiated a settlement with them and paid them off prior to closing! (Many people don’t realize that junior liens don’t always need to be taken care of at the sale of the property, most can be paid of any time).
If you are considering short sale to avoid foreclosure in Destin Florida, consult with an attorney and an experienced Destin short sale agent.
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy: [email protected]