At the time we took this listing our last BOA / Fannie Mae approval had taken 6 months to get.  BOA was known to be slow and many buyer agents would not even take their buyers to BOA short sales anymore.

When this contract came in, Equator had recently been implemented for Bank of America short sales.  Many agents still do not like Equator, we LOVE it!!!  We are very strong in technology and welcome any technological improvements that arrive on the scene.  If you know how to use it, Equator is a wonderful tool that can greatly speed up your BOA short sale approvals.

Here is the timeline for this Oakleaf Plantation short sale approval (BOA/Fannie) and closing:

• 6/08/10 Short sale initiated in Equator
• 6/23/10 Counteroffer from BOA negotiator. BPO came in too high, the contract was countered much higher than the Oakleaf Plantation townhome was worth. We submitted the buyer's appraisal along with our own comps, countered the Bank of America counteroffer and persuaded the negotiator to take the buyer's appraisal. The BOA negotiator revised and countered again allowing the home to be sold at the buyer's appraised price (Buyer had a FHA appraisal).
• 06/29/10 Negotiator was satisfied and sent the deal to the investor, in this case Fannie Mae.
• 7/09/10 The contract was accepted by Fannie Mae and BOA generated an approval letter....only 31 calendar days after the short sale was initiated in Equator.
• 7/15/10 We closed the Oakleaf Plantation townhouse that was a Bank of America Short Sale only a month and a half after going under contract!

Summary of the numbers involved in the Oakleaf Plantation / BOA Short Sale: 

• List Price - $75,000
• Sales Price- $75.000
• Amount paid for townhouse in 2005- $166,100
• Amount owed on loan- $153,000 approximate
• Net Proceeds to Bank of America/ Fannie Mae in Short Sale - $64,149
• Past Due HOA dues paid by BOA/ Fannie Mae - $3,880
• Required Seller Contribution - $0

See the Bank of America Approval Letter for this Jacksonville short sale here.

Have a loan serviced or owned by BOA, underwater and need to sell?  We can help (and if we can't we'll tell you upfront!)

Saxon issued this Jacksonville short sale approval on a Freddie Mac loan in only 2 days after we went under contract with this buyer!!!  But that's not the whole story (if only it had been that easy!).  This home had been under contract previously with another buyer.  We had explained the Jacksonville short sale process to the prior agent at length.  We had gotten assurances from her that she was not taking the buyers to other homes to look.  We had been highly suspicious because we figured out she was "cancelling" another short sale contract to buy this Jacksonville short sale listing.  We spent time explaining to this agent that the Jacksonville short sale contract is a binding contract with a CONTINGENCY for lienholder short sale approval.  She promised she understood and that her buyers were committed to this property.

One day when we called her to update her, we found out that they had put down a contract on a neighboring Walden Chase home at some point and that this home was now their number two???  To make a long story short, this agent had gotten her buyer into two legally binding contracts for a short sale (maybe more?).  Had both approvals come in at the same time, her buyer could have been left having to purchase both homes or having to forfeit her binder deposit for the home they chose not to buy.  We ended up with a short sale approval, but no short sale buyer!  This could have forced the seller into foreclosure, but we worked hard to make sure this didn't happen.

Luckily in the 11th (maybe 11th and 3/4) hour we were able to pull in a buyer for the same price and same terms as our prior approval.

We were able to submit the new deal to Saxon / Freddie Mac for approval and got our short sale approval letter issued two days later!

Details of Approval on this Walden Chase short sale:

• Original Purchase Price of this Walden Chase home - $343,000
• Loan Balance of first lien at time of Jacksonville short sale - $272,000 approximate
• Short Sale approval sales price - $220,000
• Payoff to Saxon / Freddie Mac - $198,961 (roughly 70% of loan balance)

 To See a Sample of an approval letter for Jacksonville short sales from Saxon mortgage:

Jacksonville short sales - Saxon approval letter Walden Chase 

There has been a lot of confusion recently on the deficiency balance issue when there is a Jacksonville short sale. If you have a foreclosure, Florida is a deficiency state, also called a recourse state.  This means that the lienholder(s) can pursue you for the deficiency balance (difference between what they recover and what is owed on the loan after all of the foreclosure costs are added)  This is unlike some other states that will not allow a deficiency after a foreclosure.  Florida foreclosure law can be found here.  This is also where you find details on a deficiency judgment in foreclosure. It is when you short sale that a lot of confusion comes in.  A very general definition that we sometimes hear of a short sale is "when the bank agrees to forgive the loan balance and lets you sell the home for what it is worth."  This makes us cringe.  This is NOT an accurate definition.  The bank is agreeing to a lien release.  What happens to the "balance" is a different story. Banks are not very forgiving these days.  It actually seems like the more they have gotten in taxpayer money, the less forgiving they have become. The truth is just because you complete a Jacksonville short sale does NOT mean there will not be a deficiency judgment down the road.

The players involved in a foreclosure or short sale are (simplified):

• The servicer. This is who you send your money to every month. (They can actually make MORE money when your loan is in default than when it's not.

• The noteholder. This is who has physical possession (supposedly) of your note. It can be VERY hard to get accurate information about who this is. Crazy enough, many servicers will refuse to tell a borrower who they actually owe the money to. Sometimes, we would argue, it's because they aren't even sure themselves.

• The PMI or MI company (mortgage insurance). Think you don't have this? Well you may be incorrect! Many people who put 20% down on their first mortgage are finding out that they do, in fact, have PMI!  We are starting to see this a lot.  Borrower puts 20% down to avoid PMI only to find out during the short sale negotiations with the lender that there is PMI because they are making a cash or note demand.

The short of it is that any one of these parties can decide you owe them money still....and then go after it.

