“Dear Wendy,
I want to buy a neighbor’s house in pre-foreclosure. Can I to take just take over his mortgage payments?”

This investor emailed me to ask me how he could go about becoming the owner of the house.  The Destin, Florida area property was not listed for sale, and the buyer had just found the info through public records.

Here’s what I wrote:

If it is pre-foreclosure, the owner is behind in their mortgage payments. Their lender may have offered them a temporary reduced payment plan, or a period to catch up (*called forbearance).  Normally, to assume someone’s loan, that must already be stipulated as a possibility in the person’s mortgage.

It’s not common to have an assumable conventional loan, but it is a possibility for VA or other government loans.  In that case, the new (replacement) borrower would still have to go through the loan qualification process.  I don’t see that as a likely scenario for these owners to get bailed out.

The other option is for you to offer to just buy the property from them. Go directly to the owners and make an offer.  If your offer is enough to cover their mortgage and closing costs, then maybe they would consider it. 

If it’s less than their payoff amount and they want to accept your offer, it would be a “short sale”. Normally a lender won’t take a “short sale” without the real estate being placed for sale in the open market with a licensed real estate broker and exposed so that the lender knows top dollar is being pursued.  The lender may also have an appraisal done.  I am sure there may be some exceptions, but I have never seen that.

Do you have more real estate questions? Do you need to sell because you cannot make your mortgage payments?

Reach out and follow me!

The post Can I take Over Payments to Buy Pre-Foreclosure? first appeared on Rulnick Realty.

This home in Yorktown at Willow Bend in Fort Walton Beach Florida just went under contract! A VA Compromise Sale, it received six offers in one day! Why? The price was right, listed at $90,000, and the property was in poor condition.  What? Why would a home in poor condition receive six offers in one day?  Our current market on the Emerald Coast is thriving.  Investors are looking for “handyman special” homes (i.e. “fixer uppers”) to remodel and rent out, or flip – meaning make repairs and re-sell to make a profit. Typical homes in this Yorktown at Willow Bend neighborhood near Eglin Air Force Base sell in the $150’s. The average months of housing supply is about two months, signifying that it would take two months to sell the current inventory at the current rate of sales.  That is a “fast” market and is considered a “seller’s market”. There have been ten sales in the Willow Bend neighborhood in the last 180 days. This neighborhood is popular with Eglin Air Force Base service members and investors who rent to them.

If you are considering short sale to avoid foreclosure anywhere on the Emerald Coast, give me a call.

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com

Wendy Rulnick, Broker, sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Seagrove Beach, Watercolor, Sandestin, Seaside, Rosemary Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Florida.

The post Fort Walton Beach Short Sale Yorktown at Willow Bend – 6 Offers in 1 Day! first appeared on Rulnick Realty.

Do you think short sales are over on the Emerald Coast of Florida? They are not. In the last twelve months, I’ve helped sellers from Sandestin, Destin, Miramar Beach, Florida to Navarre, Niceville, Crestview and more short sale their homes or investment properties, with prices ranging from $100,000 to almost $1,000,000!  The market has recovered, but not completely. Many homeowners are still experiencing mortgage rate re-sets where their mortgage payments increase, relocation for employment, business failure, military PCS from Eglin AFB or Hurlburt Field, loss of rental income, divorce, job loss, etc. These hardships make paying their mortgages difficult or impossible, and their home’s value has not increased sufficiently to cover their first or second mortgage balances should they pursue a traditional sale. In these cases, short sale is still an option. Lenders are somewhat easier to work with than in years past, but not always. It depends on your particular situation.

Don’t stick your head in the sand if you’ve been receiving calls and notices from your mortgage lender because you are behind on your payments.  You may be able to recover, save your credit and avoid foreclosure through short sale. I recently helped a couple who had about a $100,000 in credit card debt that they had built up to pay a mortgage they could no longer afford.  They hired an attorney to help them with their debt consolidation and he suggested they also short sale their house. They were surprised and delighted that I got their house sold quickly and their Nationstar – Mr. Cooper short sale approved in 14 days!  If you have missed mortgage payments already, be wary of parties who contact you with “built-in” investors to buy your home after discovering Lis Pendens notices in public records. Always check with a legal professional before proceeding, as some of these are scams.

Here is a “Thank you” I recently received from one of my Niceville Florida short sale sellers:

“Wendy, I want to say how thankful I am for how hard you fought for me. You’re AMAZING and I’m so grateful for you.”

To discuss your particular situation to see if short sale or VA Compromise Sale could help you, give me a call or send me an email, and consult with your attorney. I’ll be happy to give you my honest opinion.

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com

www.shortsales-emeraldcoast.com

www.rulnickrealty.com

Wendy Rulnick, Broker, sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Seagrove Beach, Watercolor, Sandestin, Seaside, Rosemary Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Florida.

The post Short Sale Sellers – May I Help You? first appeared on Rulnick Realty.

This lovely home in Island Green, an elegant neighborhood within the community of Sandestin Resort, Miramar Beach, Florida, was just approved as a short sale.  Listed at almost $900,000, the luxury property went under contract in little more than 30 days.  Only the junior lien, Citi, was a short sale.  The following documents are typical of what is required for a short sale approval:

1. Letter of authorization to allow me to speak on behalf of the owners to the bank
2. Hardship letter outlining why a short sale is requested (some examples of hardship are job loss, death of breadwinner, medical expenses, mortgage payment re-set, relocation, divorce, etc.)
3. Uniform Borrower Assistance form, which is a detailed financial worksheet itemizing expenses, income and assets of the owner
4. Proof of income, for example, paystubs, profit and loss statement, alimony, child support, retirement income, social security income, pension, unemployment compensation
5. Tax returns and/or IRS Form 4506T allowing the lienholder to obtain the specified tax documents from the IRS
6. Bank statements– all savings, checking account statements typically for last 60 days, or longer, often kept up-to-date throughout the short sale approval process
7. Supplement hardship documentation, such as medical bills, divorce decree, military PCS orders, etc.
8. Payoff statements from other lienholders, such as the payoff from senior, junior liens or homeowners association liens
9. Preliminary Closing disclosure (CD) or settlement statement (HUD) using the anticipated closing date
10. Listing agreement
11. Contract for purchase
12. Proof of funds for buyer of short sale, either a pre-approval letter for a loan, or bank statement or letter from bank stating cash funds are available

This luxury Sandestin Florida short sale was approved in about 90 days and is scheduled to close in October.  The short sale approval letter from Citibank came without the requirement to pay back any deficiency. Note: there may be tax consequences of a short sale, since the IRS may view the forgiven debt as income. Always consult with your tax advisor and attorney when considering a short sale.

How can I help you with short sale?

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com

www.shortsales-emeraldcoast.com

Wendy Rulnick, Broker, sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Seagrove Beach, Watercolor, Sandestin, Seaside, Rosemary Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Florida.

The post Island Green Sandestin, Florida – Citibank Luxury Short Sale Approved first appeared on Rulnick Realty.