The Rulnick Report

Qualifying The Short Sale Seller

noreply@blogger.com (Wendy Rulnick) — Fri, 18 Jul 2008 21:56:00 +0000

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

noreply@blogger.com (Wendy Rulnick) — Thu, 10 Jul 2008 13:05:00 +0000

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

noreply@blogger.com (Wendy Rulnick) — Thu, 10 Jul 2008 12:57:00 +0000

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!

noreply@blogger.com (Wendy Rulnick) — Wed, 02 Jul 2008 13:11:00 +0000

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?

noreply@blogger.com (Wendy Rulnick) — Wed, 25 Jun 2008 23:25:00 +0000

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.

Short Sale Help
Search Emerald Coast Listings

Keep Short Sale Buyer Agents Happy!

noreply@blogger.com (Wendy Rulnick) — Tue, 24 Jun 2008 23:39:00 +0000

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

noreply@blogger.com (Wendy Rulnick) — Sat, 14 Jun 2008 23:56:00 +0000

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
Search Emerald Coast Real Estate

Citi Short Sales- Less Forgiveness on Second Mortgage Debt?

noreply@blogger.com (Wendy Rulnick) — Wed, 11 Jun 2008 01:31:00 +0000

Is CitiMortgage/CitiFinancial cracking down on Short Sale second mortgage approvals?

Citi Short Sale #1:

First Mortgage: Countrywide- $199,000
Second Mortgage: Citi- $20,000
Offer: $160,000 (fair market valve)
Seller: Divorce situation, no savings, job loss, new job out-of-state, separate households
Citi Says: Will not accept typical nuisance fee from Countrywide. "Don't waste your time unless seller pays $10,000 cash and another $10,000 in a promissory note. Hire someone to do a BPO". Their system shows a value of $215,000" (That is, I am to hire to third party).

Citi Short Sale #2:

First Mortgage: Saxon - $260,000. Saxon offers Citi $1000 and needs to know if Citi will accept before proceeding on approval.
Second Mortgage: Citi - $100,000
Offer: $230,000 (fair market value)
Seller: Was subject to out-of-state scam, his credit was used to buy property in his name by "investor" who was to pay mortgage for him - and failed to. Seller has no money, semi-retired.
Citi Says: They've turned file over to law firm, Zacheim and Associates. Zacheim says: "If net to Citi is less than 25% of what is owed, then they will require 100% payback of loan of $100,000 over 72 months. Will not accept $1000 buyout from Saxon. Want three years bank statements, three years tax returns. (This does not make any sense).

Both of the above scenarios happened on the same day. I have contacted Citi and asked if this is a blanket policy change- non-forgiveness of second mortgage debt. I was told " Absolutely not", but these scenarios raise serious concerns over the viability of Short Sale approvals with Citi as the second.

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
http://www.shortsaleforeclosurehelp.com/
http://www.rulnickrealty.com/

Short Sales: "One" Strong Contract = Success

noreply@blogger.com (Wendy Rulnick) — Tue, 03 Jun 2008 12:35:00 +0000

I get calls daily on my Short Sale listings from agents who think I send multiple signed or unsigned offers to the Short Sale lender with equal position. That is- like an auction. Well, I don't. Per my MLS board approval, I leave listings active with the comment: "Contingency contract, bring your back-up offer". That means, an offer with a clause stating it will go into effect only if the primary offer is withdrawn or otherwise cancelled. Most agents in my area don't operate that way. I get resistance to my method with frequent comments, "That's not how it's done." "We don't do it that way!". But it works. and I'll tell you why.
First, I carefully screen buyers under consideration from my Short Sale seller who have presented an offer. I ask their agent:

"Is the buyer willing to wait 120 days to close?"

"Does the buyer have the means and interest to make any necessary pre-closing repairs?"

"Does the buyer realize the bank may make a counteroffer depending on the appraisal, and if so, is the buyer interested enough to possibly increase his offer or better his terms at that point?"

The answer must be "Yes" to each question for me to recommend that my seller proceed.

Second, if the offer price is not within a realistic range of market value, I encourage my seller to counteroffer. Why? We don't want to waste time dedicated to an unrealistic contract that ties up the property.

Thus, if the buyer meets those qualifications of intent, means, desire, and realistic pricing, there is a strong chance the offer will be approved. I have already pre-qualified my seller as to hardship and financial circumstance. I have found a high success rate with this method. Give it a try.

