Home > Blogs > Wendy Rulnick > It's Wendy Real Estate Blog

Whitney Bank Short Sales? Don't Ask!

By Wendy Rulnick

Real Estate Broker/Owner with Rulnick Realty, Inc.

September 26, 2008 01:50 AM

I have Short Sale lot listing in Santa Rosa Beach, Florida. Values in that market area have dropped 50% for vacant land. There is about a ten-year inventory for sale. That means, at the current rate of sales, it would take ten years for all the lots to sell. My Short Sale seller's income has declined such that he can no longer afford mortgage payments on his land. His lender is Whitney Bank. We submitted an offer to Whitney for the full Whitney-appraised value, half of what is owed on the lot. Guess what? They will not do Short Sales. They will never forgive a deficiency. Here is a quote from Whitney Bank's letter to my seller:

-Contract Offer Response for Lot 2, Main Street

Dear Mr. Jones:

Whitney does not do short sales as satisfaction of debt. Rather, Whitney's release of the mortgage will be executed on the express condition that Whitney is reserving its rights to collect the deficiency. The net sales proceeds derived from the proposed sale of the collateral would be applied towards the outstanding loan and you would still be responsible for the balance of the loan whereby we would attempt to restructure it under a workout repayment plan acceptable to the Bank based upon receipt of current personal financial information.

Respectfully,

Special Credits Department - Central Gulf Coast Region

So, know- if you are going down the Short Sale path with Whitney Bank, you will be liable for the entire deficiency.

It's Wendy!

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

Search Destin Florida real estate and vicinity.

Short Sale Pre Foreclosure Help.

Specializing in real estate 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, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Subscribe in a reader

Subscribe to It's Wendy's Blog by Email</p

Re-Blog

Comments(5)

Comment

Show All Comments

Sort:

Michael & Stacy Spickes

America's Home Rescue (2008 & 2009 NAR Convention Speakers) - Austin, TX

Thanks for the heads up, Wendy! Here is something we often use in situations where the representative, or bank, is threatening a deficiency judgment. Here it goes.

Mr. or Mrs. Loss Mitigation rep, isn't it Witney Bank's policy that in order to stay in compliance with the IRS, upon completion of a Short Sale, you have to submit a 1099C to the Seller due to the "forgiveness of debt"? (In most cases, the person will say "yes".) Then, if a 1099C, which represents a cancellation of debt, has to be sent to the Seller, in order to be in compliance with the IRS, then how can there be a deficiency judgment? Remember Mr., or Mrs. Loss Mitigation Rep, you do not want to be out of compliance with the IRS, don't you?

You will often hear, "Hold on, I have to speak with my manager about that."

Hope this help in your future Short Sales.

Michael Spickes

Speakers ~ 2008 NAR National Convention (Orlando, Florida)

www.ShortSaleSolutions.biz

Sep 26, 2008 02:30 AM

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

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

Michael & Stacy- We'll give it a shot to try to trip them up. I feel this is probably dead. however, because the letter was from Whitney Bank's Vice President.

Sep 26, 2008 03:19 AM

True! Wendy, there is a reason why our closing ratio isn't 100%. Great work! We look forward to seeing you in Florida.

Sep 26, 2008 03:24 AM

Michael Wayne Jackson

Coldwell Banker - Novato, CA

Broker - Seniors Real Estate Specialist Novato

Thanks for the information Wendy. I hope whitney bank is only in Florida.

Sep 26, 2008 07:27 AM

Mike - Whitney Bank is in Alabama, Florida, Mississippi, Louisiana and Texas. Hopefully, not in your area!

Sep 26, 2008 07:32 AM

Whitney Bank Short Sales? Don't Ask!

Comments(5)

Wendy Rulnick

Service Areas

Real Estate Resources

Recent Posts

Popular Posts

Additional Information