Destin Florida Short Sales & Real Estate

This is not your average approval for a short sale property in Santa Rosa Beach Florida.  Look below at the letter from Saxon Mortgage.  See the amount to the junior lien, Citi Mortgage?

Citi is owed about $99,000 as a junior lien and requested $24,000 to release their security interest. "Ha!" You laugh, "$24,000?" That is insane!  But Saxon Mortgage agrees to pay Citi 10% of their outstanding balance, or $9,946.

Of not happy note, is the statement that any extensions beyond the closing date will result in 1% commission cut.  That is fascinating, as I will try to prevent hurricanes or other acts of G-d that might delay a closing!

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

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, 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.   Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". 

Alas!  There is more than one version of the Bank of America approval letter.  One without the dreaded "deficiency" reference.  Mind you, not stating they reserve the right to pursue a deficiency may not mean Bank of America has given up that right, but it does cause less trepidation.

Here is an approval I just received for a Mary Esther Florida short sale property:

Deficiency... what deficiency?  My theory - they are leaving out the deficiency reference, but not "forgetting" about it!

It's Wendy!

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

Destin Florida Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Destin 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.  

 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.

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This Ariel Dunes condo, in Destin Florida, has been approved for a short sale.

Lender:  Suntrust

Mortgage Balance:  appr $380,000

Contract Price:  appr $225,000

Terms:  Fannie Mae asked seller for promissory note for $8000 to pay past due HOA fees for $100 month for 80 months.  Seller instead offered $6000 cash contribution.  Fannie Mae agreed.

To avoid foreclosure and sell your Ariel Dunes or any Destin condo as a short sale, contact an experienced real estate agent who specializes in short sales.

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 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

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.   Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine".  She and co-founder Bryant Tutas have developed short sale agent training.

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I sent out a listing agreement a couple of weeks ago for a Destin Florida condo.  This was a Bank of America short sale, and no payments have been made for 9 months. I never received the listing paperwork back, so just wrote it off.

Today I got a call from “Clyde”,  who said he was a licensed real estate agent in the sellers' home state of Georgia and knew them personally.  He was helping the sellers with a short sale of their primary residence. Clyde said the sellers still wanted me to list the property, but that Clyde would go ahead and negotiate the short sale for them.  He also said he himself would be the buyer, but would line up another “investor” to do a property flip.

(OK, I don’t want any part of this, I thought.   Help me off the phone.)

“Clyde, I negotiate my own short sales, so I cannot help you with that arrangement”, I told him.  He reiterated I would not have to do anything but list the property, and he would take care of the rest, even though he was not licensed in Florida.  “No thank you, sorry, I am not interested” I restated, and I wished him luck.

“Why not get involved?” you might be thinking.  After all, I could save hours of calls, emails, negotiating, stress and have a built-in buyer.  Well, one reason is I want to be sure my short sale listing closes.   I know I have a 90% chance or greater of getting an approval if I handle it personally.  And I don’t know Clyde.

But the biggest reason is, I don’t want to be involved in a short sale flip, even as just “the listing agent”.  Bank of America’s approval letter states “There are to be no transfers of property within 30 days of closing”. Other lenders state there are to be “no assignments” by buyer to other parties.  To me, that means, no flipping!  I am not going to get involved.  Why ever risk getting near a deal like this?  Not me.

So, I lost a listing today.  But you know what?  I really didn’t want it.

It's Wendy!

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

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

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.   Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine".

 

Here are a few of the possible mistakes you might find in the financial worksheet:

• Numbers don’t add up – that’s right, simple math mistakes adding up income and expenses.
• Monthly gross income used, not net income
• Annual gross income used, not monthly
• Bonuses from last year are included in current year
• Current year commission or P&L is based on last tax year, not recent income
• Rental income listed when tenant is moving out
• Gross rental income is not adjusted for expenses
• Listing the same military base housing allowance when it is changing upon relocation
• Incorrectly assuming property value when listing assets
• Not including current mortgage and associated expenses for short sale property
• Not including anticipated rent and expenses upon relocation
• Spending money on frivolous items, like tennis lessons, skydiving, vacations, etc.
• Not itemizing “miscellaneous"   expenses

Finally, when monthly net income is more than monthly expenses- there may not be a hardship at all!

The financial worksheet is one of the most problem-ridden parts of a short sale package.   In a questionable hardship case, you can use the financial worksheet as part of your seller pre-qualification.

Want to learn more? Our next Short Sale Basics webinar is Saturday, July 18, at 11:00 Eastern. All five sessions will be available on MP3 if you cannot attend live or miss any.   Session 3 we will be covering the short sale listing, price reductions (one of Bryant's favorite subjects) and more. See you then!

Debe Maxwell, one of our charter Short Sale Basics students, critiques our first session....   Thank you, Debe!-- from me and Broker Bryant.  Next session is July 11, see you then!

Why would a short sale lender ask for a promissory note or cash contribution from the seller? The emails below, from Bank of America negotiators, will show you exactly why: 

It's Wendy!

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

Search Destin Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Destin Real Estate Blog

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 real estate agent, to list and sell your home or condo or  on the Emerald Coast of Florida:  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.  

Competing for a top spot in my yearly Top 10 Worst Short Sale Lender Awards-- USAA will surely make the list for 2009. Here are the details that should bring pause for all those attempting a USAA short sale.

