This Is The Short Sale Department, How May I Help You?

Ring ring ring ring. Thank you for calling Short Sale. For priority service, please enter your 10-digit account number followed by the pound sign.

88302720572#

Please enter the last four digits of your social security number followed by the pound sign.

4306#

That number is not found. One moment please.

"Hello. This is Loss Mitigation, what is your account number?"

88302720572

"Thank you, and your name?"

Wendy Rulnick, listing broker - authorized.

"Let me find your authorization... OK, I have it. The borrower's name?"

Joe Miles III

"Mailing address?"

12 Kemp Court, Onedon, IL 34003

"Thank you. We have on file a home telephone of 307-368-7110."

I don't have that number.

"We also have 307-993-0204. Do you have that?"

No, the only number I have that I know you have is 833-293-6624.

"The homeowner needs to call in and update his records."

He has already done that, yet every time I call I am given the wrong phone numbers.

"Thank you. The property address?"

20 Holmes St., Destin Florida 32541

"What are the last four of the social?"

4306

"The buyer's name?"

Cecil Bedwell

"Thank you. How may I help you?"

I am calling for the status of the short sale.

"We have no further information on the file. Is there anything else I may help you with?"

No, thank you, have a great day!

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.

Destin Condos - Short Sales and Condo Dues

In Destin, Florida, and around the country, as time goes by with short sales, a new problem is growing-- unpaid condo association dues. I currently have two short sales pending with with over $20,000 in unpaid association dues. Short sale mortgage holders are growing weary of paying these huge back-fees to facilitate a short sale. Sure, I've had $10,000 or $12,000 paid to satisfy associations in short sales before. But the longer the short sale or bank action takes, the more the dues will start piling up. Now I have Bank of America balking at paying the association dues on a $300,000 Destin short sale. They want my seller, with no income at all, to pay a promissory note of $40,000 or cash at closing of $20,000, because of the $20,000 past due amount. How am I tackling this problem?

Brainstorming solutions is one of my favorite parts of negotiations. Here is what I found:

Florida Statutes, Section 718.116 states:

The liability of a first mortgagee or its successor or assignees who acquire title to a unit by foreclosure or by deed in lieu of foreclosure for the unpaid assessments that became due prior to the mortgagee's acquisition of title is limited to the lesser of:

1. The unit's unpaid common expenses and regular periodic assessments which accrued or came due during the 6 months immediately preceding the acquisition of title and for which payment in full has not been received by the association; or
2. One percent of the original mortgage debt. The provisions of this paragraph apply only if the first mortgagee joined the association as a defendant in the foreclosure action. Joinder of the association is not required if, on the date the complaint is filed, the association was dissolved or did not maintain an office or agent for service of process at a location which was known to or reasonably discoverable by the mortgagee.

In my case, there are about two years past due in condo fees. I have asked the association to agree to a compromise to accomodate the short sale. Basically, if the condo goes to foreclosure, they will only be paid 6 months dues by the senior lienholder.

If they could reduce the balance owed in any amount to allow the short sale to occur, then the association will gain by:

1. Immediate income to fund a project already in financial need
2. More than the minimal 6 months past due that a foreclosure action will pay them - at some later date
3. A new owner who will certainly be paying his dues on an ongoing basis, providing immediate cash flow

By agreeing to a lesser amount to allow the short sale, that does not mean the association will not pursue the homeowner separately for the balance owed. But a compromise can allow the short sale process to take place,both benefitting the condo project's financial position, and helping the homeowner solve his dilemma.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Sign up for "SHORT SALE BASICS FOR REALTORS" Webinar

Countrywide Short Sale Approval Letter Threatens Deficency Pursuit

Have you seen the new Bank of America/Countrywide short sale approval letter? It is sending shockwaves to unsuspecting short sale sellers.

The key statement of concern is Bank of America "may pursue a deficiency judgment for the difference in the payment received and the total balance due..." There are two contradictory elements in the demand letter:

1. The letter states that Bank of America has "agreed to accept a short payoff". Now, how can they "accept" a short payoff, then state they "might" collect the rest? They either are or are not.

