foreclosures: Beware of the New Foreclosure Flippers
- 10/08/14 09:54 PM
Increasing property values in Coweta County Georgia over the last few years have led to a new kind of property flipper and consumers need to be wary.
These marginal foreclosures are getting a fresh coat of paint, some new flooring, and a few new shrubs planted here and there and are being offered as renovated properties.
The sellers are the former lien holders of the property. Fannie Mae, in particular, now sees its portfolio of repossessed property as cash cows instead of white elephants.
Owners have a right to dispose of their property for any price they wish. There is no … (15 comments)
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foreclosures: The profitable business of foreclosure.
- 08/07/13 10:39 PM
Is foreclosure such a lucrative endeavor that it could actually be part of a long term financial business plan?
The foreclosure industry, along with its ancillary vendors and servicers is HUGE.
Is it possible that high risk, expensively insured loans are being underwritten to keep the foreclosure pipeline flowing for years to come?
Is the only thing that we learned from the mistakes of past is that the numbers didn’t reconcile, and foreclosure can be palatable as long as it is a money maker?
The misery moguls ignore the human element in the formula of foreclosure. They cannot see past the … (7 comments)
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foreclosures: Treasure trove or money pit? The answer may NOT be a mystery.
- 04/15/12 10:29 PM
Many real estate buyers today are seeking hidden treasure. Motivated by the media and loaded with enthusiasm, they begin their quests to discover untold riches in the sea of foreclosures and short sales that flood the market.
But in reality, the jewels are few and far between. Most houses are priced based on both the local market and the current condition of the property.
Some apparent bargains need a lot of work. Many have not been properly maintained for years. Always keep in mind that serious financial issues predicate most foreclosures so exercising proper due diligence is essential.
Many of my … (16 comments)
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foreclosures: Foreclosure Round Two. Have we learned nothing from the past debacle?
- 02/24/12 09:29 PM
In Coweta County Georgia, we are starting to see some houses listed as short sales and REO and HUD sales for the SECOND time in the last few years.
How did this happen? Did we learn nothing from the past? Have year after year of buyer incentives and continued low down payments completely eroded the fundamental concept of ownership?
True ownership involves skin in the game. It is too easy to just walk away and there are fewer and fewer consequences with each passing month. And yet the clamoring continues for easing mortgage qualification requirements.
Leverage has toppled the market. The … (18 comments)
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foreclosures: Is a moratorium on foreclosures the solution to the current housing crisis?
- 01/10/12 01:23 AM
Is it time for a moratorium on foreclosures? It’s an idea that rears up from time to time, and there are plenty of opinions on both sides of the debate.
And although I believe that a total moratorium on foreclosures would have a very positive short-term effect, I believe that the long-term effect would be disastrous.
Allowing the problem to fester will not make it go away. How much better to treat the root cause of the disease than it is to deal with the pathology of failure?
Unfortunately, the issues are complex and every borrower’s situation is different. A lot … (13 comments)
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foreclosures: The non-paying society. Have we moved from “grace” to “mandated?”
- 10/08/11 01:59 AM
One of the more interesting offshoots of the current housing debacle is the notion that forbearance is no longer extended as a courtesy, but it is now mandated under new local, state, and federal laws.
And like any other well-intended legislation, while the short term effect may act as a tourniquet to stop the bleeding, it is only a stop-gap measure that must be dealt with in the very near future.
What it worse, as a society we are losing respect for the oath, and a promise to pay no longer is regarded as sacrosanct. And thanks to new rules and … (13 comments)
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foreclosures: Trying to show a foreclosure with a tenant in place is a logistical nightmare.
- 06/25/11 02:33 AM
I have a potential buyer that wants to look at a great-priced foreclosure. The problem is that the house has a carryover tenant that requires 48 hour notice and appointment confirmation.
Since the tenant has no real incentive to cooperate, the house remains a dangling carrot in front of would-be buyers. They want to get a look at the house, but they just can’t.
And of course, the only person that catches the blame is the real estate agent, because that is the only person that should be able to get them into the house.