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

http://www.shortsaleforeclosurehelp,com/ or http://www.shortsales-emeraldcoast.com/
http://www.rulnickrealty.com/

Short Sale Advice: Realtors and Sellers

noreply@blogger.com (Wendy Rulnick) — Fri, 30 May 2008 22:34:00 +0000

Yesterday I had one of my Short Sale sellers email me, "Wendy, I think Sue told you that we were served with foreclosure papers a week or so ago, and we need to file a response by early next week. Is there a file number or reference number and dates that we can include in our response to prove that we are in a negotiation for a short sale? Also, is there anything that we would need to include in our response? ".
I asked an attorney how I should respond to inquiries like these from Short Sale sellers who don't want to hire a lawyer. He said:
"If they are served then they really have to get to an attorney. If you advise them otherwise or help them prepare responses then you could be liable for damages they sustain and practicing law without a license. There is also a recent law that may apply that could entitle the person losing their house to $15,000 damages judgment and attorney fees if they can categorize you as acting outside the scope as a Realtor and promoting foreclosure relief... especially dangerous for Realtors if they are not arms length with the buyer or can be shown to coerce a sale, etc."
Good advice.

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

Two Short Sale Approvals!

noreply@blogger.com (Wendy Rulnick) — Fri, 09 May 2008 22:46:00 +0000

I received two Short Sale approvals- one today and one yesterday- from Countrywide and ASC/Wells Fargo. It's going to be a good weekend!

1. ASC/Wells Fargo: Package was submitted on February 22. It took ten weeks, about 2.5 months for approval. The offer was countered early on.
2. Countrywide: Submitted on March 2, only five weeks ago. No counter and no contact with the negotiator. Approved in little over a month.

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, Niceville, Santa Rosa Beach, Navarre and vicinity. Call 850-650-7883 ext 204 or 1-877-487-9639.
www.ShortSaleForeclosureHelp.com
www.RulnickRealty.com

"Thank You"

noreply@blogger.com (Wendy Rulnick) — Tue, 06 May 2008 20:00:00 +0000

Re: 164 Shoreline Dr. Mary Esther, FL 32569
Dear Wendy,
I am writing this to thank you for all of your hard work in getting the above mentioned short sale property to closing. When I referred the listing to you, I had exhausted all of my efforts in trying to sell the property while it was in a delinquent status. I was actually at the house when foreclosure papers were being served. I was afraid the sellers were going to end up losing everything before we could get it sold. It was very stressful! You were amazing with all your efforts! The fact that you worked as hard as was needed to negotiate with the lenders was exceptional. You had such patience with everyone to include the lenders, the sellers, and the buyer's agent. In the meantime you still took the time to make sure I was kept posted on the transaction every step of the way. It definitely took your skill and expertise with "short sales" to get the property sold and most importantly gets it to closing! If the situation ever arises again, I will certainly refer the business to you!
Warm regards,
Marno Wilson, Realtor

Call Wendy Rulnick, Rulnick Realty, for all your SHORT SALE needs on the Emerald Coast of Florida: Destin, Fort Walton Beach, Santa Rosa Beach, Seagrove Beach, Navarre, Niceville and vicinity. Call 1-877-487-9639 or 850-650-7883

www.RulnickRealty.com
www.ShortSaleForeclosureHelp.com

My Buyer is Getting "Restless"

noreply@blogger.com (Wendy Rulnick) — Fri, 02 May 2008 20:16:00 +0000

Yesterday I received an email from a selling agent for one of my pending Short Sales. The offer has been at Countrywide for about 75 days.

Buyer's Agent: Wendy, My buyer is getting very restless. We need some kind of update for him to keep him on the hook.

Wendy's Response:
Joe, These are the dates and actions:
Feb 21: Faxed package to Countrywide
Feb 22: Re-faxed package to Countrywide to make sure they got it
Feb 25: Called Countrywide to confirm package was received, they said it was
Mar 5: Called Countrywide, no action yet, said package in "review" would be assigned to a negotiator within 30 days
Mar 10: Called Joe to keep him up-to-date
Mar 17: Called Countrywide, file not yet assigned
Mar 21: Called Countrywide, rep said would send my status inquiry to Team Leader, file still not assigned
Mar 27: Called Countrywide, file assigned to a negotiator, may take 30 days for negotiator response
Mar 28: Called Countrywide, verifying file was assigned, they reiterated could take 30 more days for response
Apr 1: Negotiator from Countrywide called me to say she was assigned to the file, would call me when she had a chance to review
Apr 2: Appraiser went to the property
Apr 15: Called Countrywide, they said appraisal had been forwarded
Apr 21: Called Countrywide, they said due to volume, short sale department was being restructured, could take two weeks to restructure, also informed that a different negotiator had been assigned to the file now
Apr 29: Called Countrywide, requested the negotiator call me with the status, the rep sent an email for the negotiator to call me, I also emailed the negotiator
May 1: Called Countrywide, told them rep hadn't called me, I was told they have 24-48 hours to respond, but they would send another email for her to call me

