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Sometimes you only hear the end result of a short sale being approved. Here is the background story of a Bank of America - Destin Florida short sale approval:

Sept 2 - I list a Destin short sale home for $237,900 - difficult to price, with some pending comparable sales higher, and some Destin foreclosures lower. I started on the high end of the scale, with the intent to reduce in thirty days if we didn't get a contract. After that point, I would reduce the price weekly, or more often, depending on my daily price analysis.

Sept 12 - We get a low offer - for $210,000. Since some comps were far higher, I advised seller not to take this offer, but to counter. The philosophy is to send a contract to Bank of America that will likely be approved. Even though you might think $210,000 is not that far off, I know my market place. If the buyers will not come up to a higher price now, why waste time taking the home off the market to see what Bank of America says later? Let's find out. Seller counters at $230,000.

Sept 20 - Buyer backs away, but finally returns. Twenty days after listing home is under contract for $225,000, with interest of buyer evident (key in short sale approval process).

Sept 22 - File is uploaded into Bank of America Equator system.

Sept 27 - Bank of America says seller signature on authorization does not match his signature on original loan. We send in letter of explanation from seller that his signature slant changes. Apparently, this explanation is accepted.

October - Appraisal ordered, more financial information from seller requested. Proof home has been on the market for sixty days is requested. It was only twenty days! I tell negotiator, "We got a lucky buyer shortly after listing". Apparently, this explanation is accepted.

November 2 - Bank of America asks seller for $23,000 - or 10% of the deficiency balance that won't be covered by the short sale, to be paid as cash from seller at closing. Negotiator says a lesser amount would work, but only 10% would waive any future deficiency

November 3 - Seller agrees to pay $3000.

November - Bank of America asks for new bank statements, new HUD, addendum to contract with closing date change. Negotiator says seller cash contribution is low, and file might be rejected by investor.

November 17 - Short sale approved.

If you are considering short sale as an alternative to foreclosure, contact an experienced Destin Florida short sale agent.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

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.

What to do right now if you are facing foreclosure of your Kansas City home. Having assisted numerous individuals and families facing the foreclosure of their Kansas City homes, for both Kansas and Missouri, I have witnessed first hand the need for educating the public as to foreclosures and short sales during what is a difficult and emotional time.

As we continue to hear in the media, foreclosures are on the rise, but yet there is so much uncertainty as to what a foreclosure really means as well as to what options may be available if you are facing a foreclosure of your Kansas City home.

For example, did you know that the laws of foreclosure are not the same in Kansas and Missouri? So many of the folks who contact me to discuss what options they may have in order to avoid their home being foreclosed, eg. Kansas short sale of their home or a Missouri short sale, do not realize that the steps and procedures involved in a foreclosure for Missouri are not the same as in Kansas.

These differences could greatly affect your decision as to what to do to avoid foreclosure of your Kansas City home.

I really want to help educate the public and those in need of gathering as much information as possible to better understand what you may be able to do to either avoid a foreclosure of your Kansas City home, Kansas or Missouri. I have really learned, while working with foreclosures of Kansas and Missouri homes and while assisting home sellers with their Kansas short sale and Missouri short sale that knowledge can be power in your making the right decisions for your current and future well being.

I will continue to provide updates to this subject over a short period of time. If you are facing foreclosure of your Kansas City home, Kansas or Missouri, please continue to read the upcoming posts.

Request a Free Confidential, no obligation, short sale or pre foreclosure analysis of your home and options that may be available to you.

It has been my pleasure to help a number of Sellers with their Kansas short sale or Missouri short sale.

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Related Articles

• Bank Of America Plans To Resume Some Foreclosures (huffingtonpost.com)
• Bank of America plans to resume some foreclosures (usatoday.com)

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©2010 Suzanne Hinton-Hinton Homes-Kansas City Short Sale Realtor Kansas City Short Sales

This property at 310 Evergreen, Mary Esther Florida was just approved as a VA Compromise Short Sale.

