I was going through some real estate related news and saw a great article from the Wall Street Journal quoting hedge fund Tycoon John Paulson He went on to say that it was a great time to buy a home. With all the bad media today and the gloom and doom, it was great to see some positive news. With all the foreclosures and the short sales in Flower Mound and surrounding areas, there are all kinds of opportunity for potential buyers. There is also a silver lining in the cloud for anyone concerned about a personal economic situation there are many available options other than Foreclosure, that did not exist a short time ago.
Why don't we start by explaining what are Foreclosures and Short Sales in our area of Flower Mound or surrounding areas? To get an Idea of the foreclosures available you can click here. Most people understand that a foreclosure is when a bank or mortgage company takes a home away from the person(s) that owned it due to an inability to make payments. What is not always understood is that as far as an investor or a purchaser, there are really 3 types of foreclosures for sale. A true foreclosure is one that you would buy on a cash basis on the county courthouse steps. This is where you hear about the mind-blowing deals. The second is where most of the purchasing public falls into, which is a Bank Foreclosure. This is a property that has already been through the courthouse steps process and for some reason has ended up the property of the bank. The bank then sells them to the public. The benefit of this is the public can get regular financing to purchase the home and can also have the home inspected, both of which cannot be done on a foreclosure sold on the courthouse steps. The third type of foreclosure is a VA or FHA, also known as a HUD foreclosure. This type is when the government insuring those properties takes them back for nonpayment. The VA foreclosures work very similar to the bank foreclosure in that you make an offer in the traditional manner only on the VA forms. One different is that VA and HUD both have their own websites to see there foreclosure inventory. A HUD foreclosure differs in the fact that it is done in a bid format. This means everyone places their offer to HUD electronically and the highest net to HUD usually wins. I say usually, because HUD will always prefer an owner occupant vs. an investor. With the prices all of the three types of foreclosures offered you cannot go wrong! With financing hovering around 4% (October 2010) this is a win win situation. In the words of John Paulson 9/27/2010: "If you don't own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one."
Other home purchase opportunities are what are called short sales. Short sales are where an owner decides for a hardship reason to sell the home. Through a short sale they are able to sell the home at a loss to avoid foreclosure or additional hardship. A short sale