Joe, I have been working diligently, and will work diligently on the follow up and successful closing of this sale. Please reassure your buyer that I am doing everything I can do to speed them along. It is quite exhausting, but I have successfully sold numerous short sales. They are truly running 90-120 days due to so many people being in this situation. Tell your buyer "Thank You" for his patience, too!

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, Niceville, Fort Walton Beach, Navarre, Mary Esther, Rosemary Beach, Dune Allen, Bluewater Bay, Shalimar, Mary Esther, Miramar Beach, Sandestin, Seaside and vicinity.
Call 1-877-487-9639 or 850-650-7883 ext 204

www.ShortSaleForeclosureHelp.com
www.RulnickRealty.com

Foreclosures, Short Sales & Credit Scores

noreply@blogger.com (Wendy Rulnick) — Fri, 18 Apr 2008 21:43:00 +0000

"How will a Short Sale affect my credit?"

I am often asked this question by sellers pondering foreclosure or deed-in-lieu of foreclosure versus a Short Sale. It may be easier to look at how foreclosure affects credit in ways that a Short Sale does not. Kenneth R. Harney, of the Washington Post, recently wrote a fascinating article. "Walking Out of a Mortgage And Into Years of Hurt", about ramifications of foreclosure. Some of his investigative highlights:

Fannie Mae will not allow borrowers with a foreclosure to get another Fannie Mae-backed mortgage for 3-5 years, and only with a minimum credit score of 680.
Freddie Mac sees foreclosure as a major negative on credit for seven years.
FICO scores count foreclosures as nearly as bad as bankrupty.
Freddie Mac and Fannie Mae loan applications include questioning the borrower on whether they have ever had a foreclosure or deed-in-lieu of foreclosure. If so, the loan is more critically analyzed, and may not be so easy to obtain.

In summary, Short Sales, where the lender may report the loan as "settled" or "paid" seems a more palatable solution for future credit-worthiness.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR
Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Fort Walton Beach, Santa Rosa Beach, Crestview, Niceville, Navarre, Mary Esther, Shalimar, Bluewater Bay, Sandestin, Seaside, Rosemary Beach, Miramar Beach, Dune Allen, Blue Mountain Beach, Alys Beach, Eglin Air Force Base, Hurlburt Field and vicinity.

1-877-487-9639 ext 204

www.ShortSaleForeclosureHelp.com

www.RulnickRealty.com

Bank That's Never Done a Short Sale

noreply@blogger.com (Wendy Rulnick) — Fri, 11 Apr 2008 21:06:00 +0000

Much of my Emerald Coast market is both resort and military. There are at least three air force bases in the Destin-Fort Walton Beach area, so I do a lot of real estate business with military members. One of my recent Short Sale listings used a local air force credit union for his second mortgage/home equity line. Well, I almost fell off my chair today when I found out I was the "FIRST" request they have ever had for a Short Sale.
I was making my standard call to notify the first and second lienholder that I had placed the seller's property on the market seeking a Short Sale. I caused a stir when I called the second, the military credit union, and asked what their standard Short Sale procedures were. I got a clue when the customer service rep asked me what a Short Sale was. I explained it briefly, then asked to be transferred to their Loss Mitigation department. She didn't know what that was, so I was placed on hold and eventually transferred to the mortgage department. This time I was not placed on hold, but could hear the conversation in the background, "She is NOT authorized on this account! She said she is calling for Loss Mitigation?". I had to admit, I had a big smile on my face. Finally, an authoritative-sounding woman got on the phone and said she was in charge of the real estate department at the bank. I explained what I was doing, and she confessed, "We have never had a Short Sale, maybe we've just been lucky." I would say! She told me she was not sure what to do in this situation, and asked if the first usually loses money, too? I told her always! (Well, almost). Anyway, I offered her my assistance and told her the procedures most of the big banks use, and even emailed her my checklist for sellers and short sale website www.ShortSaleForeclosureHelp.com. I also added I would be happy to assist her if her bank runs into any other situations with Short Sales. I've got to say, this is going to be interesting!

