Short Sales

• Short Sale Background
• Why Short Sale?
• Short Sale Steps
• Do You Qualify?
• Alternatives
• Tax Implications
• Credit Scores
• Short Sale Myths
• You Need to Short Sale?
• Short Sale Deficiency

Special Short Sales

• HAFA Short Sales
  • HAFA Forms
• HAP: Military PCS
  • HAP PCS Q&A
  • HAP Steps
  • Eglin Hurlburt HAP Process
• VA: Compromise Sales
  • Why Should I Compromise Sale?
  • VA Compromise Sale Q&A
• FHA - HUD Pre Foreclosure Sales

Foreclosure Help

• Foreclosure Process
• Resource Center

For Buyers

• Buying Short Sales
• Find Me Short Sales - Foreclosures
• Search Destin Short Sales- NW Florida
• Free Buyer Reports

Success Stories

• Destin Short Sales
• Sandestin Short Sales
• Santa Rosa Beach Short Sales
• Fort Walton Beach Short Sales
• Niceville Short Sales
• Crestview Short Sales
• Navarre Short Sales
• Freeport FL Short Sales

Learn More

• Read Wendy's Blog

About

• Contact
• About Wendy
• Testimonials

Holiday Isle, Destin Florida Short Sale Approved by Vericrest and SLS

 

This Holiday Isle home in Destin Florida has been approved for short sale. A large home at over 3000 square feet, and yards from the Gulf of Mexico, it was originally purchased for a million dollars in 2005. Here are the short sale details:

Senior Lien: Vericrest Financial

Senior Balance: $845,000

Junior Lien: Specialized Loan Servicing (SLS)

Junior Lien Balance: $130,000

Contract Price: appr $450,000 - less than half the mortgage balances!

The Vericrest portion of this Destin short sale was processed on a software platform called Res.Net. Similar to Equator, but not as user-friendly, Res.Net required me and my team to enter weekly "market" reports on the property detailing showings and market competition and sales. At time of contract, we were required to actually upload our pre-ordered title work and provide details photos, similar to an appraisal or Broker Price Opinion. The figures from the preliminary settlement statement (HUD-1) were entered into the system, but fields were not clearly labeled so it was difficult to figure out. Even the Vericrest negotiator stated Res.Net was not user friendly to them, either, and asked me to directly email her several times instead of using the software.

Vericrest approved the short sale and agreed to pay SLS about $11,000 to release its lien. Both lienholders issued a full waiver of deficiency.

Emerald Lakes - Destin Short Sale Approved

 

This home in Emerald Lakes, Destin Florida, was just approved for short sale.  An uncommon scenario, it had three liens.  The first was an IndyMac mortgage, the second, a Bank of America home equity line, and the third, a judgment from another creditor. 

The seller’s attorney said the short sale could not be accomplished, especially with waiver of deficiency.  We succeeded, however.  Here are the details for this Emerald Lakes, Destin Florida short sale:

Original purchase price - $490,000 in 2005

IndyMac - balance - $350,000

Bank of America - balance -  $50,000

Judgment Lien - $40,000 Note: Judgments in Florida may attach to all the borrower’s Florida real estate, even if unrelated to the property or even if a homestead property

Sale Price - $260,000 appr

Notes: Since the property was owner-occupied, we asked IndyMac if they would consider the HAFA program, which is beneficial to sellers who are doing short sales, as it grants a waiver of deficiency. IndyMac said they were not participating in the HAFA program.  They referred their short sale processing to a company called Service Link.  Service Link kindly reduced the agents’ commissions by 1% and placed a 1% “service fee” on the settlement statement to pay themselves.  The file was approved with a small credit for buyer’s closing costs and waiver of deficiency.

Bank of America approved the short sale after initial numerous delays in “outreach” seeking participation  in the HAFA program.  The seller rejected HAFA twice by phone, as IndyMac would not participate. The file had to be re-initiated three times.  Bank of America waived deficiency for $2700.

The third lien, the creditor judgment, released its lien for $1000.

Total time for this short sale approval?  About 60 days.

 

Yes, you can get a short sale approval with Vericrest and Flagstar on your Amalfi Coast Condo in Miramar Beach Florida! 

The Destin Florida Amalfi condo was originally encumbered by a Carrington Mortgage as senior lien, and a Flagstar junior lien.  The mortgage servicing was switched from Carrington to Vericrest last year, and the Flagstar servicing went to Strategic Recovery Group (SRG).  The nuances of this Miramar Beach short sale provide some material to help you with future dealings with these companies:

Vericrest Financial.  The good: Vericrest is one of those short sale lenders (servicers) who will assign a negotiator to you, and keep the same one on the file until the property is sold. So you could have a contract that doesn’t work out, and go directly to the same negotiator next time you get a new one. This saves a lot of time.  Most short sale lenders (like Bank of America) require re-starting the entire short sale process, with new seller financials and hardship letter each time you submit a contract.  Then you must wait for the file to be “assigned”.  Not so with Vericrest. You get a “buddy” for the life of the short sale.

