Jacksonville Florida Real Estate

Stephanie Lim

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BOA Update to Short Sale Backup Contract Submission

Tuesday, January 10, 2012
by Stephanie Lim

 

Bank of America just sent out an e-mail today to their short sale real estate agents.  It shortens the period of time you have to get a new contract in to Band of America if your first contract falls out.

Text of e-mail I received copied and pasted....

8-Day Window to Submit Backup Offer 

Based on agent feedback and to reduce overall cycle times, we are making a change to the short sale process. If it becomes necessary to submit a backup offer during a short sale, you now have a reduced window for making the submission. Instead of 14 days, backup offers must now be submitted within eight calendar days after the initial offer becomes invalid.  

 

When a backup offer becomes necessary:  

  • Contact your short sale specialist immediately.
  • Let the specialist know if you have a backup offer to submit.  

Within eight calendar days, resubmit the listing data, submit the short sale offer, and upload the offer documents and supporting documents.  Any backup offer will require analysis and investor approval, regardless how similar it may be to the previous offer.  

 

If no backup offer is available:  

  • The short sale will be closed in Equator by your short sale specialist.
  • You should return to marketing the property.
  • You may initiate a new short sale in Equator when you receive a new offer on the property.  
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2011 Ponte Vedra Beach Real Estate Market Foreclosure and Short Sale Update

Monday, January 09, 2012
by Stephanie Lim

 

Ponte Vedra Beach has a real estate market that is much healthier than the rest of the Jacksonville Metro area.  As I was reviewing 2011 Ponte Vedra home sales I found that the percentage of homes that were short sales or foreclosures in this area is roughly half of the number of short sales and foreclosures in the Jacksonville real estate market overall.

In 2011 Ponte Vedra Beach (32082 zip code) had 439 home sales.  Only 23% were distressed property sales.  While that sounds high by itself it is considerably better than Jacksonville real estate's 47% of sales.  For 2011 the Jacksonville FL real estate market  (including Ponte Vedra) had 12,649 sales with 5,934 of the sales being either short sales or foreclosures.

 

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How Jacksonville Real Estate Often Seems Like it is Priced By a Mad Scientist

Friday, December 23, 2011
by The Lim Team

 

Jacksonville real estate market mad scientistThe Jacksonville real estate market is a very interesting thing.

Sometimes an experience is so completely "out there" that I feel obligated to share my experience.  This week we had a buyer ready to put in an offer on a home in a St Johns County neighborhood.  The home is absolutely gorgeous.  wood floors, beautiful colors, a kitchen begging for the next Paula Deen...it is a fabulous home.  The price seemed pretty reasonable.

As we always do, we ran comps for the buyers when they were trying to decide what to offer.

The home is priced in the mid-$200s.  There are three others priced in the $300s.  All roughly the same size.  Seemingly a great deal.

Ooops!  There are only three comps for the past year.  All roughly the same size. They sold for only $185k, $189k and $200k.

Because there are three comps in the same neighborhood, and they are all within the year...we don't know how an appraiser could possibly appraise the home for the seller's asking price.  And we KNOW an appraiser couldn't even begin to justify the sales price for the other three homes that are priced in the $300s.

Where are these asking prices coming from?  Do they really believe they can get those prices for those homes considering the recent comps?

My guess is that they are trying to avoid a short sale situation.  Buyers are not (or at least SHOULD NOT) going to overpay for a home just because the seller does not want to go short.  This is an impossible situation.  A cash buyer could overpay like this, but WHY would they?

Price your home correctly or don't even try to sell it in this current Jacksonville real estate market.

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Myth: You Can't Comp Regular Resales with Jacksonville Short Sales and Jacksonville Foreclosures

Monday, December 12, 2011
by The Lim Team

 

Are Jacksonville short sales and Jacksonville foreclosures comparable to straight Jacksonville FL resales?

Yes.  

Say that again?

Yes.

As we are in the fifth year of the real estate market downturn I would have assumed that this would be common knowledge.  Working in Jacksonville short sales and Jacksonville foreclosures like we do, our team is always surprised with this myth is resurrected.  

It usually happens something like this...

"Your listing on 123 Short Sale Lane is only worth 300,000 because regular resales have been going for $350,000 and this is a short sale..."

or like this...

"Of the 10 homes that closed in the last 3 months in Ponte Vedra community A--the smallest had 3500 square feet -- I have emailed you the the MLS listings for those solds-- only one of them was a short sale.  "

Please take note.  It doesn't matter if you are bidding on a foreclosure or short sale...you can not discount the price solely for that fact...then use that as an excuse for a low offer.  Jacksonville home values incorporate all types of sales (assuming they are arms-length transactions).
 
