September 2009

2 Longview Way - $125,000 - SOLD

Short Sale Lender Approval Required. Magnificent intracoastal lot waiting for a home! At these prices there never has been a better time to buy! Gated intracoastal community with  a club house, 2 pools, fitness center, gameroom and bistro!

36 Kingfisher Lane - $110,000 SOLD

Short Sale Lender Approval Required. Wow one of the lowest priced lots on the street, ready for your dream home to be built. Relax lakeside enjoy your own private clubhouse and beach acess in this gated community. Call for more great Hammock Beach lot deals!

91 Brewster Lane - $25,000 - SOLD

Short Sale Lender Approval Required. Wow lowest price lot on the street. Call today before it is gone! Close to schools, shopping and library, why not build your dream home today! Contract to be on AS IS contract.

12 Post Oak Lane - $20,000 SOLD

Short Sale Lender Approval Required. Very quite street, hurry only a few lower priced lots in this area. If you are ready to build, call today for more information on builders and build your dream today! AS IS contract

27 Longview Way -New Construction- $239,000, SOLD

Brand new 3/3 pool home with so many upgrades you will need to see to believe.
Its in a gated intracoastal community with a clubhouse, gym, bistro, two game rooms and 2 pools. Hurry priced to sell at $249,000!  This home is the best deal in the community. SHORT SALE subject to banks approval.

View Floor Plan

What is a Short Sale? Why would I buy one?

Let’s face it, if you are in the market to buy a home you want the best deal possible!  I would want the best deal too!  One of the questions I get a lot is what is a Short Sale?  I hope this helps with explain the process.  

First of all Short Sales are properties that are being sold for less then the seller owes. 

It works like this:

 John Doe, 123 Main Street Palm Coast, FL 32135

Mortgage Co:  Coast Mortgage Co.

John Owes: $143,700 on his 1^st mortgage

John Owes: $56,300 on his 2^nd mortgage

John’s agent lists his home for $130,000 because the homes in the area (comparable properties) are selling at or around that price. 

Sally Johnson sees the home with her agent and loves it and wants to put an offer in.  She would like to buy the home for $120,000. 

John’s agent presents the offer telling John the possibilities of what the bank can say.  There is a short sale addendum saying this offer will not be accepted by all parties until the bank says they will accept the “short” on the outstanding mortgage obligations of John. 

Please keep in mind this process takes some time.  You may deal with agents that are trying to negotiate with the bank the first time which may take a great deal longer.  Typical time frame is 4-6 weeks from start to finish once an offer is sent to the bank for their approval. 

The bank can do one of three things Accept/Decline/Counter.  So if you truly love the home come with your strongest offer first.  There are others out there that want a bargain too and if their offer comes in even $100 more, the bank is more than likely going to take theirs.  I have had clients that want to come in low and have the bank counter; there is a very good chance that someone else will put a better offer in. 

An agent representing you should do their work by showing you what properties in the area are selling for.  Don’t just throw a dart, or you may be throwing awhile and lose some really great properties.  We want you to get the best deal possible, without a doubt!  Do yourself a favor if you are the person that wants to start very low and work your way up, don’t get attached to the property and don’t get upset with your agent! 

If you had a vehicle or diamond ring that was on an auction site you would see the bidding and bid at the last minute and win the item. 

Unfortunately, home buying does not work that way.  We do not have any idea what the other person is bidding or offering.  Agents will submit what you would like to pay for the house.  Please take into account that most agents have experience and will do the research to tell you what range you need to put your offer in at to have a greater chance of getting that property! 

Back to the offer at the bank, during those 4 to 6 weeks that offer will travel more than most of us.  It will go to different phases of the negotiation process with the bank.  We all think well the bank will hurry this along because they will not want another foreclosure.  Think again!  The banks are getting on average 3,000 new files each day.  Each negotiator has no less than 200 open files they are working each day you contact them.  Believe me when I say your agent wants the file to close as soon as possible too. I just don’t want you to get frustrated with your agent, its more the banks process that we wish we could speed up! 

Moving forward…for our example the bank says ok we will accept the offer, however the home is being sold “AS-IS”!  This does not mean that the bank dislikes you as the buyer; you can see they are taking a sizeable hit on settling the loan that John has.  They are not going to fix up the property to your liking. 

So you ask yourself “Then why would I want to buy a short sale instead of buying a foreclosure?”  For many reasons but most of all, the home is not vacant!  The power has been on and the water has been running and the sellers want you to have the home so this debt can be settled and elevate some/most damage to their credit report.  Oh I forgot, Foreclosures are sold “AS-IS” too. 

In Florida you have the lovely issue of bugs and mold more so than in some other states.  When you have a homeowner in the house these two items are less likely to be a problem. 

The homeowner can tell you what is wrong with the house or how to run the sprinkler system!  You don’t get that luxury when you by a foreclosure. 

I hope this has helped explain the process and a few of the pros and cons. 

Our office has negotiated many short sales as well has purchased them for our clients.  Please call our office if you have any questions or if you would like to find out your options. 

Let Take Action Properties help you get the best deal in Florida! 

Written by Christina Portz

60 Riverbend Drive - $99,000

Wow what value This lot is listed for 90K and can build up to a 5000 sq foot home on this cul de sac / gated golf community of Grand Haven with great amenities.  Hurry this one won’t last long. Another lot down the road is listed at 159K with less square footage available to build.