Showing posts with label Buying Foreclosure. Show all posts
Showing posts with label Buying Foreclosure. Show all posts
Monday, December 9, 2013
RE/MAX Fit To Sell - Winter Curb Appeal
Wednesday, November 6, 2013
Thursday, October 24, 2013
Saturday, February 25, 2012
Understanding Home Inspections
Understanding Home Inspections
There’s no denying that purchasing a home is one of the biggest thrills of your life, but it can also quickly become overwhelming. While the home you choose may appear to be the perfect house, hiding underneath the dream could be serious unknown defects that can make your investment a costly one.
Enter the home inspector. A home inspector performs a physical inspection of the structure and systems of your prospective home. This means that while you may love the beauty of the living room’s wood floors, your inspector can tell if the floor will truly last.
The home inspection is an objective visual examination of the physical structure and systems of a home, from roof to foundation. The inspection will determine not only the condition of the home, but also help foresee any immediate unnecessary additional cost that may go unnoticed by the untrained eye.
Home inspections start at around $200 depending on the size of the home, its age and overall condition. It’s money well spent if you’re serious about that particular property.
According to the American Society of Home Inspectors, the standard home inspector’s report will cover the condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components.
John Prohaska, owner of J&P Inspections in Des Moines, Iowa, compares a home inspection to getting a physical from your doctor.
“When problems or symptoms of problems are found, the inspector may recommend further evaluation or remedies,” he said. “A home inspection summarizes the condition of a property, points out the need for major repairs and identifies areas that may need attention in the near future.”
The inspection will show the positive and negative aspects of a home, as well as the maintenance that will be necessary to keep it in good shape. After an inspection, both parties have a much clearer understanding of the value and needs of the property.
Knowing about an issue before closing gives you the upper-hand at the negotiating table. A home in good working order may have been worth $350,000, but if $20,000 of work needs to be done to replace rotted wood or bad plumbing, the price should drop.
Before any sale is complete, you will need an inspection to look over the good, the bad and the ugly of what your new home really offers.
Remember, even if a house needs repairs or has hidden problems, it shouldn’t always be the catalyst for getting out of a sale. No house is perfect and as long as you know ahead of time what needs to be done and can possibly change the purchase price based on the information, the home inspection will give you a great starter list of what needs to be done to really make moving in that much easier.
Prudential Fox & Roach is an independently owned and operated broker member of BRER Affiliates, Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many
There’s no denying that purchasing a home is one of the biggest thrills of your life, but it can also quickly become overwhelming. While the home you choose may appear to be the perfect house, hiding underneath the dream could be serious unknown defects that can make your investment a costly one.
Enter the home inspector. A home inspector performs a physical inspection of the structure and systems of your prospective home. This means that while you may love the beauty of the living room’s wood floors, your inspector can tell if the floor will truly last.
The home inspection is an objective visual examination of the physical structure and systems of a home, from roof to foundation. The inspection will determine not only the condition of the home, but also help foresee any immediate unnecessary additional cost that may go unnoticed by the untrained eye.
Home inspections start at around $200 depending on the size of the home, its age and overall condition. It’s money well spent if you’re serious about that particular property.
According to the American Society of Home Inspectors, the standard home inspector’s report will cover the condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components.
John Prohaska, owner of J&P Inspections in Des Moines, Iowa, compares a home inspection to getting a physical from your doctor.
“When problems or symptoms of problems are found, the inspector may recommend further evaluation or remedies,” he said. “A home inspection summarizes the condition of a property, points out the need for major repairs and identifies areas that may need attention in the near future.”
The inspection will show the positive and negative aspects of a home, as well as the maintenance that will be necessary to keep it in good shape. After an inspection, both parties have a much clearer understanding of the value and needs of the property.
Knowing about an issue before closing gives you the upper-hand at the negotiating table. A home in good working order may have been worth $350,000, but if $20,000 of work needs to be done to replace rotted wood or bad plumbing, the price should drop.
Before any sale is complete, you will need an inspection to look over the good, the bad and the ugly of what your new home really offers.
