Underwater on Your USDA Home Loan? Short Sale May Not Be as Easy as You Might Think!
I’ve been doing short sales since 2005, the past eleven years, I’ve learned a
great deal about the investors, servicers, how to escalate files, the approval process....Though I’ve helped many homeowners who were underwater on their home loans by listing their homes as a short sale, each file, each investor, and each servicer has different guidelines and I learn something new with each short sale listing. Short Sale on a USDA loan may not be as easy as you might think, however, it is a better option than Foreclosure.
I’ve had clients who had USDA loans and they were able to close that chapter by listing their home as a short sale and successfully closing on the transaction.
I am currently working with a homeowner who first applied for a loan modification which she was denied for, she was then advised by her servicer Bank of America to find a real estate agent and list it as a short sale.
Her home is located in a subdivision where there’s still new construction and homes with similar characteristics are selling for $160,000, keep in mind, these are never been lived in homes being sold by the builder.
Based on most recent sales and active listings, fair market value of the house is $148,000. We received a cash offer for $141,000 in September 2016, three Bank of America negotiators later, I was informed by Bank of America that;
-Home appraised at $165,000 and the offer must be in that amount. I did let the negotiator know what resale home prices are in the neighborhood, she then let me know that USDA makes no exceptions, they want $165,000. This is not even a realistic value for a standard sale. This home has been vacant for a year, there have been three REO/Short Sales on the same street within the past 180 days selling well under $148,000.
My work continues, I will do everything I possibly can to give some good news to this homeowner.
If you are a homeowner with a USDA loan and behind on your mortgage, do not waste any time but contact your servicer immediately. This problem isn’t going to go away, while you might be avoiding all the phone calls and letters, your lender is pursuing their legal options which may be a foreclosure. USDA guidelines are different so your options may be limited compared to loans that are owned by other investors.
If you owe more on your mortgage than the house is worth and not able to make your mortgage payments, act on it now! Will it be a nightmare working with USDA? Well, they haven’t let me down yet. I’ve yet to have a smooth USDA transaction whether it’s a short sale or otherwise.
If your are a homeowner in Central FL and not able to make your mortgage payments, Short Sale may be the best option for you. Call or text me today at 407-929-1852, email bethatalay@gmail.com to find out what your options are. Listing your house as a short sale doesn’t cost you any money, if anyone asks you to pay, investigate before you give them a penny.
Underwater on Your USDA Home Loan? Short Sale May Not Be as Easy as You Might Think!
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