Jacksonville Florida Real Estate

Stephanie Lim

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If You Are Considering Purchasing a Jacksonville Short Sale Property or Selling Your Property Short...Hire a Short Sale Specialist.

Saturday, June 06, 2009
by The Lim Team

A large percentage of our real estate business is working with Jacksonville Short Sales.  We represent both buyers and sellers in this type of transaction.

Working with short sales you have to be ready for anything.  We find it particularly challenging when the listing agent has no knowledge or expertise in short sales.  There have been times that our buyers have had to look for other alternatives, even though a particular home was very appealing, because those hired to do the job lacked fundamental knowledge in the short sale arena.

There are basic questions that you have to ask (and know to ask!!!) when you are representing a buyer in a Jacksonville short sale transaction.  We are often shocked at the responses we get when we ask these all important questions when representing our short sale buyers.  Most agents are not educated and qualified in the short sale arena since it differs so greatly from a normal transaction.   There are some Jacksonville short sale specialists that are very good at what they do, this is SO VERY IMPORTANT in a short sale transaction. 

If you are underwater on your mortgage and need to sell your home, hire a Jacksonville Short Sale Specialist.  ASK what qualifies them to be a short sale specialist.  The use of a Jacksonville Short Sale Specialist is also becoming increasingly important when you are looking to buy a Jacksonville Short Sale property since you need to be represented by someone who has a complete understanding of short sales and how to structure your offer based on the type of loan the seller has and the lender involved.

Let us know if we can help you.  904.371-9654.

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Banks & Their Foreclosure Attorneys...What a Mess They Are Creating...What They Aren't Telling You on TV.

Tuesday, May 19, 2009
by The Lim Team

You've heard me talk before about how even when a homeowner is attempting to get a modification or complete a short sale banks will proceed with the foreclosure process.  It becomes a race against the clock for the homeowner, and us, if we are attempting to help with a short sale.  If they banks would just slow down and act responsibly they could cut their losses dramatically.

You've also heard me complain about how the right hand doesn't know what the left hand is doing.

Here is a good example that happened, or rather came to light, just the week before last.  We got a call from one of our sellers who we helped short sale his home so he could move on.  He had gotten some paperwork he didn't understand.  We asked him to fax it to us so we could see if we knew what it was.  It was a certificate of title conveying title to the VA Administration.  This was recorded at the end of April in the county public records months after title had transferred to the new buyer of the property.  This was also months after the bank had filed the satisfaction of mortgage releasing the property.

We immediately turned around and sent it to the closing attorney's who performed the closing.  We got a call a couple of days later from them telling us not to worry about a thing.  The title insurance company was working to straighten this out and they said that "they weren't surprised."  Apparantly they are used to banks doing this as it's common practice.

The closing attorney also called the clerk of court in the county where the property is located.  The clerk of court said that they wished this was the only case of this.  The employee in the clerk's office stated that the attorney's office (a foreclosure mill who does nothing but spit these things out) for this particular lender does this as a practice after the short sale has already taken place. 

We found out that a day or two after we alerted the closing attorney to this issue, the buyer had gone down to file for homestead exemption and found out that this problem existed with her title so she had called the closing attorney as well, not understanding what was going on.

Bottom line is that we have been assured that both the seller and buyer are okay in this and it's being cleared up, but why does this kind of thing even have to happen?

This is the kind of thing that someone needs to step in and stop.  The banks (in general) just continue to make bad decisions that keep leading them down the wrong path.  The path that leads to greater and greater losses.  But they aren't so worried about losses anymore...a sad fact that has been created by our political environment. 

The attorneys that have been hired to begin and complete a foreclosure process are determined to get these done as fast as possible no matter what negotiations may be going on between lender and homeowner regarding modifications or short sales...often cutting off the negotiation process when the bank could be saved hundreds of thousands of dollars (just with one home!!!) by going the route of common sense and good financial decision making rather than bullying.

