Destin Florida Short Sales & Real Estate by Wendy Rulnick: January 2008

Today I was privy to internal emails from Loss Mitigation at a big bank. They faxed the emails on the back of an approval letter, don't know if by accident, but this will enlighten you.

The first mortgage was owed $476,000 and the negotiated offer was $390,000.  Commission 6%.  Seller contribution $2000.

The internal emails (with names changed to protect identities) read: 

1. Ted, I received a third offer on the property.   The seller is bringing $2000 to closing and the buyer has increased his offer by $5000.  Our net is $363,000 with a loss of $98,000.  You asked me to submit an offer with a loss below $100,000.  Here it is.

2.  Response forwarded to next party:  "Joe,  I recommend approving this deal.  This a a FL property that has been hit hard by the economy.  The offer is good and the borrower is making a small contribution we still have $30k savings over REO.  Please review and approve"

3.  Final email:  "Approved".

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR

Rulnick Realty, Inc.  1-877-487-9639

I specialize in SHORT SALES and BANK OWNED on the Emerald Coast of Florida:  Destin, Santa Rosa Beach, Niceville, Navarre, Fort Walton Beach, Crestview.

www.ShortSaleForeclosureHelp.com

 

I've been working a Countrywide short sale (one of many) since November, and finally got approval yesterday.  The Countrywide demand letter stipulated closing by January 31.  After weeks of the buyers' agent asking for final approval, I am now told the buyers may not be able to close on time.  They want seven more days.  I got their extension approved by Countrywide, with a per diem penalty included.  Now the agent tells me the buyers are not sure they can do the VA-required repairs, and won't order the survey and termite until they know what the repairs are.  I asked the agent, as she was told from the beginning of the deal, "The buyer understands that the seller will not do any repairs and the buyers will have to do them and the buyers have the means to do them, correct?"  This was reiterated and even stated in the MLS.  Needless to say, I've placed the property back on the market, pending resolution.  Next goal: Find a way to hand-pick the selling agent!

UPDATE:  Buyers are walking.  Although all terms in their offer were agreed to by Countrywide, and the contract was in full force, after two months of negotiations, they have simply changed their minds.  I told their agent it might be a problem getting back their earnest money deposit. (Buying a house is not like buying a big-screen t.v.)

FURTHER UPDATE:  The buyers changed their minds again.  They are buying the house.  Happy ending.

ACTION ITEM:  This office is requiring signed acknowledgments by buyer and selling agent regarding short sale steps and time frames on all short sale transactions.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR  Rulnick Realty, Inc.

For expert Short Sale help on the Emerald Coast of Florida:  Destin, Fort Walton Beach, Santa Rosa Beach, Niceville, Navarre, Crestview, 30-A call Wendy at 877-487-9639 or 850-650-7883

www.ShortSales-EmeraldCoast.com or www.ShortSaleForeclosureHelp.com

 

Another relaxing morning!  Forced.   Today I had a reprieve from my usual morning routine.  I am usually up early, tablet PC in hand, on my lap, checking and responding to email, while I have my bagel and tea and watch the morning news.  Then I check the hotsheet, the online showing report, respond to last night's requests from clients and send instructions to my office manager.  This morning, at 5:20, my husband told me we had no power.  It was rather windy last night, so I don't know the cause.  I tried desperately to get online.  My tablet picked up a free public wi-fi from my house, but I could not get any data.  So I played a game of online mahjong, read the paper, and wrote.  After two hours I gave up, and here I am at the office, in my sweats and Yankee cap, hard at work!

My wonderful assistant, Meagen, will be leaving in July to have a baby.   Congratulations and happiness to Meagen!  Dread on hiring for me! The new assistant hunt will begin soon.  I intend to hire someone to start June 1, so they can have a full month of training with Meagen.  Here are the qualities I am looking for-- and I won't put them in the ad. I find that resumes end up with the exact qualities you list in the Help Wanteds, don't you?

"Excellent attendance, clear phone voice, great customer service, quick learner, computer skills, multi-tasker, resourceful,  fast worker, smart, can handle stress, detail-oriented"

I was lucky with Meagen, she was the only one I interviewed at the time.  I've had many assistants, some have lasted a day, some a couple of years.  I've never enjoyed the hiring process.  The interview no-shows, the ones who take the job but don't even know how to email, the ones who take the job while waiting for the offer they really want and quit in a week, the cell-phone talkers,  the ones with crazy boyfriends, the always-sick ones, the internet games ones.  I just hope the next one is the right "one".

