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 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.

Krishna Perkins ABR, SFR

Covenant Partners
http://www.sahomelocator.com

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.

Krishna Perkins ABR, SFR

Covenant Partners
http://www.sahomelocator.com

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.

Krishna Perkins ABR, SFR

Covenant Partners
http://www.sahomelocator.com

Encino Mesa market report contains thirteen homes. This San Antonio subdivision currently has four homes available for sale, one home is under contract and eight homes have been sold in the past three months form today. The average sales price per sq/foot in Encino Mesa is $80.49. For a more detailed look at the market report for Encino Mesa click here. And as always, remember to use a licensed Realtor for all of your home buying and selling needs.

Krishna Perkins ABR, SFR

Covenant Partners
http://www.sahomelocator.com

San Antonio-Ranchland Hills subdivision housing market summary consist of seven homes total. Five homes are currently still available for sale, one is pending final close and one home has been sold in the past three months. San Antonio-Ranchland Hills is located at the corner of O’Connor and Stahl Rd on the North East side of San Antonio 78247. The average price per sq/ft in Ranchland Hills is $67. Over all this is an older subdivision with starter home prices, located near bus lines, walking distance to schools and groceries. For the best results in your home search or sale be sure to use a licensed Realtor.

Krishna Perkins ABR, SFR

Covenant Partners
http://www.sahomelocator.com

San Antonio-Rose Meadows housing market report is a little thin. It’s not a very big subdivision but the houses are only a few years old to brand new. There are two builders working in the subdivision and both are building some nice houses. There are eight homes total in this report. Six homes are available, one is pending sale and one has been sold in the past three months. To view the three month market summary click here. Be sure to consult a licensed Realtor when buying and selling real estate.

Krishna Perkins ABR, SFR

Covenant Partners
http://www.sahomelocator.com

San Antonio-Royal Ridge housing market report has 39 homes. San Antonio-Royal Ridge is a rather large subdivision consisting of some older town homes, older homes and a brand new section near completion. I actually sold several homes in this subdivision and think the location has a lot to do with it. Located just off I-35 outside loop 410 and NE schools I higly recommend. There are 22 current listings available for sale, 1 home is pending close and 16 homes have sold in the past 3 months. Click here to view the full market summary. As always I encourage buyers and sellers to seek out a licensed Realtor when buying and selling real estate.

Krishna Perkins ABR, SFR

Covenant Partners
http://www.sahomelocator.com

San Antonio Crestridge market summary report consist of seven total homes in the past three months. Four homes in San Antonio Crestridge are currently for sale and three homes have been sold in the past three months. The average price per square foot for homes sold is $76.46. This subdivision is located in North East ISD school district in zip code 78239. Homes in this subdivision were built in the 1990’s time frame and start in the low $90,000 price range. For the complete market summary of this subdivision click here. Always consult a licensed Realtor for the most up to date information when buying or selling.

Krishna Perkins ABR, SFR

Covenant Partners
http://www.sahomelocator.com

Krishna Perkins ABR, SFR