Qualifying The Short Sale Seller

Yesterday I got a referral to a Short Sale seller. The agent who referred her was not familiar with Short Sales and thought I could help. I called the seller. The phone conversation went like this:

Wendy: "Why do you need to sell the house?"

Seller: "It is really too much for me."

Wendy: "In terms of...?"

Seller: "The market value has declined and we pay too high a mortgage. We can rent a house like ours for less, and I want a different house."

Wendy: "Can you afford your mortgages payments?"

Seller: "Yes."


Wendy: "You don't have a hardship. The Short Sale lender will only approve a sale where there is a legitimate hardship and inability to pay."

I proceeded to go over her income and expenses and we found she had about $700 extra per month after paying bills. It is prudent to qualify our sellers before we take a Short Sale listing.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Selling Real Estate on the Emerald Coast of Florida: Destin, Fort Walton Beach, Navarre, Niceville, Santa Rosa Beach and vicinity. Call 1-877-487-9639.
www.ShortSaleForeclosureHelp.com
www.RulnickRealty.com

Winning: Tennis & Short Sales

What does it take to be a winning Short Sale listing agent? Among other qualities, the number one attribute is: tenacity. Webster's dictionary says to be tenacious is to be "persistent in maintaining, adhering to, or seeking something valued or desired".

One can liken the attitude to that of Rafael Nadal's, who just won the Wimbledon tournament by enduring five grueling sets against the long-time reigning champion, Roger Federer. It was the longest finals in Wimbledon history at four hours and 48 minutes. No matter how grim the outcome looked, overcoming the challenge of the grass court, overcoming Federer's brilliant play, and overcoming missed chances to win again and again, Nadal prevailed. He never gave up. And he won.

When interviewed he said "I had a very positive attitude, l felt confident with myself.
"It's the final of Wimbledon so I have to continue fighting all the time... I had a winner's attitude.... If you play with a good mental attitude, even if you are not 100 percent, you can win because you win more with your heart, with your will power than with anything else.... If you fight all the time, if you have a good mental attitude, it works."

Each Short Sale we have is like the Wimbledon final. It is us against the big bank, the big corporation, the black hole of voice mail, check boxes, customer service reps, missed faxes, flawed appraisals and bad attitudes. It is fighting every "NO" and coming back with brilliant volleys, critical thinking, quick recoveries and getting back up after every lost point. It is tenacity- never giving up.

Successful Short Sale listing agents have this attitude. That's how they win.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Fort Walton Beach, Santa Rosa Beach, Niceville, Bluewater Bay, Sandestin, Seagrove Beach, Navarre and vicinity.

Call 1-877-487-9639
www.ShortSaleForeclosureHelp.com
www.RulnickRealty.com

Appraisal Rebuttal: First American-SunTrust Short Sale

Do you have a First American Bank (subsidiary of Suntrust) Short Sale with a Fannie Mae-backed mortgage? If so, prepare for difficult times proving contract price in a declining market. Unlike many other lenders, First American is proactive working with the homeowner ahead of time in the Short Sale process. And in doing so, they perform appraisals on the subject property even prior to an offer. The problem is - they will only do an appraisal every six months! No matter what. Why? They say that's all that Fannie Mae will pay for. That makes no sense, especially in a quickly declining market.

Here is my appraisal rebuttal to First American, who used an old appraisal, after receiving a good offer for $170,000 on a Short Sale listed for $183,000 but which appraised for $200,000 two months earlier.

With regard to the offer for 12 School St., Navarre, FL for $170,000 plus VA buyer closing costs, I believe the offer deserves serious consideration. I am told you have an April 2008 appraisal for $200,000. I am disputing the validity of that appraisal in this market for this particular home. Here is why:
The subject has been listed since APRIL 2007- over a year- with a price dropped in December 2007 from $249,000 to $214,900- no offer
The price was again dropped to $205,000 for 60 days in March and April 2008- still no offer
From April 2008 until today- 60 more days-- the price has gradually dropped from $189,000 to $183,000
On June 11 an offer for $152,000 was received. This was rejected.
Finally an offer arrived on June 13 for $170,000 (plus some VA closing costs)
If the house was worth $200,000 as stated in the appraisal, it certainly would have been snapped up in the $180's
The property has NO SOD in the backyard, just dirt.
The property needs carpet, which is stained.
The property is on a road with the Navarre High School and a few lots down from the Sheriff's office. This is NOT a desirable neighborhood, as it has backed-up traffic and the trouble that comes with those public-use properties.
The average months inventory for Navarre is 13 months.
This is the only viable offer received. This is a good offer and a lucky offer.

I provided additional comps, market statistics and listing history with this narrative. I will advise with updates on hopefully a positive outcome.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
www.ShortSaleForeclosureHelp.com
www.RulnickRealty.com

Countrywide: Just the "FAX" Please!

