Looking for a agent that knows her stuff when it comes to short sales, foreclosures and where to find them? Then look no further - i have researched to find out that all the searches for foreclosures properties are never current or up to date but I do have the most accurate websites. The KAUFFMAN Team really is the ONE STOP SHOP website. Below I have provided some links of sites that I have read and I think would be of some interest to you. Check them out! Foreclosure Requirements If you have made any offer on any foreclosure, you already know they are very different than buying from a private owner. While they remain a really good buy they have several requirements.
A short sale is very different from a foreclosure. This is usually a pre-foreclosure which still involves the current owners participation and acceptance along with the mortgage company has to consider bids that are less than the owners owe on their mortgage. On most short sales, if the mortgage company agrees, the difference on the owed amount and the sale amount is written off by the mortgage company. On a short sale you can not be in any hurry to move. Short sales can and usually do take weeks if not months for the mortgage company to get back with your agent on the offer. If the bottom line is what the mortgage company will accept, they will consider closing costs and buyers down. You purchasee the Property in its “AS IS” condition.
On a HUD home most buyers do not know that HUD requires a $500.00 earnest money deposit on any home priced $50,000 and below. On a HUD home priced over $50,000 HUD requires a $1,000 earnest money deposit. This is due when the buyer writes the offer. They will however help with closing costs and down payment. Property usually purchased “AS IS” condition.
Most of the mortgage companies will not pay for any inspections or repairs and they always require an earnest money deposit and a pre-approval letter from the buyers mortgage company at the time when you write your offer. If you are a cash buyer - verification of funds is required at the time of offer and earnest money. You purchase the property in its "AS IS" condition. Video: NAR's Foreclosure Prevention and Response Program
http://www.realtor.org/about_nar/presidents_report/_podcast_archive/mcmillan_foreclosureprevention_200900505 NAR: Concerned About Your Existing Mortgage?
http://www.realtor.org/home_buyers_and_sellers/protect_your_home.html NAR's Foreclosure Prevention and Response Program
http://www.realtor.org/government_affairs/foreclosure_prevention/foreclosure FROM THE BOOK: 5 WAYS TO GET GOOD FORECLOSURE DEALS Foreclosure rates are spiking and brewing up a hot market for investors and buyers. To get the best deal possible, follow these tips from the authors: 1. Timing is everything. Borrowers often are given a chance to avoid foreclosure with a grace period, typically two to three months, to pay off the amount they owe. The borrower may opt to sell the property during this pre-foreclosure stage if they can’t make up their missed mortgage payments. This is typically the best time to strike a deal, as home owners are looking for ways to avoid foreclosure. Another prime time to buy: prior to an auction date. 2. Look in the right places. Follow the foreclosure trail. Title companies, banks, purchase money escrow offices, and credit unions can be good sources to find out about new foreclosures. Online services, such as RealtyTrac provide national information on foreclosures, broken down into such categories as bank-owned, auction, and pre-foreclosure. The Hudson & Marshall Web site has auction schedules and even lets you make bids online. 3. Know when to walk away. For properties that have been left vacant for any amount of time, it’s important to check for any plumbing or electrical issues, vandalism, foundation problems, and mold. Recommend that your clients spend money on a home inspection to ensure they’re not overlooking problems that would be expensive to fix. Even if the property’s price tag has been steeply discounted, it still might not be the best deal. 4. Do your research. Before buying a foreclosed property, your clients should have the home appraised to get an accurate estimate of value. Also, they should ensure the title is clear and check for any liens — such as builder liens and taxes — that need to be paid off. This is public information and usually can be found at a county’s recorder’s office. Find out how much is owed on the home and make a list of everything that needs to be repaired, with an estimate of costs (add 10 to 20 percent to pad it). Now, you’re ready to make an offer. 5. Buckle your seatbelt. Foreclosure deals often move fast and require constant monitoring as properties wind their way through the process. Home owners who were in shock or denial or banks that have taken over ownership of the property may initially reject your offer. But don’t give up. Follow up is key — especially as an auction or REO time nears, they may change their mind. “The early bird definitely gets the worm in the foreclosure market,” the authors say. Remember, if it looks like a great deal, other buyers are undoubtedly looking too. Therefore, make your offer more appealing, such as by being able to close in 14 to 21 days. While escrow periods are usually 30 days, you can find some banks that can act faster. SNEAK PEEK “The owners of homes in foreclosure can be extremely frustrating to work with, but put yourself in their shoes. They may feel embarrassed, ashamed, or inadequate, especially if they have a family. They may feel like they have failed, and here you are, Ms. Money Bags, coming in to take their home from them for lower money than it is worth …. If you insult them, annoy them with phone calls, make them feel lower than they already are feeling, or treat them in a lesser way than you’d want to be treated in this situation, you are sure to lose the deal, not to mention kick someone while they are down.” ABOUT THE AUTHORS Bill Nazur is a licensed real estate professional in California, and has more than 20 years of experience as a mortgage broker, real estate finance specialist, and in sales and marketing. He’s worked for major lending institutions, such as Bank of America and Washington Mutual. Co-author Danielle Babb, author of Commissions at Risk (Kaplan Business, 2006), is also a California licensed real estate professional and a technology specialist in real estate. Check back on Monday, Nov. 5, to read the authors’ responses to your previously submitted foreclosure questions. |