Foreclosures Archives

Does “As Is” Mean I Can’t Have A Home Inspection?

Most foreclosures and short sales are sold “as is”. Many homebuyers are confused as to what this means for them. I am often asked whether this means that they won’t be allowed to have the home inspected. Charlottesville Foreclosure

You will be able to have a home inspection but it will be for informational purposes only. This means that the seller will not perform any repairs if something shows up in the inspection. However it is important for you to have the home inspected anyway so that you will know what problems you might have to deal with. Also, I like to write into the offer that the contract will be contingent on a satisfactory home inspection. That way if something is found that the buyers are not prepared to accept, they will have the opportunity to declare the contract null and void without penalty and their earnest money deposit will be returned. Some banks have similar terms written into their addenda.

In addition the home inspector may find something that needs to be repaired that the lender such as FHA will not accept. In this case the loan will not be approved unless the repair is performed by the seller before closing. Sometimes the bank will agree to perform the repair, but other times they won’t and the contract will fall through. Homes that will obviously need a lot of work are good candidates for FHA 203K loans, in which the cost of the repairs is rolled into the mortgage up to a specified amount.

When you are considering the purchase of a distressed property, a home inspection is especially important. Remember the owners of these properties have been struggling for sometime to be able to hang on to their homes. It was all that they could do to make the mortgage payments, and their was no extra money for repairs. Routine maintenance has been deferred. Even the rare foreclosure that appears to be in move in condition may have unseen issues.

There are some great deals on short sales and foreclosures in our area, email me if you would like a list of distressed property listings in any of the central Virginia areas.

Buying A Charlottesville Foreclosure Multiple Offers

Buying A Foreclosure In Charlottesville – How Much Should I Offer

Buying A Charlottesville Foreclosure

Buying A Charlottesville Foreclosure – Multiple Offers

Buying A Charlottesville Foreclosure – Multiple Offers

Buying a foreclosure can offer the opportunity to get a great deal. These homes are usually listed at a discounted price. Sometimes the listing may see several price reductions. However there will come a time with many of these listings when the price will drop to a really good price and then we will see the offers come in. All of a sudden there are multiple offers. Many purchasers are not prepared to be in a multiple offer situation. This video will explain what is meant by your “highest and best offer” and will talk about the process of making an offer on a Charlottesville foreclosure.

Please email me if you would like a list of Charlottesville foreclosures for sale, or bank owned properties in any of the Central Virginia counties.

Buying A Charlottesville Foreclosure – Part 1

Everyone has listened to the news and is familiar with the growing number of foreclosures across the country. While Charlottesville and Central Virginia do not have as many bank owned properties on the market as are seen in many parts of the country, we do have them. Because of the possibility to purchase a Charlottesville foreclosure for a very good price, there is a lot of interest in these homes. We see both investors and buyers looking for a home to live in themselves who are curious about the foreclosure market.

What is the foreclosure market like in the Charlottesville area? What kind of REO properties do we have in our real estate market and what is involved in purchasing one?

This is the first in a series of videos on Buying A Charlottesville Foreclosure.

Buying A Foreclosure In Charlottesville – How Much Should I Offer?

In the current real estate market I am often approached by folks who are interested in purchasing a foreclosure. Bank owned properties can provide the opportunity to purchase a home at a discounted price. However people are often surprised at what exactly that price may be.

You have been hearing on tv about the glut of foreclosures. You know that the banks need to get these homes off their books. So it makes perfect sense that they would be happy to get anything for the properties just to get rid of them…wrong. The banks want to get as much as they can for the properties. They have a figure that they want to get for the home. The home has been priced according to a brokers price opinion based on market value and condition. This is usually less than comparable resales that are on the market. The Charlottesville foreclosure is already discounted and the bank usually will not take 30 cents to the dollar on this discounted price.

When the home comes on the market as a REO it is listed at a price based on a BPO. If there has not been an acceptable offer, the bank will periodically reduce the price. When the price of a bank owned home becomes attractive, offers come in. It is not unusual to end up with multiple offers and we will see the home end up selling for over the list price.

This graph shows the sold to list price ratio of foreclosures in the greater Charlottesville real estate market. Note that this ratio is based on the sale price as compared to the original list price, not the final reduced price. You can also see how much lower the REOs are selling for compared with the conventional sales.