I have one favor to ask … (16 comments)
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foreclosures: Institutional sellers have lost sight of the mission: Get the houses sold!
- 06/20/11 01:02 AM
I communicate with a number of real estate agents and brokers all over the country and all seem to agree on one thing:
Institutional sellers like HUD, Fannie Mae, banks and loan servicing companies have completely lost sight of their mission, which is to get these foreclosed properties sold.
Their attitude towards buyers is callous and indifferent. They seek to penalize potential purchasers for every potential hiccough along the way, yet the SELLER routinely delays a contract or chooses not to close at all without so much as an apology.
The prevailing attitude among these sellers is that since buyers … (22 comments)
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foreclosures: Institutional sellers are being more cautious with acquired foreclosure inventory… and that can affect the condition of the house.
- 05/13/11 01:02 AM
While assessing mountains of pending real estate foreclosure litigation, institutional sellers are spending more time and resources on fixing deeds instead of repairing houses.
As a result, vacant homes are sitting longer and longer as the “CYA” mentality pervades every aspect of maintaining REO inventory, and the preservation of property is set aside while things are being sorted out.
And while everyone is entitled to their day in court, it seems that the only ones coming out ahead in all of this turmoil are lawyers. And while brief after brief is prepared, properties slowly erode away.
There needs to be … (27 comments)
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foreclosures: Is halting foreclosures ultimately a good thing? Or is it just one more obstacle blocking consumer confidence?
- 10/05/10 01:37 AM
By now you have heard about the technical paperwork violations that have occurred on thousands of foreclosures across the nation. As a result, many lenders have put a moratorium on any further foreclosures until all of this mess is sorted out.
But is that ultimately a good thing for either the consumer or the real estate profession?
While the short-term effect should tend to stabilize the market, the now disclosed existence of a huge shadow inventory will make any potential buyer aware that the value of any property purchased now will be devalued at some point in the future,.
Buyers … (21 comments)
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foreclosures: Some important information regarding foreclosures: the good ones go fast!
- 09/20/10 01:27 AM
Seventy-five percent or more of the calls I field each week are from buyers seeking a great deal on a foreclosed property.
And don’t get me wrong … there are plenty of them out there. The Coweta County Georgia area gets more than its share of bank-owned houses. And many of these REO properties languish on the market for a long time due to a variety of salability issues.
However, the houses that are in good condition that are priced aggressively move VERY quickly. The majority of buyers are seeking the move-in ready foreclosure in the best location.
So it … (18 comments)
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foreclosures: Finding the perfect home at the perfect price may cost some buyers an excellent deal on a good home at a great price!
- 07/28/10 01:10 AM
In our area of Newnan Georgia, we have a lot of distressed properties for sale. And the savvy buyer has an excellent opportunity to acquire a good house at a great price.
There are, however, some buyers that insist on getting exactly what they want at exactly the price that they want to pay. And since that combination of value and fulfillment rarely exists, the endless pursuit for perfection goes on and on.
We have even had some buyers throw up their hands and quit the search. Several of them had even made some offers that were accepted and they backed … (20 comments)
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foreclosures: Taking care of last minute title “surprises” with efficiency and aplomb! Why a little patience can go a long way when buying a foreclosure.
- 01/11/10 11:00 PM
It seems that now, more than ever, the issue of clear and marketable title of real property is becoming more of an art than a science. As previously foreclosed properties change hands from asset holder to asset holder, the chain of title often develops a few weak links.
So it is not uncommon to uncover some defects in the abstract as the date of settlement approaches. And many times, correcting the problems can take some time, and often can threaten to postpone a closing indefinitely.
This is no time to panic. As title researchers become more and more experienced with out … (22 comments)
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foreclosures: When a house shows the tell-tale signs of entering the twilight zone, it can be a long wait before it shows up on the "other side!"
- 08/15/09 12:21 AM
You can spot them right away by the "natural" look of the lawn. As the beautiful wildflowers appear where there was once green grass, it becomes very apparent that something about this property has changed.
