destin florida short sales - Rulnick Realty

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Destin Florida Short Sale Agent Negotiates Success

Wendy Rulnick — Wed, 05 Jan 2011 19:55:54 +0000

Sometimes when you think you are “done” with Destin short sale negotiations, you are not done! A short sale has many steps. There are several “layers” of negotiations. I am going to use my recent sale of a Destin Florida condo as an example. The property had two mortgages, both with Chase. It was an investment property.

Negotiation #1: The Contract. Contrary to some beliefs, not just “any” contract should be sent in to the short sale lender (also called servicer). Why? Because sending in too low an offer would lose marketing time for the seller if the offer was not approved. Countering early and getting a positive response from the buyer also indicates more sincere interest in sticking with the sale. Patience comes into play at this step. The buyers offered $275,000. We countered the price and terms to be more “approvable”. The buyer agreed to $290,000 after deliberating for several days. Getting the price right from the beginning saves time later, as it probably won’t be countered by the short sale lender. And this one wasn’t.

Negotiation #2: The Homeowners Association. This Destin Florida short sale condo had two associations. The dues were many months behind, not uncommon in my part of Florida. Chase would only pay $1,500 toward dues totaling $12,000, since there were no liens filed. If there were liens filed by the association, Chase would have paid them. (Hint). Sometimes HOAs will reduce their balance and “settle” for less. These associations would not. After much negotiation, they finally agreed to release their liens with a partial cash contribution and promissory notes from the seller.

Negotiation #3: The Senior Lien Deficiency Waiver. The dreaded “deficiency” is the balance still remaining on the note after the proceeds are applied from the short sale. (Not all short sales result in the lender settling for the funds received at closing. They may seek the outstanding balance from the seller via a deficiency judgment after closing, or with a note, etc. agreed to at closing). We asked if it could be waived in full. The Chase Senior lien saw that the seller had a real hardship, as he was in the building industry. His income was negligible and he was unable to pay the mortgage, plus any rental income could not sustain the payments. The negotiator asked if the seller could contribute anything in cash at closing, and write a second hardship letter explaining that he would be unable to pay the deficiency. (Hint) The seller agreed to contribute $3000 and his deficiency was waived in full.

Negotiation #4: The Junior Lien Deficiency Waiver: The Chase Junior Lien initially issued approval with a $5000 contribution from the Senior Lien. They did not, however, waive the deficiency. We went back to ask what it would take. At first the negotiator asked for 50% of the balance, or about $50,000. After we talked and he saw that the Chase equity line was used for items other than “toys”, he said the lowest he could take was 25% of the balance, $25,000. I discussed this with the seller. Fortunately, the seller had detailed notes of his previous Chase conversations, where they had offered to settle for $12,000 a year ago. I put the seller directly in touch with the negotiator, who dug through the file, found the old offer, liked the guy, and agreed. (Big Hint: Do not be afraid to allow the seller to speak directly with the negotiator!)

Through much negotiation this story ended in success for my Destin short sale seller. It wasn’t easy, and it wasn’t pain-free. The seller never once denied his obligation, he sought all possible solutions, and he can now move forward with his life.

Each short sale has a different story. There are many layers of negotiation, and many possible endings. If you are facing foreclosure in Destin Florida, and are seeking an experienced Destin short sale agent, let’s see if we can write a success story for you.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

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Bank of America Approves Indian Lake, Destin FL – Short Sale

Wendy Rulnick — Tue, 30 Nov 2010 22:04:02 +0000

This Destin Florida condo at 4030 Dancing Cloud Ct was just approved for short sale by Bank of America.

It was an interesting journey selling this Indian Lake condo unit. Over a year ago, Bank of America had a contract with a much higher purchase price. They approved the sale, but the buyer’s lender, also Bank of America, appraised it for less. Bank of America’s short sale department refused to lower their approved value, so the sale fell through.

Fast forward one year later. The condo is now worth almost half. We get a new contract for about $50,000. Bank of America takes an extra month to move the short sale into the HAFA program (Home Affordable Foreclosure Alternatives). After sixty days, they determine the seller does not qualify. They finally issue approval as a traditional short sale.

Meanwhile, the past due association fees have added up to almost $20,000. Luckily, the association agreed to settle for half, which was paid by the buyer.

If you are trying to avoid foreclosure in Destin Florida, consult an attorney and hire an experienced Destin short sale agent.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

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Story of a Bank of America – Destin Florida Short Sale Approval

Wendy Rulnick — Tue, 23 Nov 2010 19:20:43 +0000

Sometimes you only hear the end result of a short sale being approved. Here is the background story of a Bank of America – Destin Florida short sale approval:

Sept 2 – I list a Destin short sale home for $237,900 – difficult to price, with some pending comparable sales higher, and some Destin foreclosures lower. I started on the high end of the scale, with the intent to reduce in thirty days if we didn’t get a contract. After that point, I would reduce the price weekly, or more often, depending on my daily price analysis.