The reasons to still do a Jacksonville short sale anyway even if a lender does not waive their right to later pursue you for a deficiency?

Faster Credit Recovery.  Current Fannie Mae guidelines allow you to purchase a home faster, sometimes years faster, if you complete a short sale instead of a foreclosure. FHA guidelines also allow you to purchase again years sooner if you sold your home in a short sale instead of having a foreclosure on your record. Many sellers tell us, "We don't care about that, we never want to own a home again."  I would be willing to bet that you will change your mind down the road.

You Control the Deficiency.  Once the home is foreclosed on you have no control whatsoever of the contract price or terms. The simple fact is that REOs / Foreclosures are almost, without exception, priced under Fair Market Value. This can translate to big $$$. For example, on one home we followed, the bank failed to act on a short sale (the home was only around $10,000 short of full payoff), the home was sold for $50,000 less once they foreclosed on the same home. Even though the bank FAILED TO TAKE THE SHORT SALE for $50,000 more they can still go after the seller for their own decision to underprice the home for $50k. This defies common sense...but it is happening. In a successful short sale you know roughly what the deficiency is that they may later pursue. In a foreclosure, you do not know how low they will eventually sell the home for, nor what outrageous expenses they will tack on to the bill to arrive at the deficiency.

There is a Chance That the Deficiency Can Be Waived. This varies greatly by bank or investor (whether you are in the HUD PFS program or HAFA) and seems to be in a constant state of change.  This may or may not ultimately happen.  But you can try to negotiate this when you are involved in a short sale.  This is not something you negotiate in a foreclosure.

You Maintain Your Dignity. Foreclosure is an emotional black hole. It is something that many people never get over.   In a short sale you feel like you are somewhat in control as opposed to a foreclosure where everything is out of your control.

Whether to short sale your home or not is a personal decision.  You have to weigh the costs and benefits to you and decide.  Regardless, you should be aware going in that a deficiency IS possible.  We work with both buyers and sellers of Jacksonville short sales and can help you determine if a Jacksonville short sale may be right for you.

It is very common for Jacksonville condo prices to have dropped 50% since 2006/2007.  Surprisingly, I am seeing some condos in the Southside area of Jacksonville, St Johns County and Clay County priced around 25% of what they last sold for just a few short years ago!

Here are a few of the factors wreaking havoc on our Jacksonville condo values in the Jacksonville Real Estate Market:

• Jacksonville foreclosures in condo complexes.  Once Jacksonville foreclosures have entered a condo complex...expect values to start plummeting.  Rather than pricing the condo at market value...we see many new Jacksonville condo foreclosures come on for a good deal less than fair market value.
• Hardship situations making it hard, or impossible, for some (many???) residents to pay their condo dues.  When this happens, rather than dramatically slashing expenses to make it easier for the remaining residents, it seems that they are simply dividing the expenses by the number of people who are paying their dues still.  This in turn forces more people to not be able to pay their dues.  We think everyone would benefit by cutting condo dues, rather than raising them which will continue to add to hardship situations.  If you are buying a Jacksonville condo...remember one thing.  Go ahead and plan and budget for the dues to go up!!!  These condo fees are not set in stone, and we are of the opinion that we are nowhere near the point where they will level off.  We also question whether they will ever voluntarily bring these dues back down even after the housing situation and the economy improves to the point where we are no longer seeing defaults above the historic average. 
• It has become impossible to get loans in many Jacksonville condo complexes!  Many buyers do not realize this!  If you are looking to purchase a home in a Jacksonville condo complex it is crucial that you are working with a fantastic lender who can quickly evaluate whether a loan can be completed on a particular home.  FHA has an approved condo list.  Fannie has condo guidelines. Everywhere you look there are new guidelines popping up making it harder, or even impossible, to purchase that condo.   Recently we saw a case where a lender that the buyer was already working with when they first came to us did not prequalify the complex.  The transaction progressed with everyone believing the closing was fast approaching.  The week of closing USAA came back and said that the condo was not eligible for financing.  Why?  There were too many delinquent homeowner accounts.  There were too many people unable to pay the high condo association dues.  Here is the really interesting part....this was a Fannie Mae guideline that held this closing up.  We would venture a guess that many, many of these condos were purchased with loans that are now held by Fannie Mae.  How is Fannie helping anything with guidelines that are going to wreck the values further and force more homeowners into foreclosure?  They clearly are not thinking through cause and effect.  On this particular condo the short sale approval became useless without the ability to obtain financing on this unit.  So we submitted a new contract for this same property at 36% less than what the buyer had previously been willing to pay (and it had appraised for).  The seller had purchased the home brand new in Oakleaf for the $180k range just three years ago.  Our current contract price that is pending short sale approval is only 25% of the price he paid for the home.  It's a beautiful condo...almost brand new!!!  But now the complex has to be priced for cash buyers since financing is out of the questions.  Great job Fannie!  Way to think things through!  When three years ago I could hardly find a buyer a nice condo for $150,000...today I can help you get an oceanfront condo complex for that range!
• Condo conversion (and other?) lawsuits.  This issue has also been somewhat of a problem.  There have been different condos that have gone through phases of not being "loanable" nor "insurable" for title insurance purposes.  There is one particular complex that I would call fantastic.  It's awesome.  I have always loved it.  PERFECT location easily accessible to 9A, Town Center, I-95...fabulous floor plans.  Great site planning (not just rows and rows of units facing each other).  Huge windows with tons of light.  These condos feel more like a home than any other complex I've ever been in.  What can you buy these for today?  Banks are selling their foreclosures in here for around 25% of what the people who were foreclosed upon paid for the units.  Condo dues have also gone very high since there is a lawsuit pending against the builder / developer.  The lawsuit issue dealing with construction problems have sent values plummeting.  When the owners can no longer afford to keep their home in here they have no choice but to short sale or to let their home foreclose.  If they had 75% to cover the difference in the loss of value, they probably would not have financed in the first place.
• Condo Fees/ HOA Dues/ CDD Fees combined on units...or some combination of this.  The bottom line is that condo fees have gone higher.  With fewer people paying, the budget has to be divided up.  In the boom times, buyers did not care about the fees.  Fees were lower and no one anticipated what would happen to the market.  Some condo complexes have both Condo Fees and HOA Fees.  But did you know that some have Condo Fees, HOA Fees AND CDD Fees?  All of which have gone up due to the number of hardships being seen in the neighborhood.  I ran a scenarios for a condo buyer the other day for a Northern St. Johns County condo complex.  I quickly determined that although we can get him that condo for 25-30% of the price it was back in 2006/2007...all of the fees combined are equivalent to the principal and interest on a $150,000 house payment at 5% for 30 years!!!!  So if you pay all cash, it's kind of like that cash being a "downpayment" and monthly payments as if you had gotten a $150k loan.  Crazy????  We think!!!!

