Destin Florida Short Sales & Real Estate

Fort Walton Beach Florida Real Estate

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.

69 comments • Wendy Rulnick "Its Wendy!" Destin Florida Short Sales • August 26 2010 06:11PM

How Many BPOs Does It Take To Get The Short Sale Price Right?

Fort Walton Beach short sales

The games we short sale agents must play! Here is a perfect illustration about why short sale lenders should not rely on one value, called a Broker Price Opinion (BPO), to decide if an offer is the right price.

1. I list a Fort Walton Beach Florida short sale at what I believe is close to market value- $89,900. I've been doing this for awhile, so my philosophy is to price where other comparable properties will support this value, using recent sales, competition, pendings and expireds.

2. I receive an offer in the $80,000s. The seller and I discuss that this is likely in range of what the BPO agent will come up. Seller accepts offer and I forward short sale package to Bank of America.

3. Bank of America orders their BPO. I receive a counter offer, stating BPO value is $124,000. Gee, I must have really missed pricing right here! Off by 30%! Buyer walks.

4. I raise the price to $124,000. Aahhhhh, only for a short time. I know the BPO is only good in this case for 90 days (not a VA compromise sale). Of course, no one looks at the house. I slowly lower the price.

5. 90 days are up! I reduce the price back down to what it originally was, actually a bit less, since our market has now dropped.

6. PRESTO! New offer in the $80,000s.

7. I send the short sale package to Bank of America. I pray they don't get the BPO value wrong again.

8. We are in luck, the mighty BPO agrees with the contract price this time! I am blessed! Short Sale approved in the $80,000s.

Meanwhile, Bank of America spent more on legal fees. I spent more on marketing. And the seller hurtled four months closer to foreclosure. Let the short sale games continue.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

Fort Walton Beach Short Sales & Pre Foreclosure Help.

Read Wendy's Fort Walton Beach Real Estate Blog

6 comments • Wendy Rulnick "Its Wendy!" Destin Florida Short Sales • July 07 2010 03:36PM

So, You Have A “Cash” Offer for My Short Sale Listing?

Short Sale Negotiations

Being a short sale listing agent in Destin, Florida, each week I receive offers on my listings. At least once a week, I hear the same thing from the buyer's agent:

“I have a CASH buyer for your short sale listing! He can close immediately.”

OK, then what are you expecting from me? And the short sale lender? Do you realize that a CASH offer makes NO DIFFERENCE to the short sale lender? Do you know where your offer goes? To the bottom on the pile. (With the 20,000 other offers in queue.) Bank of America does not put your offer in a special pile, marked “CASH- look at these first”. Wells Fargo does not set aside all the other offers to look at the financing terms of yours. Citi does not expedite your cash offer for approval.

What DO the short sale lenders care about? They care about Line 504 of the HUD, "Payoff of First Mortgage". That tells them what they are going to NET after their expenses. It does not matter if the buyer wires the funds out of his own account (cash) or the buyer’s mortgage lender wires the funds to closing. It all becomes CASH.

Negotiating Short Sales

Sure, if you were selling a traditional listing, that is not a short sale, "cash" might make a difference. A traditional seller might discount for the lower-risk buyer and quicker closing. But a short sale listing is a loss to the lender. They don't care how you get your money. What they will want to see, in any case, is proof of funds or a mortgage pre-approval.

It may not be fair to the cash buyer to have to wait like the rest of the short sale offers, but it is reality. So next time you tell me your offer is “CASH”, and I don’t get too excited, don't take it personally.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

12 comments • Wendy Rulnick "Its Wendy!" Destin Florida Short Sales • March 23 2010 03:34PM

Short Sale Sellers - If You Want to Avoid Foreclosure - "You" Must Participate

After this last week of trying to help short sale sellers unload their upside-down properties, I’ve experienced a whole range of assistance. Or not.

1. Seller will not return four phone calls and two emails asking if they can do a $1000 cash contribution to dispose of a $150,000 mortgage. Not even an acknowledgment.

