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BUYING AND SELLING FORECLOSURES IN ST MARY'S, CHARLES AND CALVERT COUNTIES, MD

By
Real Estate Agent with Century 21 New Millennium MD

 BUYING AND SELLING FORECLOSURES IN ST MARY'S, CHARLES AND CALVERT COUNTIES, MD

Effective February 1, 2010 the FHA will temporarily waive property flipping rules for one year. 

Investors will no longer have to hold a property for 90 days before resale.

This means that "investors" may increase BUYING AND SELLING FORECLOSURES IN ST MARY'S, CHARLES AND CALVERT COUNTIES, MD.  "Investors" attempt to buy low (foreclosures), renovate and then sell for a profit.  The FHA had increased the turn around time needed before resale.  This increased the financial commitment needed by the investor, due to holding on to the foreclosure property longer.  One reason this was implemented was to reduce the number of investors in the market, allowing more non-investors to buy and keep lower priced, often foreclosed, homes.

If you decide to be an "investor" do:

Know the neighborhood that you are going to invest in. Find out about schools, crime rates, community organizations and area businesses.

Find the worst home on the best block.  It will often make the most money.

 Search for HUD foreclosures.  You can find underpriced homes that banks or the government want to unload.

If you decide to be an investor:

Don't quit your day job!  Property flipping is not a hobby, but can be a second job. There are a lot of people out there that do it full time and they are your competitors.

Don't overdo renovations.  Be realistic about potential profits and make renovations accordingly. Putting in too much money on renovating a property is like throwing money away.

Summary:

In many cases you can make a quick return. However the lending party is over. Financing is not as easy anymore. And there's the ever-present risk: If the market takes a dip before you can sell, you lose!

 BUYING AND SELLING FORECLOSURES IN ST MARY'S, CHARLES AND CALVERT COUNTIES, MD

Margaret C. Taylor  SFR CDRS Century 21 New Millennium Real Estate Agent, Lexington Park, St Mary's, MD

Serving: Lexington Park, Great Mills, California, Hollywood, Leonardtown, Mechanicsville, Charlotte Hall, Piney Point, Valley Lee, Callaway, et al. also Calvert and Charles Counties.

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Disclaimer for Short Sales and loan modifications IMPORTANT NOTICE  Your lender may not agree to change your loan and/or agree to a Short Sale.  If you stop paying your mortgage you could lose your home and damage your credit.  Seek legal and financial counsel.

Comments(3)

Irene Tron
Valparaiso, IN

Great advice especially for the want-to-be investor!  Thanks for the post.

Jan 28, 2010 06:37 AM
Anne Carter
Century 21 New Millennium - Lusby, MD
ABR, SFR ePRO, Solomons MD

Margaret,  Great Post and very good advise for investors. You are definitely the person to go to for foreclosure knowledge and advise.

Jan 30, 2010 02:38 AM
Chris Hill
Century 21 New Millennium - California, MD
Your Southern Maryland Real Estate Professional

Margaret, THat is Great news, and I honestly had not heard it. Thank you for sharing.

Jan 31, 2010 10:33 AM