The Ariel Dunes condo project in Destin Florida has 112 units for sale.  The complex is right across from Gulf of Mexico beaches and has amenities like pools, tennis and golf.  Only four units have sold in the past six months.  The latest was a short sale, which was approved in 90 days.  Summary:

Property:  Ariel Dunes gulf view condo, 732 square feet

Hardship:  Medical

Lender:  Suntrust

Original Purchase Date: July 2006

Original Purchase Price: $284,000

Current Sale Price:  $180,000 (fair market value)

Debt Forgiven:  Over $50,000

This Suntrust Destin short sale was processed by a company called Loan Care, who handle some of Suntrust’s overflow in loss mitigation.  The appraisal came back at $190,000 but Suntrust and its investors accepted the $180,000 offer in light of the Destin condo market, with its six year inventory.  Suntrust paid a full commission of 6%. Their negotiators were professional, personable and responsive.

If you need to sell your Destin real estate as a “short sale”, consult a professional real estate agent who is skilled and experienced.

It’s Wendy!

The post Ariel Dunes Condo- Destin – Short Sale Approved first appeared on Rulnick Realty.

I am prompted to write, because I just received a cancellation demand from a buyer for a waterfront condo in Destin Florida.  The buyer’s agent emailed me the request for the $3000 deposit to be returned to the buyer.  The contract had allowed 30 more days for bank approval, in this case Countrywide.  Through frequent communication, the buyer’s agent knew written approval was imminent.   When I asked why her buyer was trying to cancel, the agent said, “He is tired of waiting and doesn’t trust the short sale process.”  I told the agent that the short sale approval had just been delivered to my email. and we actually had another 30 days to obtain approval per the contract.  I told her he would probably “own the gulf-front condo within two to three weeks”.  She said “he did not care, he had changed his mind, and it didn’t matter if the seller or I thought he was ‘loony’ or a ‘nut’“.  And…  he still wants his deposit back.

In this case, adequate dates were built into the contract.  There was a $3000 deposit and the buyer had already completed his home inspection.   But he simply “defaulted”.  He accepts no contractual obligation because of his default- he feels he is entitled to his full deposit back.  The buyers stance will not change even after wasting everyone’s time, and putting the sellers on the edge of foreclosure by tying up their condo.

What is the seller’s recourse?  In Florida, title agents often hold earnest monies.  They can only release the deposit when both buyer and seller agree.  In this Destin Florida case, the buyer is requesting the release of escrow funds, but the seller will never agree.  Thus, the money could forever be tied up without further proceedings. It is unfortunate that many buyers can “walk” without fear of recourse, as most Florida short sale sellers have no means to pursue them.

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Cabana Club #202, Destin Florida 32541

PRE-APPROVED PRICE $260,000

PRE-APPROVED SHORT SALE! Fun Destin condo with great gulf views, right on the water! Generous balcony to enjoy ocean breezes.  4 story complex is located in heart of Crystal Beach in Destin Florida.  Location is right near Destin Commons, excellent shopping, golf courses, Sandestin, Baytowne Wharf, Grand Boulevard.  Walk right downstairs into the white sands of the Gulf of Mexico!  Unit generates $30,000 year in vacation rental income as a bonus!

The post Cabana Club, Destin Florida Condo – Approved Short Sale first appeared on Rulnick Realty.

Since I wrote my last blog post about BANKS CHANGING LOCKS on short sales I have had three more cases of lock changes.  Today it was on an $850,000 home in a secure gated subdivision on 30-A in Santa Rosa Beach, FL.  In fact, just yesterday we received an offer on the property.  The home is currently on a rental program and is regularly and well-maintained.  We found out about the lock change when the seller’s rental company went to change the air conditioner filters today.  There was a note on the door warning that the property had been secured, and NOT to enter.  The deadbolt was changed.  This time the bank was Countrywide who did the dirty work.  Their “property preservation” company would have had to climb over a locked gate to get into the subdivision!  My sign was RIGHT THERE! These cowboys didn’t bother to call.  Nor did they happen to notice the pool fountain as running and the house looked immaculate.  They just CHANGED THE LOCKS.

The number to call they left on the door is just Countrywide’s customer service.  The non-communicative representative had me on hold for 20 minutes, then told me to call another number.  THAT number was just a recording!  This has got to STOP!  How are we going to help the banks by doing THEIR jobs, selling these properties pre-foreclosure, if they put up road blocks?  How many hours do my staff and I have to spend tracking down keys, replacing signs and driving to properties we cannot get in? Not only does it waste our time and money, it COSTS THE BANKS MONEY by paying the property preservation companies for work they SHOULD NOT BE DOING!

Last week I called ASC four days in a row asking for keys to the new lock they changed by GOING PAST MY SIGN!  The house, in Navarre Florida, was maintained, power on, lawn mowed.  ASC’s property preservation department never called me back.  SO my seller changed the locks back himself so we can SELL HIS HOUSE.

THANK YOU BANKS!

The post Banks Hurting Short Sales in Destin Florida first appeared on Rulnick Realty.

