I recently got a Mary Esther Florida short sale approved by

Property:  Owner occupied home in Mary Esther Florida

Market Value:  $130,000

Senior Lien:  Wells Fargo – VA loan  – $190,000

Junior Lien:  HSBC –  $40,000

Getting the VA compromise sale approved by Wells Fargo was the easy part of this short sale.   Getting approval from HSBC, the junior lien, was a different story.  HSBC had farmed out its collection efforts to a company called Professional Recovery Services.  After months of waiting for a response on short sale approval, PRS finally claimed that HSBC would not allow a short sale because the borrower had filed for bankruptcy a few years ago.  I was asked to provide documentation that the HSBC lien was not included in the bankruptcy.  I did, but PRS said HSBC still refused to look at the short sale, claiming “a bankruptcy is a bankruptcy”.

Undeterred, I contacted HSBC directly, emailing several representatives until I was directed to a negotiator in the bankruptcy department.  Apparently, I had contacted the right person, as he said he would help with the short sale approval. First, though, he needed me to provide a Broker Price Opinion of the property’s value.  I used my Multiple Listing Service to do a detailed market analysis and faxed in the form.  The HSBC negotiator, although polite enough in scripted English, had a problem with my document.

“This is not a Broker Price Opinion” he said, “It says Comparative Market Analysis”. 

“It’s the same thing.  A comparative market analysis is the same thing as a BPO”, I told him incredulously, “What do you want me to do, re-label it?”

PAUSE

 “It looks like a CMA.  I need a Broker Price Opinion done by a Broker” He choked out.

“I am a Broker.  Fine, I will re-label the form with ‘BPO’ and fax it back to you.”

“Thank you, it has been my pleasure speaking with you”, he read from his script.

I re-entered my data onto another form, labeled it ‘Broker Price Opinion’, and faxed it back to HSBC.  The next day I called in.

“You are approved.  It has been my pleasure working with you”.

It’s Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

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Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

The post I Need a Broker Price Opinion- This is a Comparative Market Analysis! first appeared on Rulnick Realty.

I have a home listed for short sale in Fort Walton Beach, Florida.  The property was a primary residence, and the seller lost his job and relocated to another state to find work.  He is also in the midst of divorce proceedings.  During the listing period the seller was advised by his attorney to file for bankruptcy.  Subsequently, we received an offer for the property.  During the time period, the seller was unclear about the status of his property.

I called Citi, the short sale lender, to find out if they would entertain a contract even though the seller was going to file for bankruptcy.  Citi said, “Yes”, we could proceed, and he could still sell his property. Citi assigned the file to a negotiator, ordered the BPO, and requested further documents from my seller.

A few weeks later, Citi abruptly emailed me and said they could not take further action, as the house was now part of the bankruptcy proceeding.  I found it odd that initially Citi said to “go forward” with the short sale, then several weeks later mysteriously said they could not help.  I made numerous phone calls through the Citi phone loop, and finally got a department who told me that they needed an “order by the bankruptcy court” stating they could proceed.  So, I called my seller who called his attorney.  The attorney provided the contact information for the court-appointed Bankruptcy Trustee. 

I called the trustee, who was a magnificent help.  He said that since the property had no equity, the court did not want it- there was nothing to divvy up amongst the creditors.  He said that after the bankruptcy the property would go back to my seller, anyway, and he would be happy to help me and release it now.  So he is sending me paperwork to proceed with “Abandonment”of the property from the bankruptcy court.  If there is no objection to the abandonment within 15 days, the property will be free to short sell. Otherwise when case closes it will be deemed abandoned by law, anyway, and go back to my seller.  The trustee also mentioned that Citi could have asked for “abandonment” to continue foreclosure, and had started to do so, but had “dropped the ball”.  Perhaps that is why Citi initially started the short sale, then stopped in the middle. 

The happy ending is that the young lady who has been waiting to purchase her new home will likely be rewarded for her patience, and my seller will have prevented a foreclosure.

It’s Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Fort Walton Beach FL Real Estate

Fort Walton Beach Short Sales & Pre Foreclosure Help.

Read Fort Walton Beach Real Estate Blog

The post Bankruptcy and Short Sales: Case Study first appeared on Rulnick Realty.