Remember when you were little, there was a game when you'd whisper something in someone's ear, and they would whisper it to the next person, etc, and by the time it got to the last person, the story had changed? Well, it still happens in the grown-up world, and it's pretty scary when it happens with something as important as a Short Sale approval. Here is an adult story of how the most careful communications can go awry, threaten closings and impact moving vans and people's lives....

Scenario: Countrywide Short Sale, four months after initial offer submission, 40 phone calls made by listing agent following up on status during that time period... ( I counted them).

Monday: I finally have the negotiator tell me she will approve the Short Sale. She says I should receive the approval letter on Wednesday. I report this to the wearily waiting buyer's agent so he can calm his anxious buyer. The buyer wishes to close immediately.

Wednesday: I call Countrywide to see where the approval letter is, as it was promissed today. The rep says the notes in the file read: "Short Sale approval sent" on Monday! I told him I did not receive a fax. I verified the fax number, and he said he would have it re-faxed. I tested my fax machine to make sure it was working. I checked my e-fax queue to make sure I didn't miss anything. Nope. No fax.

Thursday: I still do not have the approval fax. I call Countrywide and provide an alternate fax number.

Friday: I still do not have the fax. I call Countrywide and provide my email. Meanwhile, the buyer is getting upset, and leaves messages on my voicemail. He tells his agent he has been waiting long enough. He has to cancel his moving truck by 3:00 p.m. I call Countrywide back five times. They said they will "escalate" the problem to upper management, as only the negotiator can fax the approval.

Saturday: Still no fax. I call Countrywide. They are closed.

Monday Morning: Negotiator finally calls my office and speaks with my office manager. She says, "File is NOT approved." She will call me tomorrow. Oh no! How could this be such a serious mistake? I have my sellers moving furniture out the next weekend, and the buyer saying he'll walk if the promissed letter is not delivered and his closing is put off one more time.

Monday Afternoon: I call Countrywide and re-question, how could they tell me the file was approved, when the negotiator says it was not? The new rep checks deeply. She says someone mis-read the notes. She says the check-box in their system where it shows "Approval Letter Faxed" has NOT been checked off. She says the file was only being sent on for final approval. She says each rep I spoke with only looked at the notes from the previous rep's conversation with me, stating the approval fax had not arrived, and it needed to be re-faxed. The rep states she is sorry, and they were in error.

Tuesday: I finally personally talk to the negotiator and explain the can of worms started by her company, the seller with the furniture to move, the buyer with the final closing date and moving truck. She says the approval letter will be faxed, hopefully today. Here I sit, waiting... it is almost 6:00 p.m. Still no fax. I am sure I'll get it tomorrow....

UPDATE TO POST:
Wednesday Morning: I call Countrywide asking where the approval letter is. They say they need my FAX NUMBER! I am not kidding.

Wednesday 5:02 p.m.: Approval received!

Best of luck with yours!

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Fort Walton Beach, Santa Rosa Beach, Sandestin, Niceville, Bluewater Bay, Navarre, Crestview, Inlet Beach, Rosemary Beach, Seacrest Beach, Blue Mountain Beach and vicinity.
Call 1-877-487-9639 or 850-650-7883 ext 204

http://www.shortsales-emeraldcoast.com/
http://www.rulnickrealty.com/

How Many Countrywide Short Sales in Review?

If you are working on a Countrywide Short Sale you may want to know that as of today:

Countrywide has 27,000 Short Sale files in review.

Best of luck with your approval!

It's Wendy!
Wendy Runick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Fort Walton Beach, Niceville, Navarre, Santa Rosa Beach, Sandestin, Rosemary Beach, Sandestin, Blue Mountain Beach, Crestview, Mary Esther, Bluewater Bay, Shalimar and vicinity.
Call 850-650-7883 or 1-877-487-9639.

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Keep Short Sale Buyer Agents Happy!

Are you a Short Sale listing agent? If so, you know the importance of having those buyers hang in there for three, perhaps four months after submitting an offer to the Short Sale lender. It is critical to keep their selling agents in the loop with frequent updates, and a "team" approach to getting the sale approved. That way, there will be a higher chance that they inform their buyers and help them remain dedicated to the purchase.

One tool I that use is to ask the buyer's agent to contact me at least once a week with an update request and also to "tickle" me to call the Short Sale lender. Although I schedule lender calls with my own software, sometimes I get busy, and I welcome an extra reminder from an interested agent. This approach makes us teammates in the grueling Short Sale approval process, and I've had nothing but positive results.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

www.ShortSales-EmeraldCoast.com

www.RulnickRealty.com

CHASE: Won't Forgive and Forget

Do you have a CHASE Short Sale? If so, expect to read this on your approval letter:

"The customer is still responsible for all deficiency balances per the terms of the original loan documents."

Yes, they might approve the Short Sale with this sentence "Chase agrees to release its security interests in the 'subject property' collateral". However, expect to be solicited by their recovery department for the balance of your mortgage after closing.

What to do? After consulting with an attorney, my seller decided to go forward with the Short Sale. Her attorney advised Chase was in a weakened position with no collateral. i.e. house to attach.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Emerald Coast Short Sale Help
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