Thursday, October 30, 2008

SHORT SALE BPOs - Teaching to the Test

One of the biggest hang-ups in selling Short Sales is dealing with BPO values. Frankly, I find BPO prices tend to swing just under list price. This is why I call it "teaching to the test". Except in this case, the BPO agent uses the list price as a guide, and usually discounts it a bit. (Not all BPO agents do this-- I know many are quite experienced.) But human nature would tend to make a rule-bound valuation method error-prone, because it does not allow for "big picture" analysis. For example, I have a Short Sale listing in Mary Esther Florida. The lender, Citi Mortgage, ordered a BPO in early September. At that time, the list price was $230,000. The BPO came in about $222,000. Well, guess what? It is now late October. The house has not sold. It backs up to a highway. The price has dropped to $199,000. An offer came in around $185,000. Yes, that is low, but the seller wanted to run it past Citi to see if they would accept it. Citi said "NO". The BPO value was $222,000 and that's what they will base any approval on. Of course, I explained the problem with the house backing up to the highway, the market decline, and the fact that every buyer who looks at the property has the same objection. Citi is steadfast. Thus, the list price has to be raised, or enough time has to pass so that Citi orders a new BPO. Regrettable.


We can see how human nature would dictate that an agent doing a BPO would use the current list price as a guide. But in a declining market, the "current" value is truly only the "very current" value. If the BPO value is good for six months or three months, it must be discounted accordingly. BPO guidelines are often too rigid to account for the rapidly declining market. Premier Asset Services (PAS), for example, asks for a recommended list price, and a "Quick Sale value that would result in contract within 30 days". Thinking that through, the "Quick Sale" price might likely be the ONLY recommended list price in a down market. Otherwise, pricing the property for perhaps a 120 -180 day sale (usually applicable only in a "normal" market) would require even greater discounting and projecting an even steeper rate of market decline. Further, PAS requires that sold comps be within 10% of likely sale price after making adjustments. I can see how BPO agents may not come in with true market value with these convoluted and sometimes seemingly arbitrary restrictions.


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.


Wendy 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 sells houses, condos, townhomes and lots. Wendy Rulnick has been selling real estate for almost 20 years. She has won numerous awards, including the coveted ADDY award for advertising design. An expert marketer of real estate listings, she negotiates successfully to her clients' advantage. She is supported by a team of top buyer agents.


email itswendy@rulnickrealty.com


Call toll free 1-877-487-9639 or local 850-650-7883


All Rights Reserved. *SHORT SALE BPOs "Teaching to the Test"* 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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Sunday, October 26, 2008

Santa Rosa Beach FL property - Santa Rosa Beach FL homes for sale

Niceville FL property - Niceville FL homes for sale

Santa Rosa Beach FL property - Santa Rosa Beach FL homes for sale

Sandestin FL property - Sandestin FL homes for sale

Saturday, October 25, 2008

Short Sale Listings: Tips & Tricks

Preparation and organization are some of the keys to a successful Short Sale. This starts with the listing process.

1. Determine if your seller has a legitimate hardship. Some of those are: loss of income, divorce, medical, transfer, job loss, death of breadwinner, etc. Not "I want to move", "I am tired of paying the mortgage" or " The value of my house went down".

2. Very important -ask your seller to contact his lender before you list the property. Why? The lender may have a loan modification or forbearance plan that may help your seller solve his problem. Additionally, the lender may have its own preferred loss mitigation package to send to your seller. Further, a few lenders order an appraisal of the property at the beginning of the Short Sale process. Some examples are: BB&T, First American, and Citi Residential. The early appraisal may be helpful to you in determining a target "net". The challenge of an early appraisal, however, is that the market is still declining in most areas and appraisals don't stay valid for long.

3. If your seller has received foreclosure correspondence from his lender, recommend he contact an attorney. In any event, your seller may want legal advice if he has any concerns about his rights with his mortgagees.

4. After listing the property, prepare your separate Short Sale file in advance. This will save you time when you receive an offer, and keep you organized. It's best to have a separate Short Sale folder, because extraneous information, such as surveys, disclosures, etc. will not be needed to send to the lender.

