One of my short sale sellers called me confused the other day. We had his Santa Rosa Beach Florida home under contract as a short sale. The mortgage holder, Bank of America, had approved the sale recently, and we were moving toward closing.
"Why is Bank of America still sending me letters threatening foreclosure of my Santa Rosa Beach home?" he asked, "They've approved the short sale!"
Why would they? I emailed Bank of America to get their official response. Here is what they said:
"If the loan is delinquent and has entered the foreclosure process it continues, if a sale date occurs while we are working on the short sale we can request postponement from the investor but there is no guarantee of approval. "
What does this mean? "Sale date" means foreclosure sale date. Bank of America says they don't stop the foreclosure process automatically if a short sale is approved. Well, why not? Here is why: What if the buyer's loan is denied? What if the buyer doesn't close? What if the seller changes his mind? There are a lot of reasons why a short sale, or any property, might not close. If Bank of America stopped their foreclosure process for every instance of short sale approval (or even short sale contract), they would surely lose time waiting for a sale that might never happen.
What is the upside of Bank of America and their investor's policy? They normally will postpone a foreclosure sale within a few days of short sale closing, but not always.
What should you, as a Santa Rosa Beach Florida homeowner, do when you are facing foreclosure? There are many options available. You can ask your lender for a loan modification, forbearance or a repayment plan. If that is not possible, and you cannot keep your home, there are different types of short sale programs that might work for you, for example: HAFA, FHA Preforeclosure, Bank of America Co-Op, VA Compromise Sale and many more. Be sure to consult with a Florida real estate attorney and hire a Santa Rosa Beach short sale agent. You may be able to avoid foreclosure, and rebuild your financial position and your life more quickly than you think.
It's Wendy!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com
Santa Rosa Beach Florida Real Estate
Santa Rosa Beach Short Sales & Pre Foreclosure Help.
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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, great title and good post as well! Hopefully, the short sale will go through for you all. Keep us posted!
An interesting blog post that I enjoyed reading. Thank you for sharing it!
Wendy, geeze you wonder if they'll ever get it right. They approve a Short Sale and keep it on track to be foreclosed on too. Let's just see how much money they can throw away to add to the loss - no common sense whatsoever!
Wendy
This is a great question to post and answer. Of course all that makes some sense, butwhat gets murky is getting an approval and then foreclosing anyhow. Hmmm. It's just another example of it not being over til it's over, whatever the end result might be. Great information for short sale sellers to be aware of.
Jeff
Excellent explanation in a simple but yet a concise form! Please Sellers out there use SHORT SALE SPECIALIST Realtors who hold the CDPE designation.
Sonja - Thank you- it will go through. This is a common practice - and we are closing in 2 weeks!
SaraMana - Thank you!
Lynn - I understand why they continue foreclosure procedings. If they didn't, and the property did not close, they would be that much behind.
Jeff - You are right - it's not over until it's over! In any sale :)
JM - It is important to use an experienced short sale Realtor.
Many people do not understand that the show must go on--that banks continue toward foreclosure despite the fact that they are concurrently entertaining a short sale.
Wendy - This is a great article for not only our short sale sellers but buyers too. The buyers are sitting on the sidelines hoping that the bank doesn't foreclose either.
Wendy, very informative on the short sale/and bank foreclosure procedures. We recently represent a seller on the short sale, and the foreclosure papers were still served even though we had a deal going.
Sometimes working shortsales feels like a horse race! But it is so great when you get your client across the finish line. Great information - thanks Wendy.