Destin Florida Short Sales & Real Estate by Wendy Rulnick: January 2010

It was almost a year ago that Bank of America approved a short sale on one of my Destin Florida condo listings.  The sale price at the time was $260,000. The sellers owed $410,000 on the unit.  Bank of America approved the short sale requiring the sellers do a cash contribution of $16,000 towards the loss at closing.  Why? Because the sellers were paying two other mortgages on time and they had jobs and regular income.  

Unfortunately, the property did not close. The buyer defaulted after approval because he wanted to buy another condo. 

Six months later I found a new buyer.  The Destin condo market had declined further, so the sale price was  much lower.  Five months later still, I got the short sale approved by Bank of America.  Although little has changed with the seller's circumstances, the investors on this loan were much more lenient the second time around.

Property:  Destin Florida condo

Ownership type:  Investment

Sale Price:  $211,000  (one year ago- approved price was $260,000)

Mortgage Balance:  $410,000

Cash from seller: -0- (one year ago- $16,000 cash contribution was required)

Promissory note from seller: -0-

Needless to say, the sellers are delighted.  The question remains, though, why were the investors more lenient with short sale approval terms the second time around?  Not only did they accept $50,000 less – they required no cash contribution from the seller.  This may mean investors are loosening up their approval guidelines in general, cutting their losses and moving forward.  It may be good news for homeowners in trouble who are considering a short sale.

It's Wendy!

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

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

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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Curious what will happen to your credit score after a short sale?

The answer is… it depends.  How many mortgage payments did you miss?  How much debt do you have?  What is your outstanding balance to available credit ratio?  What is your overall payment history?  Your “point” impact will be calculated by FICO based on these and several other criteria.  Here is an actual example of how a short sale affected my Destin short sale seller’s credit score.

Property:  Destin short sale condo – investment property (not owner occupied)

Lender:  Aurora Loan Services

Number of Missed Mortgage Payments:  23

Short Sale Reporting:  “Settled for Less Than Full Amount”

Previous Credit Score: 745

“During Short Sale” Credit Score:  646

Credit Score 30 Days After Short Sale: 732 687 and 679 (from the three credit bureaus, Equifax, Transunion and Experian)

My Destin short sale seller was amazed that his credit score seemed to shoot right up after his short sale was complete.  This is not always the case. The bottom line is – you won’t know how your score will change until you complete your short sale.  But don’t be dismayed, you CAN start to rebuild your credit immediately.  And don't be suprised if your financial future is brighter than you think.

It's Wendy!

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

www.ShortSaleSuperstars.com for agents

Read Wendy's Destin Real Estate Blog

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

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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If you have not joined yet - now is the time.  www.ShortSaleSuperstars.com

If you and your short sale sellers are having problems with Bank of America and Equator (formerly Reotrans), you are not alone.  My team and I have been "experimenting" with the new short sale upload system since we've been forced to start using it two weeks ago. Not only does the short sale agent have to use Equator, so does the short sale seller. The idiosyncrasies of the software can be intimidating-- even to a savvy internet user.  

Passwords don't work, information is wiped out, and files are rejected for reason code: OTHER.

 Today a Destin short sale seller came into my office for help entering his financial information.  We had already uploaded his last two years tax returns, last two months bank statements and last two paystubs by separate pdf.  After entering his information and filling out thirty plus data fields, his information was WIPED out three times by Equator.  WHY?  He hit the back-button!  But did we give up?  No way! After a while, through trial and error, we found some tips to help you along your Bank of America-Equator journey.

Remember to have your seller log onto bankofamerica.com/shortsale (no www).  He should already have his password, after registering at 1-866-677-2516 and having one emailed to him.

There are NO DETAILED INSTRUCTIONS, but these hints will help you to success:

• The system does not accept commas in all numeric fields.  It will kick out entries with commas in the lower section of the seller financial fields, those underneath the income section.  (Some may find it difficult, for example, typing 100000.00 and keeping track of the correct number, but that is what it wants.)
• The seller can only "Save for Later" if they fill out a complete section on the screen, from the BLUE to BLUE (HELP to HELP) area of the form.  Otherwise, the info will be WIPED OUT!
• When totalling numeric fields (like expenses, for example), click OUTSIDE the data entry field to the right of the "total" at the bottom of the column.  Don't try to add up the fields.  This will add them up for you. ( I know it makes no sense).

Finally, if you want CHAT HELP, there is no button. or link on the screen..  I knew there was a CHAT, so I called the Equator Tech Line 310-469-9167. (Expect to be on hold for thirty minutes to three hours).  After finally getting through, and being put on hold for twenty minutes, they came up with this to find CHAT:

Click on the HELP button at the top of the screen.  In the "Search" field, type in the word "CHAT", then an icon will appear.  I am sure you would have figured that out on your own, right?

