If you need help making paying your mortgage in Destin, Santa Rosa Beach, Crestview or the Navarre Florida area, there is a new program available for you. The U.S. Treasury has created the “Hardest-Hit Fund” to help the states struggling the most with foreclosures.Florida is one of those states– ranking number one in mortgage delinquencies.According to the Mortgage Bankers Association more than 24 percent of Florida mortgages are at least one payment behind or in foreclosure. The new mortgage assistance program, run by the Florida Housing Finance Corporation will be expanded to cover the entire state on April 18, 2011.

How can the “Hardest-Hit Fund” help homeowners in Destin, Santa Rosa Beach, Crestview or Navarre Florida?

If you are unemployed or took a pay cut, you may be able to get six months of mortgage payments to keep your loan current, and avoid foreclosure.You might also be eligible to get past due payments (up to $6,000) covered if you have re-gained employment and can now continue to pay your mortgage.

One of the program’s main criteria is that the property is your primary residence and you don’t own other real estate.Your monthly mortgage debt must be more than 31% of your gross income. You must have a hardship, such as job loss, cut hours or reduced pay.You must not be more than 180 days behind in your mortgage payments. Your outstanding mortgage balance must be less than $400,000.

If you qualify, the Florida Hardest-Hit website says your assistance will be “a 0%-interest, deferred-payment loan that will be subordinate to current mortgages on the home. The loan is forgiven at a rate of 20% starting 18 months after acceptance into the program (over a five-year period). Additionally, a homeowner in the Unemployed Mortgage Assistance Program will be required to pay 25 percent of his/her monthly income toward the monthly mortgage payment, with a minimum payment of $70 per month.”

For a complete list of eligibility requirements, check the Florida Hardest-Hit website.

Considering a short sale to avoid foreclosure?

Contact: Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Destin Short Sales & Pre Foreclosure Help.

Read Wendy’s Destin Real Estate Blog

The post New Program – Foreclosure Help – Destin, Santa Rosa Beach, Crestview, Navarre Florida first appeared on Rulnick Realty.

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

Solution:

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.

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

Destin Short Sales & Pre Foreclosure Help.

The post Destin Florida Agent Gets Short Sale Approval in South Bay by the Gulf first appeared on Rulnick Realty.

Sometimes when you think you are “done” with Destin short sale negotiations, you are not done!  A short sale has many steps. There are several “layers” of negotiations.  I am going to use my recent sale of a Destin Florida condo as an example.  The property had two mortgages, both with Chase.  It was an investment property. 

Negotiation #1:  The Contract. Contrary to some beliefs, not just “any” contract should be sent in to the short sale lender (also called servicer).  Why?  Because sending in too low an offer would lose marketing time for the seller if the offer was not approved.  Countering early and getting a positive response from the buyer also indicates more sincere interest in sticking with the sale. Patience comes into play at this step. The buyers offered $275,000.  We countered the price and terms to be more “approvable”. The buyer agreed to $290,000 after deliberating for several days. Getting the price right from the beginning saves time later, as it probably won’t be countered by the short sale lender.  And this one wasn’t.

Negotiation #2: The Homeowners Association.  This Destin Florida short sale condo had two associations.  The dues were many months behind, not uncommon in my part of Florida.  Chase would only pay $1,500 toward dues totaling $12,000, since there were no liens filed.  If there were liens filed by the association, Chase would have paid them. (Hint).  Sometimes HOAs will reduce their balance and “settle” for less.  These associations would not.  After much negotiation, they finally agreed to release their liens with a partial cash contribution and promissory notes from the seller.

Negotiation #3:  The Senior Lien Deficiency Waiver. The dreaded “deficiency” is the balance still remaining on the note after the proceeds are applied from the short sale.  (Not all short sales result in the lender settling for the funds received at closing. They may seek the outstanding balance from the seller via a deficiency judgment after closing, or with a note, etc. agreed to at closing). We asked if it could be waived in full.  The Chase Senior lien saw that the seller had a real hardship, as he was in the building industry.  His income was negligible and he was unable to pay the mortgage, plus any rental income could not sustain the payments.  The negotiator asked if the seller could contribute anything in cash at closing, and write a second hardship letter explaining that he would be unable to pay the deficiency. (Hint)  The seller agreed to contribute $3000 and his deficiency was waived in full.

Negotiation #4: The Junior Lien Deficiency Waiver:  The Chase Junior Lien initially issued approval with a $5000 contribution from the Senior Lien.  They did not, however, waive the deficiency.  We went back to ask what it would take.  At first the negotiator asked for 50% of the balance, or about $50,000.   After we talked and he saw that the Chase equity line was used for items other than “toys”, he said the lowest he could take was 25% of the balance, $25,000.  I discussed this with the seller.  Fortunately, the seller had detailed notes of his previous Chase conversations, where they had offered to settle for $12,000 a year ago.  I put the seller directly in touch with the negotiator, who dug through the file, found the old offer, liked the guy, and agreed.  (Big Hint: Do not be afraid to allow the seller to speak directly with the negotiator!)

