Borrower: Elderly gentleman at retirement age
Property: Florida home that was rented out, tenants vacated
Lender: Green Tree Servicing
Hardship: Major expenses due to spouse being in head-on collision. She will require extensive medical treatment for years and require relocation for appropriate care.
Mortgage status: Payments kept current from savings. Account drained from $35,000 to $3,000.
Seller’s Logic to Make Payments: “I am keeping up my end of the mortgage agreement in good faith”
Green Tree Conclusion: Short Sale Denied
Green Tree Investor states: “We are willing to take a hit if you are willing to take a hit on your credit. You are current with your payments. Short sale denied.”
You think I am making this up? I am not. This homeowner contacted his lender before asking me to sell his home as a short sale. He was told he could continue to make his payments and his short sale would be considered. Yet, he was denied. Guess what? After I notified him of the denial, he said he will no longer be making his mortgage payments. He held up his end of the bargain as best he could and tried to save his lender the cost of foreclosure. Thankfully, a kind Green Tree representative is going to swat the investor in the head so they LOOK at the situation, as she said, like a “human being, not a computer”.
People, do not be alarmed. This is NOT the norm. Most short sale lenders WILL consider a short sale if you are current with your payments IF you have a legitimate hardship. For example, IF you are using your savings to make payments, charging on credit cards, borrowing money, taking funds out of retirement, have a military base relocation, etc. I am neither endorsing nor recommending that you make payments or don’t make payments. That is a personal decision. And it is a tough decision. Do what is right for you.
This elderly gentleman may yet find that there is hope for his situation and that he can avoid foreclosure. He made his payments in good faith and left his family with almost nothing. Perhaps this investor will reconsider his short sale and offer him some good faith, too.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
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.
Wendy...
...these stories just never cease to end! But yours does have a glimer of hope in it that I will pass along to someone I know that is having issues as well. Maybe they can get the lender to listen.
Thanks!
That is so sad! I hear situations like that all the time too. These homeowners want to do the right thing, but it bites them in the behind.
Wow!!!
Wendy,
There is an incredible lesson in here. But, I doubt many see.
Home owners are not entitled to the banks money. Banks don't "take a hit" out of compassion!
Banks reluctantly "take a hit" when in their opinion it's in there best interest.
The first rule of collection is look at the collateral. The second is look at the debtor.
Lets look at what you didn't mention. The depleted bank account probably has little to do with the house in question. The house had been rented, the owner can probably rent it again. The gentleman was elderly before the accident. Lastly, you don't mention who cause the accident or insurance and or torts that may be coming, be it ever so slowly!
I feel terrible for your client! But, his troubles don't entitle him to the bank stock holders money. The bail out money was a loan to the banks not a grant to consumers.
Bill
Wow! Both sides of the problem. No wonder it's a tough market. Nobody wants to 'give' anything away, and there will always be some who 'cheat'. Circumstances and common sense may have to prevail over business rules sometimes. If not both home owners and financial institutions will keep losing. Margaret C.
Wow. A lack of compassion and a knee jerk reaction all wrapped up in this one. It's very sad that people can't put themselves in other people's shoes for a change.
Sounds like they don't care. I have a short sale working with them right now. I need to see how this turns out.
Hi Wendy... Good for you for getting someone to "swat" the investor! I hear stories like this all the time and it just drains me emotionally for the people and make me want to fight even harder for them! Way to go!
Go figure...and we have too....the more cooperative the homeowner, the less cooperative the lender/investor...grrrrr....Swat, smack ....and publicly expose the offenders.
There are some really stupid folks out there in lender la-la land (not all), but there are a few.
Wendy I hope this works out for the guy. Someone tries to do the right thing and it gets them no where...AMAZING!!
Thom - I was surprised when the Green Tree rep offered to work hard to get the company to change their mind.
Tina - That is how the seller feels.
Bill A- The point is - their decision, per the exact quote, was based on the fact he had continued to make his payments. If he now has $3000 left, then his last payment is made.
Margaret - I like your "circumstances and commonsense".
Nathan - Yes, Knee Jerk!
Kay - Let us know.
Steve - Thank you. The post was part of my "swat"!!
Sally & David - Exactly what I am doing :)
Gabe - Yup.
Bill G - When I called to inform the seller, he was actually at the hospital with his wife! Nice, huh?
It is so sad when the banks cannot approve the short sale and you really want to help the client. I hear you!
Take this gentleman's view "keeping up his end of the bargain" and others who are just walking away from their commitments...why do we ask why when the response of the bank is so arbitrary??
Thanks Wendy for a great post and all the others in the last year. Looking forward to 2010 and wishing you a happy, healthy and prosperous 2010!
Oh my God! Those poor people having to deal with that stress on top of the accident.
Wendy, I really feel for this man and his poor wife. I certainly hope the bank allows a short sale and allows relief to them! Pat sent me over and I'm glad she did! The best to you!
Wendy - Unfortunately, I believe it! Hopefully, when the lender SWATS the investor in the head they will knock some sense into it. I can dream!
Wow is right ... Ijust hate these kinds of things and also that they are not helping people who have tried to do the right things and pay... they only help those who quit paying...HUH? let them lose their home and the ones who are paying try to help.. I dont get it... thanks for a great post and I hope th every best for you client..
So, I hate to ask, Wendy, but was it a Fannie Mae loan?
Wendy- I know that things will work out for your client now that he has run out of money to pay. Happy New Year BTW- Katerina
Wendy - I don't understand why someone would deplete their savings to keep up with mortgage payments on a rental property. Wouldn't a deed in lieu of foreclosure make more sense?
Wendy, I sure hope it works out for him - glad he has you working for him. His decision to keep paying was honorable. His more recent decision to quit paying is also honorable.
Melissa - You know me, I don't give up.
Laura - Happy New Year to you, too!
Maya - I know it, it drives me crazy.
Wanda - Thank you and the best to you, too!
Judy - Swat swat!!
Debra - Thank you. You are right, decipher the meaning of it all, there is a lesson in there.
Elizabeth - This one was not Fannie Mae, but I know they are a problem, too!
Katerina - I'll make it work out :) HAPPY NEW YEAR to you, too!
Gail - Deed in lieu has worse long-term financial ramifications. I understand why you are questioning the decision to deplete savings, though.
Virginia - But one wonders, should he have stopped paying sooner?
Most of their people are just .... I can't find a nice word so I'll stop it there. Kevin Jones at extension 36119 has been really helpful! He is a supervisor so call him and leave VM if you have to! He was able to put a file on RUSH for me and get it approved within 10 days for 5% of the sales price, which was about 7% of the loan note.
Hi Wendy
That's encouraging. I am glad that your experience with Green Tree was positive. I read some very serious complaints against the servicier.