Remember, even if a house needs repairs or has hidden problems, it shouldn’t always be the catalyst for getting out of a sale. No house is perfect and as long as you know ahead of time what needs to be done and can possibly change the purchase price based on the information, the home inspection will give you a great starter list of what needs to be done to really make moving in that much easier.
Prudential Fox & Roach is an independently owned and operated broker member of BRER Affiliates, Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many
Wednesday, February 1, 2012
Thursday, November 17, 2011
Costs for First-Time Buyers
Costs for First-Time Buyers
Buying a new home can be a huge, complex undertaking, especially when it’s your first time. That’s why it’s important to have an experienced real estate agent guiding you along the way.
In a survey conducted earlier this year by Prudential Real Estate and Relocation Services (PRERS), a Prudential Financial, Inc. [NYSE:PRU] company, 75% of respondents highlighted the importance of real estate agents in the process of buying or selling their home.
“Americans continue to see real estate agents as having a very important role in helping them price, buy and sell their homes,” said James Mallozzi, PRERS’ chairman and chief executive officer. “Although the data underscores the value real estate agents provide, it also shows that the industry needs to continue to work hard to meet clients’ unique needs.”
First-time buyers need to look at their financial situation and crunch the numbers to see if this is the right time to buy. Chances are the numbers they see today will be the best they will see for some time, which is why so many are considering homeownership.
Still, understanding the money that goes into a home purchase is important. The biggest mistake new buyers make is underestimating the costs of buying a house and maintaining it over time.
Homebuying requires more than a down payment as closing costs and future expenses will figure prominently. Many experts agree that homeowners should have 1%-3% of their homes’ purchase price in savings for improvements and surprise expenses. Mortgage experts also say it’s wise to have at least six mortgage payments in the bank after a closing.
While those numbers may not be feasible for everyone, if you are spending above your means on a new home, you may find yourself in financial trouble fast.
Inspections are important for the first-time buyer, as they list repairs that will be needed for the home. A buyer should put together a short-term and long-term plan based on the inspection so they know how much money they will need in the months and years ahead.
As renters, people are accustomed to paying rent and basic utilities. As homeowners, you’ll also pay for water, sewer and trash collection. Then there are property taxes, homeowner’s insurance and homeowner’s association dues, plus yard care, snow removal and other expenses unique to your location.
To be sure, buying a home is one of the largest investments you’ll make and when done wisely, it can be one of the best decisions of your life. Your real estate agent will help each step of the way, first helping you establish a realistic price point for your home purchase and a clear understanding of your monthly expenses.
Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Buying a new home can be a huge, complex undertaking, especially when it’s your first time. That’s why it’s important to have an experienced real estate agent guiding you along the way.
In a survey conducted earlier this year by Prudential Real Estate and Relocation Services (PRERS), a Prudential Financial, Inc. [NYSE:PRU] company, 75% of respondents highlighted the importance of real estate agents in the process of buying or selling their home.
“Americans continue to see real estate agents as having a very important role in helping them price, buy and sell their homes,” said James Mallozzi, PRERS’ chairman and chief executive officer. “Although the data underscores the value real estate agents provide, it also shows that the industry needs to continue to work hard to meet clients’ unique needs.”
First-time buyers need to look at their financial situation and crunch the numbers to see if this is the right time to buy. Chances are the numbers they see today will be the best they will see for some time, which is why so many are considering homeownership.
Still, understanding the money that goes into a home purchase is important. The biggest mistake new buyers make is underestimating the costs of buying a house and maintaining it over time.
Homebuying requires more than a down payment as closing costs and future expenses will figure prominently. Many experts agree that homeowners should have 1%-3% of their homes’ purchase price in savings for improvements and surprise expenses. Mortgage experts also say it’s wise to have at least six mortgage payments in the bank after a closing.
While those numbers may not be feasible for everyone, if you are spending above your means on a new home, you may find yourself in financial trouble fast.
Inspections are important for the first-time buyer, as they list repairs that will be needed for the home. A buyer should put together a short-term and long-term plan based on the inspection so they know how much money they will need in the months and years ahead.
