Just because you’ve driven past Chantilly Parkway on Vaughn Road does not mean everything that lays before you is part of the Town of Pike Road, AL.  Even passing through the light at CVS on Vaughn and Pike Roads is not a clear threshold to the municipality of the Town of Pike Road.

It’s just not that simple.

The map above (from the Town of Pike Road website, click on it to enlarge) shows the patchwork that is east Montgomery County.  The map below (from the City of Montgomery website) details city trash pickup days, and on the lower right hand side of the map the patchwork of Montgomery City/Montgomery County/Town of Pike Road is evident here, too.

How does this affect the east Montgomery house hunter?

For example, you could research a home on Saw Tooth Loop in the Woodland Creek subdivision.  The neighborhood is across Vaughn Road from Bridle Brook, which is a Town of Pike Road community.  The street address for homes in Woodland Creek say “Pike Road, AL.”  But this home is actually zoned for City of Montgomery amenities: sewer, trash, schools.  Unless current zoning changes, it would not be zoned for a future Pike Road School.  Confusing?  Sure.

In 2008, in the neighborhood of Merry Station, all but one of about 20 homes were incorporated into the Town of Pike Road.  One home was zoned Montgomery County.  How did the homeowners figure this out?  They had to do a little research.  That home has since been incorporated into the Town of Pike Road.

So why does it matter? Different reasons for different buyers.  Some might prefer City of Montgomery services?  Some might want to be zoned for the possibility of a future Pike Road school system? And designations can sometimes be changed . . .

The main point if that if you have a preference, you’ll need to do a little digging.  Looking at the street address alone will not suffice.

The folks at the Town Hall in Pike Road are a big help.  So is having a knowledgeable Realtor working for you.  Give us a call and let us do the digging for you.

From the mailbag:  Having a blog gives me lots of chances to get great questions from readers. One such reader recently emailed me about short sales.  Here’s how my answers went:

1.) Could you give me a short lesson on “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 in Montgomery 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 on Lake Martin. 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, I would say that it a pretty accurate number, if you include all offers made to all short sellers (like above).

5.) Are Montgomery 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.

6. What takes so long?  Why do some banks “drag their feet” so much with a short sale?

From talking with my friends in the real estate industry, this is a nationwide thing, not a Montgomery 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 Montgomery 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 in Montgomery, 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 Montgomery 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!

Good news for homebuyers in the Montgomery, AL area . . .

The $8,000 tax credit for first-time homebuyers has been extended to April 30, 2010.

The program has changed a little, though, from the initial incentive that expired November 30.

If you want to know details, this Q & A article from The Wall Street Journal explains the revised incentive program well: “Q & A: The Home Buyer Tax Credit Extension.”

If you’re looking to purchase a home in the next few months and would like the benefit of a Realtor to do the legwork for you, give us a call.  It costs the buyer nothing, and it puts a professional in your corner.

I know that the headline sounds like typical Realtor “buy now” squawking, but the truth is, if you are a first time buyer in the Montgomery area, you had better make your decision, get under contract, and get closed before November 30.

So you have a lot of time, right?  NO.

Please realize that the time between agreeing to a price and terms and then actually closing the sale can be 4 weeks at least.  Most of the time with first time home buyers, it takes more like 6.

Why does it take so long to close?

Let’s say you find a home in Montgomery today and make an offer.  If the sellers counter-offer, it may take a day or two of going back and forth to get a signed contract.

Once you have a signed contract, there’s lots more work until you can close and officially own the home.  You have to finalize your financing and get the lender’s approval of the contract.  The bank will order an appraisal. That will take a week or so.  Depending on your situation, you may be getting a home inspection, survey, or any number of things like this.

Then you have to find a closing agent and book a time to close.  Trust me -  they will be busy from now until November 30.

In summary, the time it takes from “We’ve got a deal!” to “Here are your keys” can be weeks. Start now if you want the $8K to close before November 30, 2009.