Underwater on Your USDA Home Loan? Short Sale May Not Be as Easy as You Might Think!

By
Real Estate Broker/Owner with Cam Realty and Property Management

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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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 12/30/2016 11:00 PM
Topic:
Home Selling
Groups:
Posts to Localism
Local Expert
Hyper-Local
Tags:
usda
short sale
usda loans
bank of ameica

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Ambassador
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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

You are one smart cookie.  Mastering the art of short sales is really something.  You are clearly the expert in your area.

Dec 23, 2016 10:19 AM #1
Rainmaker
1,543,555
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Beth - you have a great deal information on short sales and it takes knowledge and experience.  Those underwater should contact you. 

Dec 23, 2016 10:20 AM #2
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Beth - Short sales are hard, and anyone contemplating the need for one in the Clermont area should enlist your expertise at the earliest possible moment. If anyone can make these work, it's going to be you.

Dec 23, 2016 11:53 AM #3
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Beth I did a loan for a couple who had done a USDA Short Sale several years before.  We had a hard time clearing title because USDA imposed a partial loan on them for the balance between the Short Sale and what they owed.  Under their own rules they can't do that, but it still took weeks for them to acknowledge they could not require them to pay that money.  Getting an answer out of USDA is not easy, so GOOD LUCK!

Dec 23, 2016 04:06 PM #4
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Beth,

I am agreeing with all the comments made by our fellow members.  This is a tough specialty to master, and I am surprised that they are still around.  A

Dec 23, 2016 04:06 PM #5
Rainmaker
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Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Beth, Calling the RIGHT person to get help makes all the difference in the results homeowners get when they need help.  The right person to call is Beth Atalay

Dec 23, 2016 04:26 PM #6
Rainmaker
4,304,322
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Beth.  This still shows just how much idiocy still exists within these agencies.

Dec 23, 2016 05:02 PM #7
Rainmaker
1,489,547
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Beth, the short sale process can be frustrating. It is a good thing for residents of Clermont that you have so much experience with them!

Dec 23, 2016 05:17 PM #8
Rainmaker
1,744,862
Patricia Feager
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Oh dear... BOA hasn't learned their lessons and still won't listen to reason or the Professional. I think this would be a great example to send over to newly appointed Ben Carson, Lead Department of Housing for review and suggestions. Maybe you can even schedule an appointment and sit down with him to explain your case. If anyone can spearhead a change in the sale of short sales and foreclosures, it would be you!

Dec 23, 2016 05:27 PM #9
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

The big government agencies are drinking the kool-aid and think they can also cash in on the rise in home prices, even if it's not realistic

Dec 23, 2016 06:31 PM #10
Rainmaker
1,298,457
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

It is sad. Everybody....even the government and big banks look to profit on misery 

Dec 24, 2016 08:29 AM #11
Rainmaker
3,236,017
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Beth

Great information on USDA mortages.

Good luck and success.

Lou Ludwig

Dec 24, 2016 08:01 PM #12
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Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

I haven't done a Bank of American short sale in quite awhile, but I remember they were the worst about values. Sorry for the hassle. 

Dec 31, 2016 09:26 AM #13
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Beth Atalay

Cam Realty of Clermont FL
Sell or Buy Homes in Clermont FL
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