The Rulnick Report

Short Sales - Practical Training for Agents

2009-07-04T12:38:00.004-05:00

Wendy Rulnick and Bryant Tutas recently taught real estate agents from around the country-- practical advice for success with short sales. It benefits the consumer, buyers, sellers and the entire economy if agents learn the most effective way to do short sales. Session One of the Short Sale Basics webinar discussed seller choices when faced with foreclosure, and the ramifications of different alternatives. Some of the topics covered were FICO scores, affects of deed-in-lieu of foreclosure, federal programs for homeowners in trouble. The next session, July 11, at 10:00 a.m. Central, will discuss qualifying the seller for a short sale.

Here are comments from students taking the webinar:

"I've completed lots of training but feel yours was most valuable in your method of approach and delivery. The dialogue made it feel like I was in an actual brick and mortar classroom with real live scenario." Wendy Weber, Realtor, Scottsdale, AZ

"Your webinar was very impressive and informative. I feel that it didn't come across as a lecture, but good and clear conversation. The short sale is a very complex process, but you have made it much clearer and there was a lot of useful information." Richard Barton Real Estate Investor

"I am really glad you guys are doing this, I was looking for a class taught by practicing real estate brokers." Jana Hristova

"I enjoyed the SS session 1 yesterday and look forward to the next 4. After Wendy's comment about the lame duck DOD HAP program yesterday I decided to blast my Congressman and 2 Senators an email blasting DODs inaction as a Citizen, Veteran and Realtor serving military clients." Don Duft, REALTOR

"I just wanted to thank you again and let you know that you and Wendy did a fabulous job! I'm really looking forward to the next one." Debe Maxwell, Realtor/Broker

5 Steps to Get Your Short Sale Buyer to "Walk"

2009-07-03T15:52:00.005-05:00

Today I was talking with a title agent in my Destin Florida market who handles short sale negotiations for agents. He lamented that he had two contracts recently fall apart, with buyers walking.
"Why?" I asked.
"Well, the agents don’t have the seller sign the contract, so it is just an offer. There is nothing to hold them."
"Stop doing that!" I told him, "I would never send an offer in to a short sale lender."
Which brings me to my point-- "How can you increase the chances of your buyer 'walking' from a short sale?" Just follow these tips:

1. Don’t have the seller sign the contract. Then it is not a contract, just an offer, and the buyer can bail without repercussion.

2. Never ask for an earnest money deposit. Why ask the buyer to put anything on the line to show his investment in the contract? Then he can walk free, usually, with nothing to "lose".

3. Use a 60 day closing and 30 day short sale approval time line. Sure, that will be enough time to get a typical short sale approved- Not! Oh well, if the time frame passes after hours and days of work invested, and the buyer doesn’t "stay", you can always start all over on a new transaction.

4. Write in the contract that the buyer can "Withdraw at any time". That should simplify things.

5. Finally, let the contract be submitted to the lender with others, just like an auction , because the short sale lender will abide by contract provisions and honor the "primary" offer first, right? That tactic will make your buyer stick like glue.

Follow these tips, and you'll be sure to decrease your chances of closing on a short sale. Or, get a buyer with realistic expectations, a good deposit, one strong offer, and an "executed" contract, and be on your way to a successful short sale closing.

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

Why Short Sale Lenders Want Promissory Notes

2009-07-02T08:33:00.004-05:00

Why would a short sale lender ask for a promissory note or cash contribution from the seller? The emails below, from Bank of America negotiators, will show you exactly why:

EXAMPLE 1: Santa Rosa Beach Florida Short Sale
"Please be advised, that before we discuss the closing costs you have to talk to the sellers regarding contribution to mitigate the loss.
The reasons:
* FICO in the high 700, never late on any account, continue to make payments on all credit cards
* good deposits
* good income on tax returns
Requested contribution: Promissory note of 12,000, payable in 8 years, 125 per month, 0 interest."

EXAMPLE 2: Destin Florida Short Sale
"Seller is currently paying off a car at 453.00 per month and several credit cards paid on time, Seller is getting deposits of 3000 and 2500 every other weeks on her bank accounts. I'm sure she can afford 333.33 per month.
The note is 0% interest for 5 years at 333.33 per month. There is no way we are releasing the liens debts over 684K without the seller contribution."

Both of these examples show how financial information is scrutinized by the short sale lender. Apparently, good credit, few delinquencies and regular income make the seller a candidate for contributing to the shortfall. In other cases, the lender, servicer, or mortgage insurance company may request a contribution due to its loss amount or policy. It is best to prepare your seller in advance.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Search Destin Real Estate
Destin Short Sales & Pre Foreclosure Help.
Read Destin Real Estate Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com
Call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or on the Emerald Coast of Florida: 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

Welcome Debbie Gremillion!

2009-07-01T07:59:00.004-05:00

We are excited to introduce our newest Rulnick Realty team member

Debbie Gremillion, Realtor®

Debbie is a Florida Licensed Sales Associate since 2005 and has worked with residential properties from Pensacola to Destin, serving all of Escambia, Santa Rosa, Okaloosa and Walton Counties.
Prior to that Debbie worked as a Title Agent (Real Estate Closer) for over 12 yrs throughout the state of Florida, as well as 15 years in Banking experience.
She comes to us with great knowledge of military family transfers, as a spouse of retired military. Stop in to say "Hello, Debbie!"

Office: 850-650-7883 ext. 205
Cell: 850-292-6657
E-mail: debbie.gremillion@rulnickrealty.com

Fort Walton Beach Short Sale Appoved in 2 Days!