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.RulnickRealty.com

AmTrust Short Sale Appraisals

noreply@blogger.com (Wendy Rulnick) — Fri, 11 Apr 2008 21:03:00 +0000

I have a Short Sale in process with AmTrust as the first mortgage holder. Their appraiser recently went out, and boy, we have a problem. AmTrust Short Sale appraisal guidelines require the comparables to be within 1 mile of the subject in suburban areas. And, they cannot use foreclosures as comps. The situation is as follows:

Subject: 1400 SF basic house, built 2004, no garage, in neighborhood with many trailers and dirt roads

Offer: $172,000

Real Buyer Comps: Many homes four miles away in new subdivisions, more substantial, 1600-1800 SF, garages, selling in the $180's very recently

Problem: Appraiser cannot use those comps. Only sales in subject's neighborhood are an errant house on pilings that sold for $200,000 six months ago and some other odd-ball sales. Appraiser's forced value is coming in around $200,000

Solution: Appraiser is allowed to get a statement from his "peer" justifying the sale price. He contacted me, as a peer (I am a real estate Broker) and I told him,

"A buyer would not pay $200,000 for the subject property. Foreclosures are reasonable to use as comps in this market, because they are making the market. A typical buyer for the subject, who could afford it, would certainly pay in the $180,000's for a much more substantial home 10 minutes away versus the subject property. In conclusion, using comps that are four miles away is reasonable in the current market, as is using foreclosures."

The appraiser was completely sympathetic and frustrated he was not allowed to use realistic comps. He said I may be asked for a written statement down the road. I will be delighted to provide it.

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

Destin Florida Executive Office

noreply@blogger.com (Wendy Rulnick) — Sat, 05 Apr 2008 17:01:00 +0000

12889 Emerald Coast Pkwy., #107A, Miramar Plaza, Destin FL 32550 $595 per month

Reserve your office in professional business atmosphere. Each office has hall window and full glass door for open feeling. Share with professional real estate agent, architect. Free internet, electric, water. No cam fees. Shared kitchen, bath, reception. Color copier available for copies, scanning and printing directly from your computer. Some storage. Owner is licensed Florida real estate broker.

Contact Wendy Rulnick, Broker 850-650-7883 ext 204

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Specializing in real estate 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)
www.RulnickRealty.com

Chase: Second Lien Holder

noreply@blogger.com (Wendy Rulnick) — Wed, 02 Apr 2008 00:24:00 +0000

Today I received a call from a negotiator from Chase, the second mortgage holder on one of my listings with a short sale offer. The gentleman was refreshingly nice, I must say. Chase is owed $101,000 on the note. The first, AMTrust is owed about $200,000. The offer is for $175,000. This is a very fair market offer. The Chase negotiator said with such a loss he must get an approval from G-d. He was pretty funny. He asked me to email him a price history of the listing, a preliminary HUD and a market write-up. He wanted me to have my sellers call him so he could inquire about them paying a promissory note or doing a cash contribution. He knew that was not likely, but had to follow his checklist. He said if he called them, they might not answer if they have caller id! How true. He said that Chase would combine a BPO price with a computerized value compared to the original appraisal. The value becomes the "Reconciled Market Value" or RMV. He also interestingly noted that there was always an investigation as to whether appraisal fraud may have occurred with the original loan, and that more and more cases were turning up. Compared to the recent experience I had with the ASC negotiator, Mr. "Chase" was courteous and refreshing!

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, Mary Esther, Shalimar, Santa Rosa Beach, Niceville, Navarre, Crestview, Sandestin, Seaside, Inlet Beach, Blue Mountain Beach, Freeport, Rosemary Beach, Seacrest, Dune Allen, Miramar Beach, Florida.
1-877-487-9639

www.ShortSales-EmeraldCoast.com
www.RulnickRealty.com

Short Sales: Time Frame and Approval Process

noreply@blogger.com (Wendy Rulnick) — Mon, 31 Mar 2008 23:11:00 +0000

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

And Then I Became That Buyer's Agent

noreply@blogger.com (Wendy Rulnick) — Tue, 18 Mar 2008 23:18:00 +0000

I recently wrote about Short Sales: For Buyer's Agents. Well, I just became that agent! Having practiced real estate for almost nineteen years, I have spent the last many specializing in listings. I work with buyers infrequently, and almost always on a referral basis. That is because I enjoy the listing aspect more. Yes, after I end up working with a buyer, I usually find it rewarding. But it is not my normal modus operandi. Today I had an interesting scenario arise where I became the Short Sale Buyer Agent. A little background....

