Here's Part 2 of a long series.  I have several FAQ's, but don't want to spend all day typing them here.

Can't I get a better deal purchasing at the Courhouse?

Sometimes, but not often. In a hot market, there are generally in excess of 100 people bidding on foreclosed properties at the courthouse steps. Auction fever is common and veteran courthouse observers often shake their head in amusement at the prices being paid for some of the properties. Furthermore, properties purchased at the courthouse steps do not have title insurance. If there are any problems with the property title it becomes the buyer's headache and expense to clear the title.

How does the mortgage company determine their sale price?

Once the mortgage company or bank receives title to the property they will contact SunRaye Realty to begin marketing the property. We will give them our opinion of value for the property in its present condition as it sits, and our opinion of the value of the home if it were put back into tip top shape. Most often, the bank or mortgage company will also have the property appraised by a licensed appraiser. Nearly always, pricing is based on market value.

When the property is in poor condition does the bank know how bad this property is?

Yes, always.

First, the SunRaye Realty salesperson provides the bank with at least 40 to 100 pictures detailing any and all damage and the appraiser will do the same.

Second, SunRaye Realty will also obtain estimates for the bank or mortgage company to restore the home back into top shape. If needed we are required to obtain roof inspections, termite inspections, central heat and air conditioning inspections and estimates for repair, etc.

Does the Bank or Mortgage company repair properties?

Many do. In recent years, over half the properties we market for banks and mortgage company's are repaired and refurbished. Generally, repairs are cosmetic in nature, paint, carpet, regrouting of tile, replace a torn screen, a cracked window, or a mirror in which the silver backing is coming off, and reconditioning of appliances. If needed roofs are replaced or other major components might be replaced.

In the refurbishment process, the Seller will not put tile down where there was vinyl flooring. Nor will the bank convert a partially converted porch, but more than likely return it to a porch.

When the bank repairs a property, they will utilize only appropriately licensed contractors.

How does the bank determine whether to repair a property?

Determination is based upon their market data and the actual cost of repairs. If the bank feels that they will recapture their repair costs, or significantly reduce their time on market they may choose to refurbish the home.

Can I still buy the home AS IS?

Up until the bank orders the repairs, you can still make an as is offer. Once the repair process begins then it is too late as materials and labor have been contracted.

The key here is the value of your offer. For example, if the bank plans on selling the home for $100,000 with repair costs of $7500, they will not sell it to you for $75,000, but they might sell it at $85,000 to $90,000. In other words, they might discount the price of the home some for a quick AS IS sale, but they will not give the home away.

More to come.....