 

Last week was one of the most exhausting I have had in my real estate career.  Getting a reprieve for a seller about to be foreclosed on was also one of the triumphs.  It won't be complete until I save the sale, but I feel it is downhill from here.  The mountain of short sales files waiting for approval reached a crescendo, but this week I expect to get the "o.k." on two.  At least.  I have finally chilled out.  I took a walk this morning, the first morning walk in a few weeks.  I was very nice to two negotiators.  I did not put on the calculating, cold-response aura with impregnable walls. It's really o.k.  Wendy

Friday: I took over a short sale listing by referral two months ago.  I found out about three weeks ago that a sale date had been set for MONDAY JANUARY 28.  I have been dropping the price like a fall from a skyscraper, and finally got an offer LAST NIGHT.  The price had to be lowered from 799,900 to 539,900 over the course of the last several weeks in order to get one offer.  This is a waterfront home on the sound in Mary Esther.  Remodeled, over 3000 square feet, in-ground pool, granite, wood floors, fireplace in the master bedroom.  The offer is at 489,000.  We are scrambling to get the 51 page fax ready to go to Litton Loan Servicing with a stop order.  This is what I am attaching to the fax with the relavent borrower information.

EMERGENCY STOP ORDER

SHORT SALE PACKAGE SENT TO LITTON LOAN

PLEASE STOP SALE DATE FOR MONDAY JANUARY 28 11:00 A.M.

CONTACT BROKER:  WENDY RULNICK (850) 650-7883

Wish me luck.

Monday Morning Update: I called Litton as soon as they opened.  They have stopped the foreclosure sale for 11:00 a.m. and placed a 30 day hold pending review of the short sale offer.  This is a big "Whew".  I am actually going to take time for myself and go for a walk this morning. My next job will be getting the offer accepted.

Two Weeks Later: Offer has been approved! Short sale accepted!

It's Wendy!

Wendy Rulnick, Broker     Rulnick Realty, Inc.   1-877-487-9639 or 850-650-7883

Specializing in SHORT SALES and FORECLOSURE work-outs on the Emerald Coast of Florida:  Destin, Fort Walton Beach, Santa Rosa Beach, Niceville, Navarre, Crestview.

www.ShortSaleForeclosureHelp.com

www.ShortSales-EmeraldCoast.com

www.RulnickRealty.com

 

Watch out if you are working a Countrywide short sale with PMI!  There is some funny stuff going on...  I've been working a Countrywide short since October 2007, with a Countrywide second on it.  There have been the usual delays, appraisals, counteroffers, request for seller's medical receipts, then a denial in early December. About a week later, the buyer re-wrote his offer to the terms Countrywide wanted.  Yesterday, after more delays with "re-opening the file", ordering new appraisals, etc. I was informed by the negotiator that the second mortgage had been "released" to the AIG United Guaranty, the PMI company.  She said Countrywide would not give an approval until they knew what the PMI company wanted, as their policy has changed and they no longer negotiate with PMI companies.  She said that was now my job, and gave me the contact information, with a warning that PMI would be very difficult to get good terms from.  I asked her when the loan was sold.  She "fumbled" through papers and said she could not tell.

I called AIG and they were right on top of it.  They said the loan was bought on NOVEMBER 5- a few weeks after the short sale offer was submitted!  The AIG rep did not seem pleased there had been a short sale in the works.  He said they should have been told when they bought the loan, and that "Countrywide dropped the ball". 

I have two big problems with this.  One, is that Countrywide did not disclose pertinent and known information to me.  I worked over two months on their good word for approval, when they tell me it will all be moot depending on what AIG says.  Why didn't they tell me this on November 5?  Second, they did not disclose to the PMI company about the status of the loan.  I have spoken to a local attorney who said there seem to be RESPA violations going on. He said there is a Florida doctrine "Holder in due course" which requires notification to a loan purchaser about anything affecting the loan prior to sale.  He said when that is the case, the second mortgage purchaser has legal defenses which allow them to hold the loan free and clear of all defenses a borrower may have against the original note holder.  He and my seller will go forward pursuing this if I run into a stone wall with these new negotiations.  I asked the Countrywide loss mitigation department if I could switch negotiators, as it is quite apparent I have been misled.  They said no.

