Destin Florida Short Sales & Real Estate by Wendy Rulnick

Did you have an Eglin Air Force Base HAP sale in the past few years?  If so, be aware that they are auditing files and you might actually receive a bill if they claim you were overpaid.  One of my Fort Walton Beach HAP sellers received just such a letter with a bill for almost $5000.  They claim he was accidentally overpaid for his sale over two years ago. The letter mentioned he might be "suprised".

If you do receive a bill for overpayment from HAP, you may be offered options, as outlined below:

1. Instead of paying HAP back in a lump sum, you may be able to get a Voluntary Repayment Agreement, i.e. pay HAP back in installments

2. You can ask for and obtain copies of your HAP records

3. You can request the U.S. Army Corps of Engineers re-examine your HAP records to make sure your bill is valid

4. You can ask for an administrative hearing to review your case

5. You can request a waiver or forgiveness of the bill

I suggested that my HAP seller contact the HAP Chief, an accountant or tax attorney or consider getting legal aid on base.  If you have had a similar experience with HAP, comment below.

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

Eglin HAP PCS

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 of short 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 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!

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

Fort Walton Beach short sales

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 of short 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. 

Remember when you could easily sell a single family home with a tenant in place?  There were investors who would buy these types of properties in the Fort Walton Beach Florida metro market all the time.   Not any more.  Today, most single family and townhome buyers want a home they can move into immediately.  Many of those buyers are military and PCSing to Eglin Air Force Base or Hurlburt Field.

A few days ago I spoke with a potential Crestview Florida short sale seller. He had a townhome that was leased through next Fall.  I asked if the tenant would agree to move out with sixty days notice when we get a short sale contract.  The seller said the property management company, who also wanted the listing, said “no”, and told him most of the buyers in the complex had been investors who bought with tenants in place!  I checked the MLS statistics.  There was no way to tell if that were the case, and most of the sales were from other brokers. It was just a ploy to get the listing. Who wants a listing if it won’t sell? I don’t, and neither would a seller!  I told him "You will severely limit showings on your property, and minimize the pool of potential buyers.  Your chance of selling with a tenant will be harmed".  I did not agree to accept the listing under those conditions.

To prove a point, here are showing instructions from some recently expired listings I found in the MLS:

• "Home is Tenant occupied and the home cannot be shown at this time, tenant is unwilling to set appointments."
• "48 hour notice required. Home is available for showings on Wed and Thursday from 11:00- 2:00"
• "Home is occupied by long term renter through June 2012.  If your customer is not interested in a home with a renter there is no need to show.  Lease will not be broken. Do not show just to have something to show."

The last set of instructions must have been taken to heart-- "Do not show just to have something to show", since the listing expired, along with the others!

What's my advice? If you have a tenant with a long  term lease and "need" to sell your Crestview or Fort Walton Beach home as a short sale to avoid foreclosure, ask them to cooperate.  Many tenants will agree to move out early. They don't want to be inconvenienced by showings and they probably don't want to help you hurtle towards foreclosure.  In some cases, offering a free month's rent or two will give them ample incentive.  If your real estate agent does not bring up this point, you should. 

It's Wendy!

Wendy Rulnick, Broker/Owner of Rulnick Realty, Inc., 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 of short 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 has been licensed for over 20 years, and serves the entire Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  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. 

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

www.ShortSales-EmeraldCoast.com

Email Wendy: itswendy@rulnickrealty.com

Move in without closing first? Whoa! I just got an offer on a Destin Florida short sale listing with an early occupancy clause.  The buyer wants to move into the property before closing and short sale approval.  Is that a good idea? One of the negatives of short sales is the waiting time for the buyers during the short sale process. It could take 60-120 days for a short sale approval, then another 30 days for the buyer to close. Some buyers “bail” because they get wandering eyes or are tired of waiting so long.  The solution for some sellers, to keep a buyer in the sale, is to allow the buyer to move in early.  This could be a bad idea, but there are some things short sale sellers can do to lessen the risk.

1.       Require the buyer to complete and remove the home inspection contingency prior to move in.  Why?  Removing this contingency overcomes one hurdle to successful closing. Since most short sales are sold “as is” with the right of buyer to inspect and accept or reject the property, you’ll have that clause out of the way.  Also, it might lessen those phone calls to the seller as a landlord after the buyer has moved in.

2.       Require a lease.  This may seem basic, but without it, you might lose legal protections if the closing does not occur and you have a tenant you don’t want. Who negotiates the lease?  Not me.  Property management is a specialty, and it’s not mine.  I refer my clients to a professional property manager, or they make their own lease if they are experienced with rentals.

Should a short sale seller allow early occupancy? It's not my decision, but I’ve had several successful short sales where the seller did negotiate early occupancy and allowed the buyer to move in early.  In these cases, we knew the short sale was likely to be approved, the buyer was pre-approved for a mortgage, the earnest money was deposited, the inspection contingency was removed, and of course, there was a lease. 