As renters, people are accustomed to paying rent and basic utilities. As homeowners, you’ll also pay for water, sewer and trash collection. Then there are property taxes, homeowner’s insurance and homeowner’s association dues, plus yard care, snow removal and other expenses unique to your location.
To be sure, buying a home is one of the largest investments you’ll make and when done wisely, it can be one of the best decisions of your life. Your real estate agent will help each step of the way, first helping you establish a realistic price point for your home purchase and a clear understanding of your monthly expenses.
Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Tuesday, August 2, 2011
The 203K Mortgage
The 203k Mortgage
Real estate consumers today can find ample value in distressed homes – properties that are under a foreclosure order or up for short sale. In many cases, however, “distressed” speaks more for the condition of the homes than their recent financial histories, as they’ve sat empty for extended periods and have been subject to vandalism and theft.
Those considering homes in need of repair and renovation should consider a 203k mortgage, which enables homebuyers to finance both the acquisition and rehabilitation of the property with just one loan.
“FHA 203k purchase loans are the perfect financing vehicle for homeowners seeking the value proposition offered by REO homes,” said David Wind, president and board chairman of White Plains, N.Y.-based Guaranteed Home Mortgage Company, in a company statement this June. “Home buyers’ ‘perfect’ home can be purchased in less than perfect condition with a single-close loan product that allows repairs and remodeling.”
There are two types of 203k loans: the 203k streamline and the full 203k. The 203k streamline is the most popular among homebuyers and lenders.
“The maximum allowable in repairs is $35,000 under the 203k streamline and it does not allow any structural repairs to be done to the home, unless [the repairs are] a result of an unforeseen circumstance,” explained David Krushinsky, a certified mortgage planning specialist for Mesa, Ariz.-based AmeriFirst Financial Inc. “The full 203k allows structural repairs and will allow the buyer to exceed the $35,000 in home repairs. Both loans allow up to $1,500 in swimming pool repairs.”
Contractors chosen to perform repairs must be licensed, bonded and insured, and they usually must provide the lender with a resume and two client-reference letters.
“After the close of escrow is when all the rehabilitation work begins,” said Krushinsky. “Funds usually aren’t released immediately so it’s important for your contractor to start work in a timely manner. Typically, if they’ve been in business, they have existing relationships with vendors so they can order materials and begin work. If not, the project may take longer than anticipated.”
Since the 203k mortgage is based on the home’s potential value after repairs -- not its existing value -- you can be approved for a higher loan amount. The mortgages also carry long-term-fixed rates, are insured as soon as they fund, and include escrow accounts for the scheduled repairs.
Loan amounts are capped according to local FHA limits. Only owner-occupied properties of one to four units qualify for 203k mortage financing; homes also must be at least one year old.
Prudential Fox & Roach Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Real estate consumers today can find ample value in distressed homes – properties that are under a foreclosure order or up for short sale. In many cases, however, “distressed” speaks more for the condition of the homes than their recent financial histories, as they’ve sat empty for extended periods and have been subject to vandalism and theft.
Those considering homes in need of repair and renovation should consider a 203k mortgage, which enables homebuyers to finance both the acquisition and rehabilitation of the property with just one loan.
“FHA 203k purchase loans are the perfect financing vehicle for homeowners seeking the value proposition offered by REO homes,” said David Wind, president and board chairman of White Plains, N.Y.-based Guaranteed Home Mortgage Company, in a company statement this June. “Home buyers’ ‘perfect’ home can be purchased in less than perfect condition with a single-close loan product that allows repairs and remodeling.”
There are two types of 203k loans: the 203k streamline and the full 203k. The 203k streamline is the most popular among homebuyers and lenders.
“The maximum allowable in repairs is $35,000 under the 203k streamline and it does not allow any structural repairs to be done to the home, unless [the repairs are] a result of an unforeseen circumstance,” explained David Krushinsky, a certified mortgage planning specialist for Mesa, Ariz.-based AmeriFirst Financial Inc. “The full 203k allows structural repairs and will allow the buyer to exceed the $35,000 in home repairs. Both loans allow up to $1,500 in swimming pool repairs.”
Contractors chosen to perform repairs must be licensed, bonded and insured, and they usually must provide the lender with a resume and two client-reference letters.