2009-06-29T11:36:00.005-05:00

This week I had my all-time record fastest short sale approval. It took two days.

Here is what happened:

Property: Investment condo - Fort Walton Beach FL
Seller Hardship: Loss of Income
Lender: BB&T
Original Purchase Price: $640,000
Mortgage Balance: $550,000
Contract Price: $380,000
Submitted: 6/22
Approved: 6/24
Conditions: $30,000 promissory note negotiated directly between seller and BB&T

The key to this quick approval was both the lender and the package. Unlike many other lenders, BB&T will start a dialogue directly with the homeowner prior to the short sale listing. They assign a negotiator in advance. They do not suggest a list price. BB&T did not order an appraisal, either, so they must rely on internal valuation models. The package I sent had no missing items, and the buyer, price and terms were strong. After I received the approval, I called the buyer’s agent, a wonderful lady with whom I have worked before. She could not believe it, since we allowed over 90 days for lender approval in the contract. She was stunned. She said:

"Wendy…. Wendy…. Wendy… Oh my!... I don’t usually drink, but I think I’ll have a Margarita".

I told her "Have two!"

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

Destin FL Real Estate
Destin Short Sales & Pre Foreclosure Help.
Read Destin Real Estate Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com
Call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or help you buy a home or rental property on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

"All Things Are Difficult Before They Are Easy"

2009-06-24T16:08:00.004-05:00

A few weeks ago my life started to change. I was asked to step outside my boundaries and outside of my comfort zone. What happened? I “met” Bryant Tutas- otherwise known as "Broker Bryant" . You may have heard of him- he’s one of the best-known real estate bloggers around. His writing is insightful, direct, witty and often very funny. He’s got quite a following.

Anyway, in the past several months I started to notice Broker Bryant’s comments on my blog posts and others. I noticed we were “simpatico”, of like-mind, on many topics, notably short sales. We exchanged a few emails, and a couple of months ago, Bryant asked me if I was interested in doing a joint venture. Among other things, he wanted to know if I would do a live webinar with him about short sales.

Well, ignorant me, I did not even know what a webinar was! I had to look it up. If you don’t know– a webinar is an “online live educational presentation”. Bryant and I would teach real estate agents about short sales. That idea scared the heck out of me, but how could I say “no”? I love short sales! I love discussing them, analyzing them, doing them and answering questions about them. I welcome calls from agents in my area or around the country looking for information or direction on short sales. I love helping the consumer with short sales. And that is what I do all day. So does Bryant.

But what would we have to offer that would be different? There are a lot of “classes” about short sales. The difference here is that we are both practicing real estate agents who spend 90% of our time listing and selling short sales. And we do them from beginning to end. Bryant and I do all our own negotiating, we don’t refer out to a law firm, title agency, assistant or loss mitigation company. (Not that there is anything wrong with that). We are the ones on the telephone on hold with the negotiators- every day, getting sales closed. We think that our practical experience with the day-to-day workings of short sales can benefit others. We want to share what we've learned in a forum to provide concrete knowledge.

Enough about that. I am still nervous. We’ve never done this before- although Bryant has appeared on other webinars. So forgive us in advance if we goof up a little, or pause or stutter (especially me). What you will get, I promise, if you sign up for our webinar- is practical, usable, comprehensive information on short sales.

The first session of our five-part series is Saturday, June 27 at 11:00 a.m. Eastern. Join us.

922 Pocahontas, Fort Walton Beach FL - Waterfront - Short Sale

2009-06-20T11:02:00.003-05:00

Deep water views graced by tall trees... this is a unique hideaway in Fort Walton Beach Florida for boat and water lovers. and lot sits up high. Circular drive brings you to home set back from street for privacy. Magnificent oaks adorn lot. Tile floors throughout, wood-ceiling living room, happy kitchen open to dining room. Kitchen has recessed lighing, breakfast bar and warming oven, plentiful cabinets. Oversized covered patio plus screened porch. Master bedroom is restful, with French doors out to back. New dock- 1 year old with water, 4 extra posts set for a lift. Seller estimates can park 34' vessel, waters 4-10' deep at end of dock- can bow in a big one. Property includes delightful one-bedroom apartment, universal design, on left side of home accessed with separate entrance or through garage. Includes kitchen/living and bedroom, separate a/c. Tenant will remain at $750 per month. Separate oversized workshop to right of drive, segmented into two sides, with walk-up attic, and separate power. What more could you want?

Offered at $425,000

Call our Rulnick Realty team to help you buy this property at 850-650-7883

The Legends of Santa Rosa Beach - Short Sale

2009-06-20T10:54:00.003-05:00

IMAGINE... Beautiful Gulf Views, Sugar-White Beaches, Emerald Water, Quiet Surroundings, Incredible Sunrises and Sunsets, Ultra-Relaxing Vacation... Sound Good? This is a beautifully redecorated townhouse at The Legends in Santa Rosa Beach Florida. It has new flooring throughout (07), offering over 1400 square feet of living space. The master suite has a king-size bed with a pillow-top mattress, whirlpool tub with separate shower in the private bathroom, and beautiful gulf views from the deck. The ' Surfin' ' room sleeps up to four on 2 full-size beds with it's own bathroom and walk-in closet.

The Legends is a beautifully landscaped complex in the heart of Santa Rosa Beach. This condo overlooks one of two pools, so finding a lounge chair at the pool is never a problem! Play sand volleyball or tennis right on the grounds. Quaint shops, incredible restaurants, and championship golf courses are all close by. BEACH ACCESS is less than 200 yards away, just a short stroll. Scenic Route 30-A offers a 17 mile long, paved, bike and jogging path, great for the morning exercise.This Santa Rosa Beach FL short sale is offered at $209,900.

