Do you think your mortgage is “too upside down” to do a short sale? Think again. Many Sandestin Florida homeowners bought houses and condos with loans over a million dollars in 2004-2007. Today, those property values might worth one-half of their original purchase price. With such high dollar losses and faced with financial difficulty, many of these homeowners don’t think they have a chance at a short sale. Heck, even some real estate agents question me before showing my Sandestin listings. They say:
“I checked public records. You have that property listed at a BIG loss from the original mortgage amount. Can you even get the short sale approved?”
What? The loss amount? Why are you asking me that question? Any loss amount can be approved – if the other ingredients in the short sale are right. Some of those ingredients are: copies of bank statements, tax returns, paystubs, hardship letter, fair market value offer. Wait! This all sounds like a standard short sale! Hmmm…. well, it is!
For example, I just received approval on a Bank of America short sale listing in the Burnt Pine subdivision of Sandestin Florida. The original mortgage was over one million dollars, and the net proceeds from the short sale to the lender will be about $490,000. It will be $530,000 less than the mortgage balance. Did the short sale process take longer? Yes, but not much more than the standard time frame. Did the seller participate in the loss? Yes, the seller agreed to a small promissory note and a cash contribution. Did Bank of America waive its right to seek a deficiency judgment? Yes, it did.
How did we succeed getting approval for this high dollar loss Destin Florida short sale? The same way we get other short sales approved. Complete documentation, a strong contract, a serious seller and tenacious follow up
It's Wendy!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-650-7883 or 1-877-487-9639
Email Wendy: itswendy@rulnickrealty.com
Sandestin FL Short Sales & Pre Foreclosure Help.
Wendy Rulnick is a Short Sale, HAP, VA Compromise 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.
Nice job Wendy, I bet your client is very pleased!
Good work Wendy. In my area the higher end homes have often lost more percentage wise than the lower priced homes. Short sales in this segment are really on the increase.
Very common misconception, Wendy. great idea for you to review it here. So manypeople do contact me and obsess over the loan amount when we should all be focused on current market value.
Wendy, there have been some amazing losses approved by lenders for short sales. Some, that in all honesty, actually don't appear to make any sense.
John - Thank you!
Marcy - I think we are at the same percentage for both higher and lower prices here.
Melissa - True, true.
Gabe - Interesting! I guess they look at future risk of loss potential?
It seems like I spend my whole life trying to make buyers understand that a short sale requires one very important ingredient...a fair market value offer. It's a numbers game for a bean counter when it comes down to it. If the numbers are right it will be approved. Good article.
Nathan - At least you try to make them understand vs. agents who just blindly write any old offer!