What is in this file? For each lender, such as first mortgage and junior lien, prepare a set of documents as follows:

Hardship letter
1-2 years tax returns
Financial Worksheet
Listing Agreement
Payoff of other lien if more than one (order immediately after listing)
Letter of Authorization (send to lender immediately after listing)

Use pre-printed labels for every page with appropriate loan number and description of what each page is, e.g. Hardship Letter 877600984

Remember when you actually have a contract you will need to supplement each package with your seller's most recent proof of income and bank statements.

There are many factors that contribute to a successful Short Sale. Preparation and organization are two of them.

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

Search Destin 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, Broker and Realtor, specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin 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. She lists and sells homes, condos and townhomes. Wendy 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.

All Rights Reserved. *Short Sale Listings: Tips & Tricks* 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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Thursday, October 23, 2008

Rulnick Realty Grows Again in Destin Florida

Wendy Rulnick, Broker/Owner of Rulnick Realty in Destin FL, is proud to announce that Norma Roy has joined the firm. Ms. Roy has been a licensed Realtor since 1972. She brings a vast knowledge of real estate from land purchase to final development and construction of homes. Having worked in the local area in Okaloosa and Walton counties she has successfully marketed several sub-divisions from start to finish. Some of her projects include: Destin FL homes: Bonvillas at Bayside, Bonair at Bayside, Ridgewood Manor, Etretat; Santa Rosa Beach FL homes: Escada homes and townhomes; Fort Walton Beach properties: Forest Cove, Springgate, Atwater, Live Oak Manor; Crestview homes: Holly Rod Park.

Her background as a Sr. Accountant has been valuable in explaining costs of buying and selling to clients. Broker, Wendy Rulnick says: "Norma's impressive resume and experience assure her clients the most professional real estate transaction. She is a great asset to our company."

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

Search Destin real estate and vicinity.


Short Sale Pre Foreclosure Help.

Wendy Rulnick 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 clients' advantage. She is supported by a team of top buyer agents. Wendy specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin 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 sells houses, condos, townhomes and lots.

Call Wendy at 850-650-7883 or toll free 1-877-487-9639

email itswendy@rulnickrealty.com


All Rights Reserved. *Rulnick Realty Grows Again in Destin Florida* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.


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Wednesday, October 22, 2008

Is Citi Mortgage Getting Nice?

I have a short sale in process for a Santa Rosa Beach FL home. The offer is around $200,000- fair market value. The first mortgage holder, Everhome- is owed $325,000. The second mortgage, Citi Mortgage, is owed $90,000.

Two months ago, I had another offer on the property. The buyer walked after waiting for approval for three months. The hold-up was Everhome. Citi had granted approval. Their terms at the time were $3000 from the first, and $16,000 paid back from the seller over 84 months at 0 percent interest.

Take Two: I now have a new buyer for this Santa Rosa Beach house. The approvals are going much more quickly this time. Three weeks after submitting the short sale package, Citi has again granted approval. Terms: $3000 from the first and NO PROMISSORY note! I don't know why and don't want to ask. Maybe they "forgot". Maybe the negotiator likes me because I asked him about his cold. Maybe Citi realizes the market value of the house is less than the offer (I found out it appraised for $10,000 less than the contract price from Everhome). Maybe Citi is getting reasonable. Maybe they are just getting nice.

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

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

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 clients' advantage. She is supported by a team of top buyer agents. Wendy specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin 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 sells houses, condos, townhomes and lots.

All Rights Reserved. *Is Citi Mortgage Getting Nice?* 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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Latest Countrywide Short Sale Volume

While working on a Crestview FL short sale today, I asked the Countrywide rep, "How many short sales do you have in process?"

Countrywide Rep Answer: "Almost 70,000"

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

Search Destin Florida 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, 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. Wendy specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin 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. She lists and sells homes, condos and townhomes.

All Rights Reserved. *Latest Countrywide Short Sale Volume* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.

