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RBC Centura: Attaching Cars in Short Sales?

By Wendy Rulnick

Real Estate Broker/Owner with Rulnick Realty, Inc.

February 11, 2008 02:46 AM

Is RBC Centura taking cars in return for Short Sales? Or is this just a hard line they are giving their borrowers?

Scenario: Seller owes $360,000 on a lot he purchased in Santa Rosa Beach, Florida. He has drained savings to keep up with the payments, and has nothing left, short of his IRA retirement saving account.

Market: There is a 10 year inventory of lots for sale, and those in the subdivision are now listed in $140,000's. If his lot could even sell, there would be over $200,000 shortfall.

RBC Says to Seller: Yes, they will allow seller to do a Short Sale. BUT they will attach and "go after everything in his name, including cars" and other real estate. They will not attach property co-owned with his wife.

Seller owns another investment property, a condo, with over $100,000 in equity in my market in his name alone. However, there is a six year inventory of condos for sale. RBC would have to wait perhaps six years to get any equity from the condo. By then, the value may be down so that there is no equity. Or RBC may be out of business.

It's Wendy!

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

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

Email itswendy@rulnickrealty.com

Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Crestview, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy Rulnick, Broker and Realtor, has been selling real estate for 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she negotiates successfully to her clients' advantage. She is supported by a team of top buyer specialists. She lists and sells homes, condos and townhomes.

This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information

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Anonymous

Randall

I am an attorney in Florida, and the lenders have to get a deficiency judgment after the foreclosure in order to go after other assets. The problem is that this costs money in attorneys' fees, court costs and appraisers. This rarely happens because banks don't want to spend money unless they are guaranteed a return, and no attorney or collector can guarantee a return against someone who can file bankruptcy, etc.

Feb 25, 2008 06:14 AM

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Randall, Thank you. Are you saying the banks would hesitate to go after assets only if the party may file bankruptcy?

Feb 25, 2008 08:53 AM

Steve Russell

REO In Motion, LLC - Pensacola, FL

Randall is right. They will threaten anything that they think will try and recover as much of their money as possible. They can go after all assets of the borrower to recover the initial amount loaned to them. But, they have to go through the courts and get a judgement to do it.

The only people that can just come and take your stuff without court proceedings is the IRS. And they will!

If they know that there is a condo involved that may have equity, I think they may proceed with a judgement to attach to that property (and all other). The question is whether they actually will or not. Part of the loss mitigation process has to do with their determination of the likelyhood of loss. If the borrower has neither a pot nor a window, the mortgage company is a lot more accomodating. If they have assets, they won't play nice, and they will pursue getting their money back.

Good Luck!

Feb 27, 2008 01:15 AM

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Steve, Thank you for the further insight. I don't see how worthwhile it would be to lien another property, They cannot force a sale of the other property, right?

Feb 27, 2008 11:41 PM

Anonymous

Sandy E

Hello,

I am so glad I found this thread. We have two lots in Cape San Blas, 45 minutes east of Panama City. We have robbed our retirement and our home equity to keep up with the payments. I had to first miss a payment to get RBC to talk with me about options.

Now, the only real asset we have other than a very small amount of home equity, is our retirement account. Isn't that a protected asset? Do we have to declare bankruptcy to protect it?

My credit score is 789 and I hate to see it go. Any advice on what may happen if we just allow forecloseures to occur?

Thanks,

Sandy

Mar 04, 2008 11:06 PM

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Sandy, I have not seen a lender try to take retirement funds - yet. I would contact an attorney regarding bankruptcy or foreclosure, however, I will contact you to discuss your situation.

Mar 05, 2008 12:01 AM

Anonymous

Randall

Retirement funds are protected by federal bankruptcy law and usually state law (need to check each state). Therefore, never use those to pay because they are shielded.

Also, RBC apparently assigned their loans and now can't find the notes. As a result, they may have trouble foreclosing. They, too, file a "Count to Reestablish Lost Note" in cases I have seen. Google this Article "Banks Lose to Deadbeat Homeowners as Loans Sold In Bonds Vanish" written by Bob Ivry on 22 February 2008.