Call our Rulnick Realty team to help you buy this or any other property. 850-650-7883
It's Wendy!

Destin Condos - Short Sales and Condo Dues

2009-06-18T08:27:00.002-05:00

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

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

Florida Statutes, Section 718.116 states:

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

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

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

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

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

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

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

But He Didn't Do Any Work - Why Should He Get The Commission?

2009-06-16T09:39:00.002-05:00

My husband and I had to go shopping for a new television last weekend. The old one was about to die - its channel guide was getting fuzzy and my eyesight is already "bat-like". We researched our options online, found one we wanted, then set out for a reconnaissance mission to Sears, Best Buy and yes, Sam's, at my Hubby's insistence.

Right away, at our first store, Sears, there was our new flatscreen- and it was a lot less expensive than the internet price! I got really excited. The on-duty salesman, Lee, came over and quietly introduced himself to ask if we needed any help. My husband asked if it the t.v. had built-in speakers, and Lee said "Yes". Hubby didn't give signals to talk further (being an engineer), so Lee said to call him if we needed more help.

My husband and I walked up and down the aisles but I already KNEW it was the t.v. we wanted (OK-- " I" wanted). Hubby and I whispered ...."I really want it, let's get it now!" I said. My husband agreed.

I called Lee over and we said "We'll take it". He said he would have to check their inventory (sigh). Sadly, there were none in stock, but if we ordered it then, we could have it in three days. Hubby and I looked at each other. I said "Let's order it", but my husband wanted to finish our mission and go to the other stores.

Before we left, I asked the salesman, Lee, "Are you commission sales?"

" Yes" , he responded.

"Then I want you to get credit for the sale if we call or come back to order the t.v. I am a salesperson, too, so I respect that."

Lee then filled out a customer-finder form so we could let any of the other Sears salespeople know we were "his" customers.

Hubby and I completed our research at the other stores. Sears was the best price by far. I sent Hubby to get the t.v. the next day. "Make sure you give the on-duty salesperson Lee's card so he gets credit!" I instructed.

"Why?" he asked innocently, being an engineer, "He didn't do any work. He answered one question."

"Honey", I said, " If someone called me up because they found a house, then grabbed me to write an offer, would I not deserve a commission? Some deals are easy, some are hard. That's just the way it is. Lee might have killed himself with the previous three customers. They might not have bought, or maybe they did not give his card so he didn't got credit when they did buy. Yes, we were ‘easy', but not all sales have to be ‘difficult' to make the salesman deserving."

Hubby went back to the store, and there was a different salesperson there, not Lee. He did a lot of work to take the order from my husband. I asked Hubby what he said when he gave him Lee's card... He said....

"He would have done the same for me."

It's Wendy!

Wendy Rulnick, Broker Rulnick Realty, Inc.
Destin FL

Sign up for "SHORT SALE BASICS FOR REALTORS" Webinar
starting June 27 - comprehensive, practical knowledge
taught by Wendy Rulnick and Bryant Tutas

Countrywide/Bank of America "Forgets" to Ask for Promissory Note

2009-06-12T14:10:00.002-05:00

We all make mistakes, but this was a big one, by a big corporation... I was in negotiations for a short sale on a Crestview, Florida listing. My sellers owed Countrywide/Bank of America about $175,000 as the senior lien and around $25,000 to Citi Financial as the junior lien. The sale price was a spot-on $150,000.

Bank of America asked for a promissory note of $5000. Although my sellers had recently divorced and had to move to separate homes, they both had stable jobs. Bank of America told me that was a factor in asking them for the note. The couple agreed, and I emailed the negotiator. A few weeks later, BOFA approved the short sale. YEA! And they did not even ask for a note!

My next problem was to tackle Citi, who had initially farmed out the listing to a collection agency, as I wrote about in "Rude and Crude- Nordon Collection Services". After I complained about Nordon's uncouth behavior, and hanging up on me, Citi took the file back. They requested $6000 as a pay-off to release their lien. BOFA would only pay them $3000, so my sellers agreed to pay the other $3000 at closing, each having to borrow money to do so.

Finally, the home closed! After months of wrangling, the sellers were thrilled to complete that phase of their lives.

Until yesterday, that is. Bank of America called asking where the note was. This is a month after closing. They sent me back a copy of my own email to them stating the sellers would agree to a note (pretty shrewd, huh?) The negotiator then called me, demanding the note be paid.
I responded, incredulously."The note?" I said, "You did not require a note in your approval letter. The sellers based their decision to borrow money to pay Citi on the fact that you did not require a note. They have nothing more to give.... Is someone in trouble at your company?"
"Yes" he responded.

It's Wendy!

Short Sale Basics - Let The Class Begin!

2009-06-08T19:28:00.002-05:00

I am excited to announce that Broker Bryant , Bryant Tutas of Tutas Towne Realty, and I will be launching a Short Sale Webinar starting June 27 - for all to learn and grow.... Broker Bryant has been sharing his thought-provoking and information-packed blog for years, and he never fails to delight his many followers. We are teaming up on this project to educate YOU and share our knowledge. Take it away, Bryant!

Via Bryant Tutas-Tutas Towne Realty, Inc:

Hi folks. Did you know I have been giving away free information on Active Rain for three years? Just about everything I know about Real Estate I have shared and have never asked for anything in return. Today, is going to be different.Starting Saturday June 27th at 11:00 am Wendy Rulnick and I, Broker Bryant, will be launching “Short Sale Basics”. This will be a 5 part, very comprehensive, course on Short Sales.If you are not familiar with Wendy check out her blog here. Wendy is the Broker/owner of Rulnick Realty in Destin Florida and…..

