Anyone do a Florida Bond short sale?

I have a seller that used Florida Bond money for the purchase of her home. Actually 2 sellers in the same situation.
Has anyone dealt with this in Florida? If they sell the home without any profit or with a shortfall, does Florida Bond need to be paid back?
Thanks,
Jeff Payne

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Permalink Reply by Bryant Tutas on July 30, 2009 at 12:26pm
Jeff. Great question. Is it a lien on the property? If it is then it will need to be removed. I would call them and ask the question. I had one recently that used bond money for the down payment and the closing costs. It was $10,000.

The mortgage had a very specific subordination clause in it that stated they would remove the lien and not interfere with the 1st lien holder excercising their rights. It became a non issue.

So read the mortgage. Your title company can provide this to you.
Permalink Reply by Stephanie Lim on August 1, 2009 at 12:36am
Interesting...I haven't run across this one. Let us know how it turns out, I'm intrigued. Good luck! :-)
Permalink Reply by Stephanie Lim on August 6, 2009 at 3:17pm
I'm VERY interested to see what you find out on this one. After your post I went and looked up my sellers who had used the Florida bond in the public records and the mortgages for the bond money are all recorded. Which opens another can of worms if the buyer used SHIP funds too.... interesting stuff!
Permalink Reply by Jeff Payne on August 7, 2009 at 3:01am
I spoke with Florida Bond and they referred me to US Bank, told me that US Bank handles their short sales and confirmed that yes it does need to be paid back OR we have to do a short sale with US Bank. After talking with the contact at Florida Housing, he is going to help me by taking the short sale package and calling his contact at US Bank to expedite the process. Sad part is that it is a $50,000 house in the woods and it is only 4100 short, the seller is trying to beg borrow or steal to just pay the difference.
Permalink Reply by Jeff Payne on August 17, 2009 at 5:54am
Florida Housing has been easy to communicate with and seem to want to help although they are not well versed in short sales. US Bank services the mortgage for Florida Housing and told me that if the first is paid in full, we only need to negotiate with Florida Bond and hopefully US Bank is educating on short sale procedure with Florida Housing, my contact at Florida Housing already said he would approve it. Just waiting on a clarification
Permalink Reply by Wendy Rulnick on August 17, 2009 at 10:53am
This is a great post, that will be good for future reference.

Jeff Payne said:
Florida Housing has been easy to communicate with and seem to want to help although they are not well versed in short sales. US Bank services the mortgage for Florida Housing and told me that if the first is paid in full, we only need to negotiate with Florida Bond and hopefully US Bank is educating on short sale procedure with Florida Housing, my contact at Florida Housing already said he would approve it. Just waiting on a clarification
Permalink Reply by Wendy Rulnick on August 20, 2009 at 9:01am
Was this SHIP??? I may be getting a short sale with SHIP as junior lien...
Permalink Reply by Jeff Payne on August 20, 2009 at 9:15am
I think that Florida Housing handles SHIP. I will send you my contact.
Jeff

Wendy Rulnick said:
Was this SHIP??? I may be getting a short sale with SHIP as junior lien...
Permalink Reply by Stephanie Lim on August 21, 2009 at 1:06am
For anyone who hasn't seen it--SHIP is a downpayment assistance program administered by Florida counties. To get it the home has to go through an inspection by a SHIP approved home inspector and all repairs have to be made. The buyers also had to go through a class.

I was extremely surprised the first time I saw a SHIP HUD. They were paid WELL for their efforts. So the money had the "loan costs" taken out. Not sure, but this could be helpful in a negotiation.

I'll look for a SHIP HUD so I can post it. I haven't seen too many of them since it has the repair requirement. Most homes wouldn't have qualified since repairs were not being made by the seller.

I guess it will get very interesting if you get a short sale that has SHIP and FL bond.

I have had a couple of closings with both SHIP and FL Bond...
Permalink Reply by Jeff Payne on August 25, 2009 at 7:56am
Update on my Florida Bond short sale. They asked the seller for a hardship letter and proof of income. Submitted and got our approval 2 days after submission. It was 5700 short of the 10,000 Bond.
Florida Housing ROCKS, great people who are very reasonable to deal with
Permalink Reply by Bryant Tutas on August 25, 2009 at 9:41am
Excellent news Jeff!!

Jeff Payne said:
Update on my Florida Bond short sale. They asked the seller for a hardship letter and proof of income. Submitted and got our approval 2 days after submission. It was 5700 short of the 10,000 Bond.
Florida Housing ROCKS, great people who are very reasonable to deal with
Permalink Reply by Jeff Payne on September 10, 2009 at 9:16am
We closed today, Florida Housing approved the HUD-1 after we needed to reduce the net by another 350.00
Florida Bond was easy to deal with, they make realistic decisions

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