Bank foreclosure lists provide a potential buyer with information on foreclosed properties that are up for sale. When a property is foreclosed, a lis pendens or default notice is filed and becomes a public record. For those seeking to purchase foreclosed properties, getting their hands on this document is the first step.
Lists of foreclosures can be accessed through local real estate agencies, government entities and even magazines that specialize in the area of foreclosure. However, there are foreclosed homes that are for sale that have never been lived in or do not belong to a homeowner. These properties are built by builders who reach the end of their loan period without finding buyers for what they are building. The banks that issued the loans to the builders then take possession of the property and put it up for sale. Properties like these usually do not appear on lists and are commonly handled by real estate agents.
A buyer can also go directly to lenders or banks and ask them for a list of their REOs or Real Estate Owned portfolio. When asking for this list, it is better to concentrate on one or two areas only and to give particular information on what kind of property is being sought. A bank prefers to deal with buyers who know what they are looking for and who provide specific criteria on what property they want to buy.
After identifying the preferred location, a buyer can ask the bank to provide a list of properties in the area or areas he has chosen that have been sold within the last few months. This list can be the buyer's guide in making a price comparison. For a better analysis, the buyer can hire the services of a real estate agent to work on the comparison. There are also Web sites run by real estate associations that provide price lists of properties in various areas.
Buying foreclosed properties owned by banks is a relatively low-risk endeavor and a sound investment. Banks usually take care of eviction, taxes, liens and other obligations before they sell the property. This is because banks are not selling to make a profit but to unload the property and get back the unpaid balance of the mortgage loan that they issued to the homeowner who defaulted. REOs are not liquid assets and are more a burden than an asset to a bank. A buyer who purchases from a bank can also ask the same bank for financing. Since banks are always eager to unload real estate properties, they will likely provide a favorable financing scheme to the buyer.
Acquiring bank foreclosure lists is the first step towards a profitable real estate investment. Getting these lists will give the buyer an idea of what properties are available and how much they are worth. A bit of patience in studying these lists will go a long way towards making a great profit for someone who wants to get into the market of foreclosures.
Learn more about Government Foreclosure Listings and foreclosure homes at => http://www.findforeclosurepreventionhelp.com/
Article Source: http://EzineArticles.com/?expert=Dean_Forster
Friday, October 17, 2008
How To Buy A Foreclosure Home
If you are the first time buyer with little or no money, these foreclosured houses can be a great option for you. You may have seen them popping up everywhere you look on your way to work. Whether it is due to faulty adjustable rate mortgages (ARM), inflated home prices, or loss of employment, more and more people are in the unfortunate situation of being in foreclosure. With the housing market declining more and more, a bright side may be seen from all the turmoil. It is true that those who do not know history are doomed to repeat it, even if that history is only a handful of years ago.
The bright side to this housing situation is that first time home buyers can learn from the mistakes of the last few years, while at the same time leaving their rental for a home valued at a substantially lower cost with historically low interest rates. What this means to the faithful renter is that you could be paying the same, if not less per month, for the home you have always wanted. Why should only the bankers get a "rescue package"? This current time is the renters rescue package into home ownership by implementing 4 very basic tips in buying foreclosed properties:
1. Check the condition of the house. Foreclosed homes that are of a slightly less than desirable condition are usually available at a much lower price.
2. Get the home inspected. This tip could mean the difference from dream home to never-ending migrain. Contact a local inspector and factor in those "fix-up" costs in your total offer. Choose properties with cosmetic problems as opposed to structural problems as these would be very costly to get repaired.
3. Get Professional help in the form of a local Realtor who speacializes in foreclosed properties. The best part about this tip is that a realtor can provide a wealth of information and you don't have to pay a dime. Realtors get paid by the sellers, not the buyers.
4. Have your Realtor negotiate on your behalf. They know the ins and outs and can factor in items that you probably never thought of in order to get the best deal on the house.
5. Shop around for a mortgage specialist. Speak to at least 3 different mortgage lenders and find who has the best interest rate.
