Scott Baxter asked:
Now that banks are having to repossess homes from delinquent mortgagors, some buyers are asking, “should I buy a bank owned property”? Even with years of real estate experience and knowledge, the best answer here is still: “It depends.” Shopping around and knowing the particulars of each sale are still vital as they can vary widely from one house to the next. Arming yourself with some basic information on these types of transactions should also help to give you an idea of the risks and potential gains involved.
SHOP AROUND
Bank-owned or REO (real estate owned) properties can vary in condition from damaged to excellent, and be priced properly (at market) or be a great value. You just need to shop around. I have some clients that have found absolute gems priced 10% to 20% below market.
Even after you shop around though, there’s still a fair amount of risk involved in buying this kind of property. Most of the homes in this category are sold in “AS-IS” condition. In some cases, you won’t even be able to inspect the house before you buy it. Banks won’t make repairs or be held liable for damages, mold or the like so be prepared to sign lots of addendums exonerating them from any responsibility after the sale. Also the bank tends to place a per diem clause that may cost you $100 per day if you’re late in closing.
If you’re prepared to accept these conditions, I say “Make an offer” and see what happens. Basically, there are three types of foreclosure sales:
AUCTION
This is the riskiest way to purchase bank-owned property, but can also net the greatest financial gain. Some estimates say 25% off the original purchase price is common. If you want to play the auction game, you’ll have to pay cash and you’ll have to forego any kind of inspection. Auctioned homes are truly “AS-IS.” There is also no way to avoid the fact that you are profiting from someone else’s misfortune with this option. People who are losing their homes may refuse to move out or may damage the property in anger
SHORT SALE
This isn’t really a foreclosure sale, but a sale the homeowner makes in order to ward off foreclosure and do some damage control. Also known as pre-foreclosure, this is when you buy from a homeowner before the bank intervenes. You can inspect the house before you buy when you go this route, but be warned – many of these deals are stalled or squashed by the banks before they’re closed.
REO
This is when you buy a foreclosure from a real estate company. REO presents the least risk of all three options. You have clear title, right to inspect and can get your financing in line first. You won’t get as great a deal as you could by buying at an auction but for many buyers, the reduced headache is well worth it.
One thing I can say for certain: banks NEVER want to own these REO properties, they just want to lend money and collect mortgage payments. When a property becomes bank owned, it’s because the borrower has forced the bank to foreclose, that is it. What this usually means for buyers is a clear chance to purchase a home from a very willing seller.
dean weber asked:
Times are very tough economically, and they may get worse- especially in the real estate markets, nationwide. There are literally millions of foreclosures- families losing their homes. The monetary and emotional toll is huge. Here are a few simple, key ideas that any person can think about and use to help them and their families to fight the forclosure process. This article assumes that the lawsuit- the legal forclosure action- has commenced.
1) Remember that a foreclosure, in most states, can and does take time- often a year or more- especially these days because there are tons of foreclosures occuring. But, don’t rely on that- because it can also take as little as six months- from the commencement of the lawsuit to the actual foreclosure auction. So, first thing to know is that ACTION is required.
2) If you have a lot of equity in your home- let’s say it’s worth 500,000 and you owe 200,000, then a new mortgage may very well be possible- there are many "hard money" lenders out there- who might charge 14% and 4 points- but it is worth it to save your home. since your credit is bad- due to the foreclosure, a hard money lender will lend up to 50% of the value of your home. It’s expensive, but it will save the remaining, significant equity.
3)Of course, most families don’t have that much equity- they just need the home to stay in, to raise their family- in short- to live. It’s much more than just a money thing. They may only have maybe 10-20% of an equity stake- but still, keeping the home is priceless to many people. To stop the foreclosure, you can file a bankruptcy- either a chapter 7 or a 13- either one will stop the legal process. But, it is the chapeter 13 that will allow you to KEEP your home in the long run- the chapter 7 will force you to sell your home – in most cases. The chapter 13 makes you pay off the mortgage lender slowly- usually over a three to five year plan- to pay the arrears, while also paying the current mortgage payments. Butm importantly, the forclosure process is halted- completely- even if it is the day of the auction!!!
4) You can hire an attorney to file an "order to show cause"- why the foreclosure should not be stopped- that is, you have some reason that the lender should not have foreclosed in the first place- maybe you did make payments, but they weren’t credited properly- mistakes do happen. This mechanism uses the intervention of the state ccourts, whereas bankruptcy is a federal court proceeding. By the way, you can file a chapter 13 (or 7) without an attorney- but an attoney is quite desireable.