“After the close of escrow is when all the rehabilitation work begins,” said Krushinsky. “Funds usually aren’t released immediately so it’s important for your contractor to start work in a timely manner. Typically, if they’ve been in business, they have existing relationships with vendors so they can order materials and begin work. If not, the project may take longer than anticipated.”
Since the 203k mortgage is based on the home’s potential value after repairs -- not its existing value -- you can be approved for a higher loan amount. The mortgages also carry long-term-fixed rates, are insured as soon as they fund, and include escrow accounts for the scheduled repairs.
Loan amounts are capped according to local FHA limits. Only owner-occupied properties of one to four units qualify for 203k mortage financing; homes also must be at least one year old.
Prudential Fox & Roach Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Monday, July 25, 2011
AVOID FORECLOSURE WITH A SHORT SALE
A short sale is one of the common alternatives used to avoid a foreclosure. It can be an advantage to a homeowner facing foreclosure and who desires to avoid having a foreclosure on a credit record. Short sales are exactly what the term sounds like. When a home is sold for less than what is owed on it the difference between the amount the home sells for and the mortgage loan amount on the home is called a short sale. Thus, if a home's mortgage amount is $400,000 but is sold in a short sale for $200,000 the amount short is $200,000.Getting approval from a lender involves a process of filling out certain documentation and submitting it to the bank or lender's loss mitigation department for consideration and approval of the short sale. It is the bank that has the final say over whether the short sale is approved rather than the homeowner who is selling the property.
The first decision that should be made by a homeowner considering a short sale is whether a short sale is the best solution? If the homeowner simply wants to walk away from the home a deed in lieu of foreclosure may work better. The homeowner simply deeds the property back to the bank. In many cases the bank, in return for a deed in lieu of foreclosure, will pay the homeowner money called "cash for keys". This process allows the bank to avoid substantial fees and costs that would be involved in a foreclosure and provides the homeowner with money that can be used to assist with moving expenses or to begin to rebuild a financial standing. Follow the guidelines below in order to obtain the best results, if a short sale is determined to be the best solution in resolving a foreclosure problem.
1.GET THE BANK OR LENDER'S SHORT SALE PACKAGE.This can be done by simply going to the lender's website and finding it's criteria for submitting a short sale package. Download the package and fill it out. If the homeowner will be represented by a real estate agent, this function and the rest of the steps in this article will generally be handled by the real estate agent. If the homeowner chooses representation by a real estate agent, the homeowner should ensure that the agent is experienced in handling short sales.
2.SHORT SALE DOCUMENTATION.The short sale package should contain at minimum an authorization to release information authorizing the real estate agent to represent and speak on behalf of the homeowner; a completed financial statement, copies of the homeowner's last two years tax returns; the most recent two months bank deposit statements and a hardship letter written by the homeowner that clearly and accurately explains the homeowners' hardship circumstances that justify an approval for a short sale.Without hardship circumstances justifying a hardship it is unlikely the lender will be motivated to approve a short sale. The bank also generally requires the homeowner to submit an IRS Form 4506T which permits the bank to obtain copies of past tax returns. These documents generally make up the short sale package. Some banks or lenders may require additional documents in which case they should simply be provided.
3. MAKE THE SHORT SALE PACKAGE ATTRACTIVE FOR MAXIMUM RESULTS!Presentation of the short sale package is an important step. Appearance and perception of the package is crucial. The package should be submitted with a cover letter requesting short sale consideration with a table of contents and tabs separating the various documents. This presents a professional appearance and is helpful to the negotiator assigned to review the package and to determine whether to recommend approval or declination of the short sale.Take care to make the negotiator's job as easy as possible and not have to search for information within the package. Tabulation serves this purpose well and will be appreciated by the negotiator.Although not always required, it is also a good idea to wait until there is a bona fide offer from a qualified buyer before submitting the short sale package. The offer should also be accompanied with a HUD-1 statement also. A HUD-1 statement will show the bank what it can likely expect to receive as a final amount resulting in a short sale.An experienced real estate agent will know what to do in submitting these documents. If the homeowner chooses to handle it personally, help should be sought directly from an escrow company or closing agent who will usually be glad to assist in preparation of the HUD-1 in return for the fees in closing or handling the escrow.