As I was finishing this post my phone rang.  A seller for a recently completed short sale just received paperwork from an attorney's office for their old lender...foreclosure paperwork....this attorney's office has a court date to foreclose on the house that the seller no longer owns and the lender has released....here we go again!

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Successful Jacksonville Short Sale. Another family saved from foreclosure. Litton Loan/Fannie Mae w/PMI

Friday, May 15, 2009
by The Lim Team

We had another successful short sale closing today.  This was a Fannie Mae loan being serviced by Litton Loan.  This success is particularly sweet.  You've heard me talk about how the fate of your short sale often depends on whether you have a good or bad negotiator at the lender.  This is a Jacksonville short sale that almost never happened.  That is because it was assigned to a bad negotiator.  This negotiator, like most bad loss mitigation negotiators, was horrible at communication.  He got agitated when we asked for updates.  He failed to answer phone calls.  He refused to return e-mails and voice mails.  Ultimately he sent a one sentence e-mail saying, "

Per the investor, the request for a short sale has been declined due to the hardship not meeting there guidelines."  (grammatical errors his, not mine).

 

We spent the next several days trying to get in touch with this negotiator to find out what he meant.  Even the main customer service number at Litton was perplexed when they looked at the notes to the file.  He had simply put it that the short sale was declined with no additional information.  The customer service rep even noticed this was "weird."

 

This is where the quality, education and experience of your short sale specialist really comes in.  You see, to us when we are working our Jacksonville short sales...no just means, "not yet" or "try again" or "we'll approve it next time."

 

We updated all of the documents (since it had been a couple of months since the package was submitted) and resubmitted a complete and full short sale package with the same contract as if it were a totally new file.  We then called Litton and demanded that the negotiator that had been on the file previously not be allowed to touch it. 

 

Five weeks later we received our Jacksonville short sale approval.  The file was complete (very important!) , the negotiator did not have to ask for more information.  The negotiator didn't question the hardship.  Not once was it suggested that the hardship didn't meet investor guidelines.  The file was simply sent to the PMI company then to Fannie Mae and an approval was issued.

 

We closed today, three weeks after our approval was issued.  A foreclosure hearing is scheduled in the next week or two but the short sale was successful so that is entirely unnecessary now.  The happy and relieved seller has avoided foreclosure.  Our commissions for handling the Jacksonville short sale transaction are paid out of the proceeds of the sale and the seller did not have to pay us anything.

 

If you are in the situation where you owe more than your home is worth and can't keep your home.  If your lender won't work with you and you want an option other than foreclosure, give us a call.  We can give you an honest evaluation and let you know if we think we can help you.

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Jacksonville Short Sales. Why We Do Them.

Wednesday, April 29, 2009
by The Lim Team

I hear this statement quite often.  I read these type of quotes often in newspapers, on blogs and hear it on television.  I have heard many buyers say this, sellers have said this, and even other agents say this, and I just don't understand.  I definitely disagree.  We hear from buyers quite often who previously worked with an agent who refused to show them Jacksonville short sales, or did everything in their power to discourage them.  A Jacksonville short sale can be a really good deal for a buyer .  That home that is a short sale could be the buyers perfect home.  We believe the buyer should decide based on their needs and circumstances whether a short sale is right for them.  If a buyer is working under a strict time constraint, then they probably shouldn't consider a short sale.  If they have a flexible timeline this could be a great option for them.

The short sale's success or failure starts with the offer.  When you truly understand this type of transaction your success rate goes way up.

We do Jacksonville short sales.  We enjoy doing short sales.  This is the most rewarding type of real estate transaction we have ever been involved with.  We're not talking about money.  It's definitely not the most rewarding financially.  Many times at the last minute the bank decides that unless you cut your commission X% they are not going to allow the short sale to go through and will simply foreclose on the seller.  How is that for a situation to be put in? 

We like short sales because we are really helping homeowners in need.  These are not bad people, these are people who just lost something.  Sometimes they lost their job, sometimes it is their health, sometimes they lost their family member(s) and sometimes it's something else.  Sometimes it's a combination of things.  These are people who have usually tried earnestly and sincerely to remedy the situation but with no success.  These are people that have spent countless hours on the phone with the lenders trying to get loan modifications only to be told the bank doesn't care.  We've seen banks that would rather lose $200,000 today than to modify a payment even a few hundred a month.

