Lake Martin Voice Realty
Lake Martin Foreclosure And Condo Sales In 2011
Here I continue my series of posts of the waterfront property sales results of 2011 on Lake Martin, Alabama. Earlier I have looked at residential sales in general, and yesterday I covered waterfront lot sales.
Today I would like to cover the effect of foreclosures and condominiums had on Lake Martin property sales in 2011.
Lake Martin Foreclosure Sales In 2011
The economists that advise shows like The View are a constant source to reassure us that the real estate market is terrible everywhere. They would have us believe that everyone in the nation is either in foreclosure, about to be foreclosed, or at the very least in a short sale. I find that hard to believe, though. I am sure that Whoopi and the gang consult with experts before they make broad, potentially very misleading comments about the economy.
However, here at Lake Martin we are well past the bottom of our market. I have blogged about this in the past. We have not seen a heavy percentage of our sales being foreclosures as in other markets. But I thought I would put a number to it, and see if my generalizations are correct.
Low Percentage: 7% Were Foreclosures
I combed through all of the residential waterfront sale for the last three years. I had to look at the “Owner” field in our MLS and just sort of guess whether they were foreclosures or not. This makes you inherently dependent on the listing agent to have entered correct info, but the same can be said for any aspect of the MLS. I think it’s materially correct.
I found that, sure enough, the Lake Martin waterfront real estate market had a relatively low percentage of sales that were foreclosures, REOs, or bank owned, however you want to phrase it. Fifteen were sold in 2011, equaling 7% of the market. Fourteen, or once again 7%, sold in 2010. Another fourteen or 7% sold in 2009. Comparatively, that is a very low percent of sales.
Just to put it into perspective, according to this article in the AJC on November 29, 2011, about 30% of home sales in Atlanta are foreclosures. That is more than four times the rate on Lake Martin. Ouch.
Lake Martin Condo Sales In 2011
It’s pretty natural to talk about Lake Martin condo sales for 2011 after the foreclosure section. This is because most of the condo sales in the last three years on Lake Martin were sort of foreclosures.
By sort of foreclosures, I am referring to two condo complexes: Crowne Pointe and Stoneview Summit. Both of these developments were taken back by banks, and then finished out by the banks and then sold. So they were not foreclosures in the traditional sense, but neither were they straight up civilian seller situations.
total 2011: 37 – 2010: 33, 2009: 59
Stoneview Summit sold 17 condos in 2010 and 17 in 2011. This was good for 46% of all waterfront condo sales in 2011 and 52%.in 2010. Crowne Pointe sold 43 condos in 2009, which accounted for 73% of all sales.
This high percentage of sort of foreclosures produced the highest pricing pressure for any other market segment. I think that Lake Martin condo prices dropped lower than homes and lots.
Looking Ahead
I don’t think the condo market’s prices will get any better for 2012. At this writing, there are 79 waterfront condos for sale right now on Lake Martin, and 20 of them are in Stoneview Summit.
The good news is that there are no condo developments being built in the forseeable future, so perhaps that will give them a couple o more years to sell off current inventory.
What About Your Property?
I have been blabbing a lot about the market in general. Do you wonder how all this applies to your home or lot? Or maybe you are searching for your own spot on Lake Martin and would like me to tailor these market reports to help you.
If so, please email me with this contact form or at [email protected] or call me at 334 221 5862. I would be honored to try and help.
Related Posts:
Lake Martin Lot Sales 2011
Lake Martin Real Estate Sales 2011 – Year In Review
Lake Martin Real Estate Sales 2010 – Lot Sales
Lake Martin Real Estate Sales 2010
Lake Martin Real Estate Sales 2009 – Year In Review
Lake Martin Real Estate Sales 2008 – Year In Review
Lake Martin Real Estate Sales 2007 – Year In Review
All Lake Martin Market Reports
(*)Disclaimers: All of the above info was taken from the Lake Martin Area Association of Realtors Multiple Listing Service. Accuracy is not guaranteed but deemed reliable. The above does not include sales by FSBOs or developers that sell privately and not through the MLS. But, I do think that the above represents a very large majority of all waterfront sales on Lake Martin, Alabama.
Aliant Bank Auctioning Water’s Edge Development On Lake Martin
Aliant Bank is auctioning the Water’s Edge neighborhood.