Fair market value is what matters!  The bank will order an analysis of fair market value, whether that be a BPO or an appraisal.  When an appraisal is done, they are not going to discount for the fact that a home is a Jacksonville foreclosure or short sale.  They are going to compare apples to apples...

 

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New Nocatee Listing in Ponte Vedra!

Friday, September 30, 2011
by Stephanie Lim

Puritan Front

We just listed a beautiful Cornerstone built home (fabulous attention to detail!!!) in the Austin Park section of Nocatee in Ponte Vedra.  This is the best available price in Austin Park right now and is priced at only $230,000.  This home is a 3/2 with an office and a versatile floor plan that makes the home feel much larger and allows for different configurations.

This Nocatee home has many fabulous upgrades!  The owners had the home customized from the original plans.  One of the modifications they did was extending the eat-in kitchen.  This created more cabinet and counter space for the cook.

The landscaping is beautiful in the front and back of the home!  The home is located on a preserve lot with a nice fenced back yard.  There is also a screened lanai and an open patio with pavers.

Nocatee is a beautiful planned community just west of Ponte Vedra Beach in Ponte Vedra, FL.  The Nocatee community boasts a shopping center, water park/pool complex with a lazy river, trails and much more.

Front porch Back yard Back yard 2 Kitchen 

 

   Kitchen towards eat in Family room Family towards foyer Office

 

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Is Your Jacksonville Real Estate Listing Hard to Show? Do You Want to "List" Your Home Or Do You Want to SELL Your Home?

Thursday, July 14, 2011
by Stephanie Lim

Jacksonville FL Real Estate Market Scenario:

  • Buyer with their loan lined up calls us because they want to see a Jacksonville condo listing.
  • Called to make an appointment to show the unit to the buyer.  Its tenant occupied so they have to get the tenant to approve showings.
  • Hours and hours later still no confirmed appointment.  Meanwhile anxious buyer wants confirmation that they can get in.  Likely can't understand why we can't make it happen for them.  Is the home for sale or is it not for sale?  Are we even trying to get them an appointment?
  • We receive a confirmation call, the Jacksonville condo is okay to show.
  • Great!  What is the gate code?
  • Agent does not know the gate code.  Tells us to come before 5:00 (buyer can NOT!!!) so the maintenance people can let us in.  Huh????  The agent was not willing to lift a finger to get us a gate code.

Our options at that point (none of them good): 

1)  Figure out the gate code ourselves

2)  Figure out the gate code ourselves

3)  Don't show the property.

A Jacksonville home buyer will not buy your home if they can't get access!

If you are a Jacksonville home seller, are you making your listing hard to see?   Do you want to SELL your home?  Do you know how showing appointments for your property will be made?  Do you have any idea how many Jacksonville FL real estate listings are out there?  So many times we have such a hard time scheduling appointments to show our Jacksonville home buyers listings that are for sale.  When a buyer can not get in to see your home when they want to see it, many, many times they do not come back. 

Make sure you know your home is going to be easy to show to potential buyers before you list your home.  Make sure your agent is going to do whatever they can to make sure your home is accessible to Jacksonville home buyers before you select that agent to list your home. 

How many home buyers are lost because the person who WOULD HAVE purchased that home could not get in?

There is no way to know for sure but we are betting, from our experience, that it is much more frequent than one would guess!

The Jacksonville real estate market is tough.  T-O-U-G-H (although a great agent can make it considerably less tough).  There are far fewer buyers than there are listings.  Do you want to "list" your home, or do you want to SELL your home?

 

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How Nabbing a Jacksonville Foreclosure / REO Property is Like Playing Blackjack

Thursday, June 23, 2011
by Stephanie Lim

 

This is a Jacksonville FL real estate scenario that played out this week on our team:

  • Jacksonville foreclosure property owned by Freddie Mac hit the market last week for $37,900.
  • Our buyer offered $40,000, cash, two weeks to close.  Did not ask for anything extra.  Completely clean offer.
  • Offer submitted to listing agent Friday to expire on Saturday.  There was time to submit the offer before expiration.
  • Agent confirmed receipt but did not submit to Freddie Mac prior to expiration of offer, instead held onto the offer, presumably to help solicit other offers.
  • Late Monday we get a message that there are multiple offers and we need to submit our highest and best offer along with the Freddie Mac foreclosure multiple offer disclosure form.
  • Tuesday we heard back that the offer would not be submitted without this form.  The buyer was unavailable so we were not able to submit the form that simply said that we had to provide our highest and best by xx date and xx time, we understood there were multiple offers, blah, blah, blah.  So from our understanding our buyer's offer was never submitted to Freddie Mac by the listing agent despite being submitted to the listing agent.
    • 

Blackjack So How is Trying to Purchase A Jacksonville Foreclosure Like Playing Blackjack?