This is a hard job, the business of being a Jacksonville short sale specialist.  On occasion we have been told by some bank representatives that they don't care...they will just foreclose.  We have seen files denied and closed for what turned out to be no reason other than the negotiator assigned to the file felt like taking their bad day out on someone.  We have made multiple phone calls for weeks, while being ignored the whole time.  We have been yelled at by talking heads in the customer service department.  We have been hung up on.  We have been argued with.  We have spent hours and hours...even days challenging appraisals.  But still we refuse to give up, we just find a way around the obstacle we are facing and keep going.  Our ultimate goal is to get the short sale approved and we don't quit trying.  Giving up is not an option on something that is so important to a homeowner's future.

Short sales are the most frustrating type of real estate transaction on the planet from an agent standpoint.  Sometimes we work for months just trying to get an approval.  After the approval comes THEN we have to do the normal job of a real estate transaction, the part we get paid for.  All of the work we did to get the approval?  We don't get compensated for that.  It's just part of the overall package and the service we provide homeowners in need.

We have found short sale sellers to be very worthy of help.  We have dug in and fought relentlessly for these sellers.  We have spent countless hours on the phone, sending e-mails and sending faxes trying to help them out of what seems like an impossible situation for them.  We do all of this without any guarantee of ever getting paid a dime since we only get paid if it closes.  But we do this anyway because it is the RIGHT THING TO DO.

If you need help selling your Jacksonville home because you owe more than the home is worth let us know.  Our Jacksonville short sale services are free to you.  The lender pays our fees out of the closing proceeds.  There are never any upfront fees, we only get paid if the short sale is successful.  We also never charge a penalty.  If your circumstances change and you no longer need to sell your home, we happily let you out of the listing agreement.  We love it when homeowners who want to stay in their home can stay in their home.

Are short sales ever a waste of time for us?  No.

Will you be the next person we help?  Do you know someone who could use our help?  Tell them about us.

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Jacksonville Short Sales are not easy transactions. Hire an agent who knows the system, can get results, and refuses to give up.

Tuesday, April 28, 2009
by The Lim Team

Short sales are not easy but when successful,  they are well worth the time and effort that goes into them.  To successfully complete a short sale your real estate agent has to have what it takes to be diligent and persistent until the end and have a good understanding of short sales.

The biggest factors of Jacksonville short sale success are:

The initial package.  Does the contract price and terms make sense for the bank/investor and is the hardship package complete and convincing.  This is very important.  Price matters.  Banks are not giving houses away.

The bank you are dealing with.  Some banks are next to impossible to deal with.  Others are relatively stable and predictable.  Some have no interest in loss mitigation, some are very interested and concerned about minimizing their losses.

The loan type you are dealing with. Is your loan conventional?  Is it FHA?  Is it VA?  Do you know if it's Fannie or Freddie?  Do you have PMI?  It is very important to know the answers to these questions from the beginning.  Your short sale process will be much different depending on what you are looking at as far as loan type and whether PMI is involved.  FHA is currently the hardest.  HUD changed the FHA guidelines at the end of December and in practice this has made FHA short sales much harder.  Up until the end of December VA seemed to be the hardest.  FHA and VA both have preset rules and ratios that are acceptable.  The short sale arena is constantly changing. 