About three weeks ago I received a phone call from a gentleman who had three properties he needed to sell short. He was a retiree who had made some investments in condos in Destin about three years ago. He thought he could flip them for a profit, but was never able to. Meanwhile, his rent revenue had diminished and he was several months behind in his mortgage payments. I told him I could help him, and referred him to my website www.ShortSaleForeclosureHelp.com. After a day of discussions, he said he felt guilty he was not working with an agent who tried to help him previously. I understood perfectly well, and let it go at that. Today, I noticed his three listings came on the market with that particular agent. One was substantially underpriced. I received a phone call from one of my out-of-state sellers who was shocked at the price, as I have one of his units for sale in the building, at a much higher price. He referred a friend of his to me to write an offer on the new listing.

I called the listing agent to inform her I was writing an offer. I gently (I thought) asked if I could be of any assistance regarding the Short Sale aspect. (Short Sales are 90% of my business, and I often have local agents refer their Short Sale listings to me). She said, "No, I do these ALL the time." Of course, I had seen in my MLS statistics that she had only sold five houses in the last 18 months, none of them being Short Sales. I asked, "Who is the lender?" She said, "I don't disclose that." I asked why, and she said "I am protecting my client, and that's how things are done." I automatically told her it was public record. She then told me she had had enough of the "Drama" and "didn't have time for this". Etc., etc. I, stunned, asked if I had missed something? She again repeated she did not have time for the "Drama". I did find the previous lender authorization her seller had sent me a few weeks prior indicating the bank was Countrywide.
Hmmm. Having to be diplomatic to protect my buyer's interest is going to take some restraint on this one.

UPDATE- DAY 2: The offer I submitted yesterday had a response deadline of 6:00 p.m. today. I just called the listing agent at 5:45 p.m. I asked if her client was going to make the response time. She said "No, we have multiple offers, and I am going to present them all at once." She had not intended on notifying me that the response time would not be met. I then called and told my seller that we may be in an "auction" situation since the listing was underpriced, it probably generated offers above asking. He said he was not going to participate in the game.

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, Niceville, Navarre, Crestview, Grayton Beach, Sandestin, Seaside, Rosemary Beach, Dune Allen, Blue Mountain Beach, Bluewater Bay, Mary Esther, Shalimar, Freeport and vicinity. 1-877-487-9639

www.ShortSaleForeclosureHelp.com

Short Sales: For Buyer's Agents

noreply@blogger.com (Wendy Rulnick) — Wed, 12 Mar 2008 22:23:00 +0000

Are you the selling agent in a Short Sale market? Arm yourself with information for a successful transaction:

1. Prepare your buyer by going over steps in Buying Short Sales.
2. Ask the listing agent if he has gathered the information necessary to submit the Short Sale package, including: letter of authorization, financial statement, recent pay stub or last quarter profit and loss, recent bank statement, last year's tax returns, hardship letter, and payoff if more than one lender. If the listing agent has not already done so, prepare the buyer for a longer wait. I would also ask what the hardship is. If the listing agent will divulge that information, it may assist you in determining whether it would be a viable short sale situation. The hardship should be loss of income, medical, divorce, etc. where they might be a reasonable expectation for approval by the lender.
3. Decide with the buyer whether to make the contract effective date, depending on your board of Realtors, the date the seller signs the contract, or the date the offer is finally approved by the seller's lender. The contract effective date is normally the trigger from which other actions are based. For example, if it is customary in your market to conduct inspections within two weeks, your buyer may wish to wait for bank approval before proceeding. Conversely, if the buyer conducts inspections early, that shows strong intent to complete the transaction.
4. Advise the buyer regarding potential valuations of the Short Sale property by the lender. If the buyer is going to make an unreasonable offer that you know may not be approved after several months of waiting, it is better to inform him at the beginning. Look at the property in the eyes of an appraiser. If recent comparable sales don't come close to justifying the buyer's offer, this may not be a transaction worth pursuing, for you, the buyer or the seller.
5. Once the contract is signed by the seller, follow up gently with the listing agent. A call every two weeks to check on the status of the offer with the lender should be enough of a reminder, and should satisfy your buyer's anxiety during the long wait toward approval.

