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Bank of America FHA Short Sale Closed in North Newark NJ 07104

By
Real Estate Agent with Rosa Agency 9591451

Short Sales can be challenging, and FHA Short Sales seem to have a lot more challenges than HAFA or Traditional Short Sales do.  That’s partly why we’re pleased to announce this Bank of America FHA Short Sale was just closed in North Newark, NJ 07104.


Bank of America FHA Short SaleThe subject property was a beautiful 2-Family Home, just 6 years young with 13 total rooms, 6 total bedrooms and 4 ½ bathrooms, and offered hardwood floors, a finished ground level recreation room and central air/heat.  Located in North Newark with close proximity to shopping, major transportation, Branch Brook Park and other public facilities, this home was a steal at just $250,000.

 

HUD Pre-foreclosure Sale (PFS) guidelines require that borrowers apply for a loan modification prior to being considered for a Short Sale of their FHA Loan.  That was one challenge on this NJ Short Sale, but after being denied for a loan modification, we were clear to proceed with the Short Sale.  An FHA Appraisal was done, and a negotiator was assigned.  We received our Approval to Participate in the HUD Pre-Foreclosure Sale Program.

 

Our offer was accepted, and we received our Sales Contract Review Approval, but there were still some loose ends to tie up.  Specifically, there was a tax lien against the property clouding title.  The sellers did not have the funds available to pay this lien, and the Buyer’s funds were limited as well.  Luckily, HUD PFS guidelines provide for up to $2,500 from the sale proceeds to go toward satisfaction of junior liens.  This was exactly what we needed to get the deal done.  We ordered a payoff statement for the tax lien, and it was paid out of the proceeds, right on the HUD-1 Settlement Statement at the time of closing.NJ Short Sales

 

While the Sellers did not receive any relocation assistance money (HUD PFS guidelines do not allow sellers to receive any incentives when proceeds are be used to pay junior liens), they did have $460,000 in debt dismissed and were able to do so prior to the expiration of the Mortgage Forgiveness & Debt Relief Act, which expires at the end of this calendar year.  So in addition to the debt being forgiven, the Sellers will not have to pay income tax on the deficiency, which was $210,000 in this case.

 

Another Bank of America FHA Short Sale in the books, and we hope to get more done in the near future.

 
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Contact Manny Rosa for More Information

Manuel J. RosaManuel J. RosaSFR, e-PRO, BPOR, CHS, CDPE
Owner/Broker
Devore-Rosa, LLC T/A Rosa Agency
18-20 Bloomfield Ave.
Belleville, NJ 07109
RosaAgencyRealtors@Gmail.com
Office: 973.751.1000 x. 529
Cell: 917.518.7861
Fax: 973.842.0837
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Comments (7)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

It is always nice to see a B of A short sale close, as they seem to be the most difficult to deal with.

Oct 19, 2012 01:14 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Congratulations on a job well done.  You really do need to help the people who need a short sale.

Oct 19, 2012 01:15 AM
Michele Cadogan 917-861-9166
Fillmore Real Estate 2990 Av U, Bklyn , NY 11229 - Brooklyn, NY
Licensed Real Estate Associate Broker -

 

Congrats on the closing of your North Newark NJ Short Sale-  As you continue with the short sales program wishing you many more listings in the North Newark area and  smooth closings.

Oct 19, 2012 01:16 AM
Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Colorado Broker / Referral Services

Good job, Manuel.  I do find that the BOA FHA short sales are a lot more attractive than the HAFA process they have allowed to be poorly done.  Again, not all of the BOA facilities fall short, no pun intended, in their process.  There has been success in the BOA, rather than the BAC faciiities, on our short sales.  We have seen a trend where there is some improvement in the BAC units.  We just keep our fingers crossed that they will improve overall.

Oct 19, 2012 01:18 AM
Manny Rosa
Rosa Agency - Belleville, NJ
New Construction - Union & Essex Counties, NJ

Edward & Celia - thanks for reading.  I have to give B of A credit here, they were very reasonable to work with from the Phase 1 Negotiator right up to the closer.


Oct 19, 2012 01:21 AM
Manny Rosa
Rosa Agency - Belleville, NJ
New Construction - Union & Essex Counties, NJ

Thanks, Tim.  These borrowers had extended unemployment so they were in definite need of help.  Although I am happy to report that they were able to find employment eventually, it required relocation out of the state of NJ, another common short sale hardship.


Oct 19, 2012 01:22 AM
Manny Rosa
Rosa Agency - Belleville, NJ
New Construction - Union & Essex Counties, NJ

Dan - I agree, there has been improvement.  I think that all mortgage servicers need to add staff in order to really get up to speed.  At a recent B of A Short Sale symposium I attended in Elizabeth, NJ, they noted that most negotiators handle well over 100 files at any given time.  That's far too many.


Oct 19, 2012 01:24 AM