If you are a potential Jacksonville condo buyer, this is not a bad time to buy.  Can the market still decrease.  Yes, and we think it's not unlikely.  But when the homes are already priced at only 25% of what they were in recent years how much do you stand to lose?  At the same time, you need to be aware of what you are buying going in.  Be aware of the fee situation.  Find out if there are any lawsuits going on.  Understand that even if there are no lawsuits and the fees are just fine...THIS COULD CHANGE ON A DIME.  Be cautious of anyone who makes general statements.  Do your research.    Let us know if we can help.  We are very experienced in Jacksonville distressed properties and regularly help buyers purchase Jacksonville short sales and foreclosures.  We also help distressed sellers sell their homes through Jacksonville short sales. 

Working with Jacksonville short sales as much as we do we have run across this misrepresentation quite often.

We always have an escape clause for our short sale sellers.  If you have your home listed for sale with us and have gotten a loan modification or have decided to file for bankruptcy instead, we have always let our sellers out without any penalty.  We truly want what is best for homeowners in trouble out there.  If a  Jacksonville short sale is what is best for your situation, we are happy to help you...if it's not, then we truly wish you the best.

We have let several sellers out of  listing agreements over the past few years because they were filing bankruptcy and their bankruptcy attorney told them they "might as well quit trying to short sale" because they were filing bankruptcy.  The bankruptcy attorney had explained to them that the house simply did not matter to them anymore because once they filed for bankruptcy  the home would become the bank's problem.

We have even seen a bankruptcy attorney talk a seller out of going to closing on a Jacksonville short sale with full approval at the last minute because he convinced her that she would be better off forgoing the short sale and filing bankruptcy instead.

THE ACT OF FILING FOR BANKRUPTCY DOES NOT TRANSFER LEGAL TITLE OUT OF YOUR NAME.

Some other event besides the bankruptcy itself has to occur before legal title to your home will be transferred to the bank.  Even if you file Chapter 7 and you included the home choosing to "surrender" the home in your bankruptcy, did you know the house still belongs to you after the bankruptcy discharge? The act of filing bankruptcy can eliminate the debt owed on the note.  That is it.  Your Florida home purchase also had a second component in addition to the note...the mortgage.  The mortgage is the instrument that secured the debt and allows the bank to foreclose.  The bankruptcy does not wipe out the mortgage, nor does a transfer from the borrower to the bank magically occur.  This has to be done as part of a separate action.

Until legal title transfers to the bank you still own the property even if you have had your debts discharged in a bankruptcy.  

• Had your HOA dues discharged and think you are off the hook? We have been told by a bankruptcy attorney that we recently spoke to about this issue that you are responsible for all HOA dues after the date of filing.
• Have dead grass? If they HOA decides to fine you, you will owe this.
• Weeds in the yard? HOA fines assessed to you after the date of filing as long as the legal title still bears your name are yours.  It doesn't matter if you were discharged and had agreed as a part of the bankruptcy filing to surrender your home.

Does this mean that you are liable for the $9,000 insurance policy they put on your home too?  Does this mean that if someone is walking across your yard and has a horrible accident that you are financially liable?  Does this mean that the bank can come after you to reimburse them for the taxes that they have paid on the property that were accrued AFTER the date of filing?  Is there any limit on your liability?

Are the Banks in a Hurry To Take Possession of Your Home?

You know in Florida we've started seeing the banks drag their feet on actually taking the home back even after obtaining a judgment of foreclosure.  Many times they will get the foreclosure judgment then fail to take the home back.  They do not want it back on their books.  They do not want to be liable for all of the expenses of the home.  The banks are usually in no hurry to take back a home these days.  What if you still have legal title to your Jacksonville home 6 months after your bankruptcy filing?  What if you still have it 8 months after?  What if you still have it a year after?  Two years?  What kind of financial damage will you incur?

Unless you somehow sign the deed over, the bank will have to continue and complete the foreclosure process to get back title to your home.

Think that by filing bankruptcy you are avoiding having a foreclosure on your credit report? 

Think again.  Foreclosures will prevent you from buying again for years longer  than a bankruptcy or a short sale.  Many people think that by filing the bankruptcy they avoid the foreclosure on their credit report.  However, details are now emerging from people who have been through it that are learning that this is not the case.  The foreclosure still seems to be showing up on your credit report.