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Sandestin, Santa Rosa Beach, Blue Mountain Beach, Dune Allen, Watercolor, Rosemary Beach, Seaside, Niceville, Bluewater Bay, Freeport, Crestview, Navarre, Fort Walton Beach, Mary Esther, Shalimar and vicinity. Call 1-877-487-9639.

www.ShortSaleForeclosureHelp.com

Countrywide Short Sale: Case Study

noreply@blogger.com (Wendy Rulnick) — Tue, 04 Mar 2008 14:15:00 +0000

Following is a case study of a Countrywide short sale negotiating process.

Property: Single family home in Navarre, Florida- an investment property with tenants

Seller Hardship: Rent does not cover mortgage payment, medical, job loss

List Price: $142,000

Seller Mortgage: $188,000

Offer: $135,000

Countrywide Appraisal: $152,000 (higher than list price)

Buyer Counter: $137,000

Countrywide Response 2 days before Foreclosure Sale: "Offer will be denied. It is too low. Will only extend foreclosure sale if seller pays mortgage payment plus penalty."

Wendy Rulnick: "Seller cannot comply. I challenge your appraisal. Countrywide just approved a different sale for a better house for $139,000. I will send you comps and proof."

"Quick Facts" Document sent to Countrywide: Comps, market statistics showing months inventory, Countrywide's demand letter approving a recent sale for similar price, and history of the property's price reductions proving it could NOT sell for $152,000.

One Day Before Foreclosure Sale: Approved.

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, Niceville, Navarre, Crestview, Freeport, Santa Rosa Beach, Blue Mountain Beach, Sandestin, Watercolor, Seaside, Rosemary Beach, Inlet Beach, Mary Esther, Shalimar. Call 1-877-487-9639 email itswendy@rulnickrealty.com
www.RulnickRealty.com
www.ShortSaleForeclosureHelp.com

Aurora Loan Services: Short Sale Warning

noreply@blogger.com (Wendy Rulnick) — Sat, 23 Feb 2008 18:56:00 +0000

I have had a Short Sale offer in process with Aurora Loan Services since December.

Facts:

The house, in Niceville, Florida, was listed for $183,000.

Offer was for $175,900. VA financing with seller total contribution of $3000 including doc stamps on the deed, a customary seller expense in Florida. Thus, the seller contribution to buyer's closing was only about $1700.

BPO (Broker Price Opinion) determined by seller's lender - $185,000.

Aurora counteroffers $185,000. Buyers stay firm at $175,900.

30 days later- today- Aurora says sale is "approved".

Receive approval letter. Aurora will pay $363 of the total closing costs, excluding a reduced broker fee.

I call Aurora. "VA will not ALLOW VA buyers to pay certain closing costs. You had the contract and the net sheet. The contract stipulated VA financing".

Aurora: "We don't pay closing costs."

Me: "Then the deal is going to fall through".

Aurora: "Sorry."

Warning: Although this lender only countered the purchase price, they omitted any mention of closing costs until the deal was "approved". Wish me luck saving this one!

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS GRI, ABR Rulnick Realty, Inc.
Specializing in SHORT SALE and FORECLOSURE work-outs on the Emerald Coast of Florida: Destin, Fort Walton Beach, Santa Rosa Beach, Seagrove, 30-A, Niceville, Bluewater Bay, Navarre, Crestview. 1-877-487-9639.
www.ShortSaleForeclosureHelp.com
www.RulnickRealty.com

How to Buy a Short Sale

noreply@blogger.com (Wendy Rulnick) — Sun, 17 Feb 2008 18:00:00 +0000

Buying a Short Sale? What is the Process?