Water’s Edge, formerly known as Eagle Point, was a proposed waterfront development on the Big Kowaliga section of Lake Martin. It was (by my unscientific estimation) one of the largest, if not the largest, waterfront loan in Aliant’s history. It is located at the end of Coosa County Road 20, directly across the water from the old Veazey’s Marina near Willow Point.
Aliant loaned the money to real estate developers that tried to market it as Eagle Point, but the bank ended up taking that land back, and now has hired auctioneer JP King to auction off the whole shebang.
I have read JP King’s promotional materials and also called and emailed them for more information. At the time of this writing, they did not have a location map, neighborhood covenants and restrictions, but did have about 15 photos. Here are the major points:
Date: Saturday, March 10, 2012
Time: 10:00 AM Central Time
Place: “On Site” – I don’t know which part of the property that means, but if you take Coosa County Road 20 all the way east, surely they will have signage up.
Disclosure Of My Extreme Bias
I have a lot of personal bias when it comes to both Aliant Bank and Water’s Edge, nee Eagle Point.
Firstly, growing up in Alex City, I either know or am related to just about everyone that works there. Fine folks and experts at Lake Martin lending. In fact, they are about the only source that I know of right now that will loan on Alabama Power leased lot homes.
Secondly, I have a lot of personal history with Water’s Edge / Eagle Point. I helped Aliant do much of the homework (market studies, comparable sales, realtor stuff, etc.) when they first foreclosed. I also listed two of the spec homes that they had for sale. I had those homes listed during the construction phase and for several months after they were completed.
However - and this is a big however - I never listed any of the lots nor the Island parcel. Not the lots close to the spec houses (which the auctioneer is calling “The Cottages at Eagle Point”), nor the “island” portion (which the auctioneer is calling “Narrows Point at Water’s Edge”).
The only time (to my knowledge) that Aliant has put any of these lots on the market was when they listed lots 3 and 4 with Rhonda Gaskins at RealtySouth, the brokerage that listed the homes on lot 1 and lot 2 after my listing period expired. As was apparent in our Lake Martin MLS, they listed the lots for $195k and dropped the price to $159k before that listing expired late this fall.
Why The Water’s Edge Auction Will Be Interesting
I think Aliant’s auction of the foreclosed Eagle Point / Water’s Edge waterfront development will be interesting for three major reasons:
1.) Waterfront auctions on Lake Martin homes, lots, and other property have not gone well in the past. Foreclosed or not, I can only think of one auction where a sale has been consummated in the last five or so years. I sell Lake Martin real estate for a living, and that’s the sole example of success, but I can also recall five or six aborted attempts. One in particular, the auctioneer allegedly marched off in a huff after no one submitted an opening bid.
2.) The auction is not absolute. This may change, but as of this writing, according to auctioneer JP King, none of the parcels is being sold absolute. Selling absolute means, essentially, if you bid $1, and you’re the high bidder, you get to buy it at that, regardless. If it’s not absolute it means that the bank has a minimum price, and if the bids don’t meet their minimum, they are not compelled to sell to you. Granted, this may change. When I talked to the auction company, they admitted that their information was incomplete right now. (Sidebar – the auction is in about 10 weeks. When will it be complete? Who will bid without complete information?)
3.) Only two of the lots have ever been on the market. As mentioned above, they last asked $159k each for lots 3 and 4 on the “Cottages” parcel. They have never – repeat never – put the island portion on the market (that is the parcel they call The Narrows).
Would you like to bid on waterfront lots or homes at Water’s Edge? Please contact me using this form or call me at 334 221 5862.
More Information about Water’s Edge At Lake Martin
I have written extensively about Water’s Edge in the past and also taken tons of video. PLEASE KEEP IN MIND that these are old posts from when I had the homes listed, so the pricing etc. NO LONGER APPLIES:
Does Ceiling Color Keep Away Bugs?
Water’s Edge Featured In Lake Magazine
Lake Martin Seawall Construction
New Foreclosure Field In Lake Martin MLS
Those interested in waterfront foreclosure homes or lots for sale on Lake Martin, Alabama, should take note of an interesting development.
The Lake Martin Area Association of Realtors’ MLS has made a new rule that any waterfront foreclosure home, lot, or condo should be designated as a foreclosure by selecting “Yes” in a new field of input in the MLS called “Foreclosure.”
