Distressed properties normally go through 3 stages. Each has different advantages and disadvantages. 

 

The USDA Rural Mortgage Loan was one of the only remaining 100% loan-to-value opportunities for lower income buyers who do not have a lot of savings for downpayment. Bobby Wallace from Anchor Mortgage sent me a very timely reminder email that I thought would be good to share with the followers of this blog:

The changes being implemented as of October 1st are:

"USDA will now start requiring a Mortgage Insurance Premium on these loans. USDA will now require a 0.3% annual mortgage insurance fee. While this fee is an annual fee, it is collected monthly in escrow like most Mortgage insurance payments. Another major difference between USDA’s annual MI premium and most other premiums. USDA’...

Cramped Quarters? Still Renting? Invest Your TAX REFUND Smartly!

This is the time of the year when most employed people file their taxes and may receive a refund from Uncle Sam. For many people, this refund just goes into their general bank account, and before they know, it's gone (again!).

IF YOU ARE RENTING: A wiser investment would be to look at purchasing a home using your refund as downpayment. Consider the current situation:

Prices are low, and there are GREAT DEALS out there... Mortgage interest rates are VERY LOW and most probably will start climbing up when higher inflation hits us (have you seen the price of gas lately?) If you buy a primary residence, next year Uncle Sam...

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...

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...