When you write your offer, your agent should insert language into the contract that states the contract is "Subject to seller's mortgage holders' approval". the contract that states the contract is "Subject to seller's mortgage holders' approval".
Often, lenders require Short Sale properties to be sold in "as is" condition, thus not threaten a potential closing with repair items. Language should be inserted into the offer in that regard, either with appropriate addendum, or added language.
The Seller may counter your offer. Remember, the contract is between you and the Seller, not you and the Seller's lender. The Seller does not want to submit an offer to the bank knowing it will likely be rejected and/or counter-offered because it is too low or has too many closing costs on the Seller's side. The lender pays these costs, and will always analyze its "net". In this case, it will be a "loss", so the lender wants to mitigate the loss as much as possible.
After the contract is signed and agreed to by both you and the Seller, it will be sent to the Seller's lender, or lenders if there is more than one mortgage holder. Documentation submitted with the contract includes an estimated net sheet, the Buyer's approval or proof of funds letter, the listing agreement, Seller's financial worksheet, recent paystub, recent bank statement, last year's tax returns and hardship letter.
The Seller's lender will then order an independent appraisal and/or Broker Price Opinion (BPO) of the subject property.
The Seller' lender will counteroffer your offer with the appraised value.
You will accept or counteroffer this amount. Your offer may ultimately be rejected if it is not at least 83% of the appraised value. This varies by lender. The lender makes it decision based on the requirements of the end-investor on the mortgage regarding price. For example, even though the "lender" may be Wells Fargo, the actual investor reaping interest may be the Bank of New York or Merrill Lynch. There may also be PMI or private mortgage insurance on the loan. In that case, the PMI company will also order a separate appraisal or BPO. Your offer must satisfy both lender's requirements. If there is a second mortgage on the property, the first mortgage holder will offer the second mortgage holder a dollar amount as a "buy out". I help facilitate these negotiations. Additionally, the lender(s) may ask the Seller for a cash contribution or promissory note. If the Seller cannot comply, you may be asked for additional monies to make up some of the difference. If the property is a good deal, you may wish to do so.
The timeline for initial response from the lender may be eight to twelve weeks. This is because lenders have an overwhelming number of sellers asking for Short Sales. Some of the bank "negotiators" have as many as 400 files at one time. They often work on the files facing imminent foreclosure sale dates first. Rest assured, I contact these lenders every two business days by phone and/or email to get updates on the offer.
After final approval by the lender, a "demand" or "approval" letter is sent out to the Seller. The letter will normally stipulate that closing must occur by the date stated in the contract, or there will be a per diem penalty for not closing on time. Thus, you are expected to have your mortgage, insurance and inspections completed in a timely manner. The per diem penalty is quite common in the corporate world.
The lender will expect to see a copy of the settlement statement at least two days prior to closing to ensure it is accurate, and matches what was stated in the net sheet that was submitted with the offer and on the approval letter.
Congratulations! Your patience has been rewarded. You got a great deal!

Wendy Rulnick, Broker, CRP, CRS, GRI ABR Rulnick Realty, Inc.
Specializing in SHORT SALES and FORECLOSURE work-outs on the Emerald Coast of Florida: Destin, Fort Walton Beach, Niceville, Navarre, Santa Rosa Beach, 30-A, Crestview, Seagrove and vicinity. 1-877-487-9639

http://www.shortsaleforeclosurehelp.com/

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

Email me at itswendy@rulnickrealty.com
Copyright Rulnick Realty, Inc.

Saved from Foreclosure- My Best Real Estate Sale on the Emerald Coast

noreply@blogger.com (Wendy Rulnick) — Sat, 16 Feb 2008 17:56:00 +0000

A few weeks ago I wrote a blog about an imminent foreclosure for one of my sellers-
"The 11th Hour". We had little time and a foreclosure sale date set at the courthouse steps for 11:00 a.m. the next business day, when I finally got an offer on the property. I wrote how I frantically and repeatedly tried to call and fax Litton Loan to stop the sale and consider the short sale offer. How no one would call me back or let me know if the sale had been stopped. I eventually heard back from the bank the next day. They postponed the sale to look at the offer. The short sale was approved two weeks later- that was yesterday.

The seller had lost two-thirds of his income, his wife had had a liver transplant, and the home I was selling had been destroyed and then rebuilt by my seller after Hurricane Ivan. He had bought the home two months before the hurricane hit. The cost to rebuild had added an extra $200,000 to his mortgage. He could no longer make payments, and all his hope in the world and himself were lost. He was seriously depressed and told me "I am not the man I was".

I cannot begin to tell you the relief in my seller's voice and the gratitude in his heart when I told him the short sale was approved, that he would not have a foreclosure. He said he would repay me in any way he could. I told him that I was repaid enough in that it was the most fulfilling sale I ever had.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

1-877-487-9639 or 850-650-7883

Specializing in SHORT SALES and FORECLOSURE work-outs on the Emerald Coast of Florida: Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Navarre, Crestview.

http://www.shortsaleforeclosurehelp.com/ or http://www.shortsales-emeraldcoast.com/