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.