Borrower: Elderly gentleman at retirement age
Property: Florida home that was rented out, tenants vacated
Lender: Green Tree Servicing
Hardship: Major expenses due to spouse being in head-on collision. She will require extensive medical treatment for years and require relocation for appropriate care.
Mortgage status: Payments kept current from savings. Account drained from $35,000 to $3,000.
Seller’s Logic to Make Payments: “I am keeping up my end of the mortgage agreement in good faith”
Green Tree Conclusion: Short Sale Denied
Green Tree Investor states: “We are willing to take a hit if you are willing to take a hit on your credit. You are current with your payments. Short sale denied.”
You think I am making this up? I am not. This homeowner contacted his lender before asking me to sell his home as a short sale. He was told he could continue to make his payments and his short sale would be considered. Yet, he was denied. Guess what? After I notified him of the denial, he said he will no longer be making his mortgage payments. He held up his end of the bargain as best he could and tried to save his lender the cost of foreclosure. Thankfully, a kind Green Tree representative is going to swat the investor in the head so they LOOK at the situation, as she said, like a “human being, not a computer”.
People, do not be alarmed. This is NOT the norm. Most short sale lenders WILL consider a short sale if you are current with your payments IF you have a legitimate hardship. For example, IF you are using your savings to make payments, charging on credit cards, borrowing money, taking funds out of retirement, have a military base relocation, etc. I am neither endorsing nor recommending that you make payments or don’t make payments. That is a personal decision. And it is a tough decision. Do what is right for you.
This elderly gentleman may yet find that there is hope for his situation and that he can avoid foreclosure. He made his payments in good faith and left his family with almost nothing. Perhaps this investor will reconsider his short sale and offer him some good faith, too.
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
www.ShortSaleSuperstars.com for agents
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
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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.