Current on Your Mortgage? Short Sale Denied!

Real Estate Broker/Owner with Rulnick Realty, Inc.

 Short sale denied



Borrower:  Elderly gentleman aretirement 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 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.

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

Wendy Rulnick, Broker/Owner Rulnick Realty, Inc.

Call Wendy Rulnick 1-850-650-7883 ext 204

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Wendy Rulnick is the marketing choice for sellers on the Emerald Coast who want to list and get their homes and condos sold in Destin, Sandestin, Bluewater Bay, Santa Rosa Beach, 30-A, Watercolor, Seaside, Rosemary Beach, Seacrest Beach, Kelly Plantation, Regatta Bay, Destiny and more.

Rulnick Realty



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Show All Comments
Steve Shatsky
Dallas, TX

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!

Dec 29, 2009 05:40 PM #7
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

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.

Dec 29, 2009 09:54 PM #8
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

There are some really stupid folks out there in lender la-la land (not all), but there are a few.

Dec 29, 2009 10:19 PM #9
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Wendy I hope this works out for the guy. Someone tries to do the right thing and it gets them no where...AMAZING!!

Dec 29, 2009 11:57 PM #10
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

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?

Dec 30, 2009 12:47 AM #11
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

It is so sad when the banks cannot approve the short sale and you really want to help the client. I hear you!

Dec 30, 2009 08:59 AM #12
Laura Giannotta
Keller Williams Realty - Atlantic Shore - Little Egg Harbor, NJ
Your Realtor Down the Shore!

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! 

Dec 30, 2009 10:45 PM #13
Maya Thomas LLC, Broker
Key West, Key Haven, Geiger, Sugarloaf, Cudjoe, Summerland - Key West, FL
Key West FL Historic Old Town Estates, Bungalows

Oh my God!  Those poor people having to deal with that stress on top of the accident. 

Dec 31, 2009 08:56 AM #14
Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

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!

Jan 03, 2010 06:16 AM #15
Judy Jennings
The Green Company - Ashland, MA
Broker - The Lanterns at Warren Woods - Ashland MA

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!

Jan 03, 2010 06:59 AM #16
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

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..

Jan 03, 2010 07:53 AM #17
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

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


Jan 03, 2010 08:53 AM #18
Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
Get It Done For Me Virtual Services

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 

Jan 03, 2010 09:52 AM #19
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

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?

Jan 03, 2010 02:13 PM #20
Virginia Hepp - Mesquite NV REALTOR
ERA - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

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.

Jan 03, 2010 02:49 PM #21
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

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?


Jan 04, 2010 07:54 AM #22
Haris Hadziselimovic
Keller Williams Realty Vancouver WA - Vancouver, WA
Vancouver Washington Real Estate

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.

Jul 22, 2010 09:12 AM #24
Sherry Peckhoon Sim
Sims & Company - Cayucos, CA
Broker/Owner, Covering the Beautiful Central Coast

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.

Oct 24, 2011 09:45 PM #25
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

I like what you said 'it is not a norm'. We spent 5 hours today on the phone trying to get things straight with Green Tree. We've been waiting for it 4 months and were supposed to close in 10 days, yet, today they messed up everything.

Feb 11, 2014 02:58 PM #26
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Inna - I am sorry you are going through that!! I hope your persistence gets the situation resolved!

Feb 11, 2014 09:43 PM #27
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