Current Fannie underwriting guidelines regarding the waiting periods before you can buy again:

• Bankruptcy- 2-4 years depending on circumstances (4 unless extenuating circumstances, then 2)
• Foreclosure(non-extenuating circumstances) 5-7 years FROM COMPLETION DATE (!!!) OF THE FORECLOSURE (NOT THE BANKRUPTCY)  depending on downpayment, credit score and occupancy.
• Foreclosure(extenuating circumstances) 3-7 years FROM COMPLETION DATE (!!!) depending on downpayment, credit score and occupancy.
• Short Sale / Preforeclosure Sale/ Deed-in-lieu (extenuating circumstances) -Just updated by Fannie 5/10!!! 2 years with 10% down.
• Short Sale / Preforeclosure Sale/ Deed-in-lieu (non-extenuating circumstances) - Just updated by Fannie 5/10!!! 2 years with 20% down.

Please educate yourself before you let a bankruptcy attorney tell you all of your problems will be over if you just file.  If a bankruptcy attorney tells you that it is a bad idea for you to try to complete a Jacksonville short sale, please get a second option.  Please evaluate your options to transfer title back to the bank in less harmful ways than through a foreclosure.  Please protect yourself!

If you are interested in talking to us about a Jacksonville short sale, let us know.  We can give you a good, honest evaluation and even refer you to a Jacksonville short sale attorney and a foreclosure defense attorney as well to get legal advice.  Our Jacksonville short sale consultation request can be found here.  If we can not help you, we'll tell you that and try to point you in the direction of someone who can. 

In a nutshell, attorneys filing Florida foreclosure lawsuits have to tell the truth now or potentially get in trouble for lying.

Now, that may seem like an odd statement to someone who hasn't seen or read about some of the questionable things going on in Jacksonville foreclosure cases and foreclosure cases throughout the state of Florida.  But stick with me here...

The Florida Supreme Court has now mandated that those involved with filing Florida foreclosure cases now have to swear, under penalty of perjury, that the allegations and paperwork in a foreclosure case is all....wait for this....TRUE.  If you want to do a little heavy reading, this is a link to the document skip to page 13 if you just want to read this part.

Now if you are like me, you are wondering...ummmm...why haven't they always had to tell the truth?  But the foreclosure mills who file the majority of the foreclosure cases in Jacksonville and throughout the rest of Florida have been up in arms about this, with many foreclosures continuing to be filed without this.  Why are they fighting this requirement to swear under penalty of perjury that the facts alleged are true to the best of their knowledge and belief?  Here is a summary of their filings opposing this rule to the task force and the response by the task force to their briefs.

Isn't the writing on the wall?  Wouldn't your conclusion be that they KNOW that many (most???) of the cases they have been filing are questionable if not downright fraudulent?  Why would they react negatively to something that seems intuitive.  They SHOULD swear under penalty of perjury that what they are filing is true to the best of their knowledge.  So now they are going to be responsible, to some degree, for what they file.

Most Florida foreclosure cases seemed to be filed now with "lost note" affidavits.

  The lender filing the foreclosure is saying that they have simply lost the note or destroyed it so they can't produce the note and prove that they have it. Some filings say that they don't even have a copy of the note, much less the original.   Okay, so what's the problem?  Many times they don't really have it!  This begs the question...does someone else have it?  Did they ever have it?  Who is this money really owed to?

Florida Legal Services group outlines some of these practices in a letter that was sent to the Supreme Court of Florida Task Force on Residential Mortgage Foreclosure Cases.  You can read that letter here.

The Florida Bankers Association says that yes the notes were destroyed because it's "safer, more efficient and less expensive."

The Florida Bankers Association, in their protest to this new rule, admitted in their filing opposing the Task Forces recommendation of the Supreme Court rule that many of these documents were intentionally destroyed ("the physical document was intentionally eliminated") because they were "converted to electronic files almost immediately after the loan is closed."  They go on to explain that "individual loans, as electronic data, are compiled into portfolios which are transferred to the secondary market, frequently as mortgage-backed securities."  So tell me this.  How EASY is it to modify, or duplicate, or sell off yet retain an electronic document?  Why very easy, of course.  The reasons they quote for doing this is it is "safer, more efficient, and less expensive than maintaining the originals in hard copy."  How is this safer?  Anyone with a computer and the right software can alter an electronic document.  If they have destroyed the note, they can lift a signature off of the mortgage (the mortgage is publicly available to anyone sitting in their living room with internet access) and put it on the supposed note then claim that it is the note.  So many possibilities exist if the note only exists electronically.  An original, on the other hand, can be examined.  The signature can be verified.  It is tangible and provable.  Much harder to alter or counterfeit. 

And so I draw my parallel and other commentary....

Isn't this like me going to the bank, swearing to the teller that Bob, who has a certain bank account number, gave me a check for $1,000.  I lost the check or accidentally threw it away, but since Bob gave me the check...I'm still entitled to the money!  So they'd better give it to me.  Would THAT ever work?  Wait, I can fill out an affidavit swearing that I really did have the check and I'm the rightful owner of that check...I can show you my Quicken account where I recorded that I received it, I can show you he has sent me other checks in the past that I have cashed and you gave me the money for.   In a million years I would never walk out of that bank with the $1,000.  But what if I can show you my iPhone where I have an electronic record of this check.  I can show you my picture of this original check that I have since thrown away or destroyed.  I mean, WHY KEEP THE CHECK WHEN I HAVE A PICTURE OF IT ON MY iPHONE?  I keep all of the pictures of my checks on my iPhone...I can prove that.  I can show you my accounting records.  They still won't give me the money.  But the same bank can take your HOUSE using this procedure.

Note and mortgage not PROPERLY endorsed and assigned?  DON'T WORRY!  They will just PAY SOMEONE TO DO THAT!  (Notice we just did away with the word properly?  Who needs THAT?)

