How to buy foreclosures
How to buy foreclosures is at the question at the top of the list for many home buyers these days. Here I will outline a few short points for you to follow in your search for buying foreclosures. In most of these cases you need to find an agent that specializes in foreclosures to have the best results. Going directly to the bank is a waist of time. You will be directed to find an agent. Beware of any list that are sold describing foreclosure details. Many of these listings are premature and can put you in an a unsavory situation if you go knocking on any doors and find the home owner still there.
Tax lien foreclosures can be purchased with cash at the court house steps. You must have a cashiers check to purchase a home that same day if you want to buy a home for cash (NO LOANS). Check with your local court house for procedures. Some Realtors may offer help for a fee in doing this. Be sure you know what you’re doing there could be additional taxes owed, condemnation of the property, additional liens and more.
HUD home foreclosures must be purchased through an agent/broker. You can search for HUD foreclosures at Bid select.com but you must have an agent/broker submit the bid for you.
Fannie Mae home foreclosures will be listed with a local broker in the area you are shopping. Any buyers agent with mls access can show you the home and submit Fannie Mae bids for you.
Bank Repo homes. This includes all banks, Bank of America, Wells Fargo, Chase etc. These listings will also be with a broker/agent.
Buying a foreclosures can be a complicated task. If you are serious about buying a foreclosed home do your home work on getting signed up with an agent that is trained in foreclosure sales. SFR stands for Short Sale and Foreclosure Resource. This means the agent has advanced training in dealing with foreclosures and short sales. Chances are even if you do not ultimately end up buying a foreclosure you will have an agent with experience.
Good Luck!
Krishna Perkins, ABR, SFR, New Home Certified
Covenant Partners
http://www.sahomelocator.com
Buyers and Sellers Beware the Next Tax Credit Deadline.
Update: GAME OVER. NO MORE FREE CASH. Only active duty millitary and government employees need inquire about $8000 tax credit.
Buyers and sellers beware the next tax credit deadline. If next summer yields the buying and selling frenzy many real estate professionals are hoping for, home buyers and sellers should plan ahead now. Waiting until the last minute to close for first time homebuyers wanting the $8,000 tax credit or move up buyers wanting the $6,500 tax credit is a big mistake. Banks have proven to me that they are having major trouble making closing dates. I have had buyers turn over completed files to lenders in record time only to have the file sit in some office for over two weeks before anyone put a set of eyes on the file.
The major draw back for buyers and sellers alike is what to do if the file is unexpectedly closing late. Buyers have leases they are working with and sellers are also faced with moving out early to turn over the property on time. In many of the situations my clients faced this year temporary lease backs and buyer leases were worked out. However this may not be an option for everyone, due to the risk involved. The best advise I can give for buyers is to shoot for a close 30 days before you have to give up your lease. Sellers should consult with the listing agent to keep tabs on the status of the loan to time up their move.
Covenant Partners
http://www.sahomelocator.com
HUD homes in San Antonio
foreclosed home
HUD homes in San Antonio have been selling like hotcakes. While the now expired tax credits helped sell some of these homes the HUD $100 down payment program that is still in effect is largly responsible. Without the $100 down program, buyers are required to bring a down payment of 3.5% to close in addition to closing cost that can run as high as 6% under an FHA loan. HUD also offers 3% closing cost on top of the $100 down program. Buyers with low cash reserves have been buying up homes in the San Antonio area at a quick pace. Over the last 6 months as of July 13, 2010 Hud homes are selling on an avg of 47 days. See the previous 6 months of sales here. If considering a HUD home buyers should consider all options and steps in this transaction with care. Speak with your agent in detail about the pros and cons of this type of transaction or give me a call.
Covenant Partners
http://www.sahomelocator.com
FHA Policy Changes
FHA Policy changes are right around the corner. The largest key change home buyers should be aware of is seller concessions. Beginning sometime this summer home buyers can only get up to 3% in seller concessions instead of 6%. This will dramatically change the cash requirements borrowers are accustomed to at closing. To view the other FHA changes click here.
