Wells Fargo, formerly Wachovia, has approved a Magnolia Bay townhome in Sandestin Florida as a short sale. The unusual part of this short sale was that the senior mortgage holder, Bank of America, was not “short”.What does this mean? The sales price of the property was more than enough to pay the balance on the Bank of America mortgage. That is an unusual situation in Sandestin Florida and vicinity. Most short sales in the market area are “upside down” on both mortgages. Usually, the senior lien holder will pay a paltry sum to the junior lien holder to “entice” them to release their lien and allow the sale. In this case, Wells Fargo was satisfied with about one-third of its balance, and approved the short sale.
Hint: If you are negotiating with a junior lien, consider offering a cash contribution. They may then approve your short sale as “settled”. It will be reflected on your credit report, but you will be done with them. As always, consult an attorney and an experienced Sandestin short sale agent.
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: [email protected]