Click here –> to request the Lake Martin Foreclosure List
FAQ related to this new development in Lake Martin waterfront foreclosures:
Photo By: randrflyfishing.com
1. What is a “field” in the Lake Martin MLS? A field is just an area of input. List price is a field. Number of bedrooms is a field. Number of baths is a field, etc. Now, Foreclosure is its own field, with the only possible answers being Yes / No.
2. So what? Why should I care that Foreclosure has its own field? Anything that has its own field can be searched easily and accurately. An easy search that yields good results is a good thing. Just ask Google. This will allow you, if you like, to view only waterfront foreclosures by searching in the MLS and looking for 3 criteria: 1. Status = Active, 2. Waterfront = Yes, 3. Foreclosure = Yes. This is how I search now instead of combing through each new listing and looking at the seller’s name.
3. How does this affect Lake Martin Voice’s foreclosure list? I have switched the search results now to show any waterfront homes or lots for sale that have Yes in the Foreclosure field. So – if you have requested my foreclosure list in the past – THERE IS NO NEED TO RE REQUEST IT. Just go to that same web address I gave you before. It will still work.
4. Are the same homes and lots that were on the old foreclosure list, now showing up on the new list? Mostly. There are a few lots on the old foreclosure list that the listing agents have not properly changed that field. But it’s mostly accurate. Obviously, any MLS is only as good as the agents that use it, so it is still possible for a listing agent to enter a new home for sale and accidentally click “No” in the Foreclosure field. But it’s not very probable.
5. How often is your Lake Martin waterfront foreclosure list updated? Whenever any realtor enters a new listing, or changes an old one, my new list is updated almost instantly. That is the beauty of a field driven search list versus the old list where it depended on me going in there and designating each waterfront foreclosure by hand. Again, if you have requested this list before, THERE IS NO NEED TO RE REQUEST IT. Just go to that same web address I gave you before. It will still work.
6. If it is so easy to search for waterfront foreclosures on Lake Martin now, why do I need you or your stinking list? Well, since you put it like that – you don’t. You can search for yourself as described in #2 above. Of course, I don’t need a trout fishing guide. I know how to get to the river. I know how to cast. Sorry guides don’t help me at all. But great guides – well, I hire them because they teach me. They tell me which fly is working today, and the 90% of the water I can skip to get to the 10% that’s the best. When it comes to my own deal, I haven’t set my business up to tell that tired old real estate tale that we agents guard this secret treasure of info. That is so pre 2002. Hogwash. Information is out there and free. You don’t need me for mere raw data. You can search here in the Lake Martin MLS and call me with your whittled down list and I can advise you then. Or you can contact me through this form or call me at 334-221-5862 and I can save you the trouble. Either way, I aim to more than earn my keep.
7. How can I request to see Lake Martin waterfront foreclosure list?
Fill out THIS FORECLOSURE REQUEST FORM. Feel free to comment on this post, but please note that COMMENTING ON THIS POST DOESN’T GET YOU THE LIST. You must fill out THIS FORM. Thanks. Again, if you have requested this list before, THERE IS NO NEED TO RE REQUEST IT. Just go to that same web address I gave you before. It will still work.
8. Where is the entire list? I requested and received your list, but there are not many on there. Joe Biden, Matt Lauer, AND Ryan Seacrest all told me that every home for sale in America is a foreclosure and costs 10 cents. What gives? Despite the collective economic wisdom of those guys, there are some areas that are NOT still being rocked by foreclosures. Lake Martin is one of them. We are averaging about 5% of waterfront homes for sale being foreclosures, not 30% like in other markets.
Please stay tuned to this blog for later posts where I will try to make some how to videos to help you search. In the meantime, please call me at 334-221-5862 if I may help.
Lake Martin Best Buy Lists: Pick Your Price and Find Home Value
A lot of Lake Martin buyers request my waterfront Foreclosure List. You may be one of them. If you’ve seen it recently, you know that the Foreclosure list is steadily dwindling. Does this mean that there are only a few good deals left on Lake Martin? Not at all.
Don and Kristie are a great example of clients who originally called me about foreclosures, but quickly realized that there are plenty of good buys out there in the regular market.
It can be overwhelming to sort through the hundreds of waterfront properties in the Lake Martin MLS, but I’ve found that a lot of buyers want to do their own research before they call a Realtor. My goal with this website is to give you the best tools for that research.