4.ESTABLISHING AND MAINTAINING RAPPORT WITH THE SHORT SALE NEGOTIATOR.Once the short sale package is submitted to the bank's loss mitigation department a negotiator will be assigned. It is important to establish a good relationship with this person because the success or failure of the short sale rides on an approval recommendation from the negotiator.Be courteous and professional at all times and provide additional documentation when requested so long as it is reasonable and it makes sense. Most negotiators are professional and courteous and will be helpful when they perceive the same from the homeowner's side.
5.CLOSING THE DEAL AND WALKING AWAY.If all goes well the short sale will be approved. The homeowner will be able to walk away without a foreclosure on the record and to commence rebuilding a favorable financial record.
copyright article alley
The first decision that should be made by a homeowner considering a short sale is whether a short sale is the best solution? If the homeowner simply wants to walk away from the home a deed in lieu of foreclosure may work better. The homeowner simply deeds the property back to the bank. In many cases the bank, in return for a deed in lieu of foreclosure, will pay the homeowner money called "cash for keys". This process allows the bank to avoid substantial fees and costs that would be involved in a foreclosure and provides the homeowner with money that can be used to assist with moving expenses or to begin to rebuild a financial standing. Follow the guidelines below in order to obtain the best results, if a short sale is determined to be the best solution in resolving a foreclosure problem.
1.GET THE BANK OR LENDER'S SHORT SALE PACKAGE.This can be done by simply going to the lender's website and finding it's criteria for submitting a short sale package. Download the package and fill it out. If the homeowner will be represented by a real estate agent, this function and the rest of the steps in this article will generally be handled by the real estate agent. If the homeowner chooses representation by a real estate agent, the homeowner should ensure that the agent is experienced in handling short sales.
2.SHORT SALE DOCUMENTATION.The short sale package should contain at minimum an authorization to release information authorizing the real estate agent to represent and speak on behalf of the homeowner; a completed financial statement, copies of the homeowner's last two years tax returns; the most recent two months bank deposit statements and a hardship letter written by the homeowner that clearly and accurately explains the homeowners' hardship circumstances that justify an approval for a short sale.Without hardship circumstances justifying a hardship it is unlikely the lender will be motivated to approve a short sale. The bank also generally requires the homeowner to submit an IRS Form 4506T which permits the bank to obtain copies of past tax returns. These documents generally make up the short sale package. Some banks or lenders may require additional documents in which case they should simply be provided.
3. MAKE THE SHORT SALE PACKAGE ATTRACTIVE FOR MAXIMUM RESULTS!Presentation of the short sale package is an important step. Appearance and perception of the package is crucial. The package should be submitted with a cover letter requesting short sale consideration with a table of contents and tabs separating the various documents. This presents a professional appearance and is helpful to the negotiator assigned to review the package and to determine whether to recommend approval or declination of the short sale.Take care to make the negotiator's job as easy as possible and not have to search for information within the package. Tabulation serves this purpose well and will be appreciated by the negotiator.Although not always required, it is also a good idea to wait until there is a bona fide offer from a qualified buyer before submitting the short sale package. The offer should also be accompanied with a HUD-1 statement also. A HUD-1 statement will show the bank what it can likely expect to receive as a final amount resulting in a short sale.An experienced real estate agent will know what to do in submitting these documents. If the homeowner chooses to handle it personally, help should be sought directly from an escrow company or closing agent who will usually be glad to assist in preparation of the HUD-1 in return for the fees in closing or handling the escrow.
4.ESTABLISHING AND MAINTAINING RAPPORT WITH THE SHORT SALE NEGOTIATOR.Once the short sale package is submitted to the bank's loss mitigation department a negotiator will be assigned. It is important to establish a good relationship with this person because the success or failure of the short sale rides on an approval recommendation from the negotiator.Be courteous and professional at all times and provide additional documentation when requested so long as it is reasonable and it makes sense. Most negotiators are professional and courteous and will be helpful when they perceive the same from the homeowner's side.