That's all for today.  For more Equator hints, check back here and on the Short Sale Superstars Equator group.  Until then, happy typing!

It's Wendy!

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

For Agents: www.ShortSaleSuperstars.com

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

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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Are you an Eglin AFB or Hurlburt Field airman PCSing soon?  If you own a home, have to sell, and owe more than your property is worth, there may be help available so you can avoid a foreclosure or even a short sale.  The U.S. military Homeowner Assistance Program (HAP) may help you by covering most of the loss to your mortgage holder.

These are the basic qualifications for HAP:

1.  You must be PCSing more than 50 miles
2.  You purchased your home or entered into a contract to buy it before July 1, 2006
3.  It was your primary residence (not a rental)
4.  Your orders were between February 1, 2006 and September 30, 2012.
5.   Your home must have declined at least 10% in value.  (That should not be in problem in the Eglin AFB and Hurlburt Field market). 

HAP may cover 90% of your loss from your original purchase price, with you bringing the difference to closing when you sell your homel  If you apply for HAP and are moving from Eglin AFB, Hurlburt Field, Duke Field or Whiting Field, here is part of an email you may receive from the HAP Savannah District:  

         " We cannot estimate or pay benefits until you have provided all requested information, are determined eligible, and have sold your home or have it under contract.  You are encouraged to send in the information we request since we cannot determine your eligibility without it.The government acquisition option for... applicants involves the government purchasing your home and selling it immediately to your buyer in a subsequent transaction.  This option is for those who cannot afford to close without it.  You are advised to make every effort to sell your property at the highest reasonable price under current real estate market conditions.

        Please note we will require a fully signed HUD-1 Settlement Statement from when you bought your home.  Please send this document for inclusion in your file.If you listed major improvements in your application, you must provide receipts for these items if you would like them to be considered.  Current guidance is that the Prior Fair Market Value is the purchase price, but it is anticipated that there may be an adjustment for improvements in the final guidance.  Improvements and receipts must be in accordance with the guidelines established in IRS publications 552 & 527 (http://www.irs.gov/)."

The great news about this HAP guideline, is that your monetary assistance may be based on your cost plus improvements, not just your initial purchase price.  This means, HAP may cover more of the loss to your mortgage holders - so YOU will have to bring less funds to closing to cover the difference. 

If you plan on selling your home for a PCS from Eglin or Hurlburt in Navarre, Destin, Fort Walton Beach, Niceville, Crestview or Mary Esther,  Florida, contact a real estate agent who specializes in the HAP program.  Don't let your home go to foreclosure!

It's Wendy!

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

Eglin AFB and Hurlburt Field Real Estate

Short Sales & Pre Foreclosure Help.

Read Wendy's Emerald Coast Real Estate Blog

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

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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Are you one of the many Americans recently affected by financial woes?  Have you missed payments, racked up your charge card, gone through a short sale, foreclosure or bankruptcy?  As a result, your credit score has probably dropped, maybe substantially.  If so, there is a great resource that may help you rebuild your credit.

MyFico.Com is a website recommended by my favorite financial guru, Suze Orman.  MyFico will allow you to monitor your score and will send you email alerts whenever your score might be affected, for example:

1.  You increase your balance on your charge cards (higher overall debt)

2.  You apply for a car loan or other installment debt (credit inquiries)

3.  You get the car loan (higher debt)

4.  You pay late

5.  Your credit card company lowers your limit (balance to available credit ratio)

By monitoring your score, you will be more conscious of how you can improve it.  You can even set a target score – to alert you when you reach your goal.  For example, if your score is 650 and your goal is 700- you will get an alert when you reach it! The other great thing MyFico does is offer a simulator to see how your score will change if you take specific action, like pay $10,000 down on your overall credit, or pay on time for five months. 

What can you do to improve your score?  Pay down credit cards, pay your bills on time and don't take on new installment debt.  The more consistent you are with taking those actions, the quicker your score will improve. MyFico offers a 30 day free trial.  If you sign up, the fee is $9.95 a month or $99.95 per year. 

To get an annual free credit report, also consider the official Federal Trade Commission site www.annualcreditreport.com.   You can get a report once a year from the three credit reporting bureaus, Experian, Equifax and Transunion.

Watch your score and be aware of your spending.  Your credit will improve... maybe sooner than you think!

It's Wendy!

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

Search All Destin Florida Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Destin Real Estate Blog

www.ShortSaleSuperstars.com for real estate agents

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

Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com

Call Wendy Rulnick, Destin short sale agent, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.   Wendy is a short sale and pre-foreclosure specialist and has been featured in Kiplinger Personal Finance Magazine and Florida Realtor Magazine.