Sometimes the bank will "find" the note but it's not endorsed.  Supposed assignments have not been recorded.  But that's okay...they have a solution for that...they have companies whose job it is to handle all of the endorsements/ assignments on the mortgage and note to show that this is the entity that legally entitled to foreclose.  Don't believe me?  Look here!  Here is one Reuter's article on one such company.  Here is a summary of the Florida AGs investigation of this same company.  Mortgage never assigned, note never endorsed?  NO problem.  There's a Florida judge for that.  Mortgage assigned and recorded years after being put into a securitized trust?  No problem, there's a Florida judge for that too!  Mortgage assigned as an afterthought when they are already well into the foreclosure process?  Why don't be alarmed...don't you know there's a Florida judge for that?  Notice I'm not mentioning the note...ummm...oh yeah...the note...well we can't find it...Surprise, surprise, there IS a Florida judge for that!

Another parallel...that $1,000 check again...

This is like you giving me a check  for $1,000 that Bob gave Mary.  It's made out to Mary, but Mary gave it to Sue.  Sue gave it to Jack.  Jack gave it to John.  John gave it to you.  You gave it to me.  Okay, so can I take Bob's check to Mary to the bank and get $1,000 with it?  Of course not!!!!  But if I was a bank, and this were a note on a house,  I could just send it to a company who could magically sign for Mary, Sue, Jack, John and you making this check all of the sudden cashable. 

This is not fiction.  They are taking people's homes this way.

So why have banks and other lienholders been getting away with this in Jacksonville foreclosures?  I can't get money from someone else's bank account with a "lost check" affidavit...how can they take someone's HOUSE with a lost note affidavit?  Not sure, but they've been doing it.  Many Jacksonville foreclosures, and foreclosures around the state have been completed in this manner. 

Can someone please jump on this and run with it?  Please?  Can the real story be told?

Why aren't more people angry about this?  Why isn't the press outraged?  The sad fact is most people don't care until it happens to them or someone they love.  Well guess what?  You should care!  It's wrecking your community and your property value.  And if you run into unfortunate circumstances down the road, you may find it impossible to sell your own home because of everyone who this has happened to in the past.

For Jacksonville home buyers interested in Bartram Springs real estate, click here for other fabulous Bartram Springs short sale listings.  For everything that is available for sale in Bartram Springs, you can click here to search the listings that are in the Jacksonville MLS for Bartram Springs.

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Bartram Springs is a beautiful development in the Mandarin area of Jacksonville, Florida.  This development is only a few years old and has excellent amenities including a beautiful amenity center.

Because of the time Bartram Springs was built, this is a Jacksonville subdivision that is currently presenting excellent opportunities for buyers.  Bartram Springs Short Sales and Bartram Springs foreclosures are both available to buyers who are willing to jump in and act fast.  Our listings in Bartram Springs never last long and the reason why is evident once you visit a few homes in this community.  The homes are built with modern features and conveniences that buyers crave at the prices they can afford.

Our new listing is on Millhopper Road.  It is a roomy four bedroom, two bath home with just over 2,400 square feet (square footage taken from the Duval County tax record).  This beautiful home sits on a large, wooded preserve lot.  The home has a three car garage, PERFECT for your extra storage needs.

In addition to the four bedrooms, this home has an office that provides an option for extra space.  The master suite is spacious.  The home has walk-in closets, ceramic tile, decorator touches and more!  Tall ceilings make the home even more spacious.

The kitchen has plenty of tall cabinets and a breakfast nook is located just off of the kitchen and family room making it a great gathering area that is perfect for entertaining.

The home is attractively priced at $200,000 and definitely won't last long.  Call us, your Bartram Springs real estate specialists, today to see this home, and other fabulous homes in Bartram Springs that are for sale.

Jacksonville short sales are almost nothing like a normal resale.  Once the market turned and the need for short sales started emerging we went right away in search of detailed education on this complex issue.  We learned the nuts and bolts of the short sale deal from those who had been closing this type of intricate deal for years due to the location of their real estate market (a state where sales were usually flat or very, very low appreciation).

Over the next couple of years we saw different designations start to emerge.  Then we were very excited when other agents seemed to be getting training to work these deals correctly.

Whether you are a buyer or seller of Jacksonville real estate it is very important that you are working with someone who is knowledgeable in short sales if you plan to look at any short sales at all.  (And if you are not looking at short sales, you should seriously consider that option if you want to get a great deal in the Jacksonville real estate market.)

Case in point....this is a real life example (and we have many) of what can happen when the buyer's agent doesn't thoroughly understand the short sale process.

• Closing date agreed to in the contract. This is the desire of the buyer to close on this date.
• Language added in the sale contract specifies that if the seller's lienholder requires a different closing date, that the buyer will close on the deal by the date required by the seller's lienholder as a condition of the approval.
• Explanation given to the buyer's agent on this issue, explaining that the seller's lienholder will sometimes require an earlier closing and that it may even be as early as 30 days after our approval. An exact quote given when the contract was returned with the change regarding the potential moving of the closing date was "The seller is okay with the closing 45 days after approval but we also wanted to make note that if the lienholder requires closing within 30 days (which is very common) that the buyer will be willing to close in 30 days instead of the 45 mentioned in the short sale addendum. You really never know with these banks."
• Everything submitted to the seller's lienholder with the date specified in the contract including the contract, all correspondence and the preliminary HUD-1.  Negotiatior comes back and says that she is only giving us 45 days and we have to move the date to the new date as a condition of the approval.  Otherwise no approval will be issued for the short sale.
• Approval letter was issued. Lienholder required a closing earlier than the one specified in the contract as a condition of approval. Date was, coincidentally, 45 days out which is what is specified in the short sale addendum as the number of days from lienholder approval to closing (in a different place than where the specific closing date was listed. )
• Buyer's agent comes back and tells us that they will not close on that date, that they will not close until the date they agreed to in the contract and we'd better get it changed (Argument being they are just following the contract). Totally ignoring the fact that they agreed in the contract to move up the closing if a different deadline was imposed by the seller's lienholder even after this was pointed out.