The bad: Vericrest has a not-so-fun “Agent Homework” worksheet that is eight pages long.

Strategic Recovery Group: The good: They answer the phone. 

The bad:  SRG tries to finagle settlements. For example, on this particular short sale, they doubled their settlement amount from $5,000 to $10,000, when they had previously approved $5,000.  I faxed them their prior approval, and they reverted to the original amount. So keep good records.

This was one of those Miramar Beach Destin Florida short sales that dragged on and had to be sold a "few" times before getting final approval. We were finally able to settle with each lienholder for no deficiency.  So the end result was a good one.

If you are considering short sale to avoid foreclosure, be sure to consult an attorney and an experienced Destin short sale agent.  We can write your success story together 

 

 

 

 

Chase just approved this Destin Florida townhome for short sale.  The process was a challenge. There were past due association fees and a judgment recorded in Walton County.  In Florida, a property cannot be sold unless liens and judgments are paid or "released" at closing.  Here is how we tackled the short sale:

1. Chase. The Chase part of the short sale was pretty straightforward.  The negotiator was difficult to reach, and I attempted calling her several times over the course of a few weeks.  When I finally spoke with her, she told me her files had doubled in the last two months and Chase was behind processing their short sales.  The best way to reach her was by fax.  After making contact, Chase approved the file fairly quickly. It pays to be pleasant on the phone, by the way!

2. The Judgment.  In order to close on the Destin Florida short sale, the title agent needed a partial release from the creditor.  The creditor agreed to the release in exchange for a small cash contribution from the seller.

3. The Homeowner's Association.  There were about $16,000 in past dues owed.  Chase would pay half.  Would the association agree to settle for less?  I asked the seller to contact the association directly and mention Florida Statute 720.3085.  It stipulates:

Notwithstanding anything to the contrary contained in this section, the liability of a first mortgagee, or its successor or assignee as a subsequent holder of the first mortgage who acquires title to a parcel by foreclosure or by deed in lieu of foreclosure for the unpaid assessments that became due before the mortgagee's acquisition of title, shall be the lesser of:

1. The parcel's unpaid common expenses and regular periodic or special assessments that accrued or came due during the 12 months immediately preceding the acquisition of title and for which payment in full has not been received by the association; or

 2. One percent of the original mortgage debt. 

 

 

Given that $8000 was more than a year back dues, I thought the association would be delighted to "settle" and get a new paying owner.  They were. 

If you are contemplating a Destin Florida short sale to avoid foreclosure, be sure to contact an attorney and an experienced Destin Florida short sale agent. 

 

Bank of America just approved this Jetty East condo for short sale.  Jetty East is located on the Gulf of Mexico beach on Holiday Isle in Destin Florida. Jetty East has a large heated pool, huge outdoor pavilion, two tennis courts, shuffle board and shuttles around Destin and more.  Jetty East is also near East Pass, with its plethora of fishing boating activities and restaurant and shopping nearby on Destin Harbor and in Destin Commons.

Bank of America was the only lien holder on this short sale. The original purchase price in 2004 was about $300,000.  Today’s value is less than $100,000. Bank of America approved the contract for this Jetty East short sale in a speedy 30 days. 

If you are considering short sale to avoid foreclosure on Holiday Isle, be sure to contact an attorney and an experienced Destin short sale agent

 

A Destin Florida condo, located near the water in South Bay By The Gulf, was just approved for short sale.  IBM Business Lender Process Services (LBPS), was the senior lien holder.  

These were the challenges in this Destin short sale process:

1.  LBPS wanted a promissory note and cash contribution from the seller.

2.  The condo association's balance exceeded $10,000.  LBPS would only pay $6000.

3.  There was a junior lien with Wells Fargo

Solution:

I explained to the condo association that accepting the lesser amount now and getting a new owner would benefit them in the long-run.  (In Florida, SB 1196 says that associations can only get 12 months assessments or 1% of the mortgage balance, whichever is less, from the foreclosing entity, anyway.)  They agreed.

After I notified LBPS and provided a new HUD with lower association dues, they waived any seller contribution.  As for the junior lien, Wells Fargo, that really wasn't an issue.  The seller negotiated a settlement and paid them prior to the closing.

If you are considering short sale to avoid foreclosure in Destin Florida, consult with an attorney and an experienced Destin short sale agent.

Sometimes when you think you are “done” with Destin short sale negotiations, you are not done!  A short sale has many steps. There are several “layers” of negotiations.  I am going to use my recent sale of a Destin Florida condo as an example.  The property had two mortgages, both with Chase.  It was an investment property. 