BLOG UPDATE:  There are now multiple incidents where Countywide has sold a second, or "serviced released" a note, even months earlier, and not disclosing this information upfront during the short sale negotiation process.  I will write about this in another post.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Search Destin FL real estate

Short Sale Pre Foreclosure Help.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email itswendy@rulnickrealty.com

Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Crestview, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.   Wendy Rulnick, Broker and Realtor, has been selling real estate for 20 years.  She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she negotiates successfully to her clients' advantage. She is supported by a team of top buyer specialists. She lists and sells homes, condos and townhomes.

All Rights Reserved. *Warning:  Countrywide and PMI Short Sales* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.

This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice.  The information provided is for educational and informational purposes only.  It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information

My goal today is to get an approval, any approval.  I have 7 short sale sides pending, the oldest was submitted on November 13.  I have two buyers threatening to walk.  One is on a Countrywide- that closing has been extended 30 days and the selling agent said the buyers are going to start looking for another home if they don't close by Friday.  The Countrywide negotiator told me on December 19 that he would have FINAL approval the next week.  Well, guess what?  I called him the next week, and he was on vacation!  Now he has not returned two phone calls and emails from last week.  The other deal with buyer threatening is on an Aurora mortgage.  Again,  I was told it was going for final approval 10 days ago.  That negotiator has not returned two phone calls from last week.  Today I may go to Plan B with her.  I call and leave a message "Perhaps you are on vacation, so I will call your department or supervisor".  And I will-- if I can reach anyone.  Aurora has one of those loop phone systems where you dial "0" for immediate help, then you go right back into the automated system.  Those, and the other five- you better be ready for me today!  I going in!

I never fail to get disturbed by what I see done to some REO properties. Yesterday, I "snuck" into one of my assignments while trying to determine occupancy.  The foreclosure is in the redemption phase.  I had driven to the house a few days ago for Wells Fargo, and noted the sad outside condition.   A few windows were boarded up, there was missing siding-- I mean "nothing" on one side of the house (who would remove siding?), junk everywhere. I peeked through a window and noticed the back door was open.  In the pouring rain. So I got daring and walked around back to take a closer look.  There was some junky furniture, a fast food cup, a dog bowl with food. Hmmm...did someone still live there and just left the door open for a pet?  I got back to my office and called the power company-- the electricity was turned off. Still, I wasn't sure if the house was occupied- there could be a vagrant living there. In the PAS system I tried to select occupancy status "Unknown".  I kept getting error messages, seems like they wanted either Vacant or Occupied.  I emailed the system about the error.  That night I got a stern email from PAS asking for occupancy to be completed.  So the next day, I drove out to the house again.  This time, I was braver and went all the way in.  I was almost nauseated.  These people had ripped out the flooring in the kitchen and bath. There was junk and broken furniture and piles of clothes everywhere.  There were broken windows and disgusting, filthy carpeting.  There was a big magic-marker "HI" scrawled next to holes in the wall.  These people were animals.  I left shaken.  No, it was not the worst I had ever seen, not even close. But it was sickening all the same.

I went to my office and filled in "Vacant"on the PAS form.

Currently, I have a buyer who may write an offer on a short sale. The listing agent has created an MLS "bid" situation by setting the price of his listing artificially low at 110,000, when the realistic value is 170,000. The listing agent has 3 offers the first day the property hit the MLS, and will submit the highest to the bank for approval. He says all the offers are, of course, higher than asking price.  The agent is professing superior short sale knowledge, and has emailed erroneous information to me, stating he will get to "decision maker" and that he will offer the second mortgage holder $3000.  He also said the deal would be very hard because there are two lienholders. In the course of my buyer deciding to write an offer, I forwarded some of the agent's emails to him, with these comments:

"Some of what the agent is stating is erroneous information.  First of all, "the agent" doesn't decide what the second mortgage holder will get as a "buy out".  There is a standard amount offered, for example, ASC may always offer $1000 to the second mortgage holder.  Some banks offer $1500.  This agent honestly doesn't know what he is talking about in that respect.  In addition, the agent cannot find the "decision maker".  He only can speak to the negotiator- who works at the mortgage holder's company.  The negotiator deals with guidelines set forth by the end investor on the mortgage.  For example, Wells Fargo may be servicing a mortgage for Bank of New York or Merrill Lynch, whoever has bought the mortgage-backed security.  The end-investor is who decides what they'll take for an offer price and what they'll ask for from the property owner, be it a cash contribution or a promissory note or nothing.  We don't get involved directly with the end investor.   Although, we do certainly influence the negotiator's presentation. Finally, having two lenders is not tough, as he states.  It is common with short sales, and is just a lot more paperwork."