This is an example of the real life problems that emerge when the agents for the buyer do not understand the short sale process.  A very important role for a buyer's agent is to explain, in detail, to the buyers before having the contract signed what the process entails.  This can not be done with the buyer's agent does not understand the process.  Buyer education is crucial.  Can an uneducated buyer successfully complete a short sale, sure...but the odds are far less. 

The lack of buyer education when purchasing a short sale is the primary reason that such a small number is quoted for successful short sales.  I often see the ratio of successful short sales overall quoted in the 20% to 30% range.  Our short sale  success rate is far higher than this.  Part of the equation for us has always been that we are willing and able to spend as much time as necessary to educate the buyer's agent on the other side about the process so the buyer can be properly educated from the beginnng.  This can avoid many problems (like the one summarized above).  However, if the buyer is not educated, despite sharing information with the buyer's agent...you just have to scratch your head and wonder why you are having problems like this when you clearly explained the issue at the point that it was just a short sale offer...not a contract.

I have a great deal of appreciation and respect for my fellow agents who have either taken the time (and money!) to educate themselves about the Jacksonville short sale process.  I also respect and appreciate those agents who will openly admit that they do not know and are willing to learn.  I also respect those that refuse to touch a short sell buyer or short sale seller because they do not understand short sales and do not want to.  It's the ones in the middle that cause nightmares and really can create a set of circumstances that can force a seller who has done everything right into a situation where they have lost their buyer and do not have time to get another buyer before a foreclosure sale.

If you are in a situation to either sell a Jacksonville short sale property or buy a Jacksonville short sale property, get an agent who knows and understands the process of short sales.  If it is us, great.  If it is someone else, that's great too.  Just make sure the education and knowledge is there.  Selling Jacksonville short sales is not the same transaction type that most agents are used to, and comfortable with, and different rules definitely do apply to this type of complex real estate transaction.  Working with a Jacksonville short sale specialist is very important.

Fabulous Bartram Springs Short Sale Opportunity! Great 4/2 with 3 car garage on a large, beautiful preserve lot! Spacious master suite. Walk-in closets, ceramic tile and more! Great price for a great home!

The sellers were extremely happy and relieved that they were able to sell their home when they owed far more than their home was worth.

If you have a home in Bartram Springs that you can no longer afford, there are options other than foreclosure!  When you short sale your Bartram Springs home, you are able to sell for less than what your home is worth and avoid the devastation of foreclosure.  In addition, your credit can recover faster with a short sale than with a foreclosure and you can buy a new home faster with today's underwriting guidelines.

Click here to see the approval letter on this Bartram Springs Short Sale issued by Bank of America:  Bartram Springs Short Sale approval letter - Bank of America Short Sale Approval Letter

• Borrower status: They were already far into the foreclosure process and a judgment of default had already been entered when we started helping them with their Bartram Springs short sale listing.
• Amount paid for the home in Bartram Springs: $255,000 in 2007.
• Contract price: $181,000 (price approved by Bank of America with no counteroffers being made.)
• Bank accepted payoff amount: approx 70% of payoff balance
• Seller contribution required: $$$ None $$$
• Promissory Note required by BOA: $$$ None $$$
• Amount of closing costs paid by seller: $$$ None $$$, everything paid by bank
• Mortgage Servicer: Bank of America
• Noteholder: Fannie Mae
• Days on Jacksonville real estate market before first offer: ONE
• Number of offers received on the Bartram Springs home: 3
• How this seller found us: We were contacted by a fellow Jacksonville real estate agent who was a family member. She did not have an expertise in Jacksonville short sales and knew that she should refer them to someone who did.

Our Jacksonville real estate team is helping this couple get out from under their home that they can no longer afford when their only remaining option was foreclosure.  They had experienced a severe income reduction after purchasing the home.  Although a foreclosure default judgment had already been issued against them prior to us listing the property, we were able to postpone the Duval County foreclosure sale and help them get a Jacksonville short sale approval for the fair market value of the price. 

The Bartram Springs seller will now be able to get out without bringing any money to the table.  This will help them get back on their feet and begin to recover financially.  In addition, this will save them from having a foreclosure on their credit report, something that would have followed them for years.  With current loan underwriting guidelines you can purchase another home faster with a short sale on your record.  That is because when you short sale this is recorded on your credit report as some variation of "settled for less than amount owed" instead of the incredibly damaging foreclosure notation.

When you got a mortgage did you believe the company who you signed a mortgage note to was the one you were going to owe the money to?  I think that most Floridians, and most Americans did.  Did you ever anticipate that because of the original noteholder selling off your note that was signed with your mortgage paperwork you would be unwittingly placed in a situation that would become impossible to get out of?  Did it ever occur to you that your loan might be split into a million little pieces and sold to a lot of people.  This is a real story of one seller's experience with their mortgage and a bank's refusal to work with the seller to mitigate their losses.

This is a story about a homeowner who did not buy more than they could afford.  However, six months after their purchase the seller experienced a dramatic decrease in income.  Caught up in circumstances they couldn't escape from they tried to downsize their expenses.  They worked as hard as they could to replace the income, but could not find a way to replace the income.  Because the economy had taken a nosedive as had Florida real estate...they could not even sell assets for what they owed on them.  They desperately wanted to reduce their expenses and stay current on everything, and they were able to for a little while...but their hole got deeper and deeper.  As they desperately tried to reduce their expenses...they found that they were less and less able to because of the devastating drop in real estate values caused by other foreclosures.