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Saturday, October 18, 2008

Destin Short Sale Approved - Everything Was Fine, But Then...



Little things can make a big difference in getting to a closing. We all know that. It's one of the most important factors in real estate success. The "big picture" in the agent skill-set for selling listings is one-third marketing, one-third negotiating, and one-third follow up to closing. Mess up on any of those, and you probably won't have a successful transaction. Yesterday I had a last minute scare at the final day of an already extended approval for a Destin FL Short Sale. I've seen almost everything in my 20-year career, but this was a new one. The listing had actually been referred to me by a licensed Destin Realtor, who did not want to handle his own Short Sale. The buyer, too, was a Realtor representing himself. The Seller's bank, Citi Mortgage, had counter-offered the buyer's price of $300,000 with $325,000. After some negotiations, the buyer-Realtor agreed to increase his price. Wonderful! I had an addendum to the contract signed reflecting the new price of $325,000.



The day of closing arrived yesterday. The buyer's lender was delayed in getting the closing package to the title agent. It was the last day Citi's approval was good through, and it had already been extended once. At 3:30 I got a panicky call from the buyer. The title agent had finally received the closing package, and his new loan amount was wrong! It was based on $300,000, the amount in the original offer! And that's what the buyer's lender had appraised the property for. The buyer-Realtor said we never had an addendum reflecting the new price, and his bank had been unaware. It would take a miracle to save the closing. Voila! I looked in my file, found the signed addendum, and faxed it to the buyer. He got it to his bank. The appraiser corrected his price, stating he had been overly conservative. Deal closed. Happy ending. Whew.



It's Wendy!



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



Search Destin Florida 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 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. Wendy 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.



All Rights Reserved. *Destin Short Sale Approved - Everything Was Fine, But Then...* 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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Friday, October 17, 2008

Facing Foreclosure on the Emerald Coast?

Today I received an email from an attorney in the Niceville and Destin Florida area regarding helping homeowners facing foreclosure. The attorney, Mark A. Violette, noted that there are several federal laws that will protect the homeowner, notably the Fair Debt Collection Practices Act. He said that lenders are required to provide a copy of a loan history report to the borrower upon request. Most mortgage lenders use loan servicing companies, and these companies are unable to comply with such a request. The good news is that if the lender does not provide the report, collection efforts and the impending foreclosure are halted. Attorney Violette kindly provided the following example:


Step One:


Lender files a Foreclosure Complaint.


Attached to the Complaint is a Notice Pursuant to the Fair Debt Collection Act ("FDCA") stating the homeowner has 30 days to contest the amount due.


Step Two:


Attorney Violette files a Motion to Stay and Request for Loan History Report pursuant to FDCA.


The lender must cease all collection efforts until the lender has provided the mortgagor with complete verification of the disputed amount of debt.


Step Three:


Wait for Lender to provide the loan history report, WHICH NEARLY ALL LENDERS ARE UNABLE to produce.


This may allow time for the homeowner to complete a Short Sale, or find another satisfactory resolution to the foreclosure.


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.


Wendy Rulnick 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 clients' advantage. She is supported by a team of top buyer agents. Wendy 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.


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


email itswendy@rulnickrealty.com


All Rights Reserved. *Facing Foreclosure? The Fair Debt Collection Act May Help You* 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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Wednesday, October 15, 2008

12 Keys to HUD Short Sales

Since writing my post on HUD Short Sale Guidelines I have received numerous calls and comments requesting more information. I am providing the following points directly from the Department of Housing and Urban Development, along with my discussion of items of note.


August 25, 2008 PREFORECLOSURE SALES PROGRAM
(Wendy's Note: HUD uses the term "preforeclosure sale" for "Short Sale".)


1. Sale must be an "arms length" transaction. *Wendy's note: Arms length means independent parties, e.g. not related, you cannot sell to your brother.

2. HUD will pay "all reasonable cost of the sale including up to 6% sales commission, local/state transfer tax stamp and other customary closing cost." *Wendy's note: HUD site also states there is leeway regarding what is "customary".