This scenario is not the least bit unusual for Jacksonville REO properties.  This is the foreclosure game that you have to be aware of if you would like to pick up a foreclosure in the Jacksonville real estate market.  You have to give it your best shot because you do not know what cards the dealer, (a.k.a. the listing agent") is holding.  But just like blackjack you have to understand the odds are in their favor.

Are there REALLY multiple offers on that foreclosure you just placed a bid on?

Are we seeing multiple offers in this market?  Absolutely!  What are the odds that EVERY SINGLE foreclosure that we have a buyer bid on really has multiple offers?  In our opinion the odds are not very high, yet this is the message we get on every foreclosure, with very rare exceptions. 

It does not matter if it is the first day on the market or the 365th day there are almost always "multiple offers."  Seriously.  We've put in offers months after the homes came in the market and gotten this message.  We've also put in offers HOURS after the Jacksonville home came on the market and gotten this message.

So if there are really a zillion offers on every foreclosure properties does that mean that Jacksonville foreclosures are underpriced?

The game is that the home is usually listed for less than it is worth in an attempt to solicit multiple offers and drive the price up over asking.  This makes the listing agent look good for achieving multiple offers over asking price.  This perception of a job well done occurs even if the home is dramatically underpriced in order to make it look like the home, and the agent, fetched a good price.  In return that agent is rewarded with more listings.

Can I even GET a Jacksonville foreclosure?

Of course!  If you are a Jacksonville home buyer looking to pick up an REO, work with an agent who knows how the system works. How bad do you want the property?  Are you willing to walk away or do you feel like you absolutely have to have this home?  This particular buyer wasn't willing to increase the offer on this particular unit based on the comps so it went to another buyer instead.   Understand that the amount the home is worth is based on the CLOSED comparable sales for the past 3 months or so (as the market has continued to trend lower).  Asking price is somewhat irrelevant if you want to buy a property.  Make your offer based on what it is worth and your level of motivation and get geared up to play the game. 

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Wells Fargo Approval Letter for Jacksonville Short Sale

Friday, June 10, 2011
by Stephanie Lim

We got this Wells Fargo short sale approval in under seven weeks!  It is on a Ponte Vedra Beach condo that had decreased in value to roughly half of it's 2006 purchase price.

Terms of the approved Jacksonville short sale:

  • No promissory note
  • Wells Fargo agreed to waive all deficiency rights
  • Initially Wells Fargo was requiring $5,000 seller contribution or a $12,000 0% interest promissory note to be paid back over ten years.  We got the number down to a $2,500 cash contribution. 
  • All closing costs covered by Wells Fargo.

Seller only missed one payment at the time of the approval, which was not yet 30 days late.

You can see this Jacksonville short sales / Wells Fargo short sale approval letter here.

Are you in a situation where you can no longer afford to keep your home?  Have you tried to work things out with the bank to no avail?  Call us for an honest evaluation of whether we think we can help you.

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Short Sale Closing in Under 60 Days! Wells Fargo Servicer of Ponte Vedra Beach Short Sales

Monday, June 06, 2011
by Stephanie Lim

Original Purchase of Ponte Vedra Beach Condo in 2006 - $185,000
Seller's Loan Amount (2006 original amount) - $172,000
Sales Price  - $100,000 (First offer received $90,000, but we got the purchase price up $10,000 more) PLUS Buyer paid delinquent condo dues!
Seller Concessions - $0
Seller Cash Contribution - $2,500

Short Sale Approved by Wells Fargo in only 48 Days!!!  Sellers had only missed one payment!

Wells Fargo waived the right to pursue a deficiency in writing.

If you are a Jacksonville home owner who owes more than your Jacksonville home is worth, you are not alone.  Most Jacksonville FL real estate sellers we talk to these days are in the same situation.  This particular Jacksonville home owner had a growing family who had outgrown their living space.  We helped them find a new home in St. Johns County, in a new home community, that we helped them purchase from a builder.  They planned on leasing out the condo after they moved into their new home.  After the closing of their new home, they were denied the right to lease their condo by the association.  They had no choice but to try to sell their Ponte Vedra Beach condo.

We were able to help them sell their Ponte Vedra Beach condo for more than fair market value (highest comp in community in the past 6 months).  We were able to help the sellers get out from under the burden of two home payments and move on with their life.

Who you choose to work your Jacksonville short sale can make a huge difference.  Select someone with experience who knows how to get the job done.  Just because someone took a class in short sales, or calls themselves a short sale expert, does not mean that they are.  You can only learn to successfully work short sales with experience.  Jacksonville short sales are very challenging real estate transactions.  They are never easy, and the bad ones are nightmares with seemingly endless obstacles that must be pushed through and problems to be solved.   If you choose the wrong agent to help you through the Jacksonville short sale process, you may end up far worse than you started.