Enter my Best Buy Lists.
Very few buyers come with a carte blanche checkbook, so I’ve created 2 3 lists based on price range. (I’m working on just created a $600k to $1m list, so if that price range speaks to you, be on the lookout, or just go ahead and call me): 
1. Best Buys $350K and Under
2. Best Buys $351-599K
3. Best Buys $600k – $1 million.
Click here to request a Lake Martin Best Buy List
Each list is a compilation of waterfront properties that are worth considering based on a combination of price, features, and my professional opinion. A lot of these homes are not our listings because I pull from the entire Lake Martin Area MLS. You’ll find the Best Buy Lists button at the top right corner of this page.
So this is real estate 2011. Buyers used to have to call a Realtor before they could get the goods. We can’t hoard information anymore – it’s all over the Internet. I’ve decided that if I organize it for you and make it available with no strings attached, you might appreciate it enough to contact me when you’re feeling serious.
Plus, the real value in a good Realtor is his/her ability to point out the best deals and crucial trends that will affect your purchase. Would you go to a stockbroker merely because he knows what stocks are selling for? No. You want a stock broker that can advise you. Same deal here. The information age is over. Information is free and ubiquitous. You need advice and that’s what I like to provide.
In the meantime, please feel free to contact me if I can help you with Lake Martin real estate in any way.
Lake Martin Homes for Fifty Cents on the Dollar?
A Lake Martin Foreclosure Update
If a cliche gets repeated enough, it becomes empty and loses all meaning. Every male whitetail that we see on the side of the road – especially during hunting season – is an 8 point buck. I’ve never heard different – “Dude, I was driving home last night and I saw this huge 8 point.” Never a 6. Or “I’m not sure.”
Almost every police briefing I’ve ever seen opens with “At this time” and repeats it several times. “At this time we are searching,” or “At this time we are asking,” or “At this time we have in custody.” Of course it is at this time.
“(So and so is) here for the right reasons” – you hear this a lot during recruiting season. Coaches are always so happy because every single player that committed did so “for the right reasons.” All their coaching staff is there “for the right reasons.” Consider the opposite – how helpful would it be to announce that you plan to NOT recruit kids who want to be there for the WRONG reasons. You also hear it a lot on these silly reality shows like the Bachelor. I am sure that you, dear intellectual reader, do not stoop to watch such drivel, so I will let you know that I have heard that every single bachelor since Season One is in earnest search for ladies who are “here for the right reasons.”
That’s a long intro to get to Lake Martin foreclosures.
I bring in these cliches at this time for the right reasons.
Twice this week I have heard a Lake Martin foreclosure cliche. Buyers often ask:
Aren’t Lake Martin foreclosures selling for fifty cents on the dollar?”
(I could riff on the minutiae of this forever. It’s never expressed as fifty percent of anything. Or half of anything. It’s always fifty cents on the dollar. And never 53 cents. Never 47 cents.)
So can you buy a Lake Martin waterfront home for half price? My answer is: “Yes and no.” It depends on what you are calculating. Fifty percent of current listing price? Fifty percent of the original listing price? Or fifty percent of what the builder hoped it would sell for in 2007?”
I hear, “Well, I know for a fact my cousin bought a home in Tallahassee last year, and he told me it sold for fifty cents on the dollar.”
Pause the conversation – let me say here that I cannot blame a buyer one bit for wanting an extremely good deal. If my cousin told me this, or if I saw it on the Today show, I would get my hopes up too.
My job as a responsible Lake Martin real estate agent is to help buyers gather accurate information. I don’t ask these questions to cross examine or doubt them, but to examine the information from which they are making assumptions. Once I start asking questions, if they are working with a real world example of their cousin (instead of just the Today show), the more questions I ask, the more realistic it gets. “Well, he bought his foreclosure in Mediumburg for 150,000 and I know that’s different than Lake Martin. Well, yes, the listing price from the bank was only $200,000. But three years before that, the builder was asking $300,000.”
OK – I see. In a certain manner, I can see the fifty cents on the dollar with that example. Furthermore, I can point to many examples like that with Lake Martin foreclosures on waterfront homes. But, if a waterfront home has already been foreclosed upon, it is pretty rare to sell for fifty percent of the current listing price.
