This house at 1425 Hickory Lane, in the Seminole area of Niceville Florida, was just approved for Bank of America short sale closing.  It was a long process, with delays due to department changes at Bank of America, but in the end – success!  Here are the details:

First Mortgage Holder: Bank of America

Second Mortgage: None

Mortgage Type: USDA Ginnie Mae

Original Mortgage: $180,000 appr

Current Value: $70,000 appr

Deficiency Judgment: Waived

Seller Cash Contibrution: None

Seller Promissory Note: None

A USDA Ginnie Mae short sale (called ”pre foreclosure sale” at Ginnie Mae), is not processed through Equator, Bank of America’s online processing platform. Ginnie Mae does not issue a letter that states deficiency (or the remainder of your note after selling the property is waived).

USDA loss mitigation guidelines, however, 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 “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”.  What other things should you know about USDA short sales? You must have a hardshp, be at least 31 days late on your mortgage payment or facing imminent default.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.comNiceville Florida short sale agent

Wendy Rulnick, Broker, is a short sale and pre-foreclosure specialist and has been featured in “Kiplinger Personal Finance Magazine” and “Florida Realtor Magazine”. She has successfully helped hundreds of families avoid foreclosure through short sale along the Emerald Coast of Florida. Wendy Rulnick is knowledgeable in all aspects ofshort sale, including VA Compromise Sale, FHA HUD pre-foreclosure sale, HAP military PCS, HAFA, Bank of America Coop program and more.  She is also co-founder of www.ShortSaleSuperstars.com and short sale instructor to agents across the United States. Wendy Rulnick sells real estate in Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Panama City Beach, Eglin AFB, Hurlburt Field.

This Eagles Landing short sale at 781 Majestic Boulevard was just approved in Crestview Florida.  It was a tedious process because the investor for the mortgage was Ginnie Mae USDA.  Here are the details:Mortgage Holder:Bank of AmericaOriginal Mortgage:appr $135,000Current Market Value:appr $65,000Other Liens: Yes

Time for Approval: 4.5 months

Notes: This short sale process was lengthy. Why?  Bank of America does not handle its Ginnie Mae USDA short sales in Equator, their online processing platform. In addition, only a few negotiators at Bank of America are qualified to handle these type of files.  The Ginnie Mae requirements are onerous.  The package for Ginnie Mae consists of standard financial documents PLUS the following:

1. Verification of Information and Occupancy on a special form

2. The listing agreement MUST contain the following EXACT verbiage: “Seller may cancel this agreement prior to the ending date of the listing period without advance notice to the broker and without payment of a commission or any other considerations, if the property is conveyed to the mortgage insurer or the mortgage holder.”

3. Current, Non-Expired copy of MLS listing

4. Request for Pre-Foreclosure Sale and Affidavit (2 pages)

5. Purchase Contract with the following EXACT verbiage: “Sale is contingent upon the seller obtaining prior written approval of Bank of America”

Another cumbersome part of a Ginnie Mae short sale is that electronic signatures are disallowed.  That means documents must be faxed or scanned, which takes more time than e-signatures.

What about the “other lien”? It was a homeowners association outstanding balance of about $5000.  Ginnie Mae only agreed to pay $4000, but that amount was accepted as settlement in full by the HOA.

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

Crestview Florida short sale help