West Metro Real Estate Blog
5 Steps to Successfully Buying a Foreclosure
Buying a foreclosed property can be a great investment, but please also know there are many pitfalls in the process, and the term “Buyer Beware” has never been more prevalent.
Step 1 - Do Some Research
Start by doing research and searching available properties. The internet is a wonderful place for you to research potential real estate from your couch. Determine your search parameters, view the properties, you can select only foreclosed properties if you so choose, but I would advise you to view foreclosed, short sales and traditional listings to give you an idea of market values for all. Start your search today by clicking here.
Step 2 – Choose a Good Realtor®
Locate a local Realtor® that has experience with Foreclosures. There is nothing more valuable to a buyer than an experienced agent who has been down this road many times before. They should be able to tell you what to expect in a normal foreclosure purchase transaction as well as help you plan for the unexpected(you would be surprised how often the unexpected rears its
head). Many people may tell you it is better to wait to contact a real estate agent, but I think this step is invaluable. A local agent will gladly guide you on a plan of action and set your expectations before you invest significant time and money. Do you know what an “As Is” purchase really means? Ask your new agent. Once you find the right agent for you, engage
(hire) them to use their services, take advantage of their experience, and give yourself an advantage. Buyer agents
will work for you! If you call the number on the sign out driving around, that person is not representing you, they are representing the seller.
Step 3 - Find a Good Lender
Contact your lender for financing options. If you don’t have a lender you trust, ask your real estate agent to give you some referrals. This is a major factor in this process. Foreclosed homes, due to the condition of the property, have limited financing options available. If a home is in rough shape, many times FHA or VA financing may not be an option, and a buyer will need to plan to utilize a conventional financing product or cash. Make sure your lender knows you are looking to buy a foreclosure and
that they are experienced with providing financing for distressed properties.
Step 4 - Start Looking at Properties.
Set your appointment with your agent to get out there are start looking, be flexible, many times foreclosed properties are priced to sell quickly. If your agent calls you and asks you to go look today, he/she is not being pushy, they very likely have identified a “good deal” for you. Be prepared that you may not be the winning offer on the first home you write on. This is normal, but don’t let it discourage you. Be confident that when you and your agent identify a home, that you determine a real “market value” and stick to it. Many buyers in the market today get discouraged by not having their first or second offer accepted, that when they get to offer #3, they are ready to pay whatever it takes to get the home. Bad decision…be patient…trust that you and your agents opinion of market value is accurate, and don’t overpay!
Step 4 - Get an Inspection.
Foreclosed properties are distressed, meaning that the home has likely been neglected for some time and you will see the signs of neglect as you view them, but there may also be signs of neglect that are not visible to a typical buyer, so an inspection by a qualified professional is a must. Just so you know, lenders allow inspections, but their contracts state “Inspections are for information purposes only” meaning that if you find something wrong, it is not opening negotiations. Either you accept the issue, or you cancel the contract and move on.
Step 5 - Close the deal!
You can choose your own title company to close your purchase or you can use the same title company as the seller. In foreclosures, many times the lender has designated their title company in advance, and a buyer is allowed to use the same title company. Check the fees, many times if you use the same title company, the seller will pay for your owners title insurance policy, which could be hundreds of dollars. If you are not comfortable with using the sellers company, pick your own or ask your agent or lender to give you some suggestions.
Zachary Adams | Realtor | CDPE | Wright Sherburne Realty | 612-845-7890
It’s a sign of the times!
Most of us grew up thinking that if we planned well and played by the rules, we’d never have to stand by as our financial lives unraveled.
But upheaval on Wall Street, unacceptable rates of unemployment and plummeting real estate values have taken their toll. Since 2007, 7.9 million homeowners have lost their homes to foreclosure. Current estimates are that one in four homeowners owe more on their mortgages than they could get from the sale of their home. Millions more homes will be lost to foreclosure before this real estate crisis runs its course.
The sad fact is that foreclosure is not an isolated event. For months leading up to the loss of a home, financially strapped homeowners live under a cloud of uncertainty. And then for many years afterwards, the blow to credit gets in the way of buying another home or buying anything on credit. Foreclosure even complicates employment prospects.
The impact of foreclosure is huge and the sad fact is that it’s often avoidable.
As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, my mission is to provide financially strapped homeowners with options to foreclosure, ensure that they steer clear of scams, and help navigate them through the solution that best meets their needs.
