Fort Walton Beach, Shalimar, Mary Esther Short Sales
Contact Wendy Rulnick, Fort Walton Beach Florida short sale agent for help at 850-650-7883 ext 204 or email firstname.lastname@example.org
This short sale at 811 Overbrook Dr., Fort Walton Beach Florida was just approved! Here are the details:
Senior Lien (first mortgage): PNC
Balance: $120,000 appr
Junior Lien (second mortgage): Bank of America
Balance: $90,000 appr
Market Value: $190,000 app
This short sale was only “short” to the junior lien, Bank of America. What does that mean? If a home sale nets more than a senior lien’s balance, they are paid in full, therefore they are not “short”. The junior lien will get whatever leftover proceeds there are after paying the senior lien and other closing costs, such as title insurance, commission, pro-rated taxes, state transfer taxes, etc. In many cases, the junior lien in this type of transaction gets a substantially higher payment than a regular short sale, where typically all liens are short. In a normal short sale, the senior lien will pay the junior lien a standard amount, such as 10% of their balance or a HAFA amount of $8,500.00, for example.
This Overbrook subdivision, Fort Walton Beach Florida, short sale netted Bank of America about $50,000, with which they were quite happy. They approved the sale in 45 days.
It’s Wendy… It’s Sold!
This short sale home near Eglin Air Force Base at 497 Managua Way, Mary Esther Florida, Colina del Oro, was just approved for a VA Compromise Sale!
Here are the details:
Mortgage Servicer (Senior Lien): PHH
Appr Balance: $160,000
Junior Liens: none
Mortgage type: VA
Current Value: $104,000 appr
Time for approval: 95 days
VA Compromise Sales are an option for Eglin AFB PCS situations where the service member has to relocate to another base and is “upside down” in his mortgage. The official “orders” are considered a short sale hardship. Here are the options available to the service member:
1. Rent out the home
2. Sell it as a short sale or VA Compromise Sale
3. Bring the cash difference to closing if available
If you are an Eglin Air Force Base, Hurlburt Field, Duke or White Field service member who has PCS orders, call me to discuss your selling options.
SPS and Etrade have approved this Sailwatch Landing condo in Fort Walton Beach Florida for short sale.
Here are the details:
Original Purchase price: $679,000
First Mortgage: SPS (Select Portfolio Servicing) ** note: this was originally a Bank of America loan that was “service released”
Market Value: about $280,000
This Sailwatch Landing, Fort Walton Beach, Florida short sale took about four months for SPS to approve. They asked for a complete package three times. That was frustrating. ETrade, however, approved the short sale in 30 days. They initially asked for a promissory note from the seller. This was negotiated to a full settlement at closing in exchange for a seller cash contribution.
If you are thinking about selling your Fort Walton Beach house or condo as a short sale, give me a call. No matter how many liens you have, and whatever lenders, I will help you figure it out.
Do you have a Mary Esther Florida home with multiple mortgages and liens that you need to short sale? This synopsis of a recent short sale will give you an idea about possible outcomes. An older home in Miramar Estates, Mary Esther, Florida was just approved for short sale, and had four liens. It was a very difficult process, but in the end - success! Here are the details:
Senior Lien: Chase
Balance: $140,000 appr
Junior Lien: BBVA Compass
Balance: $35,000 appr
Junior Lien: Eglin Federal Credit Union - two separate judgments
Balance: $40,000 for both liens
Current Market Value: $85,000 appr
Notes: When you list a short sale in Florida, one of the most important things you need to do is get a title search at the beginning of the listing. That will reveal any outside liens or judgments the seller may not be aware of. In this case, there were two outstanding judgments for car loans and other credit from a local lender, Eglin Federal Credit Union. In Florida, these types of judgments or liens normally have to be released or settled in order to sell a property and transfer a clear title. They don't have to be related to the property itself, they automatically attach to any property sold in the State of Florida. There are some exceptions to paying judgments on Florida homestead properties with a short sale. This was not one of those cases. The seller was not aware of the judgments. That is not uncommon. Many people think a creditor has dropped its case because they haven't been contacted in a while. It can happen with credit cards, car loans, personal loans and even utility bills.
Eglin Federal Credit Union was the most difficult part of this transaction. The senior lien, Chase, acted in their standard manner. The junior lien, BBVA Compass, did as well. But Eglin Federal would not budge on demanding almost 25% of its balance to settle its liens in full. They would not agree to simply "release" them for a smaller dollar amount to allow the closing. Since the seller did not have the funds to pay them, the property had to be marketed with the stipulation that the buyer pay the settlement demand at closing. We found a buyer who was willing to do this. Chase agreed to pay BBVA Compass ten percent of its balance to release its lien. The seller was satisfied with the results. Many agents would have given up on this challenge. It was not easy. but it was successful.
