Ar_home_b_search
 

 Short sale denied

 

 

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.

 

It's Wendy!

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

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

www.ShortSaleSuperstars.com for agents

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

Email Wendy: itswendy@rulnickrealty.com

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.

                                                                                              Rulnick Realty   Facebook WendyRulnick   Wendy Rulnick Twitter 

 
Post is included in group: Diary of a Realtor
Post is included in group: Sharing Information of Short Sales
Post is included in group: Short Sale REALTORS®
Post is included in group: Short Sales Specialists
Post is included in group: Short Sale Support Group

24 Comments on Current on Your Mortgage? Short Sale Denied!

DEC
29
2009
379,702 Points 29 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

Wendy...

...these stories just never cease to end! But yours does have a glimer of hope in it that I will pass along to someone I know that is having issues as well. Maybe they can get the lender to listen.

Thanks!

 
6:32pm • #1

That is so sad!  I hear situations like that all the time too.  These homeowners want to do the right thing, but it bites them in the behind.
7:10pm • #2
447,306 Points 36 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Wow!!!

Wendy,

There is an incredible lesson in here. But, I doubt many see.

Home owners are not entitled to the banks money. Banks don't "take a hit" out of compassion!

Banks reluctantly "take a hit" when in their opinion it's in there best interest.

The first rule of collection is look at the collateral. The second is look at the debtor.

Lets look at what you didn't mention. The depleted bank account probably has little to do with the house in question. The house had been rented, the owner can probably rent it again. The gentleman was elderly before the accident. Lastly, you don't mention who cause the accident or insurance and or torts that may be coming, be it ever so slowly!

I feel terrible for your client! But, his troubles don't entitle him to the bank stock holders money. The bail out money was a loan to the banks not a grant to consumers.

Bill
7:15pm • #3
193,197 Points 1 Featured Post Outside Blog Attended Rain Camp Called Shot Master

Wow!  Both sides of the problem.  No wonder it's a tough market.  Nobody wants to 'give' anything away, and there will always be some who 'cheat'.  Circumstances and common sense may have to prevail over business rules sometimes.  If not both home owners and financial institutions will keep losing.  Margaret C.
7:55pm • #4
162,900 Points 27 Featured Posts Outside Blog Attended Rain Camp

Wow. A lack of compassion and a knee jerk reaction all wrapped up in this one. It's very sad that people can't put themselves in other people's shoes for a change.
9:38pm • #5
551,936 Points 8 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Sounds like they don't care.  I have a short sale working with them right now.  I need to see how this turns out.
10:00pm • #6
DEC
30
2009
708,922 Points 63 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Wendy... Good for you for getting someone to "swat" the investor!  I hear stories like this all the time and it just drains me emotionally for the people and make me want to fight even harder for them!  Way to go!
1:40am • #7
800,981 Points 35 Featured Posts Outside Blog Called Shot Master

Go figure...and we have too....the more cooperative the homeowner, the less cooperative the lender/investor...grrrrr....Swat, smack ....and publicly expose the offenders.
5:54am • #8
974,269 Points 17 Featured Posts Hit Router Called Shot Master

There are some really stupid folks out there in lender la-la land (not all), but there are a few.
6:19am • #9
780,896 Points 71 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Wendy I hope this works out for the guy. Someone tries to do the right thing and it gets them no where...AMAZING!!
7:57am • #10
367,765 Points 38 Featured Posts Outside Blog Hit Router Called Shot Master

Thom - I was surprised when the Green Tree rep offered to work hard to get the company to change their mind.

Tina - That is how the seller feels.

Bill A- The point is - their decision, per the exact quote, was based on the fact he had continued to make his payments.  If he now has $3000 left, then his last payment is made. 

Margaret - I like your "circumstances and commonsense".

Nathan - Yes, Knee Jerk!

Kay - Let us know.

Steve - Thank you.  The post was part of my "swat"!!

Sally & David - Exactly what I am doing :)

Gabe - Yup.

