Why I Negotiate My Own Short Sales

In the last couple of days I've been approached by two Destin FL sellers who wish to do Short Sales. After explaining the Short Sale process, I explained what items I would need. When I got to "financial worksheet" etc. I was stopped in my tracks. These sellers told me that their attorney said not to turn over any information, that he would be handling the short sale negotiations. I immediately told the sellers that I will only take the listing if I handle the entire transaction including bank negotiations. Why?

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.

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

Search Destin FL real estate
Short Sale Pre Foreclosure Help.

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

Email itswendy@rulnickrealty.com

Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, 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. Wendy Rulnick, Broker and Realtor, has been selling real estate for almost 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she negotiates successfully to her dients' advantage. She is supported by a team of top buyer specialists. She lists and sells homes, condos and townhomes.

All Rights Reserved. *Why I Negotiate My Own Short Sales* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.
This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.

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Vanderbilt Mortgage: Attitude and Guessing Games

I am working on getting a short sale approval for a house in Destin FL. The mortgage is about $200,000 and the offer is for $130,000 (modified for the sake of confidentiality), which is slightly under maximum market value of $145,000. The lender is Vanderbilt Mortgage. To be blunt, they are not nice. Most lenders have been in this game long enough to know how the system works, and have probably had thousands of short sale requests. Vanderbilt just doesn't want to play. Here is what is going on:

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.

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

Search Destin Florida real estate and vicinity.
Short Sale Pre Foreclosure Help.

Specializing in real estate sales on Emerald Coast of Florida: Destin Florida real estate, 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

Email me at itswendy@rulnickrealty.com

Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *Vanderbilt Mortgage: Attitude and Guessing Games* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity.

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Short Sale Seller Does the "Right" Thing

Today I got a call from a short sale seller. He already listed his house with another Realtor, but had read my blog and wanted to tell me about his scenario. I think he wanted an "ear" to listen to his story, and give him some reassurances. I was happy to oblige. The gentleman had done a cash-out refinance on his house several months earlier- receiving about $15,000 back from the transaction. Since then, his fortunes had plummeted, his roommate had moved out, and he could no longer afford his mortgage payments. His mortgage was backed by FHA, and he told me his lender had given him an acceptable price at which the property could sell. He got lucky, and now has an offer. His short sale package is at the bank awaiting approval. His fears were that he had taken out the $15,000 cash from the refinance, and that based on that, his short sale would not be approved. He said his file was in line for review, and he wanted to "do the right" thing and write a letter stating that he would pay back the extra $15,000 in the form of a promissory note, as he has no savings. He asked me if I thought that would help his case. Sure, perhaps the lender would approve his short sale without a promissory note, or perhaps they would reject the offer, or maybe they would ask for a lump sum payment. But what he wanted to do, to make things right with his conscience and his personal code of conduct, was to pay back that money. And that's what he is doing.

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

Search Destin Florida real estate and vicinity.
Short Sale Pre Foreclosure Help.

Specializing in real estate sales, short sales and traditional sales on Emerald Coast of Florida: Destin Florida real estate, 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

email itswendy@itswendy.com

Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *Short Sale Seller Does the "Right" Thing* Contact Wendy Rulnick regarding Navarre Florida real estate and vicinity.

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Short Sales: Time Frame and Approval Process

I get phone calls almost daily from agents in my market asking how long the short sale lender will take to respond, if they have approved the price, and how "far along" in the process the short sale is. Here are the answers:

1. How long will the lender take? Use a 90 day closing in your contract- for starters. Depending on the lender backlog, your closing may take as long as four months, if approved. The last closing I had with ASC, for example, was submitted as a complete package on December 7, 2007. It closed on March 27, 2008. That is almost four months. Currently, most lenders are taking 30 (if you are lucky) to 75 days to order an appraisal on the property.

2. Has the lender approved the price? It depends on the lender. Many of the bigger lenders do not pre-approve a price, for example-- Countrywide, Wells Fargo, Chase, Aurora, etc. However, a few do-- Citi Residential, Fremont. So, most of the time, the answer is "no", the list price is not "pre-approved". Most lenders will look at the price at the time an offer is submitted, and order an appraisal or BPO (Broker Price Opinion) at that time.

3. How far along is property in the short sale process? See number 2, above. Most lenders take no action on the file until a complete short sale package, with offer, is submitted. Yes, Citi Residential and Fremont are ahead of the game, but if there is a second mortgage involved, add that to your scenario.

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 850-650-7883 ext 204
www.ShortSaleForeclosureHelp.com
www.RulnickRealty.com