3. Appraised value of the short sale property must be at least 63% of the outstanding mortgage.

4. Net sales proceeds must be at least 82% of the property's " as is " appraised value, defined as selling price minus sales commission, consideration paid to seller, max $1,000 to discharge any lien and customary sellers closing costs. *Wendy's note: $1,000 is not very much to pay a junior lien in the current market.

5. The property must be owner-occupied, not vacated nor an investment property. Exceptions: if the seller can prove he had to move due to the hardship (job loss, transfer, divorce, death)

6. The seller must be 31 days delinquent or more at the time of the closing.

7. The seller must provide documentation of a reduction in income or an increase in living expense.

8. The seller must apply for the Preforeclosure Sale Program with an Application to Participate HUD-90036 along with lender-required financial documentation.

9. The lender must obtain a standard FHA appraisal from an appraiser who does not share any interest with the mortgagor or mortgagor ' s agent. The appraisal is valid for six months.

10. The lender must obtain a title search to verify that the title is not impaired with un-resolvable title problems or junior liens that cannot be discharged as allowed by HUD.

11. The seller must maintain the property until closing.

12. The seller must list the property with a licensed real estate broker, unrelated to the mortgagor. The listing agreement must include a specific cancellation clause in the event the terms of the sale are not acceptable to HUD.

This is by no means a complete re-cap of the HUD guidelines, but should provide some guidance to those with a HUD loan.

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


Search Destin Florida 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 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 clients' advantage. She is supported by a team of top buyer agents. Wendy 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.


All Rights Reserved. *12 Keys to HUD 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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Sunday, October 12, 2008

Alan Greenspan on the Housing Market - I Don't Agree

Yesterday I was riding the bike at Gold's Gym in Destin FL. One of my sellers, whom I originally met there, popped onto the bike next to me. He said, "Alan Greenspan says the housing market will recover by mid-2009, what do you think?" Greenspan pointed out that there has been a "slower rate of decline" in U.S. housing prices of late. I thought I had noticed the same thing in my Emerald Coast real estate market, here in Northwest Florida. Until the last 30 days, that is. During that time, I think prices have been declining even more steeply. I have been reducing my listing prices by several thousands of dollars, way beyond the norm. Certainly, I have seen some of my listings sell, but far too many have not attracted offers. Based on my intense examination and intuition regarding pricing, it is surprising, if not stunning. My observations are anecdotal, but here are statistics from the Emerald Coast Association of Realtors back me up.

The "Months Inventory" statistic has climbed again in September, when it had been gently teetering between 23-25 months since February 2008. Now it's at its highest level, 27 months, since then. I have to attribute it to the tightening credit market.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Search Destin Florida real estate
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.

email itswendy@rulnickrealty.com

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *Alan Greenspan on the Housing Market - I Don't Agree* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity.

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Thursday, October 9, 2008

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.

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

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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Tuesday, October 7, 2008

David Borden Joins Rulnick Realty


Wendy Rulnick is proud to announce that David Borden has joined her team at Rulnick Realty, in Destin Florida.


David Borden has an extensive real estate sales background in the Destin-Fort Walton Beach area on the Emerald Coast of Florida. He has been selling condominiums, homes, land, new construction and commercial properties for 28 years. Licensed in 1980, (David says since he was a baby) he sold real estate as a sales agent, worked in property management, and taught real estate sales contracts to new agents. In 2000 he became a licensed Real Estate Broker. He has won numerous sales awards year after year. Borden has a reputation with his clients and peers as being a professional, honest and knowledgeable Broker.


Rulnick Realty Broker/Owner, Wendy Rulnick says, "David Borden exemplifies professionalism in our field. His experience and vast knowledge assure his clients of a masterfully handled real estate transaction."