“Wendy Rulnick, is a Florida Realtor and Broker, and has been selling real estate for 20 years. She has won numerous awards, including the coveted ADDY for advertising design. Wendy was featured in Kiplinger Personal Finance Magazine as a short sale specialist.”

Wendy and I will be your instructors. Our goal is to help as many REALTORS® as we can become better at handling Short Sales. By empowering you we can do our small part to help Mr and Mrs Homeowner get through these difficult times. Together we CAN make a difference. Short Sale Basics is being presented as a Webinar. Each class will be 60-90 minutes long. As students you will be able to call in by phone or listen in on the Internet. We will take questions in advance of each class and will try to answer as many as we can during the session.These sessions are NOT for trying to sell you a product. Instead these are training classes. If you attend all 5 classes you will have the knowledge and confidence needed to succeed at Short Sales. You will be in a position to help folks and make a good income while doing so. We want you to succeed and we'll be there to help you in any way we can.Wendy and I will both be available during and after the course to answer any questions you may have as you start working with Short Sales. Here’s the class schedule and curriculum:

June 27th Session 1: Short Sale Basics
What is a Short sale
How does it affect the Seller
Why would the Lender consider a Short Sale
What role does the REALTOR® play

July 11th Session 2: Taking the Listing
How to qualify the Seller
Questions to ask
Documents needed
Disclosures and addenda to the listing contract

July 18th Session 3: Placing the property on the market
Proper pricing
Price reduction strategy
Marketing
Seller disclosures

July 25th Session 4: Selling the property
Qualifying the Buyer
Negotiating the contract
Knowing what the lender will accept
Time frames

August 1st Session 5: Presenting the Short Sale to the Lender
Preparing the package
Making your case
Follow up
Negotiating the payoff

Folks as you can see we have a lot of information to cover. There will be course materials sent to you in advance of each session.OK since I already mentioned this is not free…you’re probably wondering how much it is? The cost is $27 per session or you can purchase the series for $97. All sessions will be recorded and given to you as a MP3 file so you can go back and listen at your leisure. AND....you will get a membership for our Short Sale Networking site. The course is guaranteed. If for any reason you feel you didn’t get your money's worth just let us know and we will give you a full refund. All we ask is that you are honest with us and yourself. Let us know where we let you down so we can improve.

Wendy and I are just like you, we both work Real Estate full time. We both handle our own Short Sales from beginning to end. Wendy has tons of experience and is a wealth of information. My job will be to get this information from her and present it to you in a no nonsense style so we can all learn together.Short Sales are going to be around for years to come. If you are not interested in listing them that’s OK. You may still be selling some on the Buyer side. This course will give you the knowledge needed to assist your Buyer in choosing the right property. Knowledge is power. I can already see I’m going to need to write a few more posts about this.

This one is waaaay too long.So.....are you ready?

All you have to do to register is send us an email at shortsalebasics@gmail.com Let us know what sessions you want to attend. We’ll then send you the instructions on how to pay and where to “go” for the class. We have room for 250 people. Who wants to be first?

Copyright © 2009 http://www.brokerbryant.com/ All Rights Reserved

Blue Dolphin Condo, Okaloosa Island, Fort Walton Beach FL

2009-06-04T07:58:00.002-05:00

Fantastic Gulf views from both levels of rare penthouse unit in Blue Dolphin condo complex on Okaloosa Island, Fort Walton Beach, Florida! Balconies on two levels for viewing all the sunrises and sunsets and beach activities oh the Gulf of Mexico. Only 10 units in this low density condominium complex. Covered parking and Gulfside pool and poolhouse for your comfort, privacy, and convenience. Unit appointments feature spiral staircase, spacious storage, and crown molding. Living area features kitchen with granite counter tops, ceramic tile, vaulted ceilings in the living area. The oversized Master suite and bath are ultra plush and relaxing with a large walk-in closet, whirlpool tub, separate shower and a comfy sitting room for watching the telly. This unit is beautifully decorated in nautical themes, so your really feel you have arrived at the BEACH on Okaloosa Island! It would make a wonderful home or rental investment property. Ready to rent, ready to move into. Short drive to Destin shopping and harbor.

Fish, eat and enjoy life on the Emerald Coast of Florida! Offered at $690,000.

2431 Bungalo Lane, Sandestin FL - Short Sale

2009-06-04T07:47:00.003-05:00

Adorable Bungalo home in gated Sandestin, tile floors, upgrades, porch. Close to amenity-filled Baytowne Wharf shopping, dining. Fish, pools, tennis, play, job, lifestyle. This home is 1596 square feet, built in 2005. It has three bedrooms and three and a half baths. Destin Florida location has some of the best beaches in the world! This is a pre-Foreclosure Short Sale subject to seller's mortgage holders' approval. Offered at $317,900.

It's Wendy!

67 Tranquility Lane, Destin FL - Destiny East - Short Sale

2009-05-30T13:39:00.004-05:00

Reminiscent of an Italian Villa, this luxurious Destin Florida home has expansive porches on three levels, high ceilings and travertine tile. Exterior find ivy-draped walls and pavered drive that greet with a refined air. Private yard with gas grill, outdoor shower, detached two car garage set to rear. Interior is opulent, with columns, fireplace, enormous kitchen, first floor office/den. Each level has its own sitting room and porches. Rinnai hot water heater, central vacuum system. Great views of the lake, walk across the street directly to the Gulf of Mexico. Destiny East has two tennis courts, work-out facilities, pool, playground and IMAX theater! Great location near Destin Commons, Fresh Market, shopping, restaurants! Short Sale. Offered at $599,000.