Covenant Partners
http://www.sahomelocator.com
San Antonio Foreclosure
San Antonio foreclosure market summary describes homes that have been sold and are under contract in the past three months. There are 48 total foreclosures considered in this report from mls areas 1400, 1500, 1600 and 1802 in the past 3 months. Of the 48 North East San Antonio foreclosures 36 have been sold in the past 3 months and 12 are currently pending final closing. The average price per sq/ft for sold foreclosures is $50.35 and the average days on the market is only 56 days. This report tells me that market conditions are strong and buyers considering buying a foreclosure should be ready for some competition when buying a foreclosure. To view the market report click here. When buying and selling real estate be sure to consult a licensed Realtor.
Covenant Partners
http://www.sahomelocator.com
What First Time Homebuyers Need to Know
First time home buyers
What First time homebuyers need to know by: REBAC, is a great read for anyone looking to purchase a home in the San Antonio. There are many great deals in our San Antonio market, new homes, foreclosures, shortsales and resale homes. Get the information you need to know to make the right purchase right here.
Covenant Partners
http://www.sahomelocator.com
Water Saving Landscapes
Water saving landscapes can be a hot selling feature especially when you live in an area susceptible to drought. We have just come out of a record setting summer in San Antonio for 100 degree heat in 2009. With dead lawns, sky rocketing water bills and fines reaching hundreds of dollars, more eco-friendly lawns are catching on here. Drought resistant plants (AKA xeriscaping) need less water and can add lasting beauty to your home. When considering the best plants for your home, visit your local nursery or visit the saws website for tips and links to more water saving landscape ideas.
Krishna Perkins
Home Owners’ Insurance
Home owners’ insurance should be among your top priorities when searching for a home. Your monthly payment will be determined by many factors. Be sure to shop around for an insurance provider with a good rating and the coverage you need. Don’t forget to consult with your insurance company early when you find a home. Your insurance company can tell you if there have been any recent claims on a home that could effect your decision to make the purchase. Also a big concern for the San Antonio area is flooding. We have flood zones all over and they do change from time to time. Flood insurance is not included in a regular policy and can be very expensive.
Current home owners can also benefit by shopping around since rates change every year and switching companies can save. In fact I’m going to switch my policy this year. Yikes! I’ve been over paying.
Visit The Texas Department of Insurance to compare companies
Krishna Perkins
Termite Inspection
Termite inspection is often a forgotten expense buyers face and neglect on a regular basis. Just recently I noticed some termites in my own bathroom sink! They had come out of the wall behind my mirror and fell into the sink. I later found out that they were coming in through the plumbing. It’s a miracle I found them before they could do more damage. The home had a previous inspection before we bought it and there were no termites at the time. However, it did have previous treatments for termites before the inspection.
My pest control tech explained to me that there was a recent spike in activity due to the rain we just had. Here in San Antonio we have Subterranean termites. Subterranean termites will start swarming in the spring usually, but when in a drought you are more likely to see them after some much needed rain comes in, so keep your eyes open. They can come through plumbing space in the slab or shifting cracks.
Don’t let termites go unchecked. An inspection for a buyer can start around $100. Extreme damage can cost thousands. Don’t be affraid to ask for a discount or shop arround. If you own your home many pest control experts will give you a free inspection and only charge for the treatment. Treatment can be around $350 depending on what needs to be done and what type of home you have. After each termite inspection or treatment, pest control will leave a sticker under the kitchen sink (it’s the law). Also termite reports, if available, will be listed on a seller’s disclosure notice when a house is listed for sale. This information will serve you in looking for future termite activity in problem areas.
For detailed pictures and descriptions of termites click here.
Covenant Partners
http://www.sahomelocator.com
Energy Efficiency
‘Energy efficiency’ is here to stay. What are you going to do in order to separate your self from the competition? Home buyers and sellers can both make wise choices by reading this.
You can start by auditing your home’s features in a list format to focus your attack.
Energy Star items in the home:
Air conditioner
Ceiling fans
Food disposal
Heater
Refrigerator
Stove and range
Water heater
Next list the energy saving structural features:
Radiant barrier
Insulation rating
Windows
Weather striping
Ventilation
Finally, consider the cost of adding new items based on your own personal budget and goals for how soon you need to sell. Consult a local agent for a list of recent sales statistics to give you an idea of how far you should go with upgrades. The sooner you start adding these upgrades to your home the sooner you will start saving money on a monthly basis. And when it comes time to sell you will have a great list of features to market your home to potential buyers.
Note: Your local energy provider may offer rebates for adding energy saving features to your home. Time and availability is limited on these rebates so act soon to maximize your savings. Our local San Antonio provider is CPS energy.
Krishna Perkins