I suppose I could, if I wanted, advertise similar deals going on in the Lake Martin real estate: Lake homes for 50% off! I would have to put in real tiny print “As compared to the wishful thinking listing price of 2007.”
(I can think of several bank stocks that I used to own that I wish still would sell for what they did in 2007.)
That’s why, whether I am helping buyers or sellers, I try to help them concentrate on today’s prices. Today’s situation. Forget yesterday. It doesn’t matter if you are trying to buy a foreclosure, or competing to sell against one. It’s all the same.
Buyers want a good deal. Same as always. Sellers want the best deal for their home. Same as always.
The Lake Martin real estate market is still seeing some new foreclosures on waterfront homes, condos, and lots. There hasn’t been a flood, or a second wave, or anything like that. Taken as a percent of market, we still don’t have as many foreclosures as compared to the rest of the nation.
The foreclosures, short sales, and conventional sellers that we do have on Lake Martin are enough to effect the market, though. Supply and demand.
Would You Like Our List Of Lake Martin Foreclosures?
Click here and fill out the form.
Do you own a waterfront home, lot, or condo on Lake Martin, and are wondering what it might be worth? Contact us here or at 334 221 5862 and we can work you up a free, no hassle, no obligation Comparable Market Analysis.
Lake Martin Foreclosures Update: April 2011
As a Realtor on Lake Martin, I get asked about foreclosures a lot. Lake Martin’s waterfront real estate market seems to be a little different from other second home markets, and that is currently creating a unique spot in the market cycle for buyers and sellers. Watch this video, and I’ll try to explain:
Basically, I think the Lake Martin waterfront real estate market bottomed in 2008. Numbers of waterfront homes sold were up about 40% in 2009, and steady with that in 2010. 2011 seems to be trending above 2010 for numbers of homes sold. Prices stopped dropping in 2010. You can say what you want about the economy, the President, the Congress, or the price of tea in China. If this isn’t a clear sign of recovery for the Lake Martin market, I don’t know what is. If the dreaded double-dip happens, you will hear about it here first, but it’s got to start dipping to be a double-dip.
I also get asked a lot about specific homes that are on other websites and are listed as foreclosures. People ask me, “Hey John, why isn’t 123 Main Street on your list? I see it on McHuge McForeclosuresite.com.” The answer is, 99% of the time, by the time they get to McHuge, they have already been foreclosed, listed with an agent, and sold. McHuge is way, way slow.
Why?
Lake Martin is made up of 3 rural counties in east central Alabama. There is virtually zero online newspaper coverage of legal notices or foreclosures. The huge aggregator websites pick up information that is old, inaccurate, and many times, not waterfront.
So, I make my own list of foreclosures, and am glad to share it. If you’d like to request a current list of waterfront foreclosure properties, just fill out the form (I do not spam, nor do I give, sell, buy, or receive email accounts from anyone or any other company. Read more about why you need to fill out a form).
Here’s a tip: If you’ve requested it before, THERE’S NO NEED TO RE-REQUEST to get the latest list. Just bookmark or “favorite” the page on your internet browser, and you’ll get the most recently updated lists.
Send your request, check out the current list, and call me if you see anything interesting! (334 221 5862)
Water’s Edge Homes Featured In Lake Magazine
The December issue of Lake Magazine spotlights the homes for sale at Water’s Edge – click on the previous link and surf to it or check out page 25 in the online reader version here.
Photo By Kenneth Boone, Lake Magazine
Lake Magazine Editor Katie Cole wrote the article and Kenneth Boone supplied the pictures, as expected.
It is a really nice article, mainly covering the genesis of Water’s Edge at Lake Martin. Water’s Edge was called Eagle Point by the original developer, who put in the road, the lots, the private septic system, and some landscaping. But the only home construction was one spec home and two slabs. Aliant Bank foreclosed on the entire development, except for the spec home. They were left with over 2,000 feet of undeveloped shoreline, a Lake Martin rarity.
They also had two slabs of concrete – foundations for planned homes. I was really honored to be brought in on the early planning stages with Aliant Bank, along with architect Bryan Jones and builder Wade Wilmeth. After looking at the project as a whole, it was evident that today’s market would be unlikely to produce a developer, investor or speculator to buy the whole shebang at once. As rare as it is to have this much undeveloped shoreline on Lake Martin, and in a popular, big water view area to boot, we just didn’t see it happening very soon. The foundation slabs had sat dormant for almost two years.
