THE RISKS OF BUYING DISTRESSED HOMES, FORECLOSURES AND REOs!

It seems that every time we meet with new buyers, the first word that comes out of their mouth is “foreclosures”. Buyers have been bombarded with news about the “state of the market” and the amazing buying opportunities that are available to them. Many buyers are not aware that there are three “stages” that a distressed property goes through, and that each of these may present different challenges and opportunities. Here is a summary of these stages:

1.      Stage 1 – Pre-foreclosure

When the homeowners experience a hardship that prevents them from keeping current with their mortgage payments, they normally start exploring re...

Freddie Mac Summer Promotion on Foreclosed Homes

In an attempt to lower their inventory of foreclosed homes ASAP, Freddie Mac recently launched a promotion to attract buyers and their agents.

With this promotion Freddie Mac (Homesteps) offers to pay up to 3.5% of the purchase price toward buyer's closing costs and a bonus to their selling agent for contracts (from owner occupiers only!) ratified from May 16th until July 31st, 2011 that close on or before September 30, 2011. 

Also a two-year limited Home Protect home warranty that covers electrical, plumbing, air conditioning, heating and other major systems and appliances, plus up to 30% discounts on appliance purchases is available fo...

SAVE BIG on REOs!!

RealtyTrac reported today that Bank-owned home buyers saved an average of 36 percent in 2010:

"More than 500,000 buyers purchased a bank-owned home in 2010, down from 750,000 REO buyers in 2009. But 2010 REO buyers got better deals than 2009 buyers - paying an average sales price that was 36 percent below the average sales price of non-foreclosure properties. That was up from an average discount of 33 percent in 2009 and 28 percent in 2008, and buyers in some states saved more than 50 percent on average in 2010..."

Check out a list of foreclosed & distressed homes

Want to save BIG? Call us today 843-416-1434.

 

 

 

FHA Extends Anti-Flipping Rule Exception 

TOP TEN REASONS WHY WE WOULD CHOOSE NOT LIST YOUR HOME

Why would we say such thing? After all, aren’t all Realtors supposed to list whatever they can, whenever they can?  

You see, we believe that transactions must be Win-Win for all the parties involved. If we list your home and are not able to sell it, you will still have your home to sell, we all wasted a few months, our relationship with you suffers, and our reputation as professional, effective agents may take a hit. This is a lousy long-term business strategy!

Professional, effective and efficient Realtors must be very careful about which homes they choose to carry in their inventory. After all, their objective should be to SELL ...

Woo hoo, I love getting testimonials like this one!

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" To Whom It May Concern:

About a year ago, I faced a personal hardship and a dilemma of what to do with my condo, since I could no longer afford it. Given my financial situation at the time, I thought I only had two options: Sell it or let it go to foreclosure. I was not aware of any other options for someone in my situation.

At that time, I contacted Alan Donald to get his advice. He explained very thoroughly all the additional options available to me, including the pros and cons of each scenario. This information was very useful to allow me to reach a final decision. After evalu...

Bank of America announced this week that they were freezing all their foreclosure processes until all the foreclosure documentation had been reviewed. 

In its most recent report to shareholders, BofA disclosed that it solf $453 million in foreclosed properties during the second quarter of 2010. It still has an inventory (REO's) of $1,740 million worth of foreclosed homes it needs to dispose of.

Bank of America is the fourth lender that has temporarily halted foreclosures pending review of their documentation. The government is increasingly concerned that lienholders may not be carrying due process and correct documentation for their foreclosures, and lenders like BofA want to make sure ...

Why not be foreclosed? Why sell short?

Experienced professionals provide this list of reasons:

Avoid the foreclosure stigma– Homeowners will always have to disclose that they had a foreclosure on any mortgage application and (many job applications) that they submit in the future. This can have an adverse affect on their future mortgage rates. Foreclosure is asked about specifically in credit inquiries. There is no seven-year time limit on this item.  Protect credit score– Credit scores will be lowered by 300-plus points (per loan) by foreclosure. The impact of a short sale—about half that much.  Improve eligibility for a government insured loan– The homeowner will be ineligible for...

Tips for Buying Lender-Owned Properties (REOs)

by Alan Donald, Team Leader, BuyHomesInCharleston.com

Every buyer in this market wants a bargain! And while you may want to hit the jackpot by buying foreclosed properties – those homes that are offered as real estate-owned (REO), lender-owned or corporate-owned properties - it is essential to understand the differences between buying a “regular” listing and buying an REO.

Lenders are not in the business of owning real estate. Once they decide to foreclose on a home and on-sell it, they are looking for:

More Money More Certainty Less Time Minimum Additional Investment

In addition, you should know that:

REOs are normally PRIC...

This new SHORT SALE listing is a 3 bedroom, 2 bath Duplex in The Gates @ Wescott Plantation, Summerville. It just needs a little TLC (paint, cleaning) and you could buy this home and end up paying less than rent! Dorchester II schools, easy access to Charleston International Airport and Boeing. 

Great for investor or owner-occupier with patience - short sale may take some time...

More details...

Are Lender-Owned Properties (REOs) Smart Options for Buyers?

By Alan Donald, BuyHomesInCharleston.com

It seems that one out of three properties in the Charleston Metro Area is either a SHORT SALE or an REO (*)

(*) An REO (Real Estate Owned) is a lender-owned property - a property that has already been through foreclosure and is being offered for sale directly by the lender after taking control of it. 

Normally these properties are offered at very attractive list prices, so many of those properties offer terrific buying opportunities. But, like the old saying says: "Don't judge a book by its cover", there may also be challenges associated with buying REOs. Here is a list of potential p...

Aaaarghh! I Just Can't Decide!!! Let Me Ride On a Helicopter...

As inventory increased in the years following the "sub-prime meltdown" and we switched from a "seller's market" to a "buyer's market", many buyers experienced MORE DIFFICULTY in making a puchase decision.

(OK, hold it, wasn't it supposed to be easier, now that there are more choices available...??)

The fact is that having MANY options sometimes OVERWHELMS buyers and causes BUYER PARALYSIS!

Buyers are comparing different types of homes (private sales, short sales, lender-owned, foreclosure auctions) that have different advantages and disadvantages, features. special prices, incentives and gimmicks.

To keep the buying proc...