Thursday, March 27, 2008

Question and answers about buying distressed properties:

Question and answers about buying distressed properties:
How do you find out about foreclosed properties?
Answer: There are few different ways to accomplish this very demanding ask. First of stay away from all of the misleading web sites that will sooner or later try to charge you. Here are few web sites for you to start
United States Department Of Agriculture
North Carolina HUD homes for sale
VA Homes for sale
You should then contact few banks ask for the department that is handling foreclosures and ask them to put you on their mailing list. Some have it some don’t but if they do they will be mailing you updates to your door every month.
2. How do I get access to preview the house, get it inspected, and let my financier's appraiser in the house before the day of the auction?Answer: Talk with the lender (or the attorney) who is foreclosing. Also talk with the current owner whose house is up for foreclosure. If you are not able to get access, I would be very reluctant to go forward. Regardless of how good a deal you may get at the foreclosure sale, you don't know the condition of the house. Many homeowners who are about to lose their house will strip it of everything valuable -- fixtures, appliances, etc.3. How do I go about checking out any tax or mechanic liens on the property? Answer: Many local jurisdictions have Web sites that will provide you with the tax information. But you should immediately retain an attorney to assist you. The lawyer can obtain a title search to make sure that there are no hidden issues that would preclude you from getting good title to the property.4. Finally, is this a reasonable way to go to try to buy a personal residence property? I am looking for a condo. The condo prices have risen so high that I thought I could find something reasonable at foreclosure. Answer: Buying any property at a foreclosure sale is risky. First, at the last minute the delinquent homeowner can file for bankruptcy relief, which would put a stop to the sale. Second, as discussed above, you must know the condition of the property. And third -- and perhaps most important since you are considering buying a condominium -- make sure that you carefully review the financial situation and the legal documents of that condo association. Are there other units that are delinquent or facing foreclosure?It is risky, so be very careful.
5. What is a short sale?In a short sale, the lender agrees to allow the house to be sold for a price below the amount of the mortgage, and the bank will either forgive the balance of the mortgage debt or ask the homeowner to pay some or all of the difference between the sales price and the then-outstanding balance.As I understand it, not all lenders will report the short sale to the credit-reporting companies. If they do not do this, then you may be able to purchase another property -- at a lower price and definitely with a lower mortgage that you can afford.
Buying a foreclosed property is very risky, you should be very careful and try to find out as much as possible about the property. Foreclosed properties are NOT necessary the best deals especially in the market like we are experiencing today. Get your self a buyer agent that will advise you properly and chances are you will find a seller that is just ready to sell.

Good Luck and Happy Shopping!

Your North Carolina Broker!
Sonja Babic

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