The decision was made to go ahead and finish and sell the two homes, to get some momentum going for the lot sales. The problem was that the slabs were designed for larger homes that frankly would not sell in today’s market. Enter Bryan Jones. Bryan had the tough job of coming up with a smaller design that would sell at a more modest price point – only 1/2 of the original developer’s plans. Bryan hit a home run – the homes at Water’s Edge take advantage of the huge view, overcome the hill slope with layout, and incorporate cool “lakey” design features that let you know it was thought of as a lake home.
That is how Water’s Edge comes to offer a seeming paradox – two homes that are technically foreclosures, since a bank owns them. But they are brand spanking new - designed and built from the slab up. Many times when I show foreclosed waterfront Lake Martin homes, the buyers are a but turned off by the condition of them. Many of them need more than TLC, they need TNT. Not so at Water’s Edge. Nice and shiney. Scrubby dubby. Wade went above and beyond the call of duty on the building side, using his Lake Martin home construction experience to add in quality and finish.
Price Drop!
In celebration of the completion of the homes, we have dropped the price of Lot 1 to $549,000 and Lot 2 to $529,000. Both homes have 3 bedrooms and 3.5 baths. The only difference is that Lot 1 has about 700 +/- more square feet in an 75% finished top floor that could be a huge bedroom.
Would you like more info? See Lot 1 Water’s Edge Lake Martin here and Lot 2 Water’s Edge Lake Martin here, or you can call me at 334 221 5862.
Looking For Undeveloped Land?
If you are interested in the more than 2,000 linear feet of undeveloped, prime Lake Martin waterfront, please also give me a call at 334 221 5862. Most of the rest of Lake Martin is owned by Russell Lands or Alabama Power. It is extremely rare to see this much contiguous land for sale, much less on such a popular area, with huge, huge views. We have already drawn up several possible development ideas, so we can help you run feasibility studies quickly and for little or no cost.
Stay Tuned For More Video
Much of the undeveloped land at Water’s Edge consists of a tree covered peninsula that looks for miles over Big Kowaliga section of Lake Martin. This part of the development has not had a seawall of any kind for many years. Naturally, a lot of land was lost by erosion. Local concrete contractor Henderson & Coker has been hired to fix it. It will be the longest wall, on the biggest water, that I have ever witnessed. Maybe they have done longer, bigger walls over in the Ridge, but I wasn’t around to watch.
Friday I went down and taped some footage of them pouring the footings. I plan to tape each phase of the wall’s construction, should make for some cool footage. Stay tuned!
Other Great articles in December’s Issue
Also, don’t miss these other really cool article from Lake Magazine’s December issue:
How to Choose a Boat – folks who know me know that I am saving up to buy a Sea Ray Sundeck. I think I have made my mind up on the selection, but this article really got me thinking..
and
Smith Mountain Tower – this is a huge opportunity to help the Lake Martin community, become a part of restoring a landmark!
A Lake Martin Voice Short Sale Primer
From the mailbag: Having a blog like Lake Martin Voice gives me lots of chances to get great questions from readers. One such reader recently emailed me about short sales on Lake Martin. Here’s how my answers went:
1.) Could you give me a short lesson on Lake Martin “short sales”? Are they fairly standard, or many variations?
Each deal is different, depending on seller, mortgage company, property, etc.
2.) If a mortgage is leveraged on a house or piece of property, and the owner sells “short” is the owner liable/responsible for the deficiency?
Yes. Short sales are when the seller is still the person (not the bank), but they are selling it for less than they owe to the bank. Usually, depending on the amount, the bank goes after the deficiency, either in form of a new personal note, or a suit, or a lien on other assets, whatever. Sometimes the bank forgives a portion of the mortgage debt.
3.) Does the mortgage holder have to approve the sale?
Yes, or they will not release the mortgage lien on the property. If they didn’t, the buyer would be buying a property on Lake Martin with a mortgage (that is higher than the property value) already on it. You do NOT want to buy a property unless all liens are released or at least disclosed. The buyer’s lawyer / closing attorney should discover and disclose all of this.
4.) How is it different from just walking away from a mortgage and allowing foreclosure?
A short sale is usually attempted before foreclosure. I say “usually.”