Senior Lien: JP Mortgage Chase, loan type - VA

Junior Lien: Florida SHIP Loan

Florida SHIP (State Housing Initiatives Partnerships) is a downpayment assistance program that is managed separately by each county in Florida. Okaloosa County SHIP forgave the entire balance of their $12,500 junior lien. We accomplished the debt forgiveness by sending a hardship letter to the SHIP director for Okaloosa County. Because the seller was a forced military relocation who PCSd from Eglin Air Force Base, they forgave the debt in full. Don’t count on total forgiveness in other counties in Florida. Each request for a short sale is individually reviewed.

Chase approved the VA Compromise Sale in one day. They already had the seller’s financials and a VA Compromise Appraisal on file (good for six months). The last buyer refused to increase her offer to meet the required net based on the appraisal. The Chase negotiator said he would keep the file on his desk for me for thirty days - in case we got lucky with another buyer.

Guess what? We got lucky!

If you need assistance with a VA Compromise Sale, Short Sale, SHIP loan or HAP PCS sale on the Emerald Coast of Florida, contact me.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

Eglin AFB Short Sales & Pre Foreclosure Help.

Read Wendy's Eglin AFB Real Estate Blog

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.

http://Webcasts.com/events/BankofAmericaHomeLoansWebinars1

You may have been reading about Bank of America short sale approval letters and some changes that have occurred. The Bank of America Short Sale Approval Letter has had various versions dealing with deficiency of the promissory note. This article will look at the BoA short sale letter recent changes.

History - Before June 2009

Until June 2009 the typical Bank of America short sale approval letter was not a release of mortgage and a release of liability of the indebtedness (release of the note). My February 2009 article LENDER SHORT SALE ACCEPTANCE LETTER EXAMPLES - READ WITH CAUTION! contains a copy of the pre-June 2009 short sale approval letter. In it you see the language, "Upon receipt of the funds the bank will release the lien. The deficiency balance will be reported to the credit bureaus as "Charge Off" collectable balance. Liabilities for the deficiency balance to be determined."

After June 2009

After June 2009, the Bank of America short sale letter was materially changed in content and in look. The simple letter was gone. Now there was a form letter with distinct sections, one of which (the 2^nd and 3^rd paragraphs) states, "BAC Home Loans Servicing, LP and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above."

The next paragraph deals with the demand for a "new" promissory note with different terms than the original promissory note (usually with zero interest and a different term for amortization), and states, "If this short sale is contingent upon BAC Home Loans Servicing, LP and/or its investors receiving a promissory note, we will reserve the right to collect the full amount on the new promissory note which may lead to us pursuing a deficiency on that balance should the need arise.

After August 2010

Beginning in late August 2010 (so I have read) the BoA letter language was material changed. The new form used language that states, "Upon receipt of the agreed amount, BAC Home Loans Servicing, LP, and/or its investors will waive the remaining balance due on the above referenced loan and release the borrower from further obligation therein, and waive all rights to pursue further judgment or deficiency. BAC Home Loans Servicing, LP will report the debt as "settled for less than the amount owed" and issue a 1099 for the remaining balance." Now I have my hands on just such a letter.

Here is the post June 2009 BAC short sale letter:

The first paragraph in the above letter is actually very confusing and conflicting in its language. The reason for this is that the last two sentences that refer to tax consequences makes the reader think that this is a forgiveness of debt. This is because there are no material tax issues with the lender pursuing their deficiency - but there are definitely tax consequences when there is forgiveness of debt. (See my article which by its title says it all -- SHORT SELLER STILL MUST DECLARE INCOME ON SALE!). Why that language was there was because the lender "may pursue a deficiency judgment". In reality, from our experience many of the release of mortgage documents received from Bank of America after the short sale using this letter contains language that the promissory note is "fully satisfied" or "paid in full" or that the "indebtedness is satisfied", or similar language. In a few cases our clients reported collection efforts instituted by BoA, but in each the presentation of the recorded release document with the magic payment statement resulted in the collection effort being seemingly abandoned. Five years (the Florida statute of limitations to file a suit on the deficiency) has not yet run, so this supposition still has some time to be proven.