Contact Wendy Rulnick, Broker

850-650-7883 ext 204

itswendy@rulnickrealty.com

371 Maravilla Drive, Destin FL

2009-05-30T08:50:00.004-05:00

371 Maravilla Dr., Destin Florida - Walk to Beach

Elegant appeal makes this beach home, called "Banana Wind" stand out! Convenient to pool, tennis and a short stroll to Gulf of Mexico waters. This Destin home has a very open floorplan, kitchen opens to living room, tile floors, high ceilings. Fun beach house decor. Second floor has generous front porch. Huge master with private balcony, two closets. Third bedroom with whirlpool bath, separate shower and huge walk-in closet. Additional bedroom on third floor, great hang-out room, two private balconies! Maravilla has a private, deeded beach, offers clubhouse, weight room, and hot tub. Short Sale.
Offered at $549,000

Wendy Rulnick in Florida Realtor Magazine

2009-05-27T17:32:00.003-05:00

The June 2009 issue of Florida Realtor Magazine references Wendy Rulnick, Destin FL Broker/Realtor of Rulnick Realty. Rulnick's article "22 Questions to Ask the Short Sale Lender" is called "impressive" and will help "ensure your transaction goes smoothly".

For short sale assistance on the Emerald Coast of Florida, call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or help you buy a home or rental property on the Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy is a short sale and pre-foreclosure specialist. She has won the coveted ADDY award for advertising, is a Certified Residential Specialist, Graduate of the Realtor Institute, Accredited Buyer Representative, and Certified Relocation Professional. Wendy has been a Realtor for 20 years. She is Broker/Owner of Rulnick Realty, Inc., centrally located to all the Emerald Coast in Destin Florida.

email itswendy@rulnickrealty.com or call Wendy at 850-650-7883 ext 204

New Spirit of Cooperation Among Agents - But Will It Last?

2009-05-24T11:10:00.004-05:00

Remember the "old" days of selling real estate? When competitors didn't talk? When agents put themselves on pedestals? When they bragged about listings and sales? Or thought they had a "niche" no one could touch? Those days are over. The market has changed. Many real estate agents have been knocked down a peg or two, or left the business. In the "old" days, some agents wouldn't deign to show listings under certain price ranges, like under $300,000 or $200,000. Or they just limited themselves to certain towns- they wouldn't drive 25 minutes to show "regular" properties.

Now, no one is "too good". Everyone in this new economy has been affected by the down real estate market, job losses, home devaluations. And, I must say, they are a lot nicer for it. There is a new camaraderie, a humbling. In my last year of selling real estate on the Emerald Coast of Florida, I have made many new friends. We talk, share and discuss the market. We help get each other's listings sold. I don't mean from my office at Rulnick Realty, I mean from other COMPANIES in Destin and throughout the Panhandle. I regularly have conversations with other brokers about short sales, our multiple listing system, market statistics and ethics. I field phone calls from agents with questions about their own short sales- ones I have nothing to do with. In fact, many agents have referred short sale listings to me, or even their own properties for sale.

Yesterday, I closed on a listing referral I received from Mark A. DeSalvo of Newman-Dailey Resort Properties in Destin FL. He emailed me: "Great job! And you got the full asking price. You are the best." Mark's office is one street over from mine, and he sent a short sale listing to me.

Just this week, I sent a referral to Jimmie Greer, of Destin Beach Realty, for someone who was looking for a resort rental in Destin. I also received an email from an agent at Re/Max Paradise Properties in Destin asking for advice on her short sale. I listed a referral from Marno Wilson of JW Watts Properties for a Fort Walton Beach condo. I contacted Jayme Nabors, a commercial broker with NBI Properties, to send him a Niceville Florida business listing referral of one of my own sellers (no fee asked). That was just this week. This story has been repeated dozens of times in the past year.

There really is enough business to go around, as I wrote in How I Helped My Competition - On Purpose. On the Emerald Coast alone, there are over 13,000 listings for sale. I just hope this attitude of kindness and sharing can continue after the market normalizes.

Although we are competitors, as Mark DeSalvo said to me:
"All us agents should be working toward the same goal of making the customer happy. It's a fun business when we have co-operation. It's what makes the world go around."

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

Wrong Short Sale Info Ruins Destin Seller's Credit

2009-05-23T10:48:00.003-05:00

Yesterday I received a phone call from an elderly seller who wanted to do a short sale. She had bought a waterfront condo in Destin four years ago, and paid over $800,000. Today, the unit is worth around $350,000. Mrs. Seller told me she had three "friend" investors convince her to buy, who promised to help with the payments. She put down $50,000 and her son put down $75,000, but she took the mortgage in her name alone. She told me the "investors" bailed, and had never made one payment. Mrs. Seller said she had "had enough" so needed to do a short sale. She stopped making her mortgage payments three months ago, and her lender was threatening foreclosure.
Mrs. Seller is in her late 70's, in ill health and has had major surgeries recently. Her voice shook as she spoke with me. I told her I would send her my preliminary paperwork including a financial worksheet for her to fill out, as I could tell her medication was preventing her from speaking coherently.

Later on, she called back, asking how she could list the unit. I had not faxed her a listing agreement. I told Mrs. Seller, "I want to see if you have a hardship before we list as a short sale".

The conversation then proceeded like this:

Mrs. Seller: " Well, I don't have a hardship."