The credit score will drop once you go into default - but that can be built back up especially if you have other debts to pay (mortgages, car loans).

Mar 05, 2008 01:14 AM

#11

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Randall, Thank YOU for the erudite remarks!

Mar 05, 2008 01:35 AM

Anonymous

Sandy

Thanks so much! I went to a local RBC in person and the representative seemed so ready to help. Even suggesting a way to lower my payments by $1400 per month. That was Monday and now I can't even get him on the phone. Mean time, i called the collections dept in NC and I am now being told they wont do short sales. We have pretty much depleted all assets other than retirement and scant equity in a home that has been on the market a year without luck. Should I just let the lots go and resort to declaring bankruptcy only if harrassed?

Thanks so much for your help?

Sandy

Mar 08, 2008 02:06 AM

#13

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Sandy, Contact an experienced short sale agent in your area AND an attorney. These banks are very hard to get through to, so continue to try calling, too.

Mar 08, 2008 05:52 AM

Anonymous

Brian Yearwood

It's funny, I'm in a similar situation to a lot of folks here in that I have a lot I paid $450,000 for, owe $400,000 on, and it is worth about 200k now.

My rate went up last year, so the payment went up by 50%. I'm thinking of calling RBC and trying to get them to work with me, at least on the rate. Wouldn't it make sense to lower the rate, given the market conditions, than to have to foreclose?

I think my problem lies in the fact that I haven't been late yet. However, I have a partner on this lot, and he is hinting that his rope is getting short.

Do you know of an attorney that does "work out" work? Remember, I'm not looking for a short sale or anything like that, I'd just like them to cut a bit of a break so I can keep the loan performing.

Jun 13, 2008 05:10 AM

#15

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Brian- Call RBC and see if they will modify your loan. I can get you an attorney name that may be able to help. Please email me at itswendy@rulnickrealty.com

Jun 13, 2008 11:27 AM

Mark Horan

Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL

"The Resident Chef" - Resident Team Realty LLC &

Wendy- It kinda feels like the depression is looming with lenders calling in thier notes. I hope this is the exception and not the rule.

Jun 13, 2008 05:03 PM

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Mark- Yes, I was just reading the national foreclosure stats going up by almost 50% from over a year ago. It is like depression is looming.

Jun 14, 2008 11:29 AM

Anonymous

Joseph in South Florida

RBC is going for deficiencies in Florida, after foreclosure. Banks almost never go after individual loans because it is not good publicity - who wants to get a house loan when the bank will cream you if you lose your job or are hospitalized? RBC must be looking to stop residential lending, because no one will go to them in the future if this is the case.

New borrowers beware - DO NOT GO TO RBC!

Jan 12, 2009 01:02 PM

#19

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Joseph - Thank you for contributing.

Jan 12, 2009 11:59 PM

Michael Wayne Jackson

Coldwell Banker - Novato, CA

Broker - Seniors Real Estate Specialist Novato

RBC Centura sounds like a very aggressive lender. I guess this bank is only on the east side?

Jan 13, 2009 09:27 AM

Anonymous

Joseph in South Florida

RBC is taking the hard road because it is alleged to have fraudulently misled its investors who purchased the securities to back the loans it made. See - http://nabweekly.ca/p=1193 Because it has to pay back the defrauded investors who were not informed for the risk, it is taking it out on the borrowers.

Another reason not to deal with this bank.

Jan 14, 2009 02:54 AM

#22

Anonymous

Joseph in South Florida

If link won't work - google "RBC Bailout"

Jan 14, 2009 02:55 AM

#23

Anonymous

Linda J in CA

Joseph in South Florida commented that RBC is going for deficiencies in Florida, after foreclosure. Did this happen to you and what did RBC get in the deficiency judgement. Did you have to file bankruptsy?? We're in a situation with RBC right now, with foreclosure looming. thanks for any insight..

Apr 06, 2009 02:23 AM

#24

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