Negotiation #1:  The Contract. Contrary to some beliefs, not just “any” contract should be sent in to the short sale lender (also called servicer).  Why?  Because sending in too low an offer would lose marketing time for the seller if the offer was not approved.  Countering early and getting a positive response from the buyer also indicates more sincere interest in sticking with the sale. Patience comes into play at this step. The buyers offered $275,000.  We countered the price and terms to be more "approvable". The buyer agreed to $290,000 after deliberating for several days. Getting the price right from the beginning saves time later, as it probably won’t be countered by the short sale lender.  And this one wasn’t.

Negotiation #2: The Homeowners Association.  This Destin Florida short sale condo had two associations.  The dues were many months behind, not uncommon in my part of Florida.  Chase would only pay $1,500 toward dues totaling $12,000, since there were no liens filed.  If there were liens filed by the association, Chase would have paid them. (Hint).  Sometimes HOAs will reduce their balance and “settle” for less.  These associations would not.  After much negotiation, they finally agreed to release their liens with a partial cash contribution and promissory notes from the seller.

Negotiation #3:  The Senior Lien Deficiency Waiver. The dreaded “deficiency” is the balance still remaining on the note after the proceeds are applied from the short sale.  (Not all short sales result in the lender settling for the funds received at closing. They may seek the outstanding balance from the seller via a deficiency judgment after closing, or with a note, etc. agreed to at closing). We asked if it could be waived in full.  The Chase Senior lien saw that the seller had a real hardship, as he was in the building industry.  His income was negligible and he was unable to pay the mortgage, plus any rental income could not sustain the payments.  The negotiator asked if the seller could contribute anything in cash at closing, and write a second hardship letter explaining that he would be unable to pay the deficiency. (Hint)  The seller agreed to contribute $3000 and his deficiency was waived in full.

Negotiation #4: The Junior Lien Deficiency Waiver:  The Chase Junior Lien initially issued approval with a $5000 contribution from the Senior Lien.  They did not, however, waive the deficiency.  We went back to ask what it would take.  At first the negotiator asked for 50% of the balance, or about $50,000.   After we talked and he saw that the Chase equity line was used for items other than “toys”, he said the lowest he could take was 25% of the balance, $25,000.  I discussed this with the seller.  Fortunately, the seller had detailed notes of his previous Chase conversations, where they had offered to settle for $12,000 a year ago.  I put the seller directly in touch with the negotiator, who dug through the file, found the old offer, liked the guy, and agreed.  (Big Hint: Do not be afraid to allow the seller to speak directly with the negotiator!)

 

Through much negotiation this story ended in success for my Destin short sale seller.  It wasn’t easy, and it wasn’t pain-free.  The seller never once denied his obligation, he sought all possible solutions, and he can now move forward with his life.

Each short sale has a different story. There are many layers of negotiation, and many possible endings.  If you are facing foreclosure in Destin Florida, and are seeking an experienced Destin short sale agent, let’s see if we can write a success story for you. 

This beautiful condo unit at The Palms in Destin Florida was just approved for short sale.

Lender:  Bank of America

Payoff:  $324,000

List Price:  $124,000

Notes:  Bank of America initially rejected the buyer's offer of $100,000.  They countered $119,000 in Equator, the bank's online negotiating platform.  The buyer would not come up in value.  Instead of simply clicking "no" i.e. rejecting the bank's counter-offer in Equator, I called and emailed the negotiator to find a solution.  Otherwise, the file might have been closed.  The seller also agreed to participate in the loss with a cash contribution.  

Result?  Approved!

If you need to short sell your condo in The Palms, in Destin Florida, contact an experienced Destin short sale agent.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

This HUD FHA short sale at 800 Wild Oak, Destin Florida, was approved by Bank of America in 13 days!  Why? How? What?

Why?  The seller was proactive!  He contacted Bank of America early when he was unable to pay his mortgage.  When a modification did not work, he applied for the HUD Pre Foreclosure Sale Program.

How?  When my Destin seller contacted me,  he provided me with the HUD Approval to Participate form, indicating a starting list price. 

What? I obtained a full price offer for the seller in one day.  I ensured the contract was written without closing costs HUD won't pay.  They will only pay reasonable seller's costs, (with the exception that if the buyer's loan is FHA, they will credit 1% towards buyer costs).

In fact, the Bank of America short sale negotiator emailed me:"I wanted to inform you I have never received a HUD (settlement statement) that was this clean. Thank you so much!!! It definitely makes my job easier!" 

Additionally, because I sold this seller's home so quickly, he qualified for a HUD seller credit of $1000. That's the incentive HUD pays if the property sells within 3 months of application (reduced to $750 thereafter).

If you have a Destin Florida home with FHA HUD mortgage, and you are unable to make your mortgage payments, contact your lender right away.  Consider a HUD Pre Foreclosure sale, and be sure to contact an experienced Destin HUD short sale agent.