The next paragraph in the above letter is about the collection on a promissory note and is simply that the new note is a new obligation and thus the lender can sue separately on this note if it is not paid. That is simple enough. When there is an absolute need for a promissory note, I suggest to some clients to accept that offer because many of these notes get further reduced based on a present cash value payout since the NPV (net present value) of a zero percent interest note for a relatively long term (we see 10 and 20 year terms) carries a hefty discount. It takes some time (but not much) before a deal can be struck for a discount, but could be a viable option for a seller.

Next I have displayed the new BOA short sale approval letter. Unlike its predecessors, it is the first clean, clear and understandable full deficiency waiver letter Bank of America has produced. Since there is no new promissory note, that paragraph is missing. The language is so clear; I don't see what I can add in this article to make it more understandable. As expected, it mentions that a 1099 will be issued for the forgiven portion of the note, and there will be unfavorable but accurate credit reporting on the borrower's credit report. The next sentence in the letter is actually important. Some people are actually worse off because of a short sale with forgiven debt because they are liable for the IRS tax bill that results. If the IRS tax bill is a debt that will be impossible for the borrower to honor, and no arrangement for lessening that debt is available, the borrower may actually be jumping from the frying pan into the fire. In such cases some other alternative, such as bankruptcy may be beneficial. Note that if you incur a tax liability from a short sale forgiveness before filing bankruptcy, it may not be dischargable! Thus careful planning is necessary.

Here is the post August 2010 letter:

Please realize that currently BoA is using both letters, depending on numerous factors not all of which anyone outside (and probably inside) BoA can recite with certainty. In fact you can see that these letters were both received in first 2 weeks of November.

The question comes up when does BoA issue one letter or the other?? My first thought would be that the primary residence got the waiver language. Wrong! This was an investment property and the seller has multiple properties. As you may or may not know, BOA is usually not the investor who owns the promissory note and mortgage - but BoA is the servicer and given the authority to negotiate the terms of the short sale, subject to final approval by the investor. That is why different lenders have BoA issue different terms for their short sale approvals, whether it be a contribution of cash to the short sale, or a post closing promissory note, or a residual deficiency option.

Copyright 2010 Richard P. Zaretsky, Esq.

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Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, email: RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com.

See our easy to understand articles at:

TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

One of my Crestview Florida short sale sellers just emailed me:

“My wife and I appreciate everything you have done for us. You were the first and only person we spoke with that actually did what they promised who weren’t trying to scam us. You have really helped our family finally get through these last two years of misery and now we can get back on track and move on with our lives.”

Reading that gave me butterflies. But the problem is- why would no other agent help this family with a short sale? Their home was in a remote location, and at the time, they were current on their mortgage payments. The husband’s job transfer was 50 miles away, and they were just making ends meet. Their short sale lender was Bank of America. When I agreed to list their Crestview home, they were very relieved. We sold it as an FHA/HUD pre-foreclosure short sale. There was a lot of paperwork involved, more so than the normal short sale, but we succeeded.

Just last week, a Santa Rosa Beach Florida short sale seller called me. They, too, had agents reject helping them, because they had two liens on their home, Bank of America and Regions Mortgage. Apparently, the other agents thought two mortgages were too hard to get approved. One real estate agent who agreed to help them said they had to sign papers allowing an investor-type flip before even listing. They felt very uncomfortable. Coincidentally, one of my previous Freeport Florida short sale sellers was renting their home, and recommended me to them. I fully anticipate getting their Santa Rosa Beach short sale approved.

There are other stories about sellers who are facing foreclosure, where no agent wanted to help. They might say there are too many liens, the property is too close to foreclosure, or the mortgage is too upside down.

If you are facing foreclosure on the Emerald Coast of Florida, don’t give up. If you hear “no”, that your case is too hard for a short sale, don’t give up. Even if you had a Lis Pendens filed, don't give up. There is help available for you. Just ask.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call Wendy Rulnick toll-free 1-877-487-9639 or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

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.

Indymac...wow...

