I am writing about a very disturbing short sale situation. The property is a lot in Windswept Estates, a golf course community in Freeport, Florida. The mortgage is held by Peoples First, "Florida's Community Bank". After several months of price reductions on my seller's lot, we finally got a short sale offer of $29,900- fair market value. The mortgage balance is $183,000.
My seller's husband has just been diagnosed with kidney cancer, age 36. She herself has lost about half of her income in the past year, as assistant to a financial advisor and another part time job. Her charge card balance is around $60,000 - she used credit to keep making mortgage payments. She has struggled to make the interest-only payments on the lot - around $800 a month- as her partner, a real estate agent, has little income to contribute.
When my seller found out about her husband's kidney cancer about a month ago, she stopped payment on the check she had sent to the bank. Peoples First called her when they received notice and left a voicemail message that the manager would be "furious" and would start foreclosing.
Today, Peoples First just told me they will NOT do a short sale, period. When I talked to them I mentioned the diagnosis of kidney cancer, wondering how this woman could keep up with her payments. I also asked, "Why would your company not consider a short sale in this economy?" I was told they had "not given any subprime loans, they were well-capitalized, and when they lent money, they expected to get it paid back". I said, "So you'd rather foreclose?" They said "Yes".
I then got a call from another party at the bank, who reiterated they don't do short sales. I mentioned I would write about the situation in my national blog. I was told "I caution you not to do that."
Well, guess what? I am writing about it.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Short Sale Pre Foreclosure Help.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email itswendy@rulnickrealty.com
Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida 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 Rulnick, Broker and Realtor, 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 also negotiates successfully to her buyers' and sellers' advantage. She is supported by a team of top buyer specialists. Wendy lists and sells homes, condos and townhomes.
All Rights Reserved. *Short Sale Denied - Despite Cancer Diagnosis* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.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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Wendy, what a name for a bank: what people are they putting first?! Disgraceful.
Lynn - I originally named this post "Peoples First - Not About People"
Very sad story Wendy. Glad to see you went ahead and wrote about it anyway. Maybe they'll read this and change their mind. Why not send a link to this article to the local news?
Bryant - It pushed me over the top when I was "cautioned". Hmmm... I will ponder sending a link, they might send their cousin vinnie after me.
Hey Wendy, if they send Vinnie, tell them I know Ant'ny and he's from Jersey! This is a terrible response from the bank. Not only would I be posting it here, I'd write letters for my clients to send to local papers and contact the state.
Laura - Really? The tone of the threatening bank rep gave me shivers. I actually ran this by an attorney, and he said I could "always" write the truth. Which - is - what - I - do! I'll think about it. I have posted this already on: twitter, facebook, blogger, wordpress. Next is trulia, then perhaps a couple others. Slip me Anthony's number.
Amazing they would say anything like that. What goes on in peoples heads?
"I caution you not to do that"? You've got to be kidding me. So the bank is going to refuse to accept $30,000 and instead accept nothing for the lot. Why? "We don't do short sales" is not an answer I'd like to hear if I were invested in that bank.
It's called loss "mitigation" for a reason. Mitigate the loss or lose everything people's bank.
Up here it costs the bank $30,000 just to foreclose, this is a no brainer.
Of course banks didn't get into this situation by being smart did they?
Gene - I think I shocked them. I am going to start doing that more!
Brett - I went on their website and they have tons of REO's.
A few more notes like this making the rounds can make people start owning up to real life situations....well done.
Thanks, Casey.
This is the worst hardship I have heard of and they can't or refuse to approve it? What lender is this?
Peoples First Community Bank in Florida. They will not approve it or any short sale.
Good for you Wendy. These banks think they are above everyone. They need to be taken down a notch.
I had to do it, Kathy.
Wendy....they cautioned you not to write about it??? I guess you won't mind if I re-blog huh?
'Bank forecloses on cancer patient, Details at 11' has a nice ring to it.
Sergio - Thanks! :)
Rich - I know. They don't get it.
It's sad how many banks have this attitude. :(
Jennifer - Maybe they're getting too much bailout money. I am starting to wonder about that. No need to agree to help the seller, they'll get paid anyway. I'd like to know exactly how that bailout money is being used by the banks.
Keep searching and you will find many more horror stories about this bank!
We have had this happen one time in many, many short sales. It was Iberia bank, they also said they did not give out sub prime loans. They ended up saying yes to the short sale but then said, but the seller is to bring the balance to closing, I said, well, then, that is not a short sale. They would not budge. They just bought some bank out in your neck of the woods too. FDIC let them buy some other banks, and I thought, oh no! Katerina