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Foreclosures
Many buyers are looking for the deal and are trying to go in the direction of Foreclosures. Unfortunately for buyers and fortunately for Sellers there are not many foreclosures in this immediate area. However when you do find one there is much to learn before moving in that direction.
First realize that the bank is an institution. They are not concerned about who is purchasing the home, they are not concerned about just getting out from under, they are concerned about their bottom line and they are willing to wait to get their number. I have heard time and time again from buyers that the banks want to “dump” these properties and they can get them for pennies on the dollar. This is a HUGE myth among those that are not familiar with the Real Estate Market and Foreclosures. The banks want their bottom line and they will hold out. There are billions of dollars in foreclosures across the country, even though there aren’t many in our area. The buyers need to realize that one home does not mean much to the bank and in reality they have already taken the loss they are ready to take.
That being said there are a few exceptions. Sometimes you have an agent from out of the area that list these homes well below market value. If this is the case you need to be ready to purchase and settle within 30 days with Cash if you want to stay in the competition. You also have to be willing to accept these homes as-is and realize that you are responsible for any Use and Occupancy issues as well as all the transfer tax in most instances.
I mention cash because if a home is priced considerably under market value the investors will jump on these properties quickly and career investors normally will pay cash for a property to put them ahead of anyone else looking to purchase a “deal”.
If the home is not considerably under market value you still can get a “deal” but normally not a “steal”. The banks are a business and not in the business to lose money. So you may be able to secure a home under market value but not as far under market value as some may think.
For more information and/or listings that are in foreclosure status contact Jennifer Daywalt @ 610-999-7693.
First realize that the bank is an institution. They are not concerned about who is purchasing the home, they are not concerned about just getting out from under, they are concerned about their bottom line and they are willing to wait to get their number. I have heard time and time again from buyers that the banks want to “dump” these properties and they can get them for pennies on the dollar. This is a HUGE myth among those that are not familiar with the Real Estate Market and Foreclosures. The banks want their bottom line and they will hold out. There are billions of dollars in foreclosures across the country, even though there aren’t many in our area. The buyers need to realize that one home does not mean much to the bank and in reality they have already taken the loss they are ready to take.
That being said there are a few exceptions. Sometimes you have an agent from out of the area that list these homes well below market value. If this is the case you need to be ready to purchase and settle within 30 days with Cash if you want to stay in the competition. You also have to be willing to accept these homes as-is and realize that you are responsible for any Use and Occupancy issues as well as all the transfer tax in most instances.
I mention cash because if a home is priced considerably under market value the investors will jump on these properties quickly and career investors normally will pay cash for a property to put them ahead of anyone else looking to purchase a “deal”.
If the home is not considerably under market value you still can get a “deal” but normally not a “steal”. The banks are a business and not in the business to lose money. So you may be able to secure a home under market value but not as far under market value as some may think.
For more information and/or listings that are in foreclosure status contact Jennifer Daywalt @ 610-999-7693.
posted by The Phoenix Files at
10:28 AM
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