I have a house listed for sale in the Mack Bayou area for $187,100.  The sellers had purchased the home as an investment property but were no longer able to cover the mortgage, as rental rates have decreased on the Emerald Coast.  The home needs work- carpet, paint, etc, and has about six tenants living in it.  After four months of gently lowering the price, and still no offer, we were sitting below what typical market value might be. 
Lucky for us, we got an offer for $185,000!  The first time home buyers were SO excited and loved the home.  Per my recommendation, and since it was Countrywide, their agent structured the contract for a 120 day short sale approval timeline, the buyers put down earnest money, and we eliminated closing costs we know Countrywide won’t usually pay.  The package was submitted.

A few weeks later, I found out during my bi-weekly phone call to Countrywide, that the file was “closed” due to “insufficient offer”. I was dumbfounded.  Yes, the offer was a bit below some of the competition, at about $195,000- $200,000, but not low enough that the file should be “closed” and not even countered.  I did two things.  I contacted a negotiator who had helped me in the past, and I called the short sale department again.  The representative was very helpful, and listened carefully as I explained my bewilderment at the file being closed.  She gave me her email address and I sent in my comps indicating the price was not that far off. I sent the same to the negotiator. A few days later, I got a call from Countrywide.  They told me the file would be re-opened, and suggested the buyers increase their offer by $5000.  We did it.

A couple weeks later, the Countrywide Phase II negotiator told me the offer was still too low, “Could the buyers come up by another $10,000, to match the appraisal?”  The buyers said “no”.  The negotiator said the investor also might require a promissory note, or it would be declined anyway.  I told him the couple had no money, were self-employed and barely getting by.  I also had their primary residence for sale as a short sale.  He said he would submit the package as is and see what the investors would do.

One week later – APPROVED!

In summary, do not give up if you have a strong case. I could have said “OK” when Countrywide told me they closed the file.  I could have put the home back on the market, and waited for six months for another offer.  The buyers would have lost their home.  The sellers may have gone into foreclosure. Countrywide would have gotten even less in the future.  So don’t let the negotiator close the file or close the door on your sale!  Submit a strong offer, one that YOU can justify.  Tell them to let the investor decide.  You may be pleasantly surprised.

The post Santa Rosa Beach Florida Short Sale – Success Story first appeared on Rulnick Realty.

Scenario:  Seller owes $360,000 on a lot he purchased in Santa Rosa Beach, Florida.  He has drained savings to keep up with the payments, and has nothing left, short of his IRA retirement saving account.

Market:    There is a 10 year inventory of lots for sale, and those in the subdivision are now listed in $140,000’s.  If his lot could even sell, there would be over $200,000 shortfall.

RBC Says: Yes, they will allow seller to do a Short Sale.  BUT they will attach and “go after everything in his name, including cars” and other real estate.  They will not attach property co-owned with his wife.

Seller owns another investment property, a Santa Rosa beach condo, with over $100,000 in equity in my market in his name alone.  However, there is a six year inventory of condos for sale.  RBC would have to wait perhaps six years to get any equity from the condo.  By then, the value may be down so that there is no equity.  Or RBC may be out of business.

The post RBC Centura: Wants Santa Rosa Beach Lot Seller’s Car? first appeared on Rulnick Realty.

Today’s Mission:  To prove to Citi short sale negotiator that real estate values have declined in my area on the Emerald Coast of Florida.

Scenario:  Santa Rosa Beach FL home with short sale offer for $225,000.

First Mortgage:  Saxon –  $258,000

Second Mortgage:  Citi –  $80,000

What Citi Negotiator Says: “How could value be so low?”

Wendy: “The market”

Citi: “Hmmph…  I don’t believe that market c*&p.  I’ll do my research”

Wendy: “There is a four year inventory of houses in the Santa Rosa Beach market area”

Citi: “We’re not just taking $1000 or $3000 offer.  I’ll just let it go to foreclosure.  I’ll make this short and sweet.  We’ll just walk away and the first won’t be able to accept the short sale.  Get me the hardship letter and HUD and I’ll get back to you.  That’s why I got into this business, because I am experienced.” (true rendition)

Wendy, should you choose to accept this mission, and educate a Citi negotiator, you may save a man from foreclosure.

Mission accepted.

The post Citi Rep Says "The Market" Didn’t Cause Price Decline in Santa Rosa Beach FL first appeared on Rulnick Realty.