Among the most important facts to keep in mind: the sooner help is sought, the better the options.
These are tough times, but more help is available than ever before. If you or someone you care about is ready to navigate away from the dark cloud of an unmanageable mortgage and realize that hope and blue skies are within reach, contact me today and let’s get started.
Zachary Adams | Realtor | CDPE | Wright Sherburne Realty | 612-845-7890
BBB says Deed 'Offer' Shady -- Indeed!
This is a reprint of an article on the Better Business Bureau of MN & ND's website:
January 5, 2012, Saint Paul, Minnesota - The Better Business Bureau of Minnesota and North Dakota (BBB) is warning consumers not to be duped by a company that’s offering homeowners copies of their property deeds for an exorbitant price - in some cases more than 40 times the price consumers would pay if they were to purchase the same copies themselves at their county offices.
The company, Deed Retrieval Department (which also does business as Deed Retrieval Services and Record Retrieval Department), has been sending Minnesota and Wisconsin homeowners letters that appear to be a bill for $87 from the U.S. government for a property deed. However, despite the fact that it looks official, it's not a bill nor is it from the U.S. government. The letter says, "Why do we believe you need a copy of your current Grant Deed and Property Profile? State Record Regulation Department recommends that all U.S. homeowners obtain a copy of their current Grant Deed." At the bottom, the letter states that the "product or service is not endorsed by any government agency." However, the BBB believes that consumers may overlook this fine print.
"In most cases, homeowners don't even need a copy of the deed to their home," said BBB President and CEO Dana Badgerow. "And if you want a copy, we advise against paying $87 to this firm or any other when you can get one for a fraction of that price from your local County Clerk's or Register of Deed’s office."
Letters from Deed Retrieval Department list an address in Champlin, Minnesota – which is a UPS Store. The company, operating under different names, also claims two additional addresses in Wisconsin; a Milwaukee address and a Madison address, both of which are UPS stores. It's likely that mail sent to any of these boxes is forwarded out of state. An alert has been added to the company's BBB Business Review, informing consumers about the BBB’s concerns regarding this company and their marketing tactics.
Consumers who receive questionable offers or have concerns about mailings that appear to be official or have governmental ties, are encouraged to contact the BBB at 1-800-646-6222.
Resolve to Face the Facts!
Since 2007, 8.9 million homes have been lost to foreclosure and millions more are headed in that direction.
As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, my mission is to ensure that you or anyone you care about does not add to that statistic.
The unfortunate fact is that so many homeowners who have played by the rules and never imagined that they could be facing foreclosure are now in a very tough situation.
More than one in four homeowners owes more on their mortgage than their home is worth. On top of that staggering statistic is the fact that millions of homeowners are unemployed, or underemployed and falling further behind every month.
Sound familiar? Rest assured you are not alone.
If you feel that you are headed toward foreclosure, or if you are avoiding facing that fact, the sooner you reach out for help, the better your options.
As a CDPE agent, I help distressed homeowners to work through every aspect of the denial and discouragement that accompanies a mortgage which is no longer manageable, and in the process, to move toward financial solvency.
If you or someone you care about is ready to tip the scales back toward financial solvency, contact me today and let’s get started.
Zachary Adams | Realtor | CDPE | Wright Sherburne Realty | 612-845-7890
Take action now to turn it around in 2012
Recent economic upheaval has taken a hefty toll. Looking
forward to 2012, it’s impossible to know what’s next and the kind of an impact
that an upturn or a downturn at the national level stands to have on your
family’s finances.
Regardless of what happens in Washington or on Wall Street,
two things are very clear: you are not alone and now is the time to prepare for
a new normal.
With a national epidemic of unemployment or underemployment,
and 25 percent of the homeowners in the country owing more on their home than
they could net for it in today’s market, homeownership for many has become a
financial liability. Not being able
to make payments on a home that you can’t afford to sell feels like an awful
trap, but the fact is, there are solutions—and foreclosing on your mortgage is
not one of them.
Loan modification is an option for many and banks are
increasingly willing to negotiate short sales. In many cases, they’re offering
sizable financial incentives to help financially strapped homeowners to get a
fresh start on their lives.
As real estate professional who has achieved the Certified
Distressed Property Expert (CDPE) designation, it is my mission to give
homeowners the gift of a fresh start.
Contact me TODAY and let’s get started.
Zachary Adams | Realtor | CDPE | Wright Sherburne Realty | 612-845-7890
