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

 

Time is a scarce resource. When you are searching for the right home, it pays to have the best technology tools at your disposal! We are now offering a new service: Automatic daily, weekly or bi-weekly alerts, which sends all new listings that fit your search criteria AUTOMATICALLY to your email. So you don't have to spend as much time looking online, or starting from scratch every time you sit down to search.

If you would like to set up your own listing alert, please visit our sister website, FindHomesInCharleston.com . Just click on "My Tools" and scroll down to "My Alerts.

 

 

"In today’s world we often find our experiences with people to be brief and selfish.  Rarely do we find honesty and empathy in our contracts with people in business. Occasionally, however, there are those who practice honesty, kindness and empathy in all their affairs.  I found Alan Donald to be such a person.

During a difficult time in my life, facing foreclosure, Alan worked diligently, for 19 months to turn my situation around.  There were many times that I ran short on patience.  Banks can be heartless, not to mention towers of inefficiency. 

Alan persisted, patiently, one day at a time, going forward, never giving up.  Never did he show signs of frustration.  I am grateful – for Al...

Using Renovation Loans

USING RENOVATION LOANS

Given the proliferation of short sales, foreclosures and lender-owned properties (REOs), it is not uncommon for buyers to come across homes that may be very well price (a "steal") but need substantial renovation work to bring them up to the desired quality and functionality level. 

Many of these homes have been neglected for a long time: Initially their owners (who experienced a financial hardship of some nature) did not have the money or the inclination to do normal maintenance and upkeep. Then the home is normally vacant for a period of time, while the lender takes it to foreclosure and resolves all the legal title issues to be abl...

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...

13 Absurdities of Short Sales

At our Keller Williams annual convention I had the pleasure of attending a panel on Short Sales that included Edward Goldfarb, a KW colleague in Florida who is a short sale expert. He shared with us a white paper on the absurd current situation regarding short sales, including these 13 absurdities:

Homes must be sold over and over because the banks, investors and MI companies take so long to approve the Short Sale that the first, second, third or even more buyers walked away in desperation. After taking months for Short Sale negotiations, the banks will foreclose on a home only to turn it over to the REO brokers who sells the home within days for thousan...

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...

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...

SHORT SALE PROGRAM PROPOSED

Yesterday I heard on the radio that the Obama administration is thinking about increasing their support to lenders so that they consider more short sales instead of foreclosures.

However, the program said that what the government has in mind is to provide an "incentive" payment of $1,000 to the primary lienholder, $1,000 to the second lienholder and $1,500 to the homeowner to encourage short sales.

Well, let me tell you: This is NOT going to help much! We are talking about tens (or hundreds) of thousands of shortfall in most cases. In a $300,000 home that was originally sold at $400,000 and financed with an 80/20 mortgage loan combo ("normal" practice to avo...