If you are a short sale buyer’s agent, it can often be frustrating waiting for any scrap of information for your buyer.

But just how often should you call the listing broker to check for status?  I get a wide variety of buyer’s agents selling my Destin Florida short sales.

Agent Mellow:  He might contact me once a month to find out how the short sale is progressing.

Agent Never:  He never contacts me during the approval process.  I will send him updates, but if I don’t, he’ll just be “surprised” when I forward the final approval.

Agent Antsy:  He emails me almost every day.  Any word? Is the appraisal back? Do you have approval? Etc. Etc.

Agent Even:  He calls or emails about every week or two.  He is on a program.  He might check in more often if his buyer asks.  But he tells his buyer in advance how often he’ll provide an update.  This is the guy to emulate.

If you are a buyer’s agent and sell one of my Destin short sales, feel free to email me once a week.  Don’t call on Monday – it is the highest volume call day for short sale lenders.  Thursday or Friday is a good day.  Prepare your buyer about the short sale process.  Let them know how often you’ll be getting updates. 

Work as a team with the listing agent and keep your buyer in the loop.  That way, everyone will be cool and prepared when you finally get approved!

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy’s Destin Real Estate Blog

The post How Often Should You Call the Short Sale Listing Agent? first appeared on Rulnick Realty.

   “Yes it is a long time and they do understand the contract but they are not obligated to the contract until the bank responds.”

  “It was contingent upon the banks acceptance of the offer and the bank did not accept the offer yet.  We did not have a contract only an offer.  I do not see the need of a letter or a release of contract since there was no contract.”

 My question to these, and other agents, is, if it is not a contract, what is it?  Of course, it is a contract.  Contracts have contingencies all the time that require action by third-parties.  For example, the buyer’s lender must make a decision on the borrower’s ability and the value of the home.  The buyer’s home inspector will provide data on the home’s condition.  The title agent will determine if there is marketable title.  These contingencies do not negate the fact that there is a contract.  But any one of these factors can initiate a termination of the “contract”.

 What steps can listing agents take to ensure their seller is protected from “escape artist” buyers?

1.  Require buyer contingencies to be fulfilled without waiting for lender approval, such as home inspection and mortgage application.

2.  Require an earnest money deposit (called escrow in some states) upon acceptance by the seller, not upon lender approval.

3.  In return for buyer’s forthright investment in the contract, place the property “under deposit” in the MLS system.

Until selling agents educate their buyers about the gravity of being in a contract when buying a home, we will continue to see short sale contracts fall apart.

The post When is a Contract NOT a Contract? 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.

1. Determine if your seller has a legitimate hardship.  Some of those are: loss of income, divorce, medical, transfer, job loss, death of breadwinner, etc.  Not “I want to move”, “I am tired of paying the mortgage” or ” The value of my house went down”.

2. Very important -ask your seller to contact his lender before you list the property.  Why? The lender may have a loan modification or forbearance plan that may help your seller solve his problem.  Additionally, the lender may have its own preferred loss mitigation package to send to your seller.  Further, a few lenders order an appraisal of the property at the beginning of the Short Sale process.  Some examples are: BB&T, First American, and Citi Residential.  The early appraisal may be helpful to you in determining a target “net”. The challenge of an early appraisal, however, is that the market is still declining in most areas and appraisals don’t stay valid for long.

3. If your seller has received foreclosure correspondence from his lender, recommend he contact an attorney.  In any event, your seller may want legal advice if he has any concerns about his rights with his mortgagees.

4. After listing the property, prepare your separate Short Sale file in advance.  This will save you time when you receive an offer, and keep you organized.  It’s best to have a separate Short Sale folder, because extraneous information, such as surveys, disclosures, etc. will not be needed to send to the lender.

What is in this file?  For each lender, such as first mortgage and junior lien, prepare a set of documents as follows:

• Hardship letter
• 1-2 years tax returns
• Financial Worksheet
• Listing Agreement
• Payoff of other lien if more than one (order immediately after listing)
• Letter of Authorization (send to lender immediately after listing)

Use pre-printed labels for every page with appropriate loan number and description of what each page is, e.g. Hardship Letter 877600984

Remember when you actually have a contract you will need to supplement each package with your seller’s most recent proof of income and bank statements.

There are many factors that contribute to a successful Short Sale.  Preparation and organization are two of them.

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