It is neither motivated by the embracing of the notion of "going green" and getting back to nature nor by a desire to save the planet. Rather, it is the after effect mandated by a true lack of the "green" that is necessary to maintain a mortgage, let alone a manicured lawn.
There is a "twilight zone" of time that occurs between the time a house is abandoned, … (63 comments)
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foreclosures: It's the first Tuesday of the month, and you know what that means! The rite of foreclosure will be performed at your local courthouse.
- 08/03/09 11:52 PM
Today is the first Tuesday of the Month, and in Georgia, that has a significant meaning. At 10:00 A.M. at the Coweta County Courthouse, and at every other county courthouse in the state of Georgia, the calls for bids "at public outcry" for properties in default will commence.
Georgia is a non-judicial foreclosure state. All a mortgagor has to do is notify the mortgagee of the default and advertise the auction in the county "legal organ" for four weeks.
Then the attorneys will literally stand on the courthouse steps, rain or shine, and read the notices word for word. After the … (17 comments)
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foreclosures: A very common misconception about purchasing a foreclosed property. Tips for buying a foreclosure.
- 04/27/09 12:07 AM
There is a common assumption that there are many foreclosed properties for sale and not enough buyers. Numerically, that is absolutely true. There is still a lot of standing inventory, and more foreclosed homes come on the market every month.
What a bargain hunter needs to realize is that there may not be many houses available that are "perfect" for them.
All buyers want a good deal. They want the best schools, a nice yard, a house that is in good shape and move-in ready, modern appliances and a great neighborhood. What they fail to understand is that in most cases, … (55 comments)
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foreclosures: Are foreclosures always the best deal? Risks associated with the purchase of REO property.
- 04/24/09 12:30 PM
Everyone loves to get a bargain. And with a good supply of bank-owned properties available for sale, it seems like there are great deals ripe for the picking! And buyers are coming out in droves!
But the fact of the matter is, not all foreclosed properties offer distinct advantages over conventional, appropriately priced property. In many cases, you are purchasing a property with all of its faults and defects.
In most cases, banks and lenders do not offer any kind of disclosures or termite clearance letters or warranties of any kind. The buyer is responsible for determining the suitability of the … (17 comments)
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foreclosures: Georgia Foreclosures, how to buy a foreclosure on the steps at a Georgia Courthouse Auction
- 05/02/08 12:54 AM
Tuesday, the 6th will be the first Tuesday in May this year. And what that means in the State of Georgia, is that on the steps of every courthouse, beginning at 10 A.M. properties in foreclosure will be offered for "sale, in cash, at public outcry to the highest bidder,"
With over a hundred foreclosures in Coweta County alone, you would think that the steps would be crowded with bargain seekers. You would be wrong.
What happens in the majority of the cases, is that the lender holding the note will bid what is owed, plus the attorney's fees. And since … (6 comments)
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foreclosures: What happened to foreclosures on the courthouse steps?
- 03/05/08 01:30 PM
In Coweta County and every other county in the state of Georgia, on the first Tuesday of every month promptly at 10 A.M. the foreclosure auctions begin. These auction take place literally on the courthouse steps, rain or shine, and the lawyers read every word of the notices before selling the property "at public outcry to the highest bidder." It's a process that has been going on as long as I can remember.
On Tuesday, in the pouring rain I went to the steps to see what was going on in Coweta County. There were 10 full pages of foreclosure notices … (7 comments)
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foreclosures: More Real Estate Auction Tips
- 03/01/08 11:34 PM
As a real estate auctioneer, it is imperative that I secure the highest bid possible. The seller of the property is my client, and my business depends solely on my ability to get buyers to the auction, and to entice them to bid on the properties we are offering. It sounds easy, but its not.
With so many foreclosures, short-sales and REO properties being offered, auctions don't fire up the enthusiasm as much as we would like. But if you find yourself at an auction, here are some tips:
1) If an auction is advertised as "Absolute," the property will … (6 comments)
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Increasing property values in Coweta County Georgia over the last few years have led to a new kind of property flipper and consumers need to be wary.
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