Foreclosed homes are very easy to transact, which is why they would be an ideal choice not only for the investor, but more so for the renter who dreams of home ownership. It is not unusual to find foreclosed homes that are anywhere from 20-30% off. So on a once $500,000 house it could be sold at roughly $400,000. One final word of warning for the soon-to-be home owner, What ever you do, DO NOT be sold on interest only or adjustable rate mortgages. Learn from the mistakes of those before you, and lock yourself in to a 30 year fixed.
Abdullah Alnassar is a Freelance writer in Washington DC. His areas of commentary range from finance and business to current events. You can find out more about surviving a down housing market by visiting his blog, Foreclosure Houses - Your Most Profitable Choice http://profitableforeclosures.blogspot.com/
Article Source: http://EzineArticles.com/?expert=Abdullah_Alnassar
The bright side to this housing situation is that first time home buyers can learn from the mistakes of the last few years, while at the same time leaving their rental for a home valued at a substantially lower cost with historically low interest rates. What this means to the faithful renter is that you could be paying the same, if not less per month, for the home you have always wanted. Why should only the bankers get a "rescue package"? This current time is the renters rescue package into home ownership by implementing 4 very basic tips in buying foreclosed properties:
1. Check the condition of the house. Foreclosed homes that are of a slightly less than desirable condition are usually available at a much lower price.
2. Get the home inspected. This tip could mean the difference from dream home to never-ending migrain. Contact a local inspector and factor in those "fix-up" costs in your total offer. Choose properties with cosmetic problems as opposed to structural problems as these would be very costly to get repaired.
3. Get Professional help in the form of a local Realtor who speacializes in foreclosed properties. The best part about this tip is that a realtor can provide a wealth of information and you don't have to pay a dime. Realtors get paid by the sellers, not the buyers.
4. Have your Realtor negotiate on your behalf. They know the ins and outs and can factor in items that you probably never thought of in order to get the best deal on the house.
5. Shop around for a mortgage specialist. Speak to at least 3 different mortgage lenders and find who has the best interest rate.
Foreclosed homes are very easy to transact, which is why they would be an ideal choice not only for the investor, but more so for the renter who dreams of home ownership. It is not unusual to find foreclosed homes that are anywhere from 20-30% off. So on a once $500,000 house it could be sold at roughly $400,000. One final word of warning for the soon-to-be home owner, What ever you do, DO NOT be sold on interest only or adjustable rate mortgages. Learn from the mistakes of those before you, and lock yourself in to a 30 year fixed.
Abdullah Alnassar is a Freelance writer in Washington DC. His areas of commentary range from finance and business to current events. You can find out more about surviving a down housing market by visiting his blog, Foreclosure Houses - Your Most Profitable Choice http://profitableforeclosures.blogspot.com/
Article Source: http://EzineArticles.com/?expert=Abdullah_Alnassar
Buying Government HUD Foreclosure Homes
HUD homes are FHA insured mortgage loans that go into foreclosure. HUD sells these foreclosures in a weekly auction using HUD registered real estate agents. HUD offers huge incentives to sell all HUD homes in their inventory. There is now a program for owner occupants that the down payment is only $100 dollars with some restrictions as per HUD guidelines. There are many other programs available for homeowners and investors. Police officers, teachers, and firefighters get the property at 50% discount in specific Miami real estate areas.
Steps for buying a HUD homes in Miami, Florida
Step 1. Finding a real estate agent - You must use a HUD registered Miami real estate agent in order to buy a HUD home. HUD uses its own contracts and many different forms, addendums and disclosures that the Miami real estate agent must be familiar with.
Step 2. Finding a house - HUD offers a weekly list of available homes for sale. All HUD homes are sold in as-is condition with no warranties. The Miami real estate agent will show the property, provide tax roll info and comparables of recent sales. No open houses are permitted.
Step 3. Placing a bid - You must be pre-qualified and place an earnest money deposit before you can bid on a HUD home. The Miami real estate agent will work with you in preparing all pertinent paperwork in order to help you make your offer. All offers are presented online and are awarded to the highest bidder. HUD will pay up to 3% for closing costs if it is stated in the sales contract. Owner occupants only can bid in the original offer period and then it is opened for investors.
Step 4. Winning the bid - The Miami real estate agent will inform you whether or not you are the winning bidder next the day. If you are the only bidder you win automatically, assuming your net to HUD is within the acceptable percentage. HUD will not publish their guidelines for the minimum price offers they will accept. All completed contracts and forms must be sent within 42 hours of acceptance. Time is of the essence.
