Most short sale lenders don’t authorize a list price in advance.  This presents a quandary to the short sale listing agent.  Instead of watching the market and keeping an eye toward what the lender might approve, they send in a low-ball offer.  One that will likely NOT be approved.  This method may even be encouraged by the seller to find out what the bank really wants.

Let’s say the home is worth $350,000, but the buyer offered $250,000.  “Send it in! Let the bank decide! Then at least we’ll have a value!” is the common mantra. Why is this a problem?

Your short sale seller probably has to take his home off the market while the lender processes the low offer.  At least that is required by my Emerald Coast Associaton of Realtors MLS.  Your seller is losing marketing time while the lender analyzes the offer you know won’t be accepted.  One month, two months, three months off the market?  All the while, your seller is getting ever closer to foreclosure.

After ordering a Broker Price Opinion or appraisal and establishing a value, the short sale lender will probably deny the short sale or counter offer, since the buyer’s price was far too low.  If there is a counter offer, the buyer, never intending to pay market value, walks.

Result?  Your seller is now stuck with a 90 day valuation or even a six month valuation, if it’s a VA compromise sale. “Yea!” — You have a price the bank will accept.  “Boo!”– Your real estate market is still declining.  You are now STUCK with this price you “helped” generate for months to come, because lenders do not order new valuations for every offer.

What is the key to getting a short sale approved ?  Watch your market.  Scan the comparable listings. Price accordingly.  Get a strong offer for fair market value,  a buyer willing to wait and an earnest money deposit.  And get your short sale 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 Do You Have Time To Waste? Then Send In Low Short Sale Offer! first appeared on Rulnick Realty.

I have been negotiating a short sale offer for a Destin Florida condo for about a week.  Today I received the following email from the buyer’s agent:

“Here is my buyer’s final offer for the condo.  Purchase Price – $150,000

 $50,000 at closing, $50,000 in 12 months and the other $50,000 in 24 months.

 Seller to pay all closing costs 

 Seller to pay 6 months of condo dues

He would like an answer by 2pm on Monday.”

Enough said.

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

 Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help. 

Read Wendy’s Destin Real Estate Blog 

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 Can I Put That Destin Condo on Layaway? first appeared on Rulnick Realty.

Do you think your 401K is safe? Attorneys have told me in the past that short sale lenders won’t touch your retirement money.   Guess what?  FALSE! Today a Bank of America negotiator asked me to have my seller liquidate HALF his retirement account to get his short sale approved.

The seller has a $400,000 loss on a short sale property in Destin, Florida.   We have been in the short sale process for fourmonths.  Today the negotiator said the file will not be approved unless he liquidates half his IRA for a $70,000 contribution.   She said he has “some” income, although he has lost most of it because he is in sales….   His wife was laid off last week.  There are no other funds.  That is irrelevent to Bank of America.  His wife’s name is not on the loan.

I asked the negotiator, “Why would someone agree to give up half their retirement?   They could refuse, then your company will have to pursue a deficiency judgment to try to get the $70,000 after a foreclosure .”   She could not answer me, and I have yet to figure out the logic.   $10,000, $20,000? OK, that makes sense.   But half of someone’s retirement account?   I can see how a seller might “roll the dice” and say “no” to the short sale, not give up $70,000, then wait and fight after a foreclosure.   It might cost them $20,000 in attorney’s fees, but they might also save $40,000, not too shabby in this economy. I say if this is a trend, many sellers will take their chances with foreclosure.

What do you think?

It’s Wendy!

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Destin Real Estate Blog

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

Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com

The post Short Sales- Bank of America May Ask for Your Retirement Account first appeared on Rulnick Realty.

The June 2009 issue of Florida Realtor Magazine references Wendy Rulnick, Destin FL Broker/Realtor of Rulnick Realty. Rulnick’s article “22 Questions to Ask the Short Sale Lender” is called “impressive” and will help “ensure your transaction goes smoothly”.

The post Destin Broker, Wendy Rulnick, in Florida Realtor Magazine re: Short Sales first appeared on Rulnick Realty.

