How to short sale
How to short sale is burning question for many home owners in this market. Many owners realize that just letting go of a home is an even bigger disaster for them. I will give you a couple of quick tips to navigate through a successful short sale. First if you are a home owner who has simply lost value in your home and not had a life changing event that has hampered your ability to keep up with your mortgage i.e.. job loss, reduced pay, loss of a spouse, etc. A short sale may not be an option for you. Call a certified short sale agent to discuss further.
Step one- Collect all notices from your bank
Step two- Collect all financial documents; pay check stubs, bank statements, wills, tax returns
Step three- Prepare a letter of explanation to your mortgage lender stating the reason you are behind and need a short sale.
Step four- Contact a licensed Realtor that has short sale training. Don’t worry you wont have to pay them for their services. The bank will cover the commission earned in the short sale.
Remember for a successful short sale to happen you have to have your documents ready to go. A short sale can be a long process but in the end can save you from years in damage to your credit. Agents with training in short sales can be identified with the SFR designation after their names. This stands for Short Sale and Foreclosure Resource.
Krishna Perkins, ABR, SFR
www.sahomelocator.com
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
Buying foreclosures
Buying foreclosures is a hot topic for first time buyers. Here in San Antonio the first most asked question I get from first time buyers is “What kind of deal can I get on a foreclosure?” The second most asked question is “If I get an inspection can I negotiate a lower price for repairs?”
To answer the first question. Right now the average sales price to list price ratio is 97.1% for foreclosures sold in the last two months as of today July 23rd. This means foreclosed homes are selling on average for 2.9% less than current list price. In some cases the sales price is much lower than list price in others the sales price actually higher than the list price. HUD foreclosures are currently running a special first time buyer program that allows buyers to purchase a home with as little as $100 down payment. The buyer still has closing cost but this program has been such a success that buyers are finding themselves in competition with multiple offer situations. Buyers can also ask for up to 3% closing cost for HUD homes. The biggest twist this prgram brings to the market is that the buyers must offer a full price offer to get the $100 down program. With that in mind I think the foreclosure market is a great place to start looking for deals that might fit buyer needs here in San Antonio.
In reguards to repairs or reduction in price. Don’t hold your breath. Be prepared to pay for all repairs out of your own pocket. In some cases buyers can find a Fanne Mae home that offers a rehab loan or a HUD that has a repair escrow already attached to the listing for a specific repair HUD has identified as a must fix.
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
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
Buying a forclosure
Well, today is the worst day of a home owners life here in Bexar County. This morning at the court house steps there will be a record number of San Antonio homes sold to the highest bidder every first Tuesday of the month. Some homes are sold due to unpaid property tax, mortgage and HOA dues. This is an unfortunate end many home owners will face during this economic down turn. For those of you brave enough to buy a foreclosure be prepared for some competition and lots of research before you bid.
First you will need to register with the tax office in Bexar County if you plan on buying a Tax foreclosure. This can take some time so get down there a few weeks early. The fee is only about $10- $20. They will prepare a certificate for you as proof you do not owe taxes on any property in the county. It’s good for about 3 months.
Second you will want to gather as much information about the properties being sold at the auction. Properties to be sold will be posted at the steps of the court house. You can also view the documents online about two weeks before the auction. You will want to have the title examined to make sure there are not an liens that can not be wiped out by the auction. A title company can do this for you or you can go directly to the court house and as for the records. Any liens that can not be wiped out will have to be paid by the highest bidder so be careful.
Next make sure the property is still standing. Many times a property may be schedule to be torn down by the city for code violations. Yes! And they still try and sell it to you. It’s your responsibility to know the property condition. It’s not easy either. Many times people are still living in the home so don’t go knocking on the door.
Finally make sure you have cash for your purchase. These foreclosures sold on the steps of the court house are cash only. You don’t have to carry actual cash. You can bring a cashiers check. No loan approvals etc. You have to finish the transaction that day.
Good luck!