Getting a Short Sale listing? It is always prudent to ask the seller the typical qualifying questions- “What is your hardship?”, “Do your expenses exceed your income?” “Do you have cash funds to cover the deficiency?” But these preliminary inquiries may not be enough.  Here are some more probing questions you need to ask the Short Sale seller:

1. Are you “sure” you don’t have a second mortgage on the property?  Or two? Even by an individual?

2. Who owns those mortgages?  Please provide your most recent statement.

3. Do you have an IRS tax lien on the property?

4. Do you have a County, City or State lien that affects the property?

5. Is there a judgment against you in the county where the property is located?

6. Are there any other liens on the property?

You don’t want to find out after three months of bank negotiations that there is an undiscovered lien the Short Sale lender will not pay.  They normally will not pay a lien unrelated to the property itself.  That is, the lender will usually cover past due homeowners association fees,  mechanics liens and nuisance fees to a second mortgage holder, but  not others.   Finding out a seller “forgot” about his home equity line will delay and possibly cause your approval to be denied.  Finding out there is a $40,000 judgment that must be paid off will guarantee a lost sale.  Similarly, an IRS lien will be very difficult to dispose, and it’s something that needs to be addressed before listing the property and even attempting a Short Sale. You will have invested in marketing time and expense, negotiated for hours, used up office resources and worst of all, delayed or ruined a buyer’s home purchase.  To lessen the chance of a “surprise”,  ensure the seller signs a document stating his answers to the above questions at the beginning of the listing.  Better yet, have the seller pay $75 or $100 for an official title search.  Always order a payoff from each lender– you might find out they are not even the lienholder. If you don’t do it now, later may not be good enough.

The post Short Sales: Undisclosed Liens Will Ruin Your Sale first appeared on Rulnick Realty.

#1 Peoples First – Florida’s Community Bank – Denies Short Sale Despite Cancer Diagnosis

#2 Eglin Federal Credit Union – will not do Short Sales

#3 Whitney Bank – will not do Short Sales, but releases lien and seeks deficiency

#4 Vanderbilt Mortgage – claims will not do Short Sales, but will look at a price pulled out of the air

#5 RBC Centura:  Taking Cars in Short Sales?

#6 Countrywide and PMI Short Sales

#7 Ocwen/LCS Won’t Budge

#8 Washington Mutual Won’t Waiver

#9 Bank of America – Issues 2 Contradictory Approval Letters

#10 Aurora Loan Services – Won’t Pay Closing Costs

The post "Top 10" Worst Short Sale Lenders Awards – 2008 first appeared on Rulnick Realty.

Maravilla #4404, Destin FL Condo

The post Maravilla #4404, Destin FL Condo first appeared on Rulnick Realty.

1112 Airport Rd., Destin FL 32541

Roll up your sleeves… this Destin FL home is a project. You will need: 2 sinks/vanities for the bathrooms, kitchen cabinet fronts, an oven, floor tiles, paint, grass seed, and pick-up truck to haul away debris. You will get: a spacious home, adding square footage not included in the 1321 from partially finished garage- (could reconvert by the way), much tile, split floorplan, stone fireplace, large yard and 2006 roof with dimensional shingles. Seller says personal property will be removed.

List Price:  $138,000

The post Destin FL Property – Fixer-Upper first appeared on Rulnick Realty.

The post Beachside II, Sandestin FL Condo For Sale first appeared on Rulnick Realty.

I received an offer on one of my Destin FL short sale listings.  It was a well-done contract with a fair price- $270,000- just slightly low, but in the realm of “workable” for acceptance by the short sale lender, Chase.  The selling agent said the buyer was a single school teacher, and he provided a pre-approval letter with the offer.  My seller was excited and signed the purchase agreement right away.

The next day, while finalizing my short sale package, the seller called my office with potentially disturbing news.   He said his neighbor mentioned to him at the mailbox, that she received an offer on her own identical floorplan short sale home- from the same agent on the very same day, from the same buyer, the “school teacher”.  The neighbor happened to be a real estate agent.  Concerned, I immediately called the buyer’s agent.  “Is this the same buyer? Does he really intend to buy two homes? Or is he playing games with my seller’s time and my time, waiting to see which offer was accepted and a better deal from the respective short sale lenders?  Would he use the ‘as is with right to inspect’ clause as an out on buying the house he didn’t want? Does he understand both of these properties had to go into ‘pending’ status with our Board of Realtors?” 

Very dismayed, I got uneasy answers from the buyer’s agent.  He said with a chuckle “Yes, he would buy both homes if both were accepted. (On a teacher’s  salary?) Oh, and don’t you know, Wendy, that this is what you should do anyway, this will help you out to see what the bank will take.  This is how short sales are done”, he instructed me.  I explained to him that both houses had to go under deposit per our board rules, and if the buyer was really playing games, there would be serious consequences for one of the sellers.  I hung up the phone and called the neighbor, the real estate agent.  She told me her suspicions were the same as mine, that the buyer was basically using each seller, and that she had unfortunately signed her offer, too.  She was going to speak with her attorney.  I called my seller, and he said he did not want to proceed with the contract unless the buyer decided “which home” he wanted, and to tell the agent to tear up the other contract, or he might have an ethics violation.

The analysis of this situation is indeed disturbing.  The buyer has every right to make an offer on as many properties as he wishes to purchase.  He also has a built-in “out” with the inspection clause, and can easily trump up an acceptable defect to nullify any contract.  But, is his intent legal, if he cannot perform on all his contracts?  This story has yet to be completed.  When I left my last message with the selling agent, his voicemail said, “Thank you for calling Josh, your ‘honest’ Realtor in Northwest Florida.  God bless. ” 

The post "Sly" Short Sale Buyer – A Cautionary Tale first appeared on Rulnick Realty.