buying foreclosures: Time's up! (part 2)
- 01/20/11 05:08 PM
What happens next if the seller of a property does not respond to your offer before the deadline stated on your paperwork? That depends on you, actually. In part 1 of Time's UP, I outlined realities and suggestions for buyers. And now for the realities of REO! The REO seller does not even know when your offer expires. Maybe it's a little-known fact, but they don't actually see the offer. The seller sees a computer summary of only what they consider the significant facts-usually that includes offering price, date of closing, financial specifics (including type of financing, LTV, and lender information), requested inspection … (6 comments)
buying foreclosures: HomePath.com is the place to start looking for a foreclosure bargain
- 01/16/11 03:42 PM
HomePath.com is the Fannie Mae consumer website. If you are interested in purchasing a foreclosure property, it’s a good place to start. Not only can you search for Fannie Mae properties that are for sale in your area, you can learn about HomePath financing, be introduced to the FirstLook program, listen to podcasts, and access a complete Buyer’s Guide. If you are seriously considering a HomePath property, please also click on the HomePath Financing tab. Choosing a HomePath lender will save you money. You certainly do not have to use a HomePath lender to purchase a Fannie Mae foreclosure, but you will be … (3 comments)
buying foreclosures: HomePath financing saves money for 30 years!
- 01/15/11 01:04 PM
Don't overlook HomePath financing if you are purchasing a Fannie Mae owned property! It can save you money over FHA or conventional financing, both at closing and every year during the mortgage term. In the example below for a $100,000 FHA purchase, the buyer saves $2,129 at closing. Savings after the first year are $264 annually. That's a total savings of $9,785; and in my book, that's real money and reason enough to investigate the option!
The HomePath option offers some additional advantages that may not be so obvious, such as the ability for the buyer to use the appraisal that Fannie … (8 comments)
buying foreclosures: Cash is king—or IS it? How to make a Highest and Best offer that wins
- 01/10/11 04:01 PM
When a seller calls for Highest and Best offers, the highest offer may not be the best offer. Cash is king sometimes, but other factors come into play in a Highest and Best situation—net to the seller, timing of closing, and the least number of obstacles to successful closing. 1. Bottom dollar: Whether it is a financed deal or a cash deal, the seller walks away with cash at the end of the transaction in all instances except contract for deed (seller finance), so the cash that is king is the offer which will result in the most money to the … (16 comments)
buying foreclosures: "I'm looking for a foreclosure," the buyer said
- 01/07/11 02:04 PM
Why are you specifically looking for a foreclosed home? If you are looking for a deal, that's fine; but you must know ahead of time that purchasing a foreclosed property is different in many ways than making a traditional purchase--so be prepared for the differences. Having said that, though, let me also say that it is the same in many regards. Foreclosures are almost always listed, just like other homes, so you need a real estate agent. You need to have your financing in order, so get your pre-qualification letter now and start moving toward pre-approval on a loan. For a … (10 comments)
buying foreclosures: I know what it sold for at the courthouse (Part 2)
- 09/13/10 05:20 PM
Spectators often believe that final bid represents what the bank will take when they resell the house. The final bid amount, however, does not equal what the lender has in the property or the amount at which the lender will eventually market the house. Especially if they attended the courthouse sale, neophyte speculators believe they have inside knowledge about what to offer. The courthouse sale price is something like a reserve price on eBay. Just as with an eBay reserve auction, the seller offers the item for sale but keeps the item when the reserve price is not met. The reserve price is not revealed. The mortgage holder … (0 comments)
buying foreclosures: I know what it sold for at the courthouse (part 1)
- 09/13/10 03:44 PM
Courthouse foreclosure sales usually result in the mortgage holder buying back the property. Spectators often believe that final bid represents what the bank will take when they resell the house. After the courthouse sale, speculators may start trying to make offers according to the ending bid. They try on their own to make an offer to the bank and then they seek out an agent who they believe can help them snatch up the property. Especially if they attended the courthouse sale, they believe they have inside knowledge about what to offer; and that makes them anxious to lock in a deal. Several things are … (7 comments)
buying foreclosures: HUD listings migrate to HUD Homestore
- 09/08/10 12:14 PM
The roll-out of HUD's new site for viewing and bidding on HUD properties is underway. Buyers and agents who have been using BidSelect will need to register on the new site, HUD Homestore. While properties are still on BidSelect, the change-over is in full swing. HUD Homestore is the new website that will feature all HUD homes, and it is also the new bidding site. With an increasing number of foreclosures, new "Marketing and Management 3" vendors, the new website, and increased publicity, HUD may be gearing up to be an even bigger REO player than in the past. Though buyers can "shop" … (4 comments)
What happens next if the seller of a property does not respond to your offer before the deadline stated on your paperwork? That depends on you, actually. In part 1 of Time's UP, I outlined realities and suggestions for buyers. 
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