They appealed to Suntrust mortgage for a loan modification. 

After treading water for a couple of years and working 80 hours a week, they slipped underwater.  They could not do it anymore.  They were, figuratively speaking, at the end of the line.

Suntrust repeatedly told them that they could NOT help them until they went late on their mortgage.  Yes.  They were told repeatedly by Suntrust customer service to quit making their payments so they could get a modification.

Once they stopped paying, for months they were told that they made too little money for a modification. 

Once their income increased slightly a modification was quickly given on the second mortgage.  However, this modification did not reduce the amount that they owed every month...it simply switched them to a lower interest rate and took it from an adjustable interest rate to a fixed rate.  They signed the modification because they felt certain that the first would be modified as well.  Their income had picked up some, although not to the levels it had been when they purchased the home.  They started paying on the second mortgage again.  They had no reason to believe that Suntrust would not modify their second.

The foreclosure paperwork came.  Suntrust had filed a lis pendens and started the process of foreclosure on the first mortgage.  Pregnant with their fourth child, they became fearful that their small kids were going to end up homeless.  They started calling Suntrust more often.  Suntrust was just sitting on their file.  They had been told months prior that it had been assigned to the negotiator, but they were not allowed to speak with the negotiator, nor would the negotiator call them back despite repeated messages being sent.  Months had rolled by with no resolution on the first mortgage after being told by Suntrust to quit making the payments, and doing everything Suntrust asked for the modification, and the lawsuit came.

In the foreclosure lawsuit, Suntrust represented to the court in St Johns County that they owned the note.  Suntrust also represented to the court that they lost the note but were trying to get a copy of it.  Suntrust represented to the court that they had NOT transferred the note.

A Qualified Written Request (QWR) was sent to Suntrust for both mortgages to try to figure out what had transpired since the note was signed.  Suntrust, although required by law to respond,  failed to respond and provide this information.

Months passed with Suntrust continuing to claim that they owned the note.  The owners continued to call Suntrust to check on the status of their loan modification.  At some point Suntrust mentioned that it was taking so long because they were having to take it to Wells Fargo.  That was news to these owners...especially since Suntrust was continuing to represent to the court that they owned the note and had not transferred it.

Suntrust was apparently lying to the court about their ownership of the note that they could not find.

Eventually a court filing had what appeared to be a copy of the note.  Coincidentally it was only endorsed one time TO SUNTRUST (even though the note was issued to them in the beginning.) Not to a third party.  Furthermore the endorsement appeared to be an endorsement of a copy instead of the original note due to the difference in the quality of the print.

A year after making their last payment the sellers, in desperation to find a normal life again for their kids, filed for bankruptcy knowing that was the only option left to get out of the hole.  They were told by the bankruptcy attorney that they would only have 30-60 days to vacate the home. 

Tearfully they packed up their four kids and left the house for the last time.  The little ones did not understand why they were leaving their house that they loved.  The kids' rooms had been painted and decorated in their kids favorite colors.  They had been marking their kids height on the laundry room door with dates since they had moved their family into this home.  This was where they regularly came to see just how big the little ones had gotten.  These memories and mementos of the first years of their children had been left forever, unable to go with them.  As is common in this type of situation, toys and books had to stay behind that could not fit on the moving truck.  Images of lives torn apart remain.

This was supposed to be their "live in forever" home.  But life happened and their hopes and dreams were torn away.

After the bankruptcy, the owners were dismayed to discover that in their latest document filing, Suntrust stated that they were the servicer (not that they were the owner).  

The true identity of the owner of the note remains secret.  The whereabouts of the note are still unknown.  Suntrust continues to press forward with the foreclosure although they are not the owner of the note, as they repeatedly represented to the court, and no one knows where the note is.  The person with the note has the right to collect.  It is probable that the note was sold off in a pool of securities so there could be thousands of owners of pieces of the note.  But this information has been hidden from the owners, and the court system.

This is probably why a modification never happened that would have allowed this family to stay in their home.  It appears that Suntrust has not complied with the law.  Suntrust appears to have lied to the court.  A judge will probably still sign off on the foreclosure despite all of this.

When this home is eventually sold, either through a REO or a short sale, for 50% of the purchase price of the home...who wins?  Not the note holder.  The loan could have been modified and they could have still recouped their money.  Not the owner.  They would have loved to keep their family in their home but could not get a modification or a straight story on who even had the note.  The emotional devastation they have experienced will be with them for the rest of their lives.  Not the children who were uprooted from their lives and friends.  Not the neighbors.  They will experience further erosion to their home values because of this home which will likely be sold below fair market value. 

The buyer will win.  They will get a beautiful home at a rock-bottom price.  The servicer, Suntrust, may win.  They were, after all, able to:

• Write the loan and make money on the front end.
• Sell the loan and possibly make money.
• They probably had insurance policie(s) on the loan, so someone may be collecting premiums.  Not sure if that is Suntrust or the mysterious noteholder or both.
• If they are allowed to handle the property after it goes back to the bank they will make more money on that end as they manage the REO process.

The fact is that, in this volatile real estate market, foreclosure rarely makes good financial sense for the person who owns the note.  So why is this outcome so common?  Why isn't there more mitigation of their losses going on?

What if a year, or more, ago the note had been modified.  This seller resumed making payments on the home at a level they could afford with their reduced income that occurred after the purchase of the home.  A modification would still have net the noteholder FAR more money than they will eventually get and saved the expense of foreclosure.