If you have multiple mortgages or other liens, and need to sell your Mary Esther Florida home as a short sale, contact an experienced Mary Esther Florida short sale specialist.
This home at 3021 Yorktown Circle, Fort Walton Beach Florida was just approved for Bank of America short sale. Located in the Willow Bend area of Wright, near Eglin Air Force Base, it is being sold as an investment property. The Bank of America approval time was lengthy, but the results successful. Here are the details:
First Mortgage: Bank of America
Second Mortgage: Bank of America
Second Mortgage Balance: $60,000 appr
Current Market Value: $80,000 appr
Mortgage Types: Conventional
Short Sale Deficiency: Waived
Seller Contributions: None
Notes: The approval time for this Willow Bend Bank of America short sale was almost four months. Why so long? Bank of America originally tried to process this file as a HAFA (Home Affordable Foreclosure Alternative), which it did not qualify for. Two weeks were lost. A new negotiator took over the file. The contract had to be re-signed by all parties removing the property from a trust. The buyer was in a remote area and could not return documents for a week at a time. More days were lost. Bank of America did not counter offer the contract price which was fair market value. Both notes will be "settled" and there will be no deficiency judgment. There was no request for seller cash contribution or promissory note,even though this was an investment property.
This home in Vesta Heights, Fort Walton Beach Florida, has been approved for HAP sale. The property went under contract just three days after going on the market! HAP approved the contract and replaced it with their own 11 weeks later.
Things to know:
1. Even though the HAP (Homeowners Assistance Program for U.S. military) website says your home should be marketed for 120 days,the fact is, HAP really cares that you get "fair market value" (or 90% thereof). In this case, it was fortunate that the buyer happened to be looking for a home near Eglin Air Force Base and this exact match became available. I've sold many HAP contingent homes in Fort Walton Beach, Navarre, Crestview and Destin Florida in less than a week. All the sales were subsequently approved by HAP, and none ever had a counter offer of price, nor had time on market questioned.
2. How is contract price supported to HAP? When you get a contract on your HAP home, I prepare a market analysis for you to send in to HAP along with your contract. Before you accept an offer, I let you know if the price and terms are in line with HAP might find acceptable. What does that mean? The contract should be approximately 90% of supportable fair market value.
3. What about cases of difficult to sell HAP homes that only get low offers? If you can prove your home was exposed to the market for a period of time, you may be able to get a sale price that seems otherwise low approved by HAP. An example I have is a home in Navarre Florida that was on East Bay, but surrounded by homes of much lesser quality. This property could only garner a seemingly low price. We sent HAP all the detailed marketing for the property, along with showings and feedback from potential buyers. The contract price was approved.
Do you have questions about your potential HAP sale in Fort Walton Beach, Crestview, Destin or Navarre Florida? Email me at email@example.com
This Islander Beach condo in Fort Walton Beach Florida was approved for short sale. It was a complex process, since there were three mortgage liens on the property. Here are the details.
Senior Lien: Fifth Third Bank
approx balance: $140,000
Junior Lien: Fifth Third Bank
approx balance: $100,000
Junior Lien: Liberty Savings Bank
approx balance: $150,000
Current Market Value: $260,000
So, where to start with the challenge of three liens? First, find out if any lienholder will be paid in full from the potential sale. How do you do that? Start by asking each lienholder for a "payoff", or the amount it will take to pay off the note. Get it in writing, if you can. In this case, the Senior Lien, with a balance of $140,000, could be paid off in full with the market value of $260,000. Here is where calcuations get tricky, though. The *next* lien, another Fifth Third mortgage, would get something from the sale proceeds, but how much? That is the tricky part. When preparing a prelimary HUD-1 Settlement statement, your title agent must figure out the payoff for the senior lien months in advance. It's not easy, because legal fees and penalties add up each month, changing the amount to the next lien in line. My title agency, Touchstone Land Title is a master at estimating a future balance, but it is not a guaranteed figure, only an estimate. Just make sure you have enough on the HUD to pay the required approval amount to the second lien, and the "extra", if your HUD was overestimated (or the property closes early), will likely have to go to them, as well. Why is that? When you have three liens, and the first will be paid in full, it is really like working with "two liens"... The first only pays a set amount to the last lien. In this case, Fifth Third (junior), agreed to pay Liberty Savings Bank $9000. Liberty Savings required a promissory note for much of their balance, which the seller agreed to.
I hope your head isn't spinning with this Fort Walton Beach short sale. Wait until my next one, in process now, four liens!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-650-7883 ext 204