Allow 45 days to closing in the contract for a USDA-Rural Housing Loan!

As agents we really just want the truth about how long it is going to take to get the financing completed. 
My customer’s lender said “we can get this through in a month” well she
did on her end, but then the file had to go to USDA underwriting, the lender told us “they are quick and the file should be completed in a few hours”. Needless to say two weeks later we are finally closing with the approval from USDA.  In the meantime, everyone that has put this deal together, is being strung along, “we will have approval shortly”, etc., etc., it makes for a lot of unhappy people.  I recommend lenders be honest and upfront with all involved in the
transaction from the beginning, if it is going to take 45 days to close then
please just say it will take 45 days to get this loan closed and close it on time.

Bev Dudley, Realtor
Fleur de Lis Realty

Destin and the surrounding areas have so much diversity, there's something to offer almost everyone.  From the affordable family homes to the 'Oh, my goodness,did I die and go to Luxury Heaven' homes, as well as condominiums on the same spectrum.  Sugar white soft sand, clear Gulf waters and fabulous climate, as well as more activities than one can imagine.  These things make Destin a real estate agents dream area to sell.

Jen Deane LeBlanc, Broker-Owner
Fleur de Lis Realty

I recently listed a house as a short sale the legal description
included lots 1, 2 and 3. The sellers also owned lot 4 not included in the short
sale. So the sellers had to short sale their house and sell the adjacent lot as
a regular sale. I listed the house and the lot separately and recommended that a
buyer purchase the two properties together.

Then I had a buyer come along that ONLY wanted to buy lot 4.
  While doing research the boundary survey reviled a shed attached to the house
  was encroaching onto lot 4 and the RV structure on lot 4 was encroaching onto
  lots 1, 2 and 3. That was not the only problem. Walton County had abandoned the
  road in front of all lots 1, 2, 3, and 4 and deeded one half of the road to the
  sellers. Now the buyer would need an easement to access lot 4. 

The solution... have the buyer for lot 4 remove the encroachments
and the sellers grant an easement across lots 1, 2 and 3 for access to lot
4.

We closed on the lot and the buyer removed the encroachments,
easement was granted. The house with lots 1, 2 and 3 sold about 3 weeks later. 

Problem solved!!

Bev Dudley, Realtor
Fleur de Lis Realty

The short sale process is very time consuming, buyers are not always aware of what
is involved and they become impatient thinking nothing is being done. Buyers do
not understand that it is the “seller” that must be approved for the short sale
by the short sale lender.
Months 1 and 2
the process is time consuming because the short sale
lender is trying to determine the hardship of current borrower, and why they can
no longer repay the loan. This hardship can be a number of things, such as loss
of income, divorce, military transfer orders, job relocation, etc. The current
borrower gives all of their financial documents to the short sale lender just as
they did when they applied for the loan. Once it is established that the current borrower can no longer repay the obligation, the short sale lender will entertain the offer from the new buyer.
Month 3
most short sales listings are price at or below Fair Market
Value, buyers usually tend to want to make a lower offer than asking price. This
can cause problems during the process if your buyer is not well informed. Say
the fair market value for the home is $200,000, and the price has been reduced
to $175,000 before an offer has been made, then the buyer makes offer of
$150,000 then the contract is presented to the short sale lender. The short sale
lender will order an appraisal on the property and if the appraisal comes back
with a value of $180,000 the short sale lender has an option to counter an offer
to the buyer. This happens quite often and the buyer either comes up to the
price or walks away from the contract.
Month 4
once the short sale lender has approved the short sale “in
writing” the buyer will have 30 to 45 days to close on the property. Short sale
properties are sold “as is” with the right to inspect. Once the inspection is
complete and satisfactory to the buyer, the closing process will continue with
an appraisal from their lender, survey, termite inspection, etc.

Month 5
the closing should take place.

This is the process to a short sale closing, buyers should be informed that the price on the contract can be countered by the short sale lender; buyers should be educated
about the current market value of the property so they will not be surprised if
the purchase price is countered.

The example presented here is a very simple process, most short sales do not go this smoothly, and buyers should be prepared for longer time frames especially if the borrower (seller) owes more than $775,000 on the mortgage. Mortgage balances higher than $775,000 can take 6 months to a year for approval.

Bev Dudley, Realtor
Fleur de Lis

If you own and reside in a home in Florida, as of January 1st you may qualify for the homestead exemption. You must file for this exemption by March 1st 2012 to qualify this year. If you file after the March 1st deadline you will not be eligible for the exemption until the following year. You must file in person, also go online or call the office in advance for required documentation. 

Okaloosa County Property Appraiser's Office: 
73 Eglin Parkway NE Suite 202, Fort Walton Beach or 
101 E. James Lee Blvd., Room 104, Crestview
www.okaloosapa.com

Walton County Property Appraiser's Office:
571 US Highway 90 East, DeFuniak Springs or 
31 Coastal Centre Blvd. Suite 600  Santa Rosa Beach
www.waltonpa.com


Bev Dudley, Realtor
Fleur de Lis Realty