5) One of the emerging areas is that of mortgage fraud- maybe you have a "subprime" mortgage- and maybe you didn’t understand the mortgage that was issued to you- it is an increasing area of ligitgation- something that you may want to check out- and use, as a mechanism to stop the foreclosure- by way of order to show cause- using the possibly faulty mortgae as an underlying cause to stop the foreclosure- it is something to look into.
Harry Coker asked:
The United States Department and Urban Development (HUD) area in the United States government works restlessly to offer hundreds of people the possibility of having their own home. HUD service was created in the 1960’s to help all these people who need some support to buy their own homes.
There are some groups in our society that need more help than others. For instance teachers have never earned much money, so HUD programs are usually intended to assist them. Georgia Teachers have now an excellent prospect of purchasing their own homes through HUD programs. Because teachers do not earn enough money to face high mortgage payments, they find the perfect solution with HUD homes. However, they need to prepare a collection of paperwork and procedures which can take them a lot of time. Additionally, if they do not fill the forms properly, they can lose the opportunity to save about 50% of the real price of the HUD home they want to buy.
Georgia Teachers can be part of an incredible HUD program which has been designed to help them. So, it is essential they read a free eBook which will offer them all the crucial details to deal with the different steps included in HUD programs. HUD programs are applied across the country to help special groups such as teachers and police officers. Both groups provide our society with education and security which are essential to develop better countries. Therefore, they must be particularly assisted to obtain a decent home. This free eBook will enable them to fulfill all the requirements related to HUD programs.
The different communities of Georgia are aware of the difficult task that teachers must face when they want to buy a home, so HUD homes can be the perfect rescue for them. This free eBook shows all the aspects that are found in the HUD program process. As Georgia needs more professional teachers who are willing to offer their services in different Georgia areas, they have also prepared the best HUD possibilities to welcome Georgia Teachers.
If Georgia teachers obtain their homes, they will have less worry. Consequently, they will be able to focus all their energy on teaching. So, through HUD programs, Georgia will enjoy teachers who are really committed to their profession. Remember that if you are a Georgia Teacher and you want to apply for a mortgage, you will find the help you need in this free eBook. Everything will seem to be easier if you use it to find a simpler way to complete all HUD requirements.
Remember that you can be qualified to obtain a mortgage in Georgia but then you must face several expenses apart from your mortgage payments, so HUD homes can be the perfect solution.
This free eBook is the ideal way to make your dreams a reality. According to official statistics, teachers in Georgia could have a very hard time by purchasing a quality home in any area of this state, so do not waste the opportunity to enjoy all the advantages of HUD programs through the help of this eBook.
Aleks G asked:
whether you are leveraging or selling a property then knowing its correct price would save you a lot of money. Now you can approximate the exact measure of your real estate on the web. This would save a lot of money and effort. When the economic value of real estate smashed it brought a fast foreclosure of a number of companies.
It’s different whilst you are conducting with a one-body for real estate and when you are selling with a bank building. Bank comprises with a group of individuals who have the adeptness and the experience who deal in real estate. It’s unlikely when you trade with sole personally as he or she has spirits and emotions whether bank does not have that.
It’s recommended that you line up of a Real Estate Owned, local REO, broker who realize your needs. As without a good agent you will not receive a plenty of information on the home that you are going to bargain. So it is very important that you choose the right local agent working with the bank.
Acquiring a Bank Owned Property is a longer method as financial institution acquire time to react to offerings. These banks deal with a lot of bids at a time so it is a relatively behind formula. Agent who send you the information through fax after seeing all the offers will be hired by the bank. REO department inside the banks handles these purchases.
During the recession moment the total of foreclosure has incremented by three times which has given rise to a lot of properties easy with very low value. Therefore a lot of real estate is available with major banks and REO.
As discussed earlier acquiring a bank owned property is long and lengthy process so you need to forbearing and make sure you have extra fund in hand to address some of the buried bills. It could be months before you actually move into your bank owned property.
The sells that are getable right now are probably the best to own a belongings due to the economic recession. As we all know the economic recession is part of an economic round so the best time to buy a real estate is during the times of recession. As the assets are accessible at very low value. So it is the right moment to hold in REO’s or bank owned place or real estate which will give you a higher return when the market condition steadies or meliorates.