Through much negotiation this story ended in success for my Destin short sale seller.  It wasn’t easy, and it wasn’t pain-free.  The seller never once denied his obligation, he sought all possible solutions, and he can now move forward with his life.

Each short sale has a different story. There are many layers of negotiation, and many possible endings.  If you are facing foreclosure in Destin Florida, and are seeking an experienced Destin short sale agent, let’s see if we can write a success story for you. 

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy’s Destin Real Estate Blog

The post Destin Florida Short Sale Agent Negotiates Success first appeared on Rulnick Realty.

This HUD FHA short sale at 800 Wild Oak, Destin Florida, was approved by Bank of America in 13 days!  Why? How? What?

Why?  The seller was proactive!  He contacted Bank of America early when he was unable to pay his mortgage.  When a modification did not work, he applied for the HUD Pre Foreclosure Sale Program.

How?  When my Destin seller contacted me,  he provided me with the HUD Approval to Participate form, indicating a starting list price. 

What? I obtained a full price offer for the seller in one day.  I ensured the contract was written without closing costs HUD won’t pay.  They will only pay reasonable seller’s costs, (with the exception that if the buyer’s loan is FHA, they will credit 1% towards buyer costs).

 In fact, the Bank of America short sale negotiator emailed me:“I wanted to inform you I have never received a HUD (settlement statement) that was this clean. Thank you so much!!! It definitely makes my job easier!” 

Additionally, because I sold this seller’s home so quickly, he qualified for a HUD seller credit of $1000. That’s the incentive HUD pays if the property sells within 3 months of application (reduced to $750 thereafter).

If you have a Destin Florida home with FHA HUD mortgage, and you are unable to make your mortgage payments, contact your lender right away.  Consider a HUD Pre Foreclosure sale, and be sure to contact an experienced Destin HUD 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

 Destin FL Real Estate

 Destin Short Sales & Pre Foreclosure Help.

 Read Wendy’s Destin Real Estate Blog

The post HUD Approves Destin Florida Pre Foreclosure Short Sale – in 13 Days! first appeared on Rulnick Realty.

Did you know that almost 1 in 4 Florida home loans are delinquent?  Even though most of my real estate business in Destin Florida is short sales, this news has stunned me.  According to an article by the Miami Herald, 23% of Florida mortgages, or 807,000 of 3.5 million loans are in foreclosure or have late payments by a month or more.

So, if you live in Destin, Niceville, Fort Walton Beach or Navarre Florida, look up and down your street.  If you are out buying groceries in Crestview or Santa Rosa Beach Florida, look at the people in line with you. 

Your neighbors, co-workers, gym buddies, friends and aquaintances are part of this group of homeowners who are hurting.  They have lost jobs or income.  They may not tell you, but how can they not be affected?  You do know someone who is behind in their mortgage, don’t you?

Or maybe it is you?  Don’t be ashamed, and please don’t be afraid.  There is help for you to avoid foreclosure or avoid losing your home.  You are not alone. 

Your first step, if you are in financial trouble, is to contact your mortgage lender.  Your lender may be able to:

Modify your mortgage terms for lower payments by extending the length of the loan

Reduce your mortgage interest rate

Temporarily suspend payments

Allow missed payments to be paid back over time

Decrease your total mortgage amount

If you cannot keep up with your bills contact the Consumer Credit Counseling Service or the National Foundation for Credit Counseling.  Groups like CCCS help people with debt management.  They may be able to arrange a plan with your creditors to lower monthly payments and save a dire financial spiral.  Organizations that work with consumers to manage debt usually charge a small monthly fee, but only if there is capacity to pay.  

If you have already been served a complaint for foreclosure on your Destin, Niceville or Santa Rosa Beach property, it is not too late to see if your lender can help you.  If not, seek legal counsel and consider your alternatives.

Finally, a “short sale” may spare you from foreclosure and allow you to sell your home for market value, even if that is less than your mortgage balance.  A short sale is better for your future financial future than foreclosure, and you may be able to buy another home in two years or even less.  Many lenders allow this option.  But don’t wait until it is too late. 

Take action and pick up the phone today. Be “pro-active”, and take care of yourself, your family and your future. 

It’s Wendy!

Wendy Rulnick, Broker, Short Sale Specialist

Rulnick Realty, Inc

Destin Short Sales & Pre Foreclosure Help.

Read Wendy’s Destin Real Estate Blog

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

Email Wendy: itswendy@rulnickrealty.com

The post Destin, Santa Rosa Beach Florida Foreclosure Help first appeared on Rulnick Realty.