Wendy, shocked: "You have sufficient income to pay your bills?"

Mrs. Seller: "Yes"

Wendy: "You are including the payment for the condo?"

Mrs. Seller: "Yes"

Wendy: "You are not taking money out of savings or charging a credit card to make payments?"

Mrs. Seller: "No"

Wendy: "Then WHY did you stop making your mortgage payments?"

Mrs. Seller, sadly: "Someone told me I had to stop making payments, then I could do a short sale"

Wendy: "WHO TOLD YOU THAT?"

Mrs. Seller: "I don't remember."

Wendy: "Well, Mrs. Seller, it seems you don't have a hardship and you are probably not qualified to do a short sale."

Mrs. Seller: "OH NO, I've ruined my credit for nothing!"

This is a very sad story. An elderly person probably had a friend say they "heard" somewhere you had to simply stop making mortgage payments, then you "qualify" for a short sale! This is FALSE information. Banks have several criteria you must meet. And many banks have different rules. People, do not make serious financial decisions based on hearsay. Do your research! If you are contemplating a short sale. Contact your lender first, to see if they can help you. If not, find an experienced real estate agent who specializes in short sales. Check them out on the internet. Test their knowledge. Use caution.

Finally, don't make hasty decisions when it comes to your financial well-being. A short sale is a serious endeavor, and should not be entered into lightly. Know what you are doing before you proceed. Then go forward with a real estate agent you trust.

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

Destin FL Real Estate
Destin Short Sales & Pre Foreclosure Help.
Read Destin Real Estate Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com
Call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or help you buy a home or rental property on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy is a short sale and pre-foreclosure specialist and can help you sell or buy a short sale property in and around Destin Florida and the Emerald Coast.
Subscribe in a reader
Subscribe to It's Wendy's Blog by Email

Destin Condos - Sales Report

2009-05-22T08:36:00.002-05:00

Is there a trend starting for the Destin Florida condo market?

1. There were 34 condo sales in Destin for April 2009. This figure is down from March, but there is no definite trend. Monthly sales volume decreaseed, as well.
2. The average Destin condo list price is $420,397. This is down from $711,000 one year ago!
3. The average Destin condo sold price was $375,739. This is down from $639,000 one year ago! But the sale price is up from January and February, and less the the March average.
4. The price per square foot is down to $260, down from $346 one year ago.
5. The median sold price for Destin condos is $297,500, the same as March.
6. The percent sold to list price is about 89%, fairly stable over the past year.
7. There are 1977 condos for sale in Destin, a slighty lower inventory level than one year ago, but not showing a strong downward trend.
8. There is a 58-month inventory of condos for sale. That means, it would take almost five years to sell all the condos on the market at the current rate of sales. A "normal" market is 6-7 months inventory.

The bottom line is that no clear trend is emerging in the Destin Florida condo market. If you analyze the chart, some of the indicators have bounced around during the last few months. One of the major problems affecting Destin condos is the severe Fannie Mae guidelines for Florida. Condos with delinquency rates for homeowner assocation dues over 15% will be denied funding. Condos cannot have daily check-ins, so called "condotels". All projects must be approved by Fannie Mae, which can delay sales a month or more. Buyers must have 20-25% down. And on and on. The guidelines are shrinking the pool of buyers, and will no doubt have a continued negative affect on sales and prices, outside the normal market decline we have been experiencing.

Fore more information, email me at itswendy@rulnickrealty.com

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Destin FL Real Estate

399 Marshall Ct Unit 6, Spanish Villas, Fort Walton Beach FL Short Sale

2009-05-19T10:32:00.002-05:00

399 Marshall Court #6, Fort Walton Beach, FL 32548

Well done Spanish Villas unit in central Fort Walton Beach, Florida near the Santa Rosa mall. Large open spaces, kitchen with breakfast bar and pass-through to living room. Master bedroom has private full bath. Balcony overlooking tennis games. Pool on-site. Separate stairway entrance into your unit. Easy commute to Eglin AFB, Hurlburt Field and Emerald Coast beaches. Short sale subject to seller's mortgage holders' approval.

Offered at $87,000

Eglin AFB and Hurlburt Field: HAP Program Gets DOD Directive

2009-05-16T10:08:00.005-05:00

The Homeowner Assistance Program (HAP) for the military has just received the Department of Defense directive that will affect military PCS sellers who are upside down on their mortgages. I have published a series of updates on HAP, and this just-released update is summarized from the HAP website due to the urgent need for Eglin Air Force Base and Hurlburt Field airmen who have received orders:

Although DoD guidance has been established, we are unable to begin processing applications until we comply with rule making procedures established by the Administrative Services Act. District field offices are reviewing applications for compliance with DoD guidance and will notify applicants of eligibility as early as possible.Implementation Rules and Eligibility Criteria for American Recovery and Reinvestment Act (ARRA) Expansion of the DoD Homeowners Assistance Program (HAP)
The overall goal of the HAP is to minimize the amount of financial harm, risk of foreclosure, credit damage, or bankruptcy experienced by servicemembers and DOD civilian beneficiaries when they are compelled to move in an unprecedented real estate market as a result of their service to the United States. In that vein, the following policies provide a solid basis for determining eligibility for the ARRA HAP expansion and ensure this effort is managed efficiently and successfully.