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Calling Hurlburt Field and Eglin AFB! Come home to Mary Esther!  This short sale house has been recently painted, with berber carpet, new ceiling fans and tile in kitchen and baths. Darling curb appeal with metal roof (about 4 years old) Central heat and air only about two years old. Bonus room with some heat and cooling not included in square footage- 280 square feet. Roomy fenced yard. This Mary Esther Florida short sale home is a quick commute to either Hurlburt or Eglin.  Ten minutes to the beach, Okaloosa Island, Santa Rosa Mall and more.

Offered at $123,000.

It's Wendy!

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

Eglin AFB and Hurlburt Field Real Estate

Emerald Coast Short Sales & Pre Foreclosure Help.

Read Wendy's Short Sale Blog

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

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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The "Bimini House" in Crystal Shores, Destin Florida says "Come on in and have some fun!" with its cheerful tangerine exterior and plethora of porches. This Destin short sale home will make you smile at the happy colors and breezy decor. First floor features wood floors, open dining room, high ceilings and fireplace. The kitchen is a country delight with pass-through, eat-in space, transom windows and overlooking the heated pool. Second floor master bedroom is large and luxurious with private wrap balcony and its own fireplace! Third floor has wrap balcony with access from two more bedrooms and peak of gulf view. The carriage house has two bedrooms, kitchen and rec room. The main house is 3331 square feet and the carriage house about 500 square feet, per seller.  There are a total of 6 bedrooms and 5.5 bathrooms. Crystal Shores is a two minute walk to the Gulf of Mexio beach and near numerous shops, Destin Commons and more!

Destin short sale offered at $489,000.

It's Wendy!

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

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

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

www.ShortSaleSuperstars.com for agents who want to Learn, Know and Grow.

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

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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If you haven’t heard recently, Bank of America short sales are getting even… well, weirder.  Their new plan is to implement an online system where real estate agents and borrowers can upload their own short sale information.  It sounds great-- and it would be--if it worked.  OK, you might have heard one or two success stories, but I can tell you from practical experience, until this system is refined your Bank of America short sales might take… longer! 

The new system is called Equator, formally REOTrans.  It is really a jerry-rigged uploading site that is also used for foreclosure (REO) offers to Bank of America. Here is my experience with it so far.

Day 1:  I fax in my package to Bank of America for a new Destin short sale

Day 7:  I call in to confirm the fax was received, as it takes Bank of America several days to recognize new faxes.  No, and they cannot find my loan number.  There is no such loan number!  Huh?  I call my seller.  She says the loan number was changed in the past week.

Day 10:  After faxing in a new authorization, I call Bank of America (BOFA) back with the new loan number.  They said they changed the loan number because this file is going to their new online system, Equator.  They instruct me to upload my short sale package online.  My seller must also call in to get her own special password to use the system and upload her own financial documents.

Day 11:  My seller calls BOFA during the day from work.  She is on hold over one hour and transferred twice.  During her hold time, she emails me “Still on hold, but they ‘look forward to talking’ with me soon’”.  After she completes her call she tells me “I cannot believe this is what you deal with all day”.  She forwards me her password so I may upload all her documents for her.  This means, all the tax returns, bank statements, financial worksheet, paystubs, etc.  Each document must be scanned into our computer system as a separate file so we can upload them when asked.

Day 12:  We try to access Equator with my seller’s password.  Login fails.  No luck.  

Day 13: We log in under my agent id.  Here we upload our authorization and answer questions about the offer.  Non-invasive questions like, “What is the buyer’s birth date?  What are the first five digits of the buyer’s social security?” 

FINALLY, we get to the offer amount.  Let’s use $160,000 as an example.  OFFER REJECTED – insufficient.  HUH?  The last sale in this Destin condo complex was $150,000.  So, why is our $160,000 offer insufficient?  Who can I talk to?  The machine?  I call Bank of America and they repeat, the system says “insufficient”, didn’t I get a rejection email?  “From generic.negotiator@bankofamerica.com”, I told  them.  Well, that is who you should email, I am told by the BOFA rep.  "You are kidding, I am to email the “generic” negotiator?"  The rep says, "Yes, that email is checked by different negotiators all day".  OK, who am I to question the authority of Bank of America?  I email generic.negotiator@bankofamerica.com (like an idiot) and of course the email address is invalid.

Day 14: Today.  Plan B.  I’ll let you know how it goes.  And I wish you better luck with Equator.

It's Wendy!

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

www.ShortSaleSuperstars.com for agents

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

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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