Step 5. Obtaining financing - The buyer has 45 days to close. Buyer can pay cash for the property or obtain financing thru an FHA or conventional loan. FHA has many incentives to qualified buyers. HUD will cancel the contract after the 45 days are up and you have not closed for whatever reason. An extension to the contract may be granted but it costs $375.00 per 15 days for sale price over $50,000. Usually only one extension is allowed.
Step 6. Closing - The buyer may choose the bank or mortgage company and title company of their choice. You cannot make any repairs to the property before closing. The title company will notify HUD and buyer of the closing date with at least three days notice. Buyer must bring a cashier's check to the closing as no personal checks are allowed.
Buying a HUD home in the Miami real estate market is a complicated and detailed process. Be sure the agent knows all the procedures and rules of the HUD homes process as any mistakes made in the contract, forms and or deadline missed will cause your bid to be cancelled and given to the next bidder. The inventory of HUD homes has decreased dramatically in recent years since buyers were not getting FHA loans and were opting for conventional products instead. Recently the FHA loans inventory has picked up and the amount of HUD homes available for sale has been increasing. HUD homes are an excellent opportunity for buyers interested in Miami real estate to buy a home at a discounted price.
http://www.lesende.com
Hector Lesende is HUD registered Miami Real Estate agent and has sold and closed many HUD owned foreclosures. We provide a HUD Foreclosure List.
Article Source: http://EzineArticles.com/?expert=Hector_Lesende
Steps for buying a HUD homes in Miami, Florida
Step 1. Finding a real estate agent - You must use a HUD registered Miami real estate agent in order to buy a HUD home. HUD uses its own contracts and many different forms, addendums and disclosures that the Miami real estate agent must be familiar with.
Step 2. Finding a house - HUD offers a weekly list of available homes for sale. All HUD homes are sold in as-is condition with no warranties. The Miami real estate agent will show the property, provide tax roll info and comparables of recent sales. No open houses are permitted.
Step 3. Placing a bid - You must be pre-qualified and place an earnest money deposit before you can bid on a HUD home. The Miami real estate agent will work with you in preparing all pertinent paperwork in order to help you make your offer. All offers are presented online and are awarded to the highest bidder. HUD will pay up to 3% for closing costs if it is stated in the sales contract. Owner occupants only can bid in the original offer period and then it is opened for investors.
Step 4. Winning the bid - The Miami real estate agent will inform you whether or not you are the winning bidder next the day. If you are the only bidder you win automatically, assuming your net to HUD is within the acceptable percentage. HUD will not publish their guidelines for the minimum price offers they will accept. All completed contracts and forms must be sent within 42 hours of acceptance. Time is of the essence.
Step 5. Obtaining financing - The buyer has 45 days to close. Buyer can pay cash for the property or obtain financing thru an FHA or conventional loan. FHA has many incentives to qualified buyers. HUD will cancel the contract after the 45 days are up and you have not closed for whatever reason. An extension to the contract may be granted but it costs $375.00 per 15 days for sale price over $50,000. Usually only one extension is allowed.
Step 6. Closing - The buyer may choose the bank or mortgage company and title company of their choice. You cannot make any repairs to the property before closing. The title company will notify HUD and buyer of the closing date with at least three days notice. Buyer must bring a cashier's check to the closing as no personal checks are allowed.
Buying a HUD home in the Miami real estate market is a complicated and detailed process. Be sure the agent knows all the procedures and rules of the HUD homes process as any mistakes made in the contract, forms and or deadline missed will cause your bid to be cancelled and given to the next bidder. The inventory of HUD homes has decreased dramatically in recent years since buyers were not getting FHA loans and were opting for conventional products instead. Recently the FHA loans inventory has picked up and the amount of HUD homes available for sale has been increasing. HUD homes are an excellent opportunity for buyers interested in Miami real estate to buy a home at a discounted price.
http://www.lesende.com
Hector Lesende is HUD registered Miami Real Estate agent and has sold and closed many HUD owned foreclosures. We provide a HUD Foreclosure List.
Article Source: http://EzineArticles.com/?expert=Hector_Lesende
Sunday, September 28, 2008
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