• As the second priority category, the new policy will expand the HAP BRAC benefit by removing the requirement that the homeowner show that the BRAC closure or realignment action was the cause of the drop in the value of the home.
• The Department is also creating a temporary benefit for qualifying Permanent Change of Station (PCS) moves
• In all cases, the benefit is for a primary residence only, and the benefit may only be used once.
• Use Purchase Price as the Prior Fair Market Value (PFMV) for all beneficiaries, including BRAC
o Current Policy: PFMV is determined at the date of the BRAC announcement.
o Description of Change: The BRAC announcement date is not relevant to many new HAP beneficiaries. The best equivalent PFMV is to use the purchase price of the home. For BRAC and PCS moves, the home must have been purchased prior to July 1, 2006.
o Outcome: Avoids unnecessary claim costs because BRAC announcement date was near the peak of housing market and BRAC announcement date is no longer relevant.
• Set the allowable Private Sale reimbursement to 90% of Prior Fair Market
Value for BRAC (non-causation) and PCS move beneficiaries
o Current Policy: Prior HAP allows for 95% Private Sale reimbursement
o Description of Change: Losses on private sales will be reimbursed at 95% of PFMV for Wounded Warriors and Surviving Spouses, as well as BRAC communities that can prove causation. It will be reduced to 90% of PFMV for all other beneficiaries.
o Outcome: Communities that can show BRAC causation have an incentive to do so; reduces per-claim costs for BRAC (non-causation) and PCS moves; maximizes assistance to the fullest extent for Wounded Warriors and Surviving Spouses, and makes overall policy consistent with 10% individual loss eligibility threshold.
• Government acquisition (or mortgage payoff) will be 75% of PFMV for all beneficiaries (except Wounded Warriors/civilians and surviving spouses) who have made reasonable efforts to market their home and cannot sell under reasonable terms and conditions. Wounded Warriors, wounded civilians, and surviving spouses who cannot sell under reasonable terms and conditions will receive 90% of PFMV.
o Current Policy: Government acquisition is 75% of Prior Fair Market Value.
There is no standard level of effort a homeowner must make before the government acquires a home or pays off the outstanding mortgage.
o Description of Change: While statute allows purchase up to 90%, current policy limits government acquisition to 75% of PFMV. Only wounded warriors, wounded civilians, and surviving spouses would receive the full 90% of PFMV for government acquisition of their houses. As previously noted, losses from private sales will be reimbursed up to 95% of PFMV for wounded warriors, wounded civilians, and surviving spouses. These changes also strengthen current policy by specifying government acquisition is allowed only if applicant is not able to sell home after 120 days of marketing it at a price level deemed appropriate for its local market circumstances by the US Army Corps of Engineers, and therefore the applicant is in danger of foreclosure.
o Outcome: Prior HAP experience with government acquisition of homes has shown significant maintenance costs from acquired homes and resulted in reduced HAP resources being available to pay other applicant claims. Incentives have been built into the existing HAP program over time to favor private sales rather than government acquisition. Strengthening current policy discourages government purchase of homes and costly carrying expenses. It also allows HAP resources to go further and assist more applicants.
• Cap the Maximum Home Purchase Price as an eligibility threshold
o Current Policy: There is no maximum home value established for a beneficiary receiving a HAP benefit.
o Description of Change: Links the maximum cap to the 2009 Fannie Mae/Freddie Mac Conforming Loan Limits (as amended by the ARRA of 2009), which range from $417,000 to $729,750 (depending on county or Metropolitan Statistical Area). The 2009 Conforming Loan Limits would apply to all homes in the program from FY 2006 to FY 2012.
o Outcome: Prevents taxpayers from ‘bailing out' million-dollar homes, but is adjusted by region to account for cost variations.
4• Claims Processing
o For BRAC or PCS moves, the ARRA requires that home must have been purchased before July 1, 2006.
o For BRAC moves to be eligible, the property must be sold by September 30, 2012.
o For PCS claims to be eligible, the home sale must result from PCS orders issued on or before December 31, 2009, and the application must be recieved by March 31, 2010.
o Outcome: These policies are designed to ensure that regardless of when a claim arrives, there will be sufficient resources available for Wounded Warrior, wounded civilian, and Surviving Spouse claims, as well as for BRAC claims (most of which will occur in FY 2010 and FY 2011).
• Pay PCS claims for home sales resulting from PCS orders issued by December 31, 2009, or until available ARRA resources are depleted.
o Outcome: Uses allowable statutory authority under the ARRA to set an end date for the PCS portion of expansion program based on projections of when the available funding will be depleted. The PCS home sale deadline will be reviewed as initial claims are processed and can be extended, if resources allow, based on a close monitoring of claims payment history.

Here are the program sales price limits, based on Fannie Mae and Freddie Mac, for Eglin AFB, Hurlburt Field and the rest of the United States.
Also, read Major Jason Trew's letter to Congress regarding the HAP July 2006 cut-off date for assistance.

We expect more details to be forthcoming, check back on this blog. As always, consult an experienced real estate agent to help you with selling your PCS property.

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

Emerald Coast FL Real Estate
Emerald Coast Short Sales & Pre Foreclosure Help.
Read Emerald Coast Real Estate Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com
Call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or help you buy a home or rental property on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

Countrywide Short Sale Approval Letter Threatens Deficency Pursuit

2009-05-16T09:47:00.002-05:00

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

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

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

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

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

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

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

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

Destin FL Real Estate
Destin Short Sales & Pre Foreclosure Help.
Read Destin Real Estate Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com
This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.