Each one of these is very different. In general, the bigger the bank that is owed, the harder it is to pull off the short sale. Like I had a buyer that put in an offer on a short sale on a waterfront home in the Ridge. After about 75 days, the bank finally responded – NO. No counter offer, no nothing. 75 days (of the bulk of the summer) – wasted. On the other hand, a small local bank is able to pull off short sales and foreclosures rather effectively because there are real people making decisions quickly instead of talking (when you can get them on the phone) to a person in a 
cubicle in California.
Recently I read a great article in USA today, saying only 23% of short sales go through. From my experience on Lake Martin, I would say that it a pretty accurate number, if you include all offers made to all short sellers (like above).
5.) Are Lake Martin short sales usually good deals?
Maybe. Just because it’s a short sale or foreclosure does not necessarily guarantee that it is a good deal. You still have to go through the same thought process to make sure the value is there as a buyer.
One recent successful short sale I did was under contract for just over three months. Usually on Lake Martin, once you get under contract, it takes anywhere from 30 to 45 days to close. Hanging on for 101 days was brutal, for both the seller and the buyer, and I was helping both sides in that particular deal. Patience was running thin, but in the end, both sides felt it was in their best interest to go through with it. When I deal with sellers on short sales, I strongly encourage them to consider short sales before foreclosure. You might as well run the numbers with your CPA and lawyer to see if it’s in your best interest.
6. What takes so long? Why do some banks “drag their feet” so much with a short sale on Lake Martin?
From talking with my friends in the real estate industry, this is a nationwide thing, not a Lake Martin thing. The short sales process is slow. In fact, a realtor I know in Tampa complimented me for getting it done under 120 days.
Again, the large banks are the ones that usually take a while to process a short sale. In that particular case, it went like this: on Day 1 the seller sends (fax only) the signed contract to the bank. It takes 10 or so days for the bank to “process” the receipt. Then they assign it to a representative. Then the representative takes 14 days or so to contact you after that. So really it was day 24 until the seller could talk to a person that told him “OK we’ve received your fax.” Then he might ask for additional forms, say, another tax return from the seller, or some other such paperwork, that the seller might have even received.
Once the seller faxes those in, you guessed it, it takes about 5 days for the rep to confirm receipt. Then he might ask for the contract again. But – we’ve already sent that – right? Well, I need the XYZ form… These types of conversations go on and on for 3 or 4 weeks. Then the rep (if you’re lucky) will call the listing agent to talk it over. Then maybe the bank will make some sort of counter offer or even accept the contract as is. But any decision, any correspondence takes 3 or 4 days to send in, receive, and confirm receipt. It can be maddening, especially to the buyer.
Therefore my big advice to Lake Martin short sale buyers is: Patience is part of the price you pay.
Again, I stress, this pain involved is usually directly related to the size of the bank. Emphasis on usually.
Own lakefront property on Lake Martin, and considering a short sale?
Please contact me at the number or email at the top of this page. I would be glad to walk you through what will likely happen, and help you consider your options.
Hey you – reader – have any questions about Lake Martin real estate?
Please let me know – I love to write blog posts on readers’ specific questions. If you have one, chances are many people are thinking the same thing. Help us all out, and ask away, either by commenting below or dropping me a line. Thanks!
List Of Lake Martin Waterfront Foreclosed / REO Property
If you want a list of Lake Martin foreclosed waterfront property – including homes and lots – for sale, please use the form that is linked below.
Click here for Lake Martin Waterfront Foreclosures
Thanks to reader K.L. that requested a list like this today. It caused me to go into the Lake Martin MLS and update my list of foreclosed (REO) property. It might not be a perfect list, but it’s the best one I’ve got. So if you would like to see it, please fill out the form above and I will email you a link to a report I have created on the Lake Martin MLS.
FAQ About Lake Martin Waterfront Foreclosures List
Q1. Why can’t you just post a list here of what lots or homes are foreclosed? Why are you making me fill out a request form?
A1. OK but that’s really 2 questions. A few reasons:
a. These homes and lots are from the Lake Martin MLS and are not (necessarily) my listings.
b. This list constantly changes and it would be a hassle to update and edit an HTML page. It would be wrong almost as soon as I hit “Publish.”
c. The Lake Martin MLS allows me to create a “Listing Cart” to house them all, and I can add and subtract as I see changes within the MLS.