So end worrying losses and because real estate is one of the most assured investitures as it will undertake a deliver and investment fund is dependable from regular fluctuations. take hold of the chance and empower with wisdom and patiently.
Dealing in properties? want help? You can get all the information you need to complete a deal in REO Properties in http://www.reohud.org. REO stands for “Real Estate Owned” by the bank – after the foreclosure the houses become bank owned property.
Kate Ford asked:
Everyone experiences this common dilemma when buying a house.
We view houses without a system in place to compare one house with another. And it can cost us.
You probably know what follows. You walk through six or seven open houses. You return home to review your notes but suddenly you are confused. You can’t remember which house you liked and which ones you didn’t.
How can you keep track of the homes?
You will find buying a house is all about comparison. Most likely, you will have already narrowed down your search to homes that are similar in price. In fact if you have been preapproved by your mortgage lender, most of the homes you preview will likely fall into a similar price range.
It is becoming clear to you that further evaluation is necessary.
In order to compare homes it is wise to have a system. The Department of Housing and Urban Development, or HUD as it is commonly called, has created its own score card. However before I go any further, I strongly suggest adding a digital camera onto your home shopping procedure.
With this in mind, your real estate agent is going to take you to see several houses based on information you have provided. To remember each house, use a camera to photograph important attributes. This way you can analyze comparable pictures.
First, take a picture of the outside of each house. Then photograph the major rooms such as living room, family room, and kitchen.
Second take photos of the yards and any extra features about each house that you like as well as dislike.
Don’t forget problem spots too.
Keep in mind that if you are systematic in your approach, you will be able to easily compare pictures of the major rooms of each house, the yards, extra features you thought were beneficial, and potential problems.
Now you need the HUD Home Buying Scorecard. Print out the pictures for each house and attach them to your score card.
Have you heard of the HUD Home Buying Scorecard? It is a home buying checklist designed to remind you of important features in each home and to score each feature with a good, average, or poor score.
Before you go on tour with your Realtor, print out or copy several HUD Scorecards so that you have one for each individual house. At the top write the address and list price for each home you are previewing.
Basically the scorecard highlights features from 4 important categories that everyone buying a house needs to consider.
Briefly the first category includes attributes from the home itself such as square feet and number of bedrooms to roof age and condition of gutters and downspouts. Score each one.
The second category compares items related to neighborhoods and includes the appearances of nearby homes and businesses, traffic conditions, pet restrictions, and garbage service.
Perhaps of most importance, local schools comprise the third section reviewing teacher to student ratios, safety standards and test scores.
Lastly, buying a house should take convenience into consideration. Rank features such as parks, shopping malls, places of worship, and hospitals.
Now use this system to analyze. Clip the pictures to corresponding scorecards. Begin evaluating the houses using the photos and scorecard criteria. You will be able to easily analyze and decide which house is best for you.
Who says buying a house has to be confusing? Good luck and happy shopping!
Always consult your real estate professional before taking pictures within a private residence.
Winfred Macdonald asked:
Buying a foreclosed home in this economy is a great way to save some money on your next home purchase.. But how exactly do you buy foreclosures? One of the benefits of purchasing a foreclosed home at this time is the tax break of $8000 you get a a result of the stimulas package.You can qualify for this tax break if you use the purchased foreclosed home as your main home.
Finding a foreclosed home to purchase can be accomplished by serveral methods, but they require a lot of effort. You can also hire a realtor to search for a foreclosure, but this is expensive and normally does not produce you with the best results. A cheaper and more efficient method for locating a foreclosed home is to purchase a database subscription of foreclosed homes These database subscriptions can be purchased for only afew dollars and its very easy to search for the exact foreclosed property you wish to find.
Buying a foreclosed home is a great method for reducing the cost required to purchase a home for your family. However, if you don’t know the tricks of the trade, you might end up paying more for a foreclosed property that’s worth less than you paid for it.
Homes become foreclosed for a variety of reasons, but the main reason is becuase the homeowner can not afford to pay the mortagage.Banks or other financial institutions only want to get rid of these properties even to the point of selling them at a lower price. Not all foreclosed homes are sold at reduced prices so don’t get your hopes up.
