Are Short Sale Lenders More Lenient the Second Time Around?

It was almost a year ago that Bank of America approved a short sale on one of my Destin Florida condo listings. The sale price at the time was $260,000. The sellers owed $410,000 on the unit. Bank of America approved the short sale requiring the sellers do a cash contribution of $16,000 towards the loss at closing. Why? Because the sellers were paying two other mortgages on time and they had jobs and regular income.

Unfortunately, the property did not close. The buyer defaulted after approval because he wanted to buy another condo.
Six months later I found a new buyer. The Destin condo market had declined further, so the sale price was much lower. Five months later still, I got the short sale approved by Bank of America. Although little has changed with the seller's circumstances, the investors on this loan were much more lenient the second time around.
Property: Destin Florida condo
Ownership type: Investment
Sale Price: $211,000 (one year ago- approved price was $260,000)
Mortgage Balance: $410,000
Cash from seller: -0- (one year ago- $16,000 cash contribution was required)
Promissory note from seller: -0-
Needless to say, the sellers are delighted. The question remains, though, why were the investors more lenient with short sale approval terms the second time around? Not only did they accept $50,000 less – they required no cash contribution from the seller. This may mean investors are loosening up their approval guidelines in general, cutting their losses and moving forward. It may be good news for homeowners in trouble who are considering a short sale.
It's Wendy!
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
Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.
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Countrywide Approves Destin Short Sale- But Denies Buyer Loan Due to Underappraisal

This is a true story. You may have thought you heard all the crazy stories you could about Countrywide and short sales, but you haven't.

Countrywide approved a short sale for a Destin Florida condo for $100,000. Wonderful. The buyer, who had applied for a loan with Countrywide, proceeded to finalize his own mortgage to close. Countrywide ordered the buyer's appraisal. The condo only appraised for $87,000. Countrywide will not give the buyer a loan for $100,000.

I called the Countrywide short sale department to let them know that their Countrywide mortgage department would not issue a loan for the approved amount of $100,000, and faxed them a copy of their own appraisal for $87,000. They said their was nothing they could do and closed the file.

We now must re-submit a new short sale. This is so insane, that I am almost speechless.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
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Destin Short Sales & Pre Foreclosure Help.
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Short Sale Approved- Destin Florida Condo

This Sandestin Florida short sale was submitted on March 4 and received approval on March 27- three weeks!

Factors:
Property: Gulf front condo in the Sandestin Beachside 2 building

Marketing Challenge: 5 year inventory of condos for sale in Destin Florida

Mortgage: EMC

Original Purchase Price: $800,000

Sale Price: Full Price offer of $359,000

Debt Cancelled: Over $350,000

Promissory Note: None

Cash Contribution: None

Contact an experienced real estate broker to sell your short sale on the Emerald Coast of Florida.

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

Search All 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

Call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or help you buy a home or rental property on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy is a short sale and pre-foreclosure specialist and can help you sell or buy a short sale property in and around Destin Florida and the Emerald Coast.

Destin Condo Short Sale Approved in 7 Weeks

This Indian Lake condo in Destin Florida has been approved for a short sale by Countrywide. It was listed by three agents before me for over two years. The stunner is - I got a good offer for my seller in less than 60 days, and got her short sale approved in only seven weeks!

Summary:
Property: condo built 2004, 920 square feet
Mortgage: Countrywide - about $150,000
Hardship: Seller lost one job, had hours cut on second job, see "Destin Short Sale Seller: I Just Want Out"
Original List price: $98,000 November 19
Priced Reduced: to $86,000 December 22
Contract: received fair market offer on Jan 12

Approved: March 3
Time from Package Fax to Approval: 7 weeks

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Search All Destin Florida Homes for Sale
Destin Short Sales & Pre Foreclosure Help.
Read Destin Real Estate Blog

Call Wendy Rulnick, Broker, 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

Call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or help you buy a home, condo or beach property on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County - Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy is a short sale, pre-foreclosure and marketing specialist and can help you sell or buy a short sale property in and around Destin Florida and the Emerald Coast.
All Rights Reserved. *Destin Condo Short Sale Approved in 7 Weeks!* Contact Wendy Rulnick regarding Destin Florida real estate and Emerald Coast homes for sale. Copyright © 2009 by Wendy Rulnick.