Short Sale Denied - Despite Cancer Diagnosis

By
Real Estate Broker/Owner with Rulnick Realty, Inc.

I am writing about a very disturbing short sale situation.  The property is a lot in Windswept Estates, a golf course community in Freeport, Florida.  The mortgage is held by Peoples First, "Florida's Community Bank".  After several months of price reductions on my seller's lot,  we finally got a short sale offer of $29,900- fair market value. The mortgage balance is $183,000. 

My seller's husband has just been diagnosed with kidney cancer, age 36.  She herself has lost about half of her income in the past year, as assistant to a financial advisor and another part time job.  Her charge card balance is around $60,000 - she used credit to keep making mortgage payments. She has struggled to make the interest-only payments on the lot - around $800 a month- as her partner, a real estate agent, has little income to contribute. 

When my seller found out about her husband's kidney cancer about a month ago, she stopped payment on the check she had sent to the bank. Peoples First called her when they received notice and left a voicemail message that the manager would be "furious" and would start foreclosing. 

Today, Peoples First just told me they will NOT do a short sale, period.  When I talked to them I mentioned the diagnosis of kidney cancer, wondering how this woman could keep up with her payments.  I also  asked, "Why would your company not consider a short sale in this economy?"  I was told they had "not given any subprime loans, they were well-capitalized, and when they lent money, they expected to get it paid back".  I said, "So you'd rather foreclose?"  They said "Yes". 

I then got a call from another party at the bank, who reiterated they don't do short sales.   I mentioned I would write about the situation in my national blog.  I was told "I caution you not to do that."

Well, guess what?  I am writing about it. 

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, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.   Wendy Rulnick, Broker and Realtor, has been selling real estate for almost 20 years.  She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she also negotiates successfully to her buyers' and sellers' advantage. She is supported by a team of top buyer specialists. Wendy lists and sells homes, condos and townhomes.

All Rights Reserved. *Short Sale Denied - Despite Cancer Diagnosis* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.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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"It's Wendy... It's Sold!"

Wendy Rulnick, Broker/Owner Rulnick Realty, Inc.

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

email itswendy@rulnickrealty.com

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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.

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Edward Wadsworth 12/19/2008 07:40 AM
  2. Sergio Rebollo Jr. 12/30/2008 11:08 AM
  3. Lanette Branch 12/30/2008 12:17 PM
Topic:
ActiveRain Community
Location:
Florida Okaloosa County
Groups:
Short Sales and Forclosures ONLY
Short Sale Specialists & Pre-Foreclosure Education
Short Sales Specialists
Short Sale REALTORS®
Short Sales Pre Foreclosures Bankruptcy and More!
Tags:
destin short sales
emerald coast short sales
destin fl real estate agents
niceville fl short sales
peoples first short sales

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Show All Comments
Rainmaker
1,139,512
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Very sad story Wendy. Glad to see you went ahead and wrote about it anyway. Maybe they'll read this and change their mind. Why not send a link to this article to the local news?

Dec 19, 2008 08:29 AM #3
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Bryant - It pushed me over the top when I was "cautioned".  Hmmm...  I will ponder sending a link, they might send their cousin vinnie after me.

Dec 19, 2008 08:40 AM #4
Rainmaker
594,564
Laura Giannotta
Keller Williams Realty - Atlantic Shore - Little Egg Harbor, NJ
Your Realtor Down the Shore!

Hey Wendy, if they send Vinnie, tell them I know Ant'ny and he's from Jersey!  This is a terrible response from the bank.  Not only would I be posting it here, I'd write letters for my clients to send to local papers and contact the state.

Laura G 

Dec 20, 2008 09:44 AM #5
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Laura - Really?  The tone of the threatening bank rep gave me shivers.  I actually ran this by an attorney, and he said I could "always" write the truth.  Which - is - what - I - do!  I'll think about it.  I have posted this already on: twitter, facebook, blogger, wordpress.  Next is trulia, then perhaps a couple others.  Slip me Anthony's number.