I was having trouble with Indymac. First it was sending and resending ALL of the documents for the short sale. After 4 events of this, they finally said they have them. I started sending them the documents on October 4th. On November 4th, they said they have them. Then they decided to play legal counsel. They started with, we want the state of Minnesota added to all of the pages, we did. That change was made and after getting ahold of the seller who was out of town, we finally got the doc's changed and initialed. This in itself took a week to get done. Then, 1 week later they said they were not going to proceed with the file the way it is because they wanted another change and another initial. I couldn't stand it anymore. No one should be dictating legal advice from another state (or country as far as I know) to a real estate agent, especially a very experienced agent that trains agents on purchase agreements and short sales processes.

I emailed 26 Vice Presidents and Senior Vice Presidents at 3:22 PM and informed them I would also send the next email to the Office of the Comptroller. At 4:22 PM I was emailed from OneWest Bank to send the Purchase Agreement to a ceratin party and they would order a BPO to get done. Huh. Hopefully this will be the end to a long and frustrating journey.

If anyone needs help with Indymac, let me know.

Keith Maahs

Coldwell Banker Burnet

Coon Rapids, MN

So you've probably heard that Freddie Mac is once again asking for federal aid. They showed a $4.1 billion loss in the third quarter and are now requesting another $100 million in aid. All told, it's estimated that the bailouts will cost taxpayers $259 billion.

As an agent that focuses largely on short sales, I continually see the ways that Freddie Mac gets in their own way. They are asking for this aid, but they have put themselves into the situation that requires aid. I have had several files where we sent in a short sale offer that was rejected because Freddie Mac felt it was too low. I felt it was a very good offer, but Freddie's rejection sent the file into foreclosure. Don't they understand that foreclosing on a home is exponentially more expensive than a short sale? They are putting themselves in a situation that results in an even greater loss, therefore resulting in their need for a bailout. Their own greed is their downfall, and that of us the taxpayers. These bailouts need to stop because they are only hurting the people paying the bills.

I sent a letter to both my local representative and Barney Frank, who is a member of the House Committee of Financial Services, asking them to deny Freddie's bailout. They've had enough chances and are only in their situation because of their own making. Send letters to your representatives as well and voice your opinion!

THE DETAILS

Date: Saturday morning, November 13th, 2010
Time: 8am Pacific / 9am Mountain / 10am Central / 11am Eastern
Duration: 60 - 90 minutes
Equipment Needed: Nothing fancy - just a phone and/or computer
Cost: Free, but you must register, below

REGISTER FOR THE SHOW HERE

Short Sales are becoming more contemporary. The first ime I paticpated in a short sale was about 4 years ago. I barely understood the definition.

now I make my living helping individuals overcome the challenges of investments that have turned south

Thanks to Agents like Wendy who are on the front line, we can all succeed in Short Sales.

It is a financial freedom to Sellers, and Agents

Buyers who understand the process can make a great return on minimal investment

Thanks Wendy for creating this internet communication

People's National Bank has approved the short sale for this lot in Bluewater Bay, Niceville Florida. This beautiful homesite is located in the Magnolia Forest subdivision. The golf course view to the rear is exceptional, to the left downhill to a green mostly surrounded by natural area, Across the fairway is a natural area, with osprey and possibly eagle nests. Living in Bluewater Bay and Magnolia Forest opens up a world of golf, tennis, swimming, nature and more. Just across the Mid-Bay Bridge, find more shopping and world famous Destin Florida beaches call! The list price was $89,900.

If you need to sell your Bluewater Bay property as a short sale, consultant an experienced Niceville short sale agent.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

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

Email Wendy: itswendy@rulnickrealty.com

Bluewater Bay and Niceville FL Real Estate

Read Wendy's Niceville Florida Real Estate Blog

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.

Irene Kennedy now handling Warren or Hunterdon County NJ Short Sales

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My husband Chip and I moved to Warren County NJ. I have switched to the Weichert Phillipsburg office. I'll now be handling Short Sales in Warren & Hunterdon County, along the Route 78 corridor.

To introduce some of my Short Sale skills to both home sellers and buyers in Warren County or Hunterdon County NJ:

Short Sales can be a Great Thing for All Despite Timeframe & Lowballs.

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Distressed Properties - Short Sales & Foreclosures

I look forward to helping Warren County or Hunterdon County NJ sellers through the difficult and emotional Short Sale process! Too, my experience can help buyers actually close on a short sale property.