Sept 12 – We get a low offer – for $210,000. Since some comps were far higher, I advised seller not to take this offer, but to counter. The philosophy is to send a contract to Bank of America that will likely be approved. Even though you might think $210,000 is not that far off, I know my market place. If the buyers will not come up to a higher price now, why waste time taking the home off the market to see what Bank of America says later? Let’s find out. Seller counters at $230,000.

Sept 20 – Buyer backs away, but finally returns. Twenty days after listing home is under contract for $225,000, with interest of buyer evident (key in short sale approval process).

Sept 22 – File is uploaded into Bank of America Equator system.

Sept 27 – Bank of America says seller signature on authorization does not match his signature on original loan. We send in letter of explanation from seller that his signature slant changes. Apparently, this explanation is accepted.

October – Appraisal ordered, more financial information from seller requested. Proof home has been on the market for sixty days is requested. It was only twenty days! I tell negotiator, “We got a lucky buyer shortly after listing”. Apparently, this explanation is accepted.

November 2 – Bank of America asks seller for $23,000 – or 10% of the deficiency balance that won’t be covered by the short sale, to be paid as cash from seller at closing. Negotiator says a lesser amount would work, but only 10% would waive any future deficiency

November 3 – Seller agrees to pay $3000.

November – Bank of America asks for new bank statements, new HUD, addendum to contract with closing date change. Negotiator says seller cash contribution is low, and file might be rejected by investor.

November 17 – Short sale approved.

If you are considering short sale as an alternative to foreclosure, contact an experienced Destin Florida short sale agent.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

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Chase Approves Destin Florida Short Sale – Quick!

Wendy Rulnick — Wed, 29 Sep 2010 15:33:31 +0000

Chase has approved the short sale of 1 Pine Ridge Trace, Destin Florida.

Details?

Senior Lien: Chase Home Finance

Balance: $185,000

Junior Lien: JP Morgan Chase Bank

Balance: $25,000

Sale price: $90,000 appr

For you sleuths who like to analyze investors, this one was Freddie Mac. The mortgage also had a sub-investor pool who utilized MGIC for credit enhancement. Basically, MGIC was the mortgage insurance company for this group of investors. MGIC only allowed $500 to the JP Morgan Chase junior lien.

The interesting thing about this process was that Chase Home Finance communicated strangely with JP Morgan Chase. Even though they are part of the same company, they had me act as a go-between to relay information, get each other’s email addresses and move the process along. A good word of advice when you are dealing with any Chase division as both the senior and junior liens- initiate the process with each division separately. It may speed up your approval time.

Bottom line – this Destin Florida short sale was approved in 36 days.

If you are considering short sale to avoid foreclosure, consider hiring an experienced Destin short sale agent.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

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The Palms, Destin Florida – Short Sale Approved

Wendy Rulnick — Wed, 29 Sep 2010 14:14:05 +0000

This beautiful condo unit at The Palms in Destin Florida was just approved for short sale.

Lender: Bank of America

Payoff: $324,000

List Price: $124,000

Notes: Bank of America initially rejected the buyer’s offer of $100,000. They countered $119,000 in Equator, the bank’s online negotiating platform. The buyer would not come up in value. Instead of simply clicking “no” i.e. rejecting the bank’s counter-offer in Equator, I called and emailed the negotiator to find a solution. Otherwise, the file might have been closed. The seller also agreed to participate in the loss with a cash contribution.

Result? Approved!

If you need to short sell your condo in The Palms, in Destin Florida, contact an experienced Destin short sale agent.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

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1 Pineridge Trace, Destin Florida Short Sale

Wendy Rulnick — Thu, 19 Aug 2010 18:03:16 +0000

Very chic Pine Ridge Trace townhome with modern, edgy decor in the heart of Destin Florida. This short sale home has slate floors punctuated by vividly painted rooms. Kitchen has urban feel with stainless countertops, peek-through cabinets, bright pendant lights over breakfast bar. Kohler fixtures and cast iron sink, newer appliances. Master bath has travertine floors, frameless shower, mahogany vanities, marble vessel sink. Newer carpet in bedrooms. Recently painted rear deck, overlooking fenced yard. This two bedroom Destin short sale is an end-unit with private side entrance, and parking for two vehicles.

Offered at $90,000.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com