Dec 21, 2008 01:20 AM #6
Rainmaker
284,306
Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate

Amazing they would say anything like that.  What goes on in peoples heads?

Dec 21, 2008 11:31 AM #7
Rainmaker
121,969
Brett Tousley
Keller Williams Realty - Richland, WA
Tri Cities Real Estate | (509) 420-0013

"I caution you not to do that"?  You've got to be kidding me.  So the bank is going to refuse to accept $30,000 and instead accept nothing for the lot.  Why?  "We don't do short sales" is not an answer I'd like to hear if I were invested in that bank.

It's called loss "mitigation" for a reason.  Mitigate the loss or lose everything people's bank. 

Up here it costs the bank $30,000 just to foreclose, this is a no brainer.

Of course banks didn't get into this situation by being smart did they?

Dec 21, 2008 01:29 PM #8
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Gene - I think I shocked them.  I am going to start doing that more!

Brett - I went on their website and they have tons of REO's. 

Dec 22, 2008 12:22 AM #9
Rainmaker
106,477
Casey Joiner
Scenic Sotheby's International Realty www.caseyjoiner.com - Destin, FL
Scenic Sotheby's International Realty

A few more notes like this making the rounds can make people start owning up to real life situations....well done.

Dec 23, 2008 05:40 AM #10
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Thanks, Casey.

Dec 23, 2008 07:38 AM #11
Rainmaker
216,639
Michael Wayne Jackson
Coldwell Banker - Novato, CA
Realtor - Senior Real Estate Specialist

This is the worst hardship I have heard of and they can't or refuse to approve it? What lender is this?

Dec 26, 2008 09:27 AM #12
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Peoples First Community Bank in Florida.  They will not approve it or any short sale.

Dec 26, 2008 09:30 AM #13
Rainmaker
152,925
Kathy Knight
Intracoastal Realty Corp - Wilmington, NC
BROKER, ABR, CRS, GRI, SFR, Wilmington NC Homes an

Good for you Wendy. These banks think they are above everyone. They need to be taken down a notch.

Dec 29, 2008 12:11 AM #14
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

I had to do it, Kathy.

Dec 29, 2008 12:54 AM #15
Rainmaker
540,243
Sergio Rebollo Jr.
Real Estate TeamMates - Miami, FL

Wendy....they cautioned you not to write about it??? I guess you won't mind if I re-blog huh?

Dec 30, 2008 11:07 AM #16
Rainer
85,414
Rich Mielke
REMAX Results, Frederick MD - Frederick, MD
REALTOR, Frederick Maryland Real Estate

'Bank forecloses on cancer patient, Details at 11' has a nice ring to it.

Dec 30, 2008 01:24 PM #17
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Sergio - Thanks! :)

Rich - I know.  They don't get it.

Dec 30, 2008 11:19 PM #18
Rainer
10,058
Jennifer Horton
Trin Hong Real Estate Inc. - Novato, CA

It's sad how many banks have this attitude. :(

Jan 02, 2009 11:51 AM #19
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Jennifer - Maybe they're getting too much bailout money.  I am starting to wonder about that.  No need to agree to help the seller, they'll get paid anyway.  I'd like to know exactly how that bailout money is being used by the banks.

Jan 03, 2009 02:48 AM #20
Anonymous
Jenny

Keep searching and you will find many more horror stories about this bank!

Feb 18, 2009 11:12 AM #21
Ambassador
2,602,824
Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
Get It Done For Me Virtual Services

We have had this happen one time in many, many short sales. It was Iberia bank, they also said they did not give out sub prime loans. They ended up saying yes to the short sale but then said, but the seller is to bring the balance to closing, I said, well, then, that is not a short sale. They would not budge. They just bought some bank out in your neck of the woods too. FDIC let them buy some other banks, and I thought, oh no! Katerina 

Jul 08, 2011 07:03 PM #22
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