As you can see the foreclosures in the Charlottesville real estate market are selling on average for approximately 82 – 88% of the list price. Yes, you can make an offer, but don’t expect to be able to get the property at 1/3 of the list price. I am not saying that it never happens, but it is not at all the norm.

Charlottesville Virginia Real Estate News

The March edition of my newletter Charlottesville Virginia Real Estate News is hot off the presses.

You may be interested in reading this issue which deals with the following topics:

Buying a distressed property, foreclosure or short sale, takes patience.
Why it is important to verify the information in the public records before putting your home on the market.
Selling your home – Find out what improvements are cost effective.
More information for sellers – Spring cleaning for the exterior of your home.
Make sure you understand disclosure requirements when you are selling your home and avoid a lawsuit later.

Read Charlottesville Virginia Real Estate News.

If you would like to subscribe to the newsletter, email me at [email protected] and I will put you on the mailing list.

Is That Foreclosure Really A Good Deal?

Many people are exploring the idea of purchasing a foreclosed or bank owned property. They have heard stories of great deals to be had on buying a REO. And while these homes may be obtained at a discounted price they may or may not be a great deal. Usually these homes will require some amount of remodeling. Every now and then you find one that is in move in condition, but more often than not extensive remodeling is required to end up with the home of your dreams. Even if the home looks good on the surface the homeowner who was struggling to make mortgage payments for a time before the home was foreclosed on has probably deferred maintenance on what may be crucial systems in the home. Before you make the decision to buy it is necessary to carefully weigh the hidden costs in order to answer the question “should you buy a fixer upper”.

If you woud like a list of the foreclosures for sale in a particular area, contact me; I would be happy you a list of Charlottesville foreclosures for sale.

This article may provide you with some helpful information.

(New!)

How to Assess the Real Cost of a Fixer-Upper House

When you buy a fixer-upper house, you can save a ton of money, or get yourself in a financial fix. Read

Visit houselogic.com for more articles like this.

A Thanksgiving Gift From Fannie and Freddie

Fannie Mae and Freddie Mac have given overextended borrowers a Thanksgiving present. The mortgage giants have temporarily suspended foreclosures through January of 2009. They have directed their loan servicing organizations and attorneys to suspend foreclosure sales and evictions on occupied single family homes. This has been implemented as support of the modification program which was announced on November 11 and is due to begin on December 15.

Inman News has published an article going into more detail on these new developments. According to the article “Fannie’s streamlined modification program is aimed at the highest risk borrower who has missed three payments or more, owns and occupies the primary residence, and has not filed for bankruptcy. The program creates a fast-track method for getting troubled borrowers into an affordable monthly payment through a mix of reducing the mortgage interest rate, extending the life of the loan or even deferring payments on part of the principal. Servicers have flexibility in the approach, but the objective is to create a more affordable payment for borrowers at risk of foreclosure.”

This new development should offer a chance for many borrowers to keep their homes and avoid foreclosure. According to Inman Freddie Mac expects to approve workouts on 84,000 or an estimated 140,000 who are delinquent on Freddie Mac owned mortgages.

To read the article click here.

Should I Invest In a Foreclosed Property?

We have been reading about the increasing number of foreclosures all across the country, and while Charlottesville, Virginia has not been hit as hard as many areas, it is no exception to this growing trend. You may be thinking that the purchase of a foreclosure would be a good investment opportunity. Before making that step it is important to understand the foreclosure process and to realize what is the best stage in that process in which to time your investment.

There is a good article by Glen Beck titled Not All Foreclosures Are Created Equal in todays Realty Times. This article explains what is involved in investing in foreclosures in the various stages of the foreclosure cycle. According to Mr. Beck:

"By far the best, easiest, safest, and most lucrative way to buy foreclosure properties at this time in the cycle is to be buying at the third and final stage of the process, that being bank owned properties (REO's) after the auction is over. Because of the huge volume of foreclosures now on the market at record levels, the huge number that will be coming in over the next 12-18 months, banks are lowering their prices daily just to move the inventory."

In addition Mr. Beck states that "As an investor and licensed realtor that has bought homes in all stages of the foreclosure process, for myself and amy investors and clients, I am directing my clients to take full advantage of what could be one of the best foreclosure buying markets we will ever see."

If you would like information on Charlottesville, Virginia foreclosures or Albemarle foreclosures, Fluvanna foreclosures, Louisa foreclosures, Orange foreclosures or Greene foreclosures, give me a call. I would be happy to speak with you about this section of our local real estate market.