Your loss negotiator.  You can't live with them, you can't live without them.  You can't....well...you know the old saying...  The good loss mitigation negotiators are really, really good.  The bad loss mitigation negotiators are really, really bad.  Which will you get?  You won't know until your Jacksonville short sale is in process.  How do you know which type you got?  The good ones will have great communication skills and will communicate regularly with your agent.  The bad ones?  These bad negotiators will block all access to themselves and make it almost impossible to communicate.  Some are just downright jerks.  When you get these negotiators you have to resort to calling the customer service number every day and faxing in all messages you want to get directly to the negotiator.  And you usually do not get an e-mail, phone or fax response.  You have to call into customer service to see if any action was taken as a result of your fax.  Wells Fargo, for example, has "talking heads" trained not to give you any contact information at all for your negotiator.  They will give you their name, but they are not allowed to give you any more information.  You can request a call from the negotiator, but the negotiator does not have to respond and the talking head is not allowed to send another request to the negotiator for a call until the computer shows it's been 72 hours since such a request has been made.  Then the talking head can send another request, but the negotiator does not have to listen.  And so the cycle goes.

There are so many important factors that go into a Jacksonville short sale that they are totally unpredictable.  When done right success is a high probability.  If done incorrectly, your time is just being wasted.  Make sure you have the right Jacksonville short sale specialist on your side for your Jacksonville short sale transaction.  Make sure your agent is knowledgeable in this type of transaction and refuses to give up.  This simple factor will greatly increase your chances of success and make it much more likely you can sell your home short and avoid foreclosure.

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Litton Loan Servicing Jacksonville Short Sale Experience. Did no mean no? No!

Monday, April 27, 2009
by The Lim Team

We got a short sale approval last week from Litton Loan Servicing that would not have happened had we not absolutely refused to give up.  This was a case where we had been assigned a negotiator from their loss mitigation department that qualified as really, really bad. 

After Litton had the file for over two months, and horrible communication during those two months, the negotiator sent us a one sentence e-mail saying the short sale was denied because it didn't meet investor guidelines.  We proceeded to call and e-mail over and over trying to get an explanation since we knew this was a true hardship, it was a great contract,  and we had proven the case on both points.  The negotiator refused to respond to us at all and we were told by customer service that the file was closed and the issue was dead.

We refused to close the file on our end.

We immediately updated the financial data (since two months had passed since our original submission) and resubmitted the complete package with the same information and the same sales contract.  We made several calls demanding the same guy not be allowed to touch the short sale.  We followed up regularly as we normally do. 

Five weeks later we got a call that the short sale was approved, they are allowing the sale to close for less than what the seller owes the bank, and the seller will be able to avoid foreclosure.

Just an example of how a bad negotiator can wreck your short sale, and how a good short sale specialist who refuses to give up can save it.

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A Short Sale is Much More Complicated Than That...Why Logic Does Not Necessarily Apply to Banks in Jacksonville Short Sales

Tuesday, April 14, 2009
by The Lim Team

Jacksonville short sales are not simple. A lot goes into a Jacksonville short sale, sometimes logic, as you or I would see it, is not part of the equation.   First I'll talk about the logical argument.  Banks should realize that short sales are in their best interest.  Banks should respond to short sale offers fast and sensibly.  Banks should be thankful that Realtors and buyers and sellers are out there working every day to help mitigate their losses.  Banks should have a good system to logically evaluate offers and if Option A will provide less of a loss to the bank then it should be selected over Option B as good business practices would dictate.  These "shoulds" occur in a perfect world...not necessarily in the real one.

We encountered another buyer today that couldn't understand why the seller would turn down his Jacksonville short sale offer for what is probably around 50% of fair market value.

Here  are the reasons that the seller turned down the offer:

  • The offer was ridiculously low.  A short sale contract is between the current homeowner and the buyer.  The seller chose to reject the offer because it wasn't even in the same ballpark.  It is the seller's decision whether to accept an offer or not.

  • The seller will be potentially facing a deficiency.  This particular bank does not waive their right to seek a deficiency judgment they do "lien release only."  Every dollar of price reduction the seller allows puts them in a position of owing more money down the road should the bank pursue a deficiency. 

  • The bank can not just approve a Jacksonville short sale contract when the fair market value of the property is much higher than the contract price.  They have investors to answer to.  When a short sale package is received by the bank they order either an appraisal or BPO to determine the fair market value of the property.  Appraisals usually come in higher than BPOs.  If the property is a VA or FHA there are preset minimum net proceeds to fair market value ratios that must be met.  If it's conventional there are different ratios that have to be followed that are not so clear cut.  The banks are not just going to accept some low number that is well below comparable properties.