5.CLOSING THE DEAL AND WALKING AWAY.If all goes well the short sale will be approved. The homeowner will be able to walk away without a foreclosure on the record and to commence rebuilding a favorable financial record.
copyright article alley
Wednesday, February 2, 2011
Short Sales, Reos Or Motivated Sellers, Which Is More Profitable?
Short Sales, Reos Or Motivated Sellers, Which Is More Profitable?
In a market full of mortgages going into default, a lot of real estate investors are never sure which way to go to get the best deals.
Do you get foreclosed REOs from the bank? Should you negotiate short sales to buy the houses for less than the mortgage balance? Or should you buy directly from the motivated sellers?
We will analyze these 3 situations here.
These 3 methods all have their pros and cons; let's analyze each one:
1) Buying foreclosed houses from banks - REOs Banks have too many foreclosed properties and they increase in number every day. As soon as they acquire them, they then try to sell them quickly.
Buyers are few and these properties can take a long time to sell.
Banks can therefore offer great discounts, especially if they need to be fixed up.
As a real estate investor, shop carefully for good REO deals because not all them will meet your buying criteria or equity margin for you to make a profit.
2) Short Sales Banks foreclose on homes when home owners are unable to pay. Before they foreclose, they are often willing to take less than the mortgage balance. This is called a short sale.
A bank will order an appraisal to get the true market value of the property. Then they can give you a discount on the mortgage based on their numbers.
A bank that holds a first mortgage is likely to offer very little discount on the mortgage, usually not more than 20% especially if it does not need major repairs.
A bank that holds a second mortgage can lose 100% of their investment in a foreclosure, so they are more willing to negotiate much lower. It is not unusual to get 80-90% discount on a second mortgage.
A property with more than one mortgage is therefore the best candidate for a short sale.
Short sales can also take a long time, usually 3 to 6 months. You must therefore have enough patience and capital to last you through such long waiting periods.
Banks can reject your short sale application even when all numbers look good. You must therefore be ready for rejection.
You must close fast as soon as you get an approval. Banks will not accept creative financing on short sales.
When all is said and done, you can create a lot of equity and profits as long as you select the right deals, have patience to wait for a long time, can take rejection and you can close fast.
3) Motivated sellers You can employ a wide variety of techniques to buy houses from motivated sellers.
This includes creative financing.
This is always a great way to buy investment houses as long as the sellers are in need of selling their houses.
Article Alley
Author: Kahethu
In a market full of mortgages going into default, a lot of real estate investors are never sure which way to go to get the best deals.
Do you get foreclosed REOs from the bank? Should you negotiate short sales to buy the houses for less than the mortgage balance? Or should you buy directly from the motivated sellers?
We will analyze these 3 situations here.
These 3 methods all have their pros and cons; let's analyze each one:
1) Buying foreclosed houses from banks - REOs Banks have too many foreclosed properties and they increase in number every day. As soon as they acquire them, they then try to sell them quickly.
Buyers are few and these properties can take a long time to sell.
Banks can therefore offer great discounts, especially if they need to be fixed up.
As a real estate investor, shop carefully for good REO deals because not all them will meet your buying criteria or equity margin for you to make a profit.
2) Short Sales Banks foreclose on homes when home owners are unable to pay. Before they foreclose, they are often willing to take less than the mortgage balance. This is called a short sale.
A bank will order an appraisal to get the true market value of the property. Then they can give you a discount on the mortgage based on their numbers.
A bank that holds a first mortgage is likely to offer very little discount on the mortgage, usually not more than 20% especially if it does not need major repairs.
A bank that holds a second mortgage can lose 100% of their investment in a foreclosure, so they are more willing to negotiate much lower. It is not unusual to get 80-90% discount on a second mortgage.
A property with more than one mortgage is therefore the best candidate for a short sale.
Short sales can also take a long time, usually 3 to 6 months. You must therefore have enough patience and capital to last you through such long waiting periods.
Banks can reject your short sale application even when all numbers look good. You must therefore be ready for rejection.
You must close fast as soon as you get an approval. Banks will not accept creative financing on short sales.