Q2. What will you do with my email address after you send?
A2. I will keep it and send you a monthly (or so) email about Lake Martin, unless you tell me you don’t want that. I do not spam nor do I give, sell, buy, or receive email accounts from anyone or any other company. My poodle will steadfastly guard your address; any trespassers will receive the full wrath of the horrible breath inexplicably produced by his 6.5 pound body.
Q3. Are Lake Martin foreclosures so special? Do I really need you? Why can’t I go to the huge sites that show the entire country’s foreclosures along with ads for lifestyle meds and “secret” celebrity diet plans?
A3. Yes, we’re special in that Lake Martin is made up of 3 rural counties in east central Alabama. There is virtually zero online newspaper coverage of legal notices or foreclosures. The huge aggregator websites pick up information that is old, inaccurate, and many times, not waterfront. More Lake Martin specific foreclosure explanations here.
Q4. I’ve seen your list and it’s wrong. I know for a fact my [neighbor, friend, relative, insert any noun] had their waterfront home foreclosed on Lake Martin, and it’s not on your list. Why?
A4. This list only shows you what is actively for sale right now. If a waterfront home was foreclosed last year, and sold three months ago, it won’t be on the list anymore. Similarly, if the foreclosure has gone through, and the lender has not placed it with a real estate agent yet, it won’t be on the list (yet). Let me know if you see any errors, I will be happy to correct.
Q5. Do you sell Lake Martin foreclosures?
A5. Absolutely. If you would like me to send you only my foreclosed waterfront listings, let me know. If you are a lender or some other institution that needs help selling, please contact me and I would be delighted to help and tell you about the specific program I have set up to help lenders manage their foreclosed properties.
Q6. Where do you get your information?
A6. The Lake Martin MLS, mostly. You can search it for free from my blog. I am also a member of the Montgomery Area MLS which occasionally has one or two in there. All Multiple Listings Services are run by humans and therefore contain errors. The listing agents for each property are the only ones authorized to input info about that property.
600 Lake Martin Foreclosures CAN be Wrong
Lake Martin is like any other real estate market: we are seeing an uptick in foreclosures and short sales. Since Lake Martin is full of vacation and second home property, most of these are spec homes or flips gone bad.
I am helping many buyers right now who are focused on foreclosures and short sales. I even have a few listed for sale (that are waterfront). Naturally, I’m getting a lot of calls and questions about the foreclosure/short sale process and how Lake Martin is reacting.
One of the most interesting comments came came from a man who was talking to another guy about buying a boat. (Please note – this boat was a FSBO. This was NOT a dealer.) Anyway, the boat seller informed the other guy that
“There are about to be 600 foreclosures hitting the Lake Martin market.”
Is Mr. Boat Seller correct? I give him about the same odds as my poodle running in the Kentucky Derby. 
Can I prove it? NO. But the reasons I can’t are the same reasons why I’m pretty sure Mr. Boat Seller is wrong.
1) Lake Martin covers three counties: Tallapoosa, Coosa, and Elmore. When a lender forecloses a home on Lake Martin, or anywhere in Alabama for that matter, they must record the proceedings at the court house. That means a Lake Martin foreclosure has to be found at one of three court houses. Since no one (to my knowledge) puts any of this online, it means you must physically go to each courthouse, and physically search deed by deed. Good Luck.
2) Lake Martin does not have one paper of record. Any foreclosures must be advertised in “the paper” right? The Alex City Outlook is by far the biggest paper closest to the lake. But there’s also its sister paper, The Dadeville Record, also in Tallapoosa County. In Elmore County you have The Wetumpka Herald and The Eclectic Observer. Coosa County? Good Luck. Therefore, it’s impossible to gauge Lake Martin foreclosures accurately by looking at physical papers or online.
3) These catch-all foreclosure websites are incomplete and just plain wrong. Maybe sites like Foreclosures.com and FreeForeclosureReport.com work for metro areas with one dominant paper and fully web enabled county courthouse. Like I said above, Lake Martin is made up of 3 rural counties. Those aggregate sites don’t know Walnut Hill from Red Hill. Most of the information I’ve seen out there is a year old, at least.
So where can you find the most current info on Lake Martin foreclosures?
Call or email an agent like me.
Sorry, but that’s still the best way.