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The Buyer Side of Jacksonville Short Sales. Why Short Sales Get a Bad Reputation.

Sunday, May 15, 2011
by Stephanie Lim

Recent Jacksonville FL Real Estate / Jacksonville Short Sale Scenario:

  • Buyer fell in love with a Jacksonville short sale property he found on the internet. 
  • Spoke with the listing agent at length.  He said a BPO had been done and he knew exactly what the bank would accept.  WHICH WAS THE LIST PRICE.
  • We ran comps and spoke with the buyer who was comfortable proceeding with and offer for the price the bank needed based on the recent sales in the area.  The offer amount was for the list price.
  • 4/22 We wrote the offer up, the buyer signed it and we sent it over. 
  • 4/26 we were sent the contract back signed by the seller (signature date 4/25 after the offer had expired, however the buyer was still happy to proceed). The home went under contract and was placed as contingent in the MLS system.   The seller's agent stated that he was going to send in the contract to the bank that day.
  • 5/6  We checked in with the seller's agent, asking if he had heard anything back yet on the short sale.  The response back was that all documents were submitted including the HUD-1 and that he would update us.
  • 5/9  Seller's agent sent us a message back from BOA saying that the file had been assigned to a negotiator.  However, upon scrolling down and reading the whole e-mail we discovered that the short sale package wasn't even submitted to Bank of America until 5/6 the day we first inquired about the status and ten days after we were told it was being submitted.  (If you are familiar with Jacksonville short sales, you know that you can't afford to "waste" any time before getting everything in because of how lengthy the process can be.)
  • 5/11 Listing agent forwarded us a response from BOA.  They were demanding a sales price of approximately $25,000 higher....FAR MORE than the home was worth!  The listing agent asked the bank if a new appraisal could be done.  He/she was told no because the appraisal didn't expire until the next month.  
  • Upon the demand for above-market-value on the home, the wise buyer decided to select a different home instead.  But this buyer, who was sitting on a lease that was running up fast, was out a couple of weeks on a short sale that the listing agent should have either known was not going to happen, or had a game plan to try to work around the appraisal that he had to have known about.

This situation could have been much worse.  We could have gone on for months in this contract without knowing that it was a "dead end" for the buyer.  The worst case scenario is when a Jacksonville short sale buyer waits for month and month on end, forgoing many other opportunities, to only find out that they are not going to get that house.

We love helping sellers sell their Jacksonville homes.  We don't mind taking Jacksonville short sale listings, like many agents do, because we know how to successfully close a Jacksonville short sale.  We also appreciate the opportunity to help sellers sell their Jacksonville home and take a step forward to financial recovery.

Helping Jacksonville FL real estate buyers purchase short sales can be a little trickier.  Not because we mind getting helping a buyer purchase from a seller in need...we love that part of it.  It is very challenging on the buyer agent end of a short sale.  When we have the listing, we have control, and know that the Jacksonville short sale is being worked correctly.  We know how to work through "no" to get to a "yes."  We know how to attack, and keep attacking the challenges that pop up when you are listing a short sale.  With a buyer who wants to purchase a short sale, we don't have this power or control of the situation. 

Buyer agents who have a buyer that wants to purchase a short sale have limited, to no, control of the situation.    We can get an approval on almost any short sale when we are working for the Jacksonville home owner.  When we are representing a buyer, it's a toss up.

It is so important to hire the right agent to represent you in the current Jacksonville FL real estate market.  The current environment of the market is anything BUT business as usual.

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Displaying blog entries 1-10 of 134

The Lim Team, RE/MAX Unlimited, Ponte Vedra Beach and Jacksonville Florida Real Estate
904.371.9654


Serving the Jax-Northeast Florida Areas of: Jacksonville FL, Ponte Vedra Beach FL, Jacksonville Beach, Neptune Beach, Atlantic Beach, World Golf Village, Nocatee, Julington Creek Plantation, Bartram Springs, St Johns, Palencia, St Augustine, St Augustine Beach, Vilano Beach, Green Cove Springs, Orange Park.  Duval County, St Johns County and Clay County.


The Lim Team at RE/MAX Unlimited - Re/Max in Ponte Vedra Beach FL can help you buy or sell: Jacksonville condominiums, foreclosures, short sales, new homes, builder inventory and new construction from builders, Jacksonville real estate resales, bank owned properties.


IMPORTANT NOTICE: RE/MAX Unlimited is not associated with the government, and our service is not approved by the government  or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.