When all is said and done, you can create a lot of equity and profits as long as you select the right deals, have patience to wait for a long time, can take rejection and you can close fast.
3) Motivated sellers You can employ a wide variety of techniques to buy houses from motivated sellers.
This includes creative financing.
This is always a great way to buy investment houses as long as the sellers are in need of selling their houses.
Article Alley
Author: Kahethu
Friday, September 25, 2009
Tuesday, May 12, 2009
Generate Profits with Foreclosures
If you try to remember the state of the market just a few years ago, you will realize how much the market has grown and how many new homes have been developed. So much land has been made available to accommodate real estate developments.
There was a time when so many people started buying properties which led to a boom in the real estate industry. However, there are many people who are now unable to meet their payments and are losing their homes due to foreclosure. There are some things that you can do to take advantage of the change in the market and buy some of these foreclosed properties. If you have the ability to get the credit that you will need, you can cash in on the incredible amount of foreclosures.
If you don't know what foreclosures are, they are homes that have been financed by the homeowner who is now unable to pay the mortgage. In such cases, the mortgage company will then take ownership of the home.
There were many people who bought these homes with the idea that they would live in them for the rest of their lives. There are circumstances that cause the homeowner to not be able to afford the home any longer. Job loss and a variety of circumstances can lead some people to find themselves out of their home. The foreclosures that are the result of these circumstances can be a very good deal for people who have the money to invest.
The mortgage company is losing a great deal of money on these foreclosures and will be responsible for the taxes that are left on the home as well. Some of the homes are in disrepair and the mortgage company will have to pay for that as well before the home can be sold. This is the reason that many of these homes sell for such low prices. The mortgage company wants to sell the home as quickly as possible to recoup some of their losses.
There are literally thousands of homes on the market that are in foreclosure. You are able to buy one of these homes for a drastically reduced price, more often than not. Once you have bought the home, you will be able to do what you want with it. You can fix it up and then resell it for a profit, hold on to it or rent the space out. The rent that you collect from these properties can pay the mortgage while you are waiting to sell the property outright. This is a way that you can make some money from the property to cover the mortgage and not have to spend too much, if at all, out of your own pocket to maintain it while you are waiting for a good profitable sale.
There are a number of ways that you can find to turn foreclosures into a profit making enterprise. While it is certainly an unenviable situation for some, there is something to be gained from the process for you.
~Joanne
There was a time when so many people started buying properties which led to a boom in the real estate industry. However, there are many people who are now unable to meet their payments and are losing their homes due to foreclosure. There are some things that you can do to take advantage of the change in the market and buy some of these foreclosed properties. If you have the ability to get the credit that you will need, you can cash in on the incredible amount of foreclosures.
If you don't know what foreclosures are, they are homes that have been financed by the homeowner who is now unable to pay the mortgage. In such cases, the mortgage company will then take ownership of the home.
There were many people who bought these homes with the idea that they would live in them for the rest of their lives. There are circumstances that cause the homeowner to not be able to afford the home any longer. Job loss and a variety of circumstances can lead some people to find themselves out of their home. The foreclosures that are the result of these circumstances can be a very good deal for people who have the money to invest.
The mortgage company is losing a great deal of money on these foreclosures and will be responsible for the taxes that are left on the home as well. Some of the homes are in disrepair and the mortgage company will have to pay for that as well before the home can be sold. This is the reason that many of these homes sell for such low prices. The mortgage company wants to sell the home as quickly as possible to recoup some of their losses.
There are literally thousands of homes on the market that are in foreclosure. You are able to buy one of these homes for a drastically reduced price, more often than not. Once you have bought the home, you will be able to do what you want with it. You can fix it up and then resell it for a profit, hold on to it or rent the space out. The rent that you collect from these properties can pay the mortgage while you are waiting to sell the property outright. This is a way that you can make some money from the property to cover the mortgage and not have to spend too much, if at all, out of your own pocket to maintain it while you are waiting for a good profitable sale.
There are a number of ways that you can find to turn foreclosures into a profit making enterprise. While it is certainly an unenviable situation for some, there is something to be gained from the process for you.
~Joanne
Subscribe to:
Posts (Atom)
