The market value of the Antioch Estates home was under $120,000, but the senior lien, Bank of America had a mortgage balance of about $150,000.  Through negotiations, we were able to get a waiver of deficiency for the remaining note, and Bank of America agreed to pay USAA $6000 out of the net proceeds. 

The junior lien, USAA Federal Savings Bank was more difficult.  That mortgage balance was around $80,000, and the $6000 offer from Bank of America was not acceptable to USAA to settle the account. 

Negotiations with USAA were lengthy, taking four days to respond to each request from the seller.  The USAA choices were: pay 75% of the loan balance to settle the account in full, or pay 25% of the balance at closing (almost $20,000), and continue to pay on a promissory note for the remaining note.  When I relayed USAA’s request to Bank of America, they almost closed the file due to the extraordinary junior lien demand.

With each increased offer to “settle” for cash from the Crestview short sale seller, USAA increased its minimum requirement to simply release its lien. (Originally, USAA stated they would release the lien for 25% of the outstanding balance.)  During negotiations, the “25%” grew to whatever the seller offered to settle (less than 75%). I questioned this, and was told USAA was trying to “minimize promissory note payments post-closing for the seller’s benefit”, if that was the seller’s end decision. Of course, that doesn’t make sense.  USAA was, in my opinion, just requiring as much as it thought was obtainable.  USAA is not the easiest short sale lender to work with, but with persistence, you can succeed.

If you are a Crestview Florida homeowner considering short sale to avoid foreclosure, consult an attorney and an experienced Crestview FL short sale agent.

It’s Wendy!

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: itswendy@rulnickrealty.com

Crestview FL Real Estate

Crestview Short Sales & Pre Foreclosure Help.

Read Wendy’s Crestview FL Real Estate Blog.

The post USAA Approves Crestview Florida Short Sale first appeared on Rulnick Realty.

This lovely home in the Steeplechase subdivision, Crestview, Florida, has just been approved for short sale.  Bank of America took 90 days to approve the sale. The delay was caused by Bank of America automatically putting the short sale into the HAFA (Home Affordable Foreclosure Alternatives) program, since it was owner-occupied.  It was subsequently removed from HAFA, since all program criteria were not met.

Bank of America approved this Steeplechase, Crestview Florida short sale and waived the right to seek a deficiency judgment for the unpaid balance.

There was much negotiation to achieve this short sale approval, which had one investor and Mortgage Insurance.  Each party had a separate interest, which required individual negotiations through Bank of America (the servicer).  Waiver of deficiency is normally a desirable result for a short sale, so the outcome was positive for the seller.

If you need to sell your Crestview Florida home to avoid foreclosure, consider doing a short sale.  Even if you’ve had a Lis Pendens filed, it may not be too late.  To improve your chance of success, consult an attorney and an experienced Crestview FL short sale agent. 

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call  Wendy toll-free 1-877-487-9639 or 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Crestview Florida FL Real Estate

Crestview Short Sales & Pre Foreclosure Help.

Read Wendy’s Crestview FL Real Estate Blog

The post Bank of America Approves Steeplechase, Crestview FL Short Sale – No Deficiency first appeared on Rulnick Realty.

Approved Price:  $115,000

Approval Time:  108 DaysSince this was an FHA/HUD short sale, special procedures had to be followed.  The seller was required to write a letter explaining why the home was vacant.  FHA short sales typically require the owners to occupy the property.  In addition, because of the HUD short sale guidelines, the approval stated the sellers would receive $1000 upon closing.

Sales notes: 

Do you need to sell your FHA-insured home as a short sale?  Here is the updated summary of requirements for HUD Short Sales, also called “Pre-Foreclosure” Sales:

1. You must be delinquent 31 days or more at the time of sale.
2. You must list the property with an un-related Licensed Real Estate Broker
3. You must actively market the property for four months (up to six).For the first 30 days of marketing, the short sale lender (mortgagee) may only approve offers that will result in a minimum net sale proceeds of 88% of the “as-is” appraised Fair Market Value (FMV). During the next 30 days of marketing, the lender may only approve offers that will result in minimum net sale proceeds of 86% of the “as-is” appraised FMV. For the rest of the marketing time (60 days), the lender may only approve offers that will result in minimum net sale proceeds of 84% of the “as-is” appraised FMV.
4. The property must be an owner-occupied, except for cases of job transfer, death, divorce, job loss
5. There should be written proof of your decrease in income showing inability to pay the mortgage, job loss, etc.
6. HUD will pay up to 1% of buyer’s mortgage as part of closing costs if the new mortgage is also FHA, plus reasonable “seller” costs
7. HUD allows 6% Realtor commission
8. HUD will not pay for Home Warranties, points or lender’s title insurance
9. You must get approval to participate in the HUD Pre-Foreclosure Sale Program in advance
10. Upon acceptance into the program, you will be given Approval To Participate Form which will outline program restrictions

Here are details of the HUD Short Sale (Pre-Foreclosure) Sale Program.  Remember, these guidelines apply to FHA-insured loans only, and there may be some latitude in those requirements.  These guidelines are subject to change.

HUD Frequently Asked Short Sale Questions

For more information contact the HUD National Servicing Center. Contact me to help you with your short sale.

It’s Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Crestview Florida Real Estate

Crestview Short Sales

Read Wendy’s Short Sale Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com

The post Crestview Short Sale Approved By GMAC as HUD / FHA Short Sale first appeared on Rulnick Realty.