When you buy foreclosure properties, you can save a huge amount of money. Purchasing real estate is normally the most investment people make , but it doesn’t have to be this way. If you follow a strategiy, you will find a foreclosed home which you can easily afford
For more information visit how to buy foreclosures
Clint Jhonson asked:
Recent findings have shown that Chicago is sitting at the top of the list for metropolitan areas with properties in foreclosure. This position has resulted from an increased number of borrowers defaulting on their payments. Chicago foreclosure homes are widely available today, with housing values that are constantly declining. The Internet presents Chicago foreclosure listings for prospective real estate investors and also for homebuyers with a tight budget.
Chicago foreclosure homes have truly affordable prices and thus, they represent a great deal for many people. The wide range of properties offered through Chicago foreclosure listings is enticing, to be sure. All these homes are presented in detail, with comprehensive information and photo galleries, in order to give one a better idea of what the property actually looks like. These amazing deals refer to Chicago government homes but also to federal properties and bank owned houses. If you want to see the listings for Chicago foreclosure homes, then you will have to enter online.
Once a property is foreclosed, the next step is for it to be introduced into a public auction. There are plenty of auctions that take place online and the offers are extremely diverse. There are specialized websites in Chicago foreclosure homes, providing detailed information on how these properties are sold and also putting to the disposal of their customers Chicago foreclosure listings. For anyone interested in distressed properties, the Internet is a wonderful resource. All the properties have amazing prices, below market value and they present one with the opportunity for great savings, especially if we consider bank-owned houses.
The foreclosure storm in Chicago is not unique. All over America the trend is the same. More and more homeowners use their properties as collateral for a mortgage and end up defaulting on the payments. As they have no means to repay the accumulated debt, the bank has no other solution than to foreclose the property in question. The legal proceedings for foreclosure take some time but once the property is advertised at a public auction, there is not much time before a buyer appears. In rare cases, the previous owner finds the necessary money to redeem the property. More often, Chicago foreclosure homes are purchased at discounted prices by various investors or homebuyers.
There are many real estate investors dedicated to the purpose of finding Chicago foreclosure homes at extremely low prices. For them, Chicago presents numerous investing opportunities whereas foreclosure properties are involved. The Internet offers access to extensive and detailed Chicago foreclosure listings, with postings for foreclosure homes, bank owned and federal properties, government homes, with attractive offers for HUD and VA properties.
HUD Chicago foreclosure homes represent properties that are currently owned by the government as the owner was unable to keep up with the monthly payments. Upon foreclosure, the property was repossessed and ended up in the hands of the government agency. Chicago foreclosure listings contain many of such properties, offering a high potential for investments and important savings at start. However, HUD homes also represent a great deal for homebuyers.
There are many reasons why you should use professional Chicago foreclosure listings. If you find a reliable resource to help you out, then you will not need to search in another place. These listings include offers for HUD properties and other government-owned homes, such as repo houses. The choice for Chicago foreclosure homes include: condominiums, town houses and single-family homes. Take your time and decide which type you desire, check out the prices and other additional details. And remember, investing in Chicago foreclosure homes can prove out to be a very profitable business.
What real estate companies hire people with no experience, and help to get there License for free?
RichardT asked:
I want to get my real estate licenses, but I don’t have time to go to school. I would rather work for a company that will train me. If not, how do I go about getting my licenses in the least amount of time as possible?
Can a real estate broker and a lawyer start a real estate company together?
realreynolds asked:
My fiance is considering becoming licensed to sell real estate. I am a first year law student. I have learned a little about real estate transactions and how they work. I understand the roles of both the broker and the attorney, but I’m wondering if my husband-to-be and I will be able to use our skills together to start our own business. Will I have to have a separate practice, or can the real estate lawyer be a part of the broker’s company?
Furniture from HUD HOMES?
egyptlegend_osiris@sbcglobal.net asked:
Does anyone know the name of this place where you can get new/used furniture from HUD Homes its located on Jackson rd in Michigan
Austin. = )?
KiWi asked:
K, so Austin is soooo funny! and the best part about him is that he can make you laugh soo hard without even making a face. just his straight face makes u burst into tears!!! He’s not my boyfreind {maybe i wish so, maybe not}. His hair could use some work. Maybe it shouldn’t be so flat, as so you could be able to walk off it. tell me about youre awesome freinds.
{NOT Bf or Bff’s though} like people you barely talk to but they really know you.