When the owner of a home can no longer make his mortgage payments and the lender or bank holding that mortgage repossesses the property, the property is a foreclosure and becomes a bank-owned (sometimes called REO, real estate owned) property.

Since banks do not want to be property owners, they are often times motivated to sell these properties quickly and at attractive prices to get them off the books, so a lot of people think of foreclosures as good deals; however, there are a few caveats you need to be aware of before jumping into the foreclosure market.

1. You can have the property inspected, but most of these properties are sold “as is” meaning that the bank will not make any repairs to the property.
2. Often times these properties need a lot of work to make them livable, so if you don’t have the funds readily available to make the repairs this kind of house might not be an option for you, or you might need to pursue an FHA 203K type of loan.
3. Sales on foreclosures can take several months to close.
4. The bank will not warranty anything regarding the property.

Curious about foreclosure properties that are available?  Use our link to search foreclosures for free.

Looking for a good deal that is not a foreclosure?  Check out our Best Buys.

Wishing you sunshine everyday and the home of your dreams,
Jeri

Everybody wants to get a good deal on whatever they buy and right now a lot of people are looking at short sale properties thinking that they will be able to get a bargain on a house.  By now, most buyers are aware that buying a short sale can take a long time and they are prepared to wait months on end for the seller’s bank/lender to make a decision in order to strike a super deal.

The problem is; however, that often times a short sale is not a deal at all.  The goal of the bank/lender holding the mortgage is to recoup as much money as possible.  If the owners purchased the house during the housing boom and didn’t have much of a down payment, odds are that the house isn’t worth what they owe on the mortgage and won’t even appraise for what is owed on the mortgage.  However, that doesn’t stop the bank/lender from trying to get a buyer to purchase the property for the appraised value or for more than the appraised value.

Most residential contracts have an appraisal contingency stating that if the house does not appraise for the purchase price, the seller will be asked to reduce the purchase price to the appraised value.  Let’s face it, purchasing a house in today’s market at the appraised value is quite easy to do, so why would anyone put themselves through the anguish of trying to purchase a short sale property if he is not going to get a terrific bargain.

Recently, Elizabeth Razzi wrote a great article in the Washington Post, entitled, Where Short Sales Stumble, explaining why most short sales never end as a successful sales transaction.

If you are thinking about buying a home, consider learning about the home buying process including how to get pre-approved, house hunting tips, the components of an offer, negotiation strategies, how to buy a short sale or foreclosure property and much more by attending our Seminar on June 29^th, 7:00-8:00 p.m. at the SunTrust Bank, Mays Chapel Branch.

Wishing you sunshine everyday and the home of your dreams,
Jeri

Thinking about refinancing, or better yet, getting calls from mortgage companies about refinancing?  Be very careful before you take the deal.

One ploy that some of the folks in the mortgage industry seem to be using to get business these days involves calling someone with a mortgage and telling them that they can refinance at a very low rate with no cost out of pocket.

True, you can do this but although you might not have to pay anything upfront, it will cost you.  How?  When you refinance, the mortgage company will roll all of the costs into the new mortgage including the costs to buy down the rate.  So, although you are getting a low rate, you are paying for it and in most cases the mortgage amount will be higher than it was before you refinanced.

Check with your current lender, an attorney, or a realtor that you trust to look into this for you before you sign anything.

Just remember, if it seems too good to be true, it probably is.

Wishing you sunshine everyday and the home of your dreams,
Jeri

P.S.  If you are thinking about buying a home, consider attending our free Homebuying Seminar.

Selling a home in today’s market can be challenging, but you can stack the odds in your favor by staging your home before you put it on the market.  After all, you never get a second chance to make a first impression.  Here are 5 staging tips:

1. de-clutter and de-personalize the house
2. eliminate excess furniture, accessories, and clothing
3. paint and remove wall paper
4. clean everything including the insides of appliances
5. keep the house tidy during the entire selling process

For specific details to help you stage your home, get our FREE brochure, Home Staging: Tips & Tricks to Help Your Home Sell Quickly.

Wishing you sunshine everyday and the home of your dreams,
Jeri