HAP Update: Eglin AFB and Hurlburt Field

2009-05-12T07:24:00.002-05:00

Since writing Eglin AFB and Hurlburt Field: Homeowner Assistance Program (HAP) for Short Sales, more information has come to light. Or lack of thereof! I have received numerous calls and emails looking for clarification on how the program will be implemented, and how it will affect PCS sellers (military relocation term meaning "permanent change of station"). Currently, the issue is there is no directive from the Department of Defense as to how to process HAP applications, nor many program specifics. My area, from Navarre to Destin, Florida and up through Niceville and Crestview has approximately 3000 airmen relocating to other bases around the country and the world. Many of those airmen purchased homes during 2004-2006, and do not have enough equity to sell their houses when they must relocate and pay off their mortgage balance. HAP is supposed to help, but as of yet, there is no help.

Here is the latest result of my HAP research:

Mr. Frazier, of the HAP Savannah District told me:

There is no true timeframe by which the DOD directive with program details will be published.
Rumor is at the end of May, but it is far from confirmed.
Applications can not be "processed" at this time, but you can mail one in.
HAP will not buy homes.

When the DOD directive is implemented, he said:
Qualified military members may sell their homes at market value or 90% thereof.
At time of contract, use a 90 day closing date, HAP will try for sooner.
Make the offer contingent on HAP approval.
When a contract is entered into, call your HAP district for instructions.

Additionally, I inquired by email and received this communication from HAP Realty Specialist, B.M. Reed, summarized and with emphasis added:

Ms. Rulnick,

The Department of the Army, in coordination with the other military departments, is in the process of finalizing implementation guidance for the expanded HAP, including determining eligibility, restrictions, and disqualifications.

Based on the current HQ timeline for review and official approval of the guidance, it may not be until late May before the implementation guidance is at district level. When the implementation guidance is issued, it will be published on the official HAP website, which can be found at http://hap.usace.army.mil/ Unfortunately, without the referenced implementation guidance any attempt to provide detailed information on the Stimulus Bill HAP eligibility, disqualifications, benefits, or how benefits will be calculated would be merely speculation.

Under this program the Government might be able to reimburse applicants part of the loss from selling their home (private sale benefits) or assist applicants if they do not have enough proceeds from the sale of the home to pay off the mortgage at Closing (private sale augmentation). Benefits may be based on the difference between the prior fair market value (PFMV) of the property and the current fair market value (CFMV). The PFMV may be determined by an appraisal effective 1 July 2006, or possibly the purchase price of the property might be used; the CFMV may be determined by the appraised value at the time of sale or possibly the selling price itself. The Government could pay an amount up to a stipulated percentage of the difference between the two figures used for the computation.

Again, guidance has not yet been published so a completely different scenario might be used to compute benefits.

The term 'private sale augmentation' merely means when an applicant's benefit payment is brought by the Government to a Closing in order to assist the applicant with the payoff of a mortgage and typical seller closing costs so that the sale can be finalized. In order to be eligible for a private sale augmentation, an applicant must maintain current payment status on his/her mortgage from the time an application is submitted through Closing.

While the implementation guidance is being finalized, potential applicants are free to apply now by visiting the HAP website to fill out, print and mail in an application to the appropriate district for the area in which the property in question is located. Instructions on how to apply can be found at http://hap.usace.army.mil/HowToApply.html I've attempted to provide you some information as best I can without having yet received implementation guidance on the program from the DOD. What information there is available on the Stimulus Bill HAP (ARRA) can be located on the Army's official HAP website at http://hap.usace.army.mil/. There is wealth of information under the section of FQAs at http://hap.usace.army.mil/FAQs.htmlB. M. Reed, Realty SpecialistHAP Section, Acquisition Branch, Real Estate Division (RE-HA)US Army Corps of EngineersPO Box 889Savannah, GA 31402-0889

What a predicament for relocating servicemen. How can you put a home on the market contingent on HAP approval, unless you get a buyer willing to wait with no closing date? What if you have already changed bases and cannot continue to make mortgage and/or rent payments in both locations? According to HAP, you must stay current on your mortgage payments to qualify for the program.

I encourage servicemen to contact their state and federal representatives to hasten a resolution of the HAP quandary. Meanwhile, stay tuned for the latest updates.

It's Wendy!

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

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

Countrywide/Bank of America Short Sale Closing Costs

2009-05-06T17:49:00.002-05:00

As a short sale listing agent in the Destin Florida area, I tend to get the same type of offer again and again. The buyer asks for all closing costs to be paid by the short sale lender. So, on the most recent offer on one of my short sale listings, of course the buyer's agent pressed for having Countrywide, now Bank of America, pay all the closing costs. I have been through this numerous times before. The agent tells me they "had one case" where all the costs were paid. Or they say they "heard" the short sale lenders would cover all the costs if the offer price was raised. I have to always leave the final decision to my seller, but I recommend against going down this path.

To placate this agent, I emailed my favorite Bank of America negotiator, specifically asking what closing costs would be paid. This is her response:
"We pay all outstanding property taxes, commission (amount depends on loss and investor), $3,000 to any outside 2nd lien, settlement or escrow fee, title insurance, doc stamps. We typically do not pay any miscellaneous type fees (wire, courier, admin, doc prep, notary, home warranty, etc.). All fees are negotiable depending on the loss and investor and is up to each individual negotiator as to what fees will be paid. It is also at management's discretion when a decision is made."

At the insistance of the buyer's agent, who asked if the buyer could increase his offer price to "cover" more closing costs, the Bank of America negotiator said: "No, they usually still will not pay those items."

99% of the time, if you submit a short sale offer asking for all the closing costs to be paid, you will get rejected or countered. Why waste sixty to ninety days for nothing? Submit a good offer, one that you know can get approved, and increase your chances of short sale success.

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

Destin Florida Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Destin Real Estate Blog