It's Wendy!

I received final approval from GMAC and Regions for this pending Destin Florida short sale in Crystal Shores. This unique Destin Florida home at 4495 Ocean View Drive, had a challenging short sale approval process. 

The GMAC Broker Price Opinion came in much higher than the contract price.  I submitted a counter-analysis of my own, which they accepted, proving the buyer's price was fair.  Meanwhile, Regions did not know which department handled this particular short sale. Then GMAC would not complete their approval process, after three months of negotiating, until they had Regions letter in hand.  

It sounds like a lot, but it was only a few months of wrangling.  In the end, it worked. 

Another Destin short sale approved. Closing July 12. 

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.  

Bancorp South has approved a condo short sale in Harbor Plantation, Destin Florida. Bancorp South primarily operates in the Southeast. Bancorp South does not process short sales like the major lenders (Bank of America, Wells Fargo, etc).  Instead they rely on a local attorney who represents them and reviews comparable sales.  It removes many layers of processing. Here are the Destin short sale details:

Property:  Destin condo in Harbor Plantation

Mortgage:  Bancorp South - balance about $650,000

Offer:  about $325,000

Time for Approval:  40 days

Notes:  Bancorp South removes their lien at closing, but deals with the deficiency later

If you need to avoid foreclosure, and do a Destin, Florida short sale, consider hiring an experienced Destin short sale agent.

It's Wendy!

This Destin Florida home on 90 Legion Park Loop was just approved for short sale by PHH, who services Coldwell Banker Mortgage. 

Mortgage Balance:  $400,000 appr

Sale Price:  $185,000 appr

Faxed short sale package:  September 29 (final contract) AND April 24 (initial contract)

Received Approval:  November 19

Time for Approval:  Almost SEVEN months **

**Notes:  Original short sale contract (buyer walked) was submitted on April 24.  PHH/Coldwell Banker Mortgage never finalized approval on that submission.  Thus, the second contract faxed on September 29 was just a continuation of the initial process. For several months, PHH would rarely return my phone calls, emails or have any information as to status of this file.  This Destin short sale was finally approved, in all probability, because it was escalated due to imminent foreclosure sale. 

In conclusion, based on this experience and a similar one in process, PHH is still vying for top spot in "10 Worst Short Sale Lenders" of 2009.

If you need to sell your home as a short sale in Destin, Miramar Beach, Sandestin, Watercolor or Rosemary Beach, Florida, it is best to hire an experienced short sale agent.

Let Wendy Help You With Your Destin Short Sale

It's Wendy!

This townhouse on Durango Road, Holiday Isle in Destin Florida has been approved as a short sale.  It is on a canal on Destin Harbor with a dock.  It needed significant work due to an active water leak.

Lender:  Washington Mutual, now Chase

Mortgage Balance:  $359,000 appr

This beautiful Bungalos at Sandestin home was just approved for short sale.  Sandestin is a subdivision in Destin, Florida in Walton County.  The home is scheduled to close within 30 days.

Lender:   Bank of America, junior and senior liens

Hardship:  Death of borrower partner

Mortgage Balance:  $405,000

Sale Price:  $310,000 approximately

Approval Time:  105 Days

If you need to sell your home as a short sale in Destin or Sandestin, Florida, it is best to hire an experienced short sale agent.

It's Wendy!

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

Destin FL Real Estate

Destin and Sandestin Short Sales & Pre Foreclosure Help.

Read Destin Real Estate Blog

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

Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com

This beautiful Destin home was just approved for a short sale.   It is in the Laurel Grove subdvision in Sandestin Florida.

Lienholder:   Wells Fargo

Mortgage Balance:  $560,000

Sale Price:  $399,000

Approval Time:  90 Days

If you need to sell your home as a short sale in Destin or Sandestin, Florida, it is best to contact an experienced short sale agent.

It's Wendy!

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

Let Wendy Help You With Your Short Sale

This 9th floor unit in the gulf-front Westwinds condo in gated Sandestin in Destin Florida was just approved for short sale.  Soothing jewel-like colors. Granite breakfast bar, inlaid tile backsplash, recessed lighting. Plush furnishings. Tile flooring. Gorgeous sights of beach, grounds, pool. Westwinds is on the south side of Hwy 98, with gulf-front amenities, restaurants, work-out facilities and shopping.

Sandestin in well-know for its Gulf of Mexico and Choctawhatchee Bay setting, Village of Baytowne Wharf and extravagant landscaping.  Just five minutes away are more Destin Florida attractions- Grande Boulevard, Destin Commons and of course, Gulf of Mexico Beaches.

Listed at $589,000, Bank of America has accepted over $300,000 loss.  The short sale approval took 90 days. 

It's Wendy!