Seller:  retired widow, almost 80 years old

Seller's income: $1,100 per month

Seller's Assets:  about $6,000 CD,  $5,000 savings, $90,000 IRA (which contributes to her income)

Hardship: Husband died of cancer last year, reducing retirement income, need to sell townhome because they had to move to a one-story home because they were unable to climb stairs

First Mortgage:  GMAC - owed $250,000

Second & Third Mortgage:  USAA - owed $150,000

Property Value: $200,000

The USAA negotiator told me at a minimum, they would want $6,000. The negotiator told me if I had the HUD redone, she would take it to "management", but warned they had a "new" attitude about short sales. So, per instructions, I had the settlement statement changed, and asked GMAC to pay $6,000 instead of $3,000.

Three days later, today, the USAA negotiator calls me back.  She says the short sale will be "denied" if my seller does not pay $44,000, no less.  She states, if the seller does not accept the terms, they will allow the property to be foreclosed on, because "Frankly, she owes us a lot of money".  If not, she said, they will pursue the monies with full force of the law, and although they "cannot discriminate because of age", will go after this elderly woman's "estate" in probate court.  (Wink wink)

This is one of the cruelest comments and attitudes I have heard from any short sale lender.  Would the comment about pursuing this widow's estate have been made if she had been in her 40's?  I doubt it.  But it was repeated to me multiple times in the conversation, that "USAA could not discriminate because of age, but.... " I can only imagine what was discussed at the management meeting to decide my seller's fate.

So let this be a warning to any homeowner or agent working with USAA. They are not nice, they don't care, and they will wait until you die if necessary, to collect their money.

 UPDATE TO STORY:  USAA has agreed to a much lower payoff from the homeowner, who is delighted, and said her "prayers have been answered".  USAA also indicated to me that they really do care about their members.  It is refreshing and enlightening that some corporations, such as USAA, will review decisions and assess the real, human impact when they can.

It's Wendy!

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

Niceville FL Real Estate

Niceville Short Sales & Pre Foreclosure Help.

Read Niceville Real Estate Blog

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 real estate agent,to list and sell your home or condo or help you buy a home or rental property 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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As a short sale listing agent in the Destin Florida area, I tend to get the same type of offer again and again.  The buyer asks for all closing costs to be paid by the short sale lender.  So, on the most recent offer on one of my short sale listings, of course the buyer's agent pressed for having Countrywide, now Bank of America, pay all the closing costs.  I have been through this numerous times before.  The agent tells me they "had one case" where all the costs were paid.  Or they say they "heard" the short sale lenders would cover all the costs if the offer price was raised.  I have to always leave the final decision to my seller, but I recommend against going down this path. 

To placate this agent, I emailed my favorite Bank of America negotiator, specifically asking what closing costs would be paid.  This is her response:

"We pay all outstanding property taxes, commission (amount depends on loss and investor), $3,000 to any outside 2nd lien, settlement or escrow fee, title insurance, doc stamps. We typically do not pay any miscellaneous type fees (wire, courier, admin, doc prep, notary, home warranty, etc.). All fees are negotiable depending on the loss and investor and is up to each individual negotiator as to what fees will be paid.  It is also at management's discretion when a decision is made."

At the insistance of the buyer's agent, who asked if the buyer could increase his offer price to "cover" more closing costs, the Bank of America negotiator said: "No, they usually still will not pay those items."

99% of the time, if you submit a short sale offer asking for all the closing costs to be paid, you will get rejected or countered.  Why waste sixty to ninety days for nothing?  Submit a good offer, one that you know can get approved, and increase your chances of short sale success.

It's Wendy!

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

Destin Florida Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Destin Real Estate Blog

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 real estate agent, to list and sell your home or condo or help you buy a home or rental property 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 can help you sell or buy a short sale property in and around Destin Florida and the Emerald Coast.

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I've been holding off on writing this.  I even started a week ago and deleted it.  But now I have "had it"- with Citifinancial and Nordon Collection Services (NCS), that is.  The story has gone on for a few months.  Citi is the junior lien holder on a Crestview, Florida home for sale.  The property is a "short sale" and Countrywide/Bank of America is the senior lien holder. 

Several months ago, Citi sent their $40,000 equity loan to NCS for collections.  (By the way, try not to let your short sale sellers let a junior lien go to collections.)  When we obtained a fair-market offer on the home about two months ago, NCS said they wanted $6750 to release the lien.  I did not get an official "approval letter", just an email in lower case, partial sentences.  I told the NCS rep, Lonny McMurdy, that I would relay the request to Countrywide and get back to him.  Two months later, Countrywide issued an approval letter for their standard amount to the second, offering $3000 to the Citi. 

I called Lonny back at NCS and relayed we had approval, and they were being offered $3000.  Lonny was not nice.  He said "Didn't we go over this two months ago? Why are we repeating this conversation?  What is it that you don't understand?"  I gently tried to interrupt what was becoming a raised-voice tirade, with "Sir, excuse me, sir, excuse me, sir, sir, sir, Excuse me, sir".  When he finally stopped talking, I said, "Can we be polite here?" He then immediately hung up on me! I am serious.

So, being the ever solution-oriented Broker that I am, I called Citi.  I relayed the outlandish behavior of their collection agency, and was told they would "take care of it".  I was instructed to fax the approval and package directly to Citi. Now, after another week of phone loops, thirty minutes a day, lost letters of authorization, changed extensions, and more, Citi says they cannot help on the file.  They are assigning it to a different collection agency.  I have until June 5 to close, or Countrywide's approval will expire. 

Wish me luck!

It's Wendy!

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Destin Real Estate Blog

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 real estate agent, to list and sell your home or condo or help you buy a home or rental property 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 can help you sell or buy a short sale property in and around Destin Florida and the Emerald Coast.

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