Bill G - When I called to inform the seller, he was actually at the hospital with his wife!  Nice, huh?
8:47am • #11
668,766 Points 69 Featured Posts Outside Blog Attended Rain Camp

It is so sad when the banks cannot approve the short sale and you really want to help the client. I hear you!
4:59pm • #12
DEC
31
2009
469,732 Points 10 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Take this gentleman's view "keeping up his end of the bargain" and others who are just walking away from their commitments...why do we ask why when the response of the bank is so arbitrary??

Thanks Wendy for a great post and all the others in the last year.  Looking forward to 2010 and wishing you a happy, healthy and prosperous 2010! 
6:45am • #13
149,966 Points 1 Featured Post

Oh my God!  Those poor people having to deal with that stress on top of the accident. 
4:56pm • #14
JAN
03
2010
655,166 Points 44 Featured Posts Localism Sponsor Called Shot Master

Wendy, I really feel for this man and his poor wife. I certainly hope the bank allows a short sale and allows relief to them! Pat sent me over and I'm glad she did! The best to you!
2:16pm • #15
269,112 Points 10 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Wendy - Unfortunately, I believe it! Hopefully, when the lender SWATS the investor in the head they will knock some sense into it. I can dream!
2:59pm • #16
184,110 Points 8 Featured Posts Outside Blog

Wow is right ... Ijust hate these kinds of things  and also that they are not helping people who have tried to do the right things and pay... they only help those who quit paying...HUH? let them lose their home and the ones who are paying try to help.. I dont get it... thanks for a great post and I hope th every best for you client..
3:53pm • #17
771,875 Points 92 Featured Posts Localism Sponsor Outside Blog

So, I hate to ask, Wendy, but was it a Fannie Mae loan?

 
4:53pm • #18
1,253,870 Points 242 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Wendy- I know that things will work out for your client now that he has run out of money to pay. Happy New Year BTW- Katerina 
5:52pm • #19
503,486 Points 39 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Wendy - I don't understand why someone would deplete their savings to keep up with mortgage payments on a rental property.  Wouldn't a deed in lieu of foreclosure make more sense?
10:13pm • #20
306,139 Points 17 Featured Posts Localism Sponsor Outside Blog Hit Router Called Shot Master

Wendy, I sure hope it works out for him - glad he has you working for him.  His decision to keep paying was honorable.  His more recent decision to quit paying is also honorable.
10:49pm • #21
JAN
04
2010
367,765 Points 38 Featured Posts Outside Blog Hit Router Called Shot Master

Melissa - You know me, I don't give up.

Laura - Happy New Year to you, too!

Maya - I know it, it drives me crazy.

Wanda - Thank you and the best to you, too!

Judy - Swat swat!!

Debra - Thank you.  You are right, decipher the meaning of it all, there is a lesson in there.

Elizabeth - This one was not Fannie Mae, but I know they are a problem, too!

Katerina - I'll make it work out :) HAPPY NEW YEAR to you, too!

Gail - Deed in lieu has worse long-term financial ramifications.  I understand why you are questioning the decision to deplete savings, though.

Virginia - But one wonders, should he have stopped paying sooner?

 
3:54pm • #22
JUL
22
2010

Most of their people are just .... I can't find a nice word so I'll stop it there. Kevin Jones at extension 36119 has been really helpful! He is a supervisor so call him and leave VM if you have to! He was able to put a file on RUSH for me and get it approved within 10 days for 5% of the sales price, which was about 7% of the loan note.
4:12pm • #24
OCT
25
2 Featured Posts Outside Blog

Hi Wendy

 

That's encouraging. I am glad that your experience with Green Tree was positive. I read some very serious complaints against the servicier.
4:45am • #25

This blog does not allow anonymous comments
 
Wendy_grey_big Rainmaker_large

Wendy Rulnick "Its Wendy!" Destin Florida Short Sales

Destin, FL

More about me…

Rulnick Realty, Inc.

Address: 12889 Emerald Coast Pkwy West, Ste. 107-A, Destin, FL, 32550

Office Phone: (877) 487-9639 x 204

Email Me

The market. Smart sellers. The Emerald Coast of Florida.


Listings

Links

Archives

RSS 2.0 Feed for this blog

Find FL real estate agents and Destin real estate on ActiveRain.