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.

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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.

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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.

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?

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

Virginia Now in Top Ten States for Foreclosures

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

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

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