| Q: |
Short Sales and how do they work? |
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Short Sale actually means that a bank is holding a mortgage on the property and has agreed to let the owner sell the property for less than what is owed on the property and the bank takes the proceeds which will be "short" of what the bank is actually owed. Thus the term "short sale"
How does this work? First, the owner who obviously owes more money than the property is worth applies to the lender for short sale approval. The owner must prove he is unable to continue paying the mortgage. If the bank gives him the go ahead he then lists it for sale with a realtor.
When a buyer makes an offer on the property the realtor takes the offer to the owner who in turn takes the offer to the bank. The owner then negotiates with the bank how much he will owe the bank after the sale or if the bank will let him out of the obligation all together. This is what takes so long. Next thing the bank will do is order an appraisal which will take weeks. Then somebody at the bank will analyze the seller's capacity for the loss, the value of the property, the offer on the property and then determine how much the bank is willing to lose.
After this process, the bank then notifies the realtor exactly what they will approve the sale for. Example: Asking price is 100,000. Buyer offers 80,000. The appraisal comes back at 90,000 and the bank is owed 120,000 the bank will be 30,000 short of being paid in full. Bank might tell the buyer okay we will not take your offer of 80 but we will take the appraisal price of 90. Bank gives buyer a week or so to say okay or no. Bank will negotiate with the seller how much of the 30,000 loss the bank will write off and how much the seller will be responsible for after the sale. This will not affect the sale at all.
Note of caution: Short sales take a long time to come to fruition. The buyer must be patient and willing to wait sometimes for months unless the short sale is pre approved which sometimes is the case. Ask your realtor about that and you will have a better time table of when it might get approved.
Other snags: We have seen banks come back and tell the owner of the property that the bank is willing to lose a substantial amount of money but the seller will have to sign a note to the bank for say $50,000 and the seller says no way he doesn't have the money. If that happens the deal blows apart, bank begins fore closure proceedings and who knows how long that will take. Could take up to two years.
Crescent Beach Realty has closed many short sales since 2008. We are not experts at it but we do have substantial experience. We say we are not experts because there are too many variables. Every deal is different and we have to be able to adjust, adapt and be ready for any curve the bank throws at you. There will be curve balls through out the process and usually at the last minute, happens every time. If you have the patience and think you are getting a really good deal then short sale process may be for you.
Not all short sales are steals: Just because it is a short sale does not mean it is a great value. We have seen short sales closed that the buyer did not get a real good deal. In fact we have seen private owner sales with no bank involved sell for less than what some banks have been willing to take for the same value property. Especially with condos. We never know, it just depends on who is handling the deal and what mood the bank is in this week. Rely upon your realtor and your own good sense as to whether it is a good deal or not. Short sale labels do not guaranty a good deal. You have to stay involved and informed with the value of the market at the current time. We have seen short sale deals set according to appraisal that ended up being great steals, and we have seen it go the other way.
For a further discussion please contact Ronnie Tumlin or Dusty Dancy at our office for an informed conversation regarding short sales. It is not simple, it is not easy and it is not always a done deal even when you and your broker thinks it is a done deal. We have seen it all. |
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| Q: |
What is the climate in St Augustine? |
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The climate here is subtropical. The average annual temperature is 80 degrees. Almost every single day is sunny and beautiful. Ocean proximity softens the air, when it's hot or cool. Pines, Palms, and Oaks make the air healthy and fresh. There is no direct hit of hurricanes due to the Gulf Stream being further away from the coast and that is why they tend to avoid our city along with the natural inward curvature of the north Florida coastline. Storms tend to stay at sea by the time they reach this far north.
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| Q: |
Where is St. Augustine located in Florida? |
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St Augustine, the oldest city of our nation is located in Northeast Florida, 45 miles North of Daytona Beach and 35 miles South of Jacksonville. Anastasia Island is where St Augustine Beach and Crescent Beach are located....three bridges connect downtown to the beaches. Highway A1A traverses the island north to south and continues all the way to Miami 325 miles south. Tourists visit St Augustine every year to see the many sights in the historic areas and to enjoy the white sand beaches. The travel channel rated Crescent Beach one of the top ten beaches in the world a few years ago. |
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| Q: |
What is the population of Anastasia Island? |
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The latest information we have estimates just over 20,000 full time residents on the island. During the "season" which is summer we have about an additional 10,000 seasonal people in the area. |
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| Q: |
Is St Augustine prone to hurricanes? |
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No, we have had only one hit this part of the state in over 150 years and it was a small one in 1962 "Dora"
Ask us for a hurricane tracking chart, we have one from the National Weather Service that shows all hurricanes and where they went over the past 60 years. We can send you a copy, you may find it very surprising that St Augustine has not taken a direct hit by a large hurricane. Dora in 62 was nothing but a big thunderstorm that lasted a day and left. Minor damage to a few beach houses, washed out the pier and that was about it. |
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| Q: |
Is financing available on condos at the beach for second homes? |
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Yes, but beware. I have entered this June 1, 2011 and is subject to change. Right now today there are several major lenders making condo loans to qualified buyers. The guidelines today are you must have at least 20% down then you have to be golden rock solid credit and the condo complex has to be investigated by the lender for financial strength of the homeowner's association and management.
If you put down 30% it is much easier for you to get the loan.
Beware your small local bank you have always done business with. The federal regulators have changed the game dramatically from years ago when your local bank could take care of you just fine. No longer. The small local banks will tell you no problem they can do a second home loan but then when you get into it, they tell you they are unable to do so. This has nothing to do with you, it is strictly the fact that the feds are making it very difficult for small banks to make loans on second homes. Only the gigantic international banks have the assets to qualify.
This is because most banks sell their loans to the feds. If they keep the loan in house or what they call "portfolio" the loan then they have to post reserves with the feds and that gets expensive after awhile so most want to sell the loans and this is why your small bank can't do the deal. Makes no sense at all but that is today's world since 2010.
This is all opinion based on recent experience-Ronnie Tumlin |
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| Q: |
What makes St Augustine Beach and Crescent Beach so special? |
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We are one of the few snow white hard packed sand beaches on the Atlantic coastline. You can ride a bike, drive a car, walk, run, walk your dog you name it. No rocks like just south of here, there is no steep drop off as you wade into the breakers, few rip currents ever occur. At the extreme south end of Anastasia Island right at Matanzas Inlet the shelling is excellent after a high tide every morning. Surf fishing is excellent year round. This beach was rated one of the top ten best kept secrets in the world by the Travel Channel several years ago. Our beach does not wash away with storms like the nearby beaches to the north and south. We are a jewel like none other. You truly have to experience it to understand. |
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| Q: |
What are the most common reasons people put their property up for sale in your area? |
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Many times condo owners get older and don't want to travel to their vacation homes as much as they used to. One spouse dies and the other decides to sell. Relocation is very rare. Usually, a death in the family or simply getting on in years is the most prevalent reason for people putting their properties up for sale on Anastasia Island. |
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| Q: |
Can I see and play Marsh Creek Country Club? |
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Yes, call Ronnie Tumlin at our office 904-471-9696 and we will arrange a tee time for you. No obligations you don't even have to sit through a sales presentation. All we ask is that if you decide you want to shop for a home or condo in our area you shop with us, that's all. |
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