I have a short sale in process for a Santa Rosa Beach FL home. The offer is around $200,000- fair market value. The first mortgage holder, Everhome- is owed $325,000. The second mortgage, Citi Mortgage, is owed $90,000.
Two months ago, I had another offer on the property. The buyer walked after waiting for approval for three months. The hold-up was Everhome. Citi had granted approval. Their terms at the time were $3000 from the first, and $16,000 paid back from the seller over 84 months at 0 percent interest.
Take Two: I now have a new buyer for this Santa Rosa Beach house. The approvals are going much more quickly this time. Three weeks after submitting the short sale package, Citi has again granted approval. Terms: $3000 from the first and NO PROMISSORY note! I don't know why and don't want to ask. Maybe they "forgot". Maybe the negotiator likes me because I asked him about his cold. Maybe Citi realizes the market value of the house is less than the offer (I found out it appraised for $10,000 less than the contract price from Everhome). Maybe Citi is getting reasonable. Maybe they are just getting nice.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
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Short Sale Pre Foreclosure Help.
Wendy Rulnick has been selling real estate for almost 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she negotiates successfully to her clients' advantage. She is supported by a team of top buyer agents. Wendy specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy sells houses, condos, townhomes and lots.
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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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Well that's good news for your seller. I had one earlier this year with Fifth Third. They accepted $130,000 on $275,000 with my seller signing a note of $45,000. The seller refused and we lost the buyer. 4 months later they accepted $119,000 with NO note!!!! I'm finding the 2nd or 3rd deal is sometimes the best for my sellers.
Bryant - That is really good to know. I have a Countrywide short sale where we are trying for a third time - the first two they wanted $50,000 back from my seller. Hope the third "trial" works.
Hi Wendy;
Congratulations to you, great information.
Thanks, Anthony. Hope it helps in your short sale dealings.
Not in this lifetime! I personally have CITI on my mortgage and paid at the end of the month instead of the first and WOW did I ever get a rude person when I called them. They are so ugle to people I can see why folks don't want to deal with them. Next time if I am ever that late again, I will just mail it in and not call them...
Evelyn - I always think rude people are having some personal issues.:)
Sounds better whan what I was up against...
Never give up!
I'm not sure if it's that they're getting nicer. They could be. Maybe they finally smartened up and are looking to resolve short sales expediently to get to the next one. Whatever the reason, like you, I would NOT ask :)
I was wondering if the appraisal will affect the buyer's mortgage.
Sergio - My seller was going to ask -I said "No!"
Gita - The seller's lenders appraisal should have no affect
How weird. I had the same thing happen to me and we are finally in contract since they issued the approval in a timely manner.
Mike - That is really good news. Congrats, too!
I agree, Citi has been the easiest one so far, $272,000.00 original balance and accepted $120,000.00 and only took 45 days. Maybe they can talk to Countrywide and get them moving too.
Ginny - Wow, that is aweswome. I might write another blog about Citi, though, because the new negotiator I got is far from nice!
I am going through a short sale myself as a seller right now- Countrywide holds the first and Citi the second- I am trying to find out whether or not these companies will agree to not file deficiency judgments later (in FL aparently they have 20 years to file). If they're not requiring notes on the losses, are they signing their rights away to file deficiencies as well???!!! That could be just as bad or worse than a note that is negotiated down....
Or do I just not understand this process?
Anna - Countrywide's new approval letter states they can seek a deficiency in the future. I will write a new post about this shortly.
Thanks Wendy, I understand that banks can ask for notes, lump sums, file deficiecies, 1099 the seller, etc, and it really varies from situation to situation. I'm just trying to figure out what most people have experienced (perhaps I'm trying to know what to expect in vain since it just varies so much). My realtor says Countrywide has been known to him to sign some document revoking their right to file deficiency in the future but he didn't think that was something Citi does. I am also aware that in FL the statute of limitations for filing a judgment is 20 years. This is not something I really want to hang over my head for that long, regardless of whether or not people think it will happen (because how many people really thought that the housing industry would do what it's doing). I'm trying to be prepared for what I'm going to do for the sake of my whole financial situtation in any of the possible outcomes. I was just hoping that if I heard of either Countrywide or Citi signing away rights to file deficiency in the future at any substantial volume, then maybe my chances of having that same outcome would be higher. And I don't want to think about how I handle that scenario if no one has ever heard of Citi doing that.
Thanks for all your help!
Anna - Here is my new post about Countrywide/Bank of America and Deficiencies I have not heard of them changing this, in fact, when asked, they refuse to change their letter. Hope it helps.