  • This buyer inaccurately assumed that one comp was sufficient for trying to support his offer.  One comp just doesn't do it.  No less than three comps are used.  If it is a distress sale, or is deemed to have potentially not been an arms length transaction it may be thrown out totally. 

  • This buyer also inaccurately assumed that the bank had the right to make the decision about whether to accept the offer or not instead of the seller.  The buyer proclaimed to be providing a significant service to the financial industry by making his significantly low offer.

  • The Jacksonville short sale seller has a lot to lose by accepting an offer that does not have a reasonable chance of approval by the bank.  An unrealistic contract can lose the seller valuable time that ultimately leads to foreclosure since in our area MLS the home has to be placed in a contingent status notifying everyone that there is already a contract on the home.

We will be the first to tell you that short sales are unpredictable.  Each one is different from the last, even with the same lender.  The banks are just not good at them yet.  Even the banks that had gotten pretty good at them have been overwhelmed lately.  That being said, a complete financial package, a valid hardship, and an offer that is within the realm of a reasonable discount from fair market value has a good chance of being approved by the bank.

Consult a Jacksonville short sale specialist if you think you owe more than your home is worth.  You need more than a general real estate agent.  You need someone who is educated and understands how short sales work and can help you through the process.

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Can you support that Jacksonville short sale offer price with comparable sales? How to price your Jacksonville short sale offer to get a good deal and have the bank say "Yes."

Wednesday, April 08, 2009
by The Lim Team

We work with a lot of Jacksonville short sale properties.  There are a lot of misconceptions about how to come up with the offer price and what to expect.  Here are a few points I want to clarify:

  • You are negotiating with the seller/homeowner of the property.  While the seller wants to get the home sold, it is also in the best interest of the seller to get the highest amount reasonably possible.  The seller maybe be facing a deficiency judgment.  The seller may be asked to sign a note for all or a portion of the difference.  The seller does have an interest in what the property sells for.  Don't go to the listing agent and demand that the bank make the decision, not the seller.  That is not the way the process really works.

  • One low comparable sale does not take the rest of the market down to that level.  The sellers bank(s) will have either an appraisal or BPO done.  This requires no less than three comparable properties be evaluated to come up with the fair market value of the property.  The lienholder will then make their decision about whether to allow the closing to take place based on their net percentage of fair market value.  This fair market value is not determined by the fact that there was one foreclosure that sold for a crazy low amount.  Last week we got an offer of 67% on a listing that we are already going to have a tough time proving is not worth more than the asking price.  The comps are very few and far between and would indicate a higher value (all except for this one lonely comp).  There is almost nothing that has sold in the past 2 years.  If you go outside that complex...to get a comparable, which you will have to do, the prices are much higher than our price.  This buyer and agent thought because there was one low foreclosure, the bank would allow the home to go for that same price in a short sale.  It's just not that simple.

  • When you are submitting an offer on a short sale, and the price is substantially lower, include a BPO or multiple comps with your offer.  Experienced Jacksonville short sale specialists usually have (and keep) the home priced at a price that the bank should accept given the comparable homes.

  • Don't think you have to ask for more off just so you can feel like you got a "deal."  Determine what the house is worth using comparable sales.  If the asking price is already a deal...then just hope you get it for that and the bank doesn't determine the fair market value to be much higher.

If you want to buy a Jacksonville short sale, make sure you hire an agent who is a Jacksonville short sale specialist and knows how the process works.  The process can be long and frustrating.  The more your guide knows, the smoother sailing it will be for you. 

If you have to sell your Jacksonville real estate and you owe more than your home is worth work with a Jacksonville short sale specialist who knows how to properly price your home, negotiate the deal and submit the proper package in a complete format that significantly increases your chances of getting the deal done.   Make sure they understand what the bank will be looking for to prevent you from tying up your home for months for a deal that won't work.

Let us know if we can help you!

