Monday, January 18, 2010

Bank of America Approves Destin Short Sale: Boldly Ask and You May Receive

Bank of America Approves Destin Short Sale Condo: Pays Past Dues
Sometimes you get lucky!
Subject Property: Destin short sale condo on the harbor
Short Sale Lender: Bank of America
Mortgage Balance: $1,200,000.00
Sale Price: $490,000.00 appr
Seller Cash Contribution: -0-
Seller Promissory Note: -0-
Past Due Association Fees Paid by Bank of America: $25,235.67

Notes: I wrote a previous post about short sale condos and association dues becoming the “Next Generation of Junior Liens” because so many homeowners cannot afford to pay them. As this down real estate economy progresses, more and more owners will become delinquent on their condo or association dues. The past-due balances will build to incredible amounts, just like the one I have outlined. The short sales submitted for approval will have greatly reduced payoffs to the mortgage holders when adding in the obligation to pay these dues.
In Florida, if the short sale lender does not agree to pay these costs, there is an argument for the condo association to accept less. Florida statutes only require a payment to the condo association of the past six months in arrears if the unit is foreclosed, twelve months if it is a homeowners association. (This is a tip for negotiating Florida short sales.)
In my lucky Destin short sale, we boldly asked for all the past condo dues to be paid- a whopping $25,000! Bank of America did not blink. (Rather, the secondary market investor on the loan did not blink.) Deal approved. Give it a try.

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: [email protected]

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