If you don’t call the Short Sale lender EVERY 3 days…

1. It might be a month before the short sale lender lets you know you are missing paperwork (they “lost” it)

2. You won’t know you’re not “authorized” (they misplaced your letter)

3. You won’t know they NEVER got your short sale package, (although you have the fax receipt)

4. They might never “refer” the file as a short sale (Countrywide cases) because it’s still in loan modification process

5. They won’t call YOU with a counter offer until they “get” to it next week

6. You might not get connected with the “right” rep who gives you a different answer and really cares

7. You won’t be able to tell them the appraisal STILL has not been ordered

8. You won’t be able to tell them the BPO agent went out to the property 3 weeks ago

9. You might not find out about the scheduled foreclosure sale date, nor be able to postpone it

10. You won’t find out they’ve switched negotiators, because the previous one no longer works there, so you’ll have to start all over

11. You won’t be able to save the file from going to collections

12. You won’t find out the junior lien was sold to an MI company as an insurance claim

13. You won’t know they rejected the offer and closed the file

14. You won’t find out the negotiator didn’t get your email because you mispelled her name

15. They’ll forget about you

In short, no matter how excessive it may seem, it’s critical to stay on top of the short sale lender. One phone call may be the difference between approval or denial.

The post Why You MUST Call The Short Sale Lender Every 3 Days first appeared on Rulnick Realty.

To take on a listing in this market, and any market, involves taking a risk. That is, a substantial business investment covering the cost “doing” business, which includes time, advertising, payroll, insurance, licensing, internet, phone, rent, etc. etc..  In a normal market, the calculated risk of the business investment is that the listing will most likely sell, and the burden of expenses will reimbursed, plus some business profit.    With a Short Sale, the risk is much higher.  Why?  The Short Sale lender may not approve the sale.  And the time investment to reap a return may be five times longer than a normal sale, reducing any profit if the sale is approved.

To lessen the key business risk of an unapproved Short Sale– both for me and my seller, I must control the Short Sale from start to finish.  Why?  Because I can:

• Assemble excellent lender packages personally reviewed by me
• Directly and immediately respond to negotiators’ calls and emails
• Immediately provide well-written market narratives and critical analyses proving price
• Ensure that appraisers and bank BPO agents understand the subject property’s challenges
• Immediately provide additional documentation required by the lender
• Keep the parties well-informed and in the deal
• Document all tasks in detail for transaction-saving reference
• Provide creative solutions to negotiators’ demands such as promissory notes and cash contributions
• Use twenty years of negotiations skills to ensure success

Can a third party do all this?  Perhaps.  But I know I can. If I pass along the critical Short Sale negotiation stage to a third party, my company’s business success is entrusted to others, as is my seller’s chance of approval.

The post Why I Negotiate My Own Short Sales first appeared on Rulnick Realty.

Faxed Vanderbilt 41-page short sale package with typical items, contract, settlement statement, hardship letter, etc.

After several days and numerous phone calls to Vanderbilt, they state the party handling the file is on “vacation” and to fax all to a different number.

After several more days and numerous phone calls to Vanderbilt I am told they cannot find the fax.  OK, I am used to this sort of thing, so ask where they want me to fax it the third time.  The girl says, “You don’t need to fax it again, just tell me the net.”  I was a bit dumbfounded, and pressed that I didn’t want to waste the effort I had made in preparing the package.  She insisted and I told her.  She said she would give the “credit manager” the net figure and told me to call back on Wednesday.  I called back on Wednesday as instructed, and was told the offer was “rejected”. Oh, that’s nice.  “What’s the counter?” I asked.  I was already getting a sick feeling about this bank, call it “short sale intuition”.  The gentleman told me there was no counteroffer, but if I called back Thursday he would tell whoever was in charge to give me a counter.

I called back on Thursday.  That’s today.  I was told the person I spoke with yesterday “did not know what he is talking about.  We do not counter offer.”  I asked “Is this a guessing game?”  She wasn’t very pleasant, and said mortgage balance was $200,000.  I told her that wasn’t market value.  (By the way, most lenders understand that.)  She actually said, “Well, it may or may not be market value.”  And she proceeded to arrogantly spew forth about how they normally don’t entertain short sales and they don’t do things like other companies do.

Fascinated by this statement, I decided to do a Google search on Vanderbilt Mortgage.  Wow.   On their site they claim to be the largest lender for manufactured homes.  But several of the Google results are findings like “ripoff report”, “scam fraud alert”  “complaints”, etc. Apparently a lot of people don’t like Vanderbilt.  Me either.

The post Vanderbilt Mortgage: Attitude and Guessing Games first appeared on Rulnick Realty.