If you are considering short sale to avoid foreclosure, be sure to consult an attorney and an experienced Destin Florida short sale agent.

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

If you are a borrower with a VA home loan in Crestview, Navarre, Fort Walton Beach, Florida and surrounding towns, and are having trouble paying your mortgage, there is good news for you. The Veterans Administration recently announced a change to the VA Compromise Sale program.

What is a VA Compromise Sale?  Similar to a short sale, a VA Compromise Sale (also called VA Compromise Claim or Offer) is used when a VA borrower can no longer afford to make mortgage payments, must sell, and the mortgage balance is more than the what the property is worth.  If you qualify, you may sell your home at fair market value.  You will not be obligated to pay back the shortfall to your lender if got your loan after December 31, 1989.  (To use your full VA entitlement in the future to buy another home, you would have to pay the VA back its portion of the claim).

What is the new Veterans Administration announcement?  After you are approved for a VA Compromise Short Sale, you will now receive $1500 in relocation assistance at closing.  The Veterans Administration noted in its announcement that it wanted to be proactive in helping Veterans and competitive with the Home Affordable Modication Program.  They also noted that VA Compromise Sales leave homes in better condition than foreclosure, which is a cost-benefit to the loan servicer.

This new VA relocation assistance program ends on January 1, 2014.

If you are a VA borrower in Crestview, Navarre or Fort Walton Beach, Florida, and are trying to avoid foreclosure due to hardship, contact an experienced VA Compromise agent to help you.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call 1-877-487-9639) or 850-650-7883 ext 204 to list your home.

Email Wendy: itswendy@rulnickrealty.com

Crestview, Navarre Florida Short Sales & Pre Foreclosure Help.

Read Wendy's Crestview, Navarre Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

This beautiful home on Clubhouse Drive, Windswept Estates, Freeport FL was just approved for short sale. This golf course home has a great view of the 3rd hole and green of Windswept Dunes, the longest golf course in Florida.

The senior lienholder was Bank of America. They approved this Windswept Estates short sale with full waiver of deficiency.

Enjoy the amazing Bay views and nature preserve from this Elation short sale condo in Sandestin Florida! You will find calming colors of the ocean throughout. The short sale unit offers a spacious area to relax and spend time resting up from a day at the Gulf of Mexico beach. Luxurious decor. Dive into the Grand Sandestin pool, or chill out at the "Solstice Club" with bar, grills and more. This Elation short sale condo comfortably accommodates FOUR with king sized bed and a queen sleeper sofa. Eat, dine, shop and enjoy nightlife at the Village of Baytowne Wharf, and steps to the Baytowne Conference Center.  Sandestin also offers top golf, tennis, the beach, gyms and more. Elation is in a quiet corner of the resort, and offers the utmost in refinement in the heart of Sandestin.   

9800 Grand Sandestin Blvd, Elation # 5720 - short sale.

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

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview

This lightning speed short sale approval for a Fort Walton Beach Florida townhouse in Shangra Woods was a great way to start 2011. How long did it take? 15 days!

December 20: Short Sale package faxed to Citi Mortgage

December 29: Negotiator assigned (who says people don’t work over the holidays?)

January 4: Approved!

This Fort Walton Beach short sale seller had one mortgage, which helped the process.  This was not all “slam-dunk”, but close.

Citi slightly countered the purchase price with a minimum net requirement.  I questioned the settlement statement, asking if all fees would be approved if the net were met.  The buyer had asked for 6% closing cost credit.   Citi limited the amount to 3%.  (Many short sale lenders will not pay more than 3% if they even agree to extra closing costs for the buyer.)

The thorough package and excellent communications with the negotiator were the keys to success.  Result?  Happy New Year!

If you are facing foreclosure in Fort Walton Beach Florida, be sure to consult an attorney and an experienced Fort Walton Beach 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

Fort Walton Beach Home Search

Fort Walton Beach Short Sales & Pre Foreclosure Help.

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

This home in Tom King Estates, Navarre Florida, has been approved for short sale.

The senior lien, Wells Fargo, had a balance of $230,000

The junior lien, HSBC, had a $65,000 balance.

The sale price was about  $185,000, so there were not enough funds to fully pay the senior lien.  In these short sale scenarios, the senior lien will normally pay an amount to satisfy the junior lien.  The "junior" might only release  its lien, not waive the deficiency. 

Initially, HSBC requested $6000 to approve the short sale. Wells Fargo, the senior lien, would only pay them $3700.  HSBC asked the seller to bring $1500 in additional funds.  The seller agreed, and the deficiency was waived by both Wells Fargo and HSBC.

If you need to avoid foreclosure by short sale for your home in Navarre, Florida, contact an experienced Navarre 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

Navarre Florida Real Estate

Read Wendy's Navarre Short Sale Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.