2. It states "there may be tax consequences for entering into a short sale". Again, the statement concedes it is a "short sale", and alludes to the 1099-C, where cancelled debt is reported to the IRS. Either the debt is cancelled or it is not. Why would Bank of America reference short sale tax consequences if they were, in fact, collecting all the debt?

Neither contradiction supports their reference to collect the deficiency in the future. Since I have had several concerned sellers who have received this approval letter, I emailed a Bank of America escalation negotiator to get their explanation. Here is what they said:

Countrywide/Bank of America cannot remove the deficiency verbiage from the approval letter. We must reserve the right to collect the unpaid balance of the loan for the benefit of our investors and mortgage insurance companies that insures payment on the loan. The purpose of the short sale letter is to properly disclose this to the borrower so they may consider all of their options with respect to their mortgage loan.
In my experience with short sales, I have never know anyone to pursue the deficiency once the short sale has closed.

So, how can you alleviate concerns when receiving this letter? Of course, talk to your attorney if you do not feel comfortable, but consider the alternatives if you do not accept the short sale. Deed-in-lieu of foreclosure, which will produce the same deficiency, and be worse on future borrowing ability? Or foreclosure, with severe future borrowing constraints, liabilities and consequences? None of the choices are that palatable, but short sale is still clearly your best option.

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
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.

I have a home listed for short sale in Fort Walton Beach, Florida. The property was a primary residence, and the seller lost his job and relocated to another state to find work. He is also in the midst of divorce proceedings. During the listing period the seller was advised by his attorney to file for bankruptcy. Subsequently, we received an offer for the property. During the time period, the seller was unclear about the status of his property.

I called Citi, the short sale lender, to find out if they would entertain a contract even though the seller was going to file for bankruptcy. Citi said, "Yes", we could proceed, and he could still sell his property. Citi assigned the file to a negotiator, ordered the BPO, and requested further documents from my seller.

A few weeks later, Citi abruptly emailed me and said they could not take further action, as the house was now part of the bankruptcy proceeding. I found it odd that initially Citi said to "go forward" with the short sale, then several weeks later mysteriously said they could not help. I made numerous phone calls through the Citi phone loop, and finally got a department who told me that they needed an "order by the bankruptcy court" stating they could proceed. So, I called my seller who called his attorney. The attorney provided the contact information for the court-appointed Bankruptcy Trustee.

I called the trustee, who was a magnificent help. He said that since the property had no equity, the court did not want it- there was nothing to divvy up amongst the creditors. He said that after the bankruptcy the property would go back to my seller, anyway, and he would be happy to help me and release it now. So he is sending me paperwork to proceed with "Abandonment"of the property from the bankruptcy court. If there is no objection to the abandonment within 15 days, the property will be free to short sell. Otherwise when case closes it will be deemed abandoned by law, anyway, and go back to my seller. The trustee also mentioned that Citi could have asked for "abandonment" to continue foreclosure, and had started to do so, but had "dropped the ball". Perhaps that is why Citi initially started the short sale, then stopped in the middle.

The happy ending is that the young lady who has been waiting to purchase her new home will likely be rewarded for her patience, and my seller will have prevented a foreclosure.

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

Fort Walton Beach FL Real Estate
Fort Walton Beach Short Sales & Pre Foreclosure Help.
Read Fort Walton Beach 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.

Subscribe in a reader
Subscribe to It's Wendy's Blog by Email

Short Sale Time Frame

Our market will see more and more short sales in the coming months. Again, a short sale is when the owner of a property has a higher mortgage balance than the mortgage payoff, and sells for market value. Banks will sometimes forgive the rest of the debt in order to facilitate the sale if the seller has a hardship and cannot meet his obligation. This is a better option than foreclosure. As more of these properties flood our market, the backlog for lenders processing approvals has grown. Banks I have spoken with may have up to 400 files in process per "negotiator". So, if you make an offer on a short sale property, be prepared to wait for a response. Countrywide's average response time is now 43 days. They are hiring more people, but not fast enough to keep up with demand. Time your offer for a 60-day closing, but it is not unrealistic to assume it could be 90 days, or more.