Additional information on foreclosures:

Foreclosures – Not Your Typical Real Estate Transaction – Part 1

Foreclosures – Not Your Typical Real Estate Transaction – Part 2

Foreclosures – Not Your Typical Real Estate Transaction – Part 3

Contact

Pam Dent

, e-PRO, SRES, NHD, REALTOR®, Real Estate III, Charlottesville, Virginia at 434 960-0161, [email protected], to list your property for sale or to buy a property in the following areas in Central Virginia: Charlottesville, Albemarle County, Keswick, Glenmore, Ivy, Crozet, Earlysville, Free Union, Cismont, Scottsville, Fluvanna County, Troy, Palmyra, Lake Monticello, Louisa County, Louisa, Mineral, Spring Creek, Orange County, Gordonsville, Orange, Barboursville, Greene County, Ruckersville.

To view all of the Charlottesville, Virginia and Central Virginia Homes for Sale click here and click on the mls search button.

Visit my website Jump into Greener Pastures or read my blogs Charlottesville Real Estate Talk and Charlottesville Horse Farms and Country Homes

Foreclosures – Not Your Typical Real Estate Transaction – Part Three

When a foreclosed home does not sell at auction, it becomes a (REO) real estate owned or bank owned property. Since the banks are not interrested in keeping assets, like homes, that require maintenance, they will probably be interested in selling the property. Usually the banks will get an asset managemant company to handle the sale and this comapny will then retain a local real estate agent to list the property. The property will usually be listed to sell for whatever the market will bear.

In a purchase of a foreclosure, it is important for buyers to be represented by a
REALTOR who understands the unique processes and paperwork involved in that particular kind of transaction. Each lending institution has their own addendums and special forms. Buyers of foreclosed homes should realize that it is necessary to have a great deal of patience as delays, problems and a lot of red tape are the norm. It is important for these buyers to also realize that the whole transaction is slanted to favor the bank. In a typical foreclosure purchase the buyer waives many of the rights that they may have in a traditional home purchase. For that reason, it is a good idea to have the advice of an experienced real estate attorney as well as a buyer’s agent who understands the foreclosure process.

However, for the educated buyer the purchase of a foreclosed home may present a very good opportunity.

If you are considering the purchase of a foreclosed home, I will be happy to talk with you about this unique process. I would also be happy to help you find foreclosed homes in the Charlottesville and Central Virginia real estate market that may suit your particular wants and needs.

Virginia Now in Top Ten States for Foreclosures

According to the July Foreclosure Market Report just released by Realty Trac, the leading online foreclosure market report, Virginia is now among the 10 states with the most foreclosures. The three states with the highest foreclosure rates are Nevada, California, and Florida. The additional states in the top ten are Arizona, Ohio, Gerogia, Michigan, Colorado, Utah and Virginia.

In Virginia the areas with the most foreclosures are Northern Virginia, Prince William County and Fredericksburg. We are lucky that the Charlottesville area, although we are seeing an increase in foreclosure activity, is still seeing much less than many parts of the country.

However some foreclosures are starting to come onto our local market. These can present a valuable market for the savy buyer.

To read the entire article click here.

Contact me if you would like to discuss the possibility of finding a foreclosure or would like information on the Charlottesville real estate market.

Click here if you would like to search all of the homes currently on the market.

Does “As Is” Mean I Can’t Have A Home Inspection?

Does “As Is” Mean I Can’t Have A Home Inspection?

Buying A Charlottesville Foreclosure – Multiple Offers

Buying A Charlottesville Foreclosure – Part 1

Buying A Charlottesville Foreclosure – Part 1

Buying A Foreclosure In Charlottesville – How Much Should I Offer?

Buying A Foreclosure In Charlottesville – How Much Should I Offer?

Charlottesville Virginia Real Estate News

Is That Foreclosure Really A Good Deal?

How to Assess the Real Cost of a Fixer-Upper House

A Thanksgiving Gift From Fannie and Freddie

Should I Invest In a Foreclosed Property?

Foreclosures – Not Your Typical Real Estate Transaction – Part Three

Virginia Now in Top Ten States for Foreclosures

Areas of Expertise

Contact Pam

Does “As Is” Mean I Can’t Have A Home Inspection?

Buying A Charlottesville Foreclosure – Part 1

Buying A Foreclosure In Charlottesville – How Much Should I Offer?

Areas of Expertise

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Contact Pam