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Search Destin Florida real estate
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

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Foreclosure Vultures

I am truly sickened and disheartened by an offer received today on one of my Emerald Coast short sales. I will alter some basic information for the sake of confidentiality, but will tell you the key points of the story. My sellers, like many homeowners in the Destin Florida area, have lost more than half their income in the past couple of years. They are in sales, (and we know how that is going). They have a beautiful home they built in 2005. They also have three children. In the past year, one of the children was diagnosed with a serious medical condition. As a result, they have been unable to pay their mortgage. Their only mistake was to call me too late. In a higher price range, with only four weeks in a declining market, even after continually dropping the price, we have three days until the foreclosure sale. In the past week, one of my agents was contacted by an individual from Texas regarding buying the house. He had obtained the sellers' telephone number independently and had been conversing with them about his "terms". One was that they not accept any back-up offers if they agreed to his. He even got them to sign such an addendum before faxing his offer. Well, I just received it. The house is listed for $300,000. The offer is for $150,000. The offer states, among other things:

The purchasers are real estate investors who buy and sell real estate for a profit.*****Acknowledged and SIGNED by Sellers _____________________________________________
Purchaser may show the property at any time with advance notice to the seller.
The purchaser is free to resell or otherwise dispose of the property in any manner that is legal
Purchasers may perform renovations to property prior to Close of Escrow.
Paragraph 5 of "Short sale addendum to purchase contract" is deleted and not applicable. No offers shall be submitted to sellers' lender unless this contract is cancelled prior to submittal.

You know what this is? Preying on people in a desperate situation. In my opinion, it is unconscionable.

It's Wendy!

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

Search Destin Florida real estate
Short Sale Pre Foreclosure Help.

Specializing in real estate sales, both short sales and traditional 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 itswendy@rulnickrealty.com

Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *Foreclosure Vultures* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity.

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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Setting Up Showings: Do You Use Planning & Courtesy?

Do you plan your showings in advance? Or do you fly out the door with a customer and call the listing agent at home on Sunday morning on your way to a showing with 15 minutes notice? Do you call an agent at 10:00 p.m. Friday night to set up a showing at 9:00 a.m. Saturday morning? Or perhaps you call Saturday night to set up a showing for Tuesday? When you call, do you ask if the agent has a moment to speak with you? Or do you begin your request right after "This is Sue"? Do you say, "I apologize for having to call you at such a late hour or on a Sunday?"

When you get a new buyer, do you school them regarding setting up showings in advance, so they get the opportunity to see all the properties they want? Or do you let your buyer take over the showing schedule for fear you might lose them? Granted, once in awhile, there might be a last minute switch or change of heart by the buyer, but agents will get better results by both planning in advance and agent courtesy. Planning will bring you control over your professional life and stress management in your personal life. Courtesy will bring you better relations with everyone.

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

Search Destin Florida real estate
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

Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *Setting Up Showings: Do You Use Planning & Courtesy?* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity.

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Saturday, October 4, 2008

"I Want to Do a Short Sale" Says the Seller

I get calls daily from property owners in my Destin FL area who want to do a Short Sale. These are the bullet points from my qualifying conversation with them:

  • Your lender will want to know what your hardship is. What has changed from when you first took out your mortgage until today -where you can no longer keep up with the payments? If it's not loss of income, unemployment, relocation, medical expenses, divorce, mortgage rate increase or similar, then you probably don't qualify for a Short Sale.
  • Is your monthly net income less than your total monthly expenses? Include mortgage payments, taxes, insurance, food, utilities, child care, alimony, credit card, auto loan, etc. We're not talking vacations, pet grooming, tennis lessons and child's birthday presents! (Yes, I've actually had some of my sellers think those are basic expenses.) Your mortgagee wants to know you are living in an austere manner to try to make your mortgage payments. If not- you probably won't be approved, as I discussed in Qualifying The Short Sale Seller.
  • Do you have a substantial balance in a non-retirement savings or checking account? If you do, be prepared to give some of it to your lender. For example, if you have $12,000 in savings, your bank might ask for $10,000 as a cash contribution at closing if they approve your Short Sale. Even if you don't have much, they still might ask. I want you to be prepared for that.
  • Is there a second mortgage, and if so, is it in collections? When your note goes into collections and is being handled by a third party, such as a law firm, be prepared for more stringent Short Sale terms, a greater cash contribution and/or promissory note.
  • You may be asked to sign a Promissory Note. Ideally, you won't, but if so, most Short Sale lenders will ask for some monies to be paid back at 0% interest over 5-7 years. It may be as little as $5,000. Be prepared.
  • Have you been making your mortgage payments? If so, know that some lenders won't approve your Short Sale. Why should they? They have 20,000 files before yours from mortgagors that cannot pay, and you are paying. That doesn't mean you won't be approved, for example, if you are taking funds from your retirement or charging basic expenses, or getting cash advances from your credit card to make payments. Be aware, however, that not making payments will affect your credit. It's a personal decision for you to make.
  • Have you received a Lis Pendens or Summary Judgment notice from your lender? If so, please contact an attorney for legal advice. If you already have a foreclosure sale date, we don't have much time.