The house still sits empty six months later and is still in the name of the owners although they do not legally owe any money for the home.  Upon questioning the bankruptcy attorney, they were told that bankruptcy code says that HOA dues incurred after the bankruptcy is filed still has to be paid by the owners.  All along they were told by the bankruptcy attorney that they didn't "care" what happened to the home.  Now they see many reasons that they should care.  They have decided to try to short sale the home.

Unfortunately, this is not an isolated story.  This is not the only bank that does this in the regular course of business these days.  Foreclosure is utter, complete devastation in the lives of many. 

Do not be so quick to blame.  These sellers, like most we see in this situation, could NOT sell their home for what was owed on it or they could have quickly gotten out of this situation and it would not have led to financial and emotional ruin.  In a normal real estate market this would not have ended up at this point.  The sellers would have sold their home and downsized to something more affordable for their new income. 

These sellers purchased a home they could afford during a better time of their lives and could not have anticipated the permanent reduction of income they experienced.  When your neighbor forecloses...it still has huge consequences on you.  Believe it!  As the value of homes decrease, it raises your chances of stepping into the exact same shoes of this seller.  All it takes is one unexpected event and your world can crash around you and pull you down, down until there is no escape.

Buying a Jacksonville home can be a tricky process these days.

With 42% of 2009 Jacksonville real estate closings of non-condo properties being distressed property sales (Jacksonville short sales and Jacksonville foreclosures), buying real estate today can be much harder than it sounds. 

• Do you know how to get a good deal in the Jacksonville Real estate market? 
• How do you define good deal in the Jacksonville Real Estate market? 
• Are you willing to wait for a Jacksonville short sale? 
• Are you willing to pay asking or higher for a Jacksonville foreclosure?
• Do you have what it takes to get a loan?  How little or much will you have to put down?
• Will today's deal be tomorrow's overpriced purchase?

A couple years ago it was much easier to purchase Jacksonville real estate.  The year 2007 saw only 6% of all sales falling into the Jacksonville short sale or Jacksonville foreclosure category.  The year 2008 ended with this number creeping up to 21% of all sales.  The year 2009 was when the balance changed in the Jacksonville real estate market.

We are in a unprecedented (and unpredictable) real estate market.  No one ever predicted that the amount of Jacksonville real estate closings that are short sales and foreclosures would at some point catch up with straight resale closings.  But they have.

If you listen to the statistics, you will often hear that 2009 sales surpassed 2008 sales.  THIS IS TRUE.  What you do not commonly hear is WHY this has happened. 

Prices in the Jacksonville real estate market have plummeted in the past couple of years.  In 2009 we saw far more distressed property sales.  This ushered in a new era of low prices in the real estate market. Jacksonville foreclosure sales are leading to the crumbling home values in the Jacksonville real estate market.  Because the prices have moved to new lows, we have seen an increase in sales over the past year.

Bad if you are a seller.  Good if you are a buyer.  Probably good if you are a move-up buyer.  Terrible if you are a move-down buyer.

If you are a buyer the first question you should decide is whether you are willing to wait on lienholder approval for a short sale.  If you are, depending on the bank you could wait 2, 4, 6 months or longer to find out if your deal is going to be blessed by the bank.

If your answer is no...you should pay particular attention to the resales you see.  Will your offer amount create a short sale situation?  Does the seller have the ability to bring cash to the table?  Are they willing?

Found the perfect foreclosure?  From what we have seen foreclosures are usually priced a good amount below fair market value.  Most of the time buyers should be prepared to pay full listing price (remember this amount is usually below fair market value) or more to get the property.

Before you put in your offer, you need to understand what the comparable sales say the home is worth.

You also need to be pre-qualified with a COMPETENT lender.  Good lenders are worth their weight in gold, do you know how to find a good one?

Now, more than ever, Jacksonville homebuyers need great real estate professionals to help them navigate the stormy waters.  This is even more true when purchasing a foreclosure or short sale property or one that could become a short sale. 

Just when first lienholders had gotten very good about agreeing to give them 1,000-5,000 at closing without a big hassle, the second lienholders changed the game. 

The fact that the first  lienholder is willing to give the second lienholder a token amount although they will not be entitled to anything at closing?

That isn't good enough for many second lienholders today.  They want more.

The biggest challenge we see in our Jacksonville short sales is the demands of a second lienholder.

Many times they are sneaky!  We have seen second lienholders change the demand amount daily.  Sometimes they will give you a number, then when you find a way to make it happen the number changes.  It is not unusual for them to refuse to put it in writing.  They are even known to suggest payments off HUD when the first disallows them getting a large cash payment.  The tricks seem to be endless when it comes to seconds these days.

We have seen sellers end up with a foreclosure or bankruptcy because of the second lienholder not being willing to take a small amount that the first lienholder agreed to give.  THIS SHOULD NEVER HAPPEN.

In my most recent case USAA is demanding 75% of the balance of the second note at closing.  This is when they are only underwater around $50,000 and the first lienholder is underwater $100,000.   We will challenge this number and try to arrive at a workable solution for the seller and both lienholders.  Without doubt, this 75% demand is only workable for one of the three parties.

• So what are second lienholders up to?
• Do they have insurance that will pay them more upon a foreclosure than if they accept a small short sale payoff? 
• Are they really just making decisions that appear to be this poor?
• Do the investors and shareholders of these banks and loans prefer to make 3,000 on a bad loan...or NOTHING at foreclosure? 
• Are they really MAKING MONEY at foreclosure although they are not receiving any of the proceeds? 

The real estate business is hard.  Short sales are hard.  But we chose to do them as Jacksonville short sale specialists because we see that as a place where we can really make the difference in the lives of people that desperately need help.