2. Seller will not upload info into Equator, after being under contract for four weeks

3. Seller finally faxes listing agreement and short sale documents to us sent to him six weeks ago.

4. Seller has not sent us the last two paystubs, after being under contract a month

5. Seller contacts us with a foreclosure sale date in five weeks, has never even listed the house

6. Seller, who is an attorney, finally faxes us listing paperwork one week before foreclosure. Too late.

And it goes on. In return, these sellers expect from their short sale listing agent:

1. Sell their house—quick!

2. Take care of all their lender requests

3. Call their lender and stay on hold for hours a day, every day

4. Repeatedly fax hundreds of documents on their behalf

5. Keep the buyers waiting for six months

6. Negotiate the best terms for a short sale approval

7. Call and email them to continually ask for cooperation

Sellers – if you are serious about doing a short sale instead of a foreclosure, be Short sales prepared to do some work on your own behalf. Your work will include gathering all requested financial documents in a timely manner. (Timely manner means with a few days, not weeks. ) This will include gathering bank statements, pay stubs, profit and loss statements, tax returns and more. This may also include filling out your specific bank’s forms. You may have to do this multiple times.

Consider paying $1000 or more on your own behalf to dispose of $100,000 or more debt. Consider paying a promissory note of $5000 over several years at no interest, to do the same. Be honest. Roll up your sleeves. Return your real estate agent’s phone calls. Participate. Avoid foreclosure. Get your short sale approved.

It may not be convenient, but it’s your credit, and your financial future. Take responsibility for it.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

www.ShortSaleSuperstars.com for agents.

48 comments • Wendy Rulnick "Its Wendy!" Destin Florida Short Sales • March 18 2010 06:33PM

I’ll Take That Destin Short Sale for 20% Off!

Destin short sales

$70,000 below asking price? 20% off? Those must be the magic numbers, because they are the types of offers I have been getting on some of my Destin Florida short sale listings. For example and illustration, I have a Destin short home listed in at $420,000. The two most recent comparable sales were $430,000 and $425,000. The buyer’s agent presents me with an offer for $350,000. Hmmmm… will the short sale lender accept $350,000? I doubt it.

There are “magical” numbers floating around the internet that short sales sell for 82% of list price, or 80% of market value, or 85%. You get the picture. I can tell you right now- except for certain HUD and other short sales, there is no standard “percent off” that will guarantee you can buy that property for x amount off. I can tell you this- what mostly works is…. drum roll… market value (or pretty darn close!)

Remember, each short sale, whether it is serviced by Bank of America or Wells Fargo or Chase, likely has a different secondary market investor. The secondary market investor, for example, Merrill Lynch, Bank of New York, etc., for the particular mortgage loan, will have different criteria for what it desires to agree to a short sale. There is no “one size fits all”. Destin short sales

Don’t forget to take into account that the investor does not just look at the contract price. They look at what they will net at closing. So after paying some closing costs, such as real estate commission, state conveyance tax, doc stamps on deed, tax prorations and past due homeowners association dues, the investor might only net $300,000 on that $350,000 offer. Are you getting the picture? In addition, if they do use a standard “percent off” calculation for certain short sales, they are not going to use the list price. They are going to use their independent appraised value- which might be higher than the list price.

So if you are going to offer an amount substantially lower than market value for a short sale, be prepared. You’re either going to end up paying closer to market value or you're not going to get the home.

It's Wendy!

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

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

Email Wendy: itswendy@rulnickrealty.com

www.ShortSaleSuperstars.com for real estate agents

22 comments • Wendy Rulnick "Its Wendy!" Destin Florida Short Sales • February 28 2010 11:21AM

"Can I Put That Condo On Layaway?"

short sale negotiations

I have been negotiating a short sale offer for a Destin Florida condo for about a week. Today I received the following email from the buyer's agent:

"Here is my buyer’s final offer for the condo.

Purchase Price - $150,000

$50,000 at closing, $50,000 in 12 months and the other $50,000 in 24 months.

Seller to pay all closing costs

Seller to pay 6 months of condo dues

He would like an answer by 2pm on Monday."

Enough said.

It's Wendy!

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

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

Email Wendy: itswendy@rulnickrealty.com

19 comments • Wendy Rulnick "Its Wendy!" Destin Florida Short Sales • February 19 2010 05:52PM

Are Short Sale Lenders More Lenient the Second Time Around?

Destin short sales

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.

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

Email Wendy: itswendy@rulnickrealty.com

17 comments • Wendy Rulnick "Its Wendy!" Destin Florida Short Sales • January 30 2010 05:59PM

Report: Short Sales and Your Credit Score

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.

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