As you can see, this qualifying conversation can branch out into many directions, but it is critical to get it right, and inform your seller at the start, before ever beginning the Short Sale process.


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


Search Destin Florida real estate
Short Sale Pre Foreclosure Help.


Specializing in real estate sales, short sales and foreclosures 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


Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *"I Want to Do a Short Sale" Says the Seller* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity.


This blog, 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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Thursday, October 2, 2008

#1 Lesson to Salespeople: Tell the Truth



Yesterday a salesman and his associate walked off the street into my Rulnick Realty office, carting a bunch of meat for sale. I didn't send them away, and say "No soliciting". Believe me, I give anyone credit trying to work hard to make a living, in any economy. The salesman said, "I've got an overrun in my steak shipment, and am trying to sell the rest for $3 a piece-- they normally go for $8-$10 each". We were really busy at the office, I had just hired a new agent, and I only had a quick moment. I thought that price sounded like a deal, and it would be nice to bring home a steak for dinner that night, and to help out the salesman. I told him, "Sure, I might buy a steak for $3. This isn't a sales pitch, is it, where you're going through a sales program with me?" He told me it wasn't, and asked where he could show me the steaks. I was in a huge rush, but grabbed my pocketbook, finding exactly $3 in it! I brought him into the conference room, and he opened up a box. He laid out about 30 steaks wrapped in plastic, and he started describing them. Uh-oh.... I could see where this was going. I said, "Sir, I really don't have time to listen... I am in a rush." That didn't deter him, he continued on telling me about all the steaks and the quality, etc. I pulled out the three dollar bills from my purse, and waived them at him. "OK", I said, "I'll take one". What happened next was very weird. Both he and his associate looked at me, and looked at the dollar bills in my hand, up in the air, gesturing to give them the money. They just stared in silence. Finally, the salesman said, "We won't sell just one, you have to buy the whole case." I immediately shooed him out of the office. Lesson #1 in Sales: Tell the Truth.

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

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

Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *#1 Lesson to Salespeople: Tell the Truth* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity.

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Wednesday, October 1, 2008

Washington Mutual Approves Short Sale

My most recent approval was received this morning, approximately seven weeks from submission, from Washington Mutual. It was a very smooth transaction. Here is the summary:

Property: House in Fort Walton Beach Florida

Value and Offer: About $110,000

First Mortgage: CITI owed about $70,000

Second Mortgage: Washington Mutual owed about $90,000

Hardship: Medical

Package Submitted: August 13

Appraisal Ordered: September 3

Approval Email: September 30

Factors: First mortgage, Citi, was in collections, but not in a short sale position, since net was enough to cover full balance- so only needed approval from WAMU

Delays: Washington Mutual "lost" Letter of Authorization and "lost" part of the ahort sale package

Overall, this was a quick and mostly problem-free Fort Walton Beach short sale.

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

Search Fort Walton Beach real estate and vicinity.
Destin and Fort Walton Beach short sale and pre foreclosure help.
Read my Blog.

Specializing in real estate sales, traditional and short 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
Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *Washington Mutual Approves Short Sale* Contact Wendy Rulnick regarding Fort Walton Beach real estate and vicinity.

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