 

 

 

 

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Where have all of the lower priced homes gone? Northwest St Johns County has less than a one month inventory for homes priced at or under $100,000.

Monday, April 06, 2009
by The Lim Team

Looking for options for my buyers who are buying at or around $100,000 or less in Northwest St Johns County I noticed that the inventory has been going down fast.

  • Northwest St Johns County homes on the market (all ages, all bedrooms/baths)  at $100,000 or below- 11

  • Northwest St Johns County homes under contract priced at $100,000 or below- 13

  • Northwest St Johns County homes sold in the past month priced $100,000 or below- 12

What does this mean?  We are looking at less than a 1 month inventory for homes in Northwest St. Johns County that are priced at $100,000 or below.  If you are a first time home buyer interested in this price range, you'd better hurry.  We have no way of knowing if this under-$100,000 supply will be replenished or if prices will start to climb above that mark.

There may be bond money for you to help you with your purchase, let us know if you are interested in trying to grab one of these homes.

Here is a great option for you!  http://www.lovelyjacksonvillehomes.com/property/742-MIDDLE-BRANCH-WAY-brJulington-Creek-Plantation-brSt-Johns-Florida  This is a listing we have in Julington Creek Plantation.  This is an already-approved FHA short sale.  Call us to grab this one today before it's too late!

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Jacksonville short sales need expert handling! The importance of a Jacksonville Short Sale Specialist.

Friday, March 13, 2009
by The Lim Team

Jacksonville Short Sales are not easy.  If anyone tells you they are, they are not being honest.  It is very important that you hire someone educated and experienced in the process to handle your Jacksonville short sale transaction.

What type of loan do you have?  FHA, VA, Conventional?  Are there any parties on the loan other than the ones residing in the property?  Do you have only a first mortgage, or a first and second mortgage on your Jacksonville real estate?  If you have two mortgages, is the 2nd just a straight 2nd mortgage...or is it a HELOC (Home Equity Line of Credit).   Where are you in the process of missed payments?  Has a lis pendens been filed?  Has a foreclosure hearing date been set?  Has a foreclosure sale date been set?  What has your communication been with the lender?  Have you tried to obtain a loan modification on your Jacksonville home?  Who is your lender?  All of these things matter.

There are very important steps in achieving a Jacksonville short sale to avoid foreclosure.  The first step is to have a complete financial package put together.  This requires the homeowner to go through bills, bank statements, tax returns, etc.  We have to show the bank why you can no longer afford the home.  It's similar to applying for a loan, only in reverse.  We put together a complete financial package for you, based on applicable information and submit it to the appropriate parties.  It is not unusual for this package to exceed 100 pages.  The point that this information is submitted depends on the type of loan.  Most packages will not be submitted without a fully ratified sales contract.  All of this detail is handled for you by a good Jacksonville short sale specialist.  Which is why it is very important not to use just a general real estate agent, but someone who specializes in the process of Jacksonville short sales.  It requires a lot more work, expertise and patience than a normal real estate transaction.

It is very important that the offer from the buyer be negotiated properly.  Sellers should not be taking their homes off of the market for offers that have no chance at acceptance.  By working with a Jacksonville short sale specialist who understands the different loan types and ratios involved you can minimize this risk.

Once you get your home under contract and your Jacksonville short sale specialist has submitted this along with your entire financial package, the fun is just beginning.  It takes a lot of follow up, phone calls, updating and an understanding of market values to successfully deal with the negotiators in the loss mitigation department of banks.  A Jacksonville short sale specialist has to be on top of the file at all times to increase the chance of success.  Your specialist needs to know how to deal with all of the challenges that can and often do come up in a short sale transaction. 

Do you need to get out from under your Jacksonville real estate but know that you owe more than your home is worth?  Talk to us and we will help you evaluate whether a Jacksonville short sale is a legitimate option for you.  We will give you an honest assessment based on your complete situation and give you a truthful analysis of what your home is likely to sell for.  Call us today at 904.371.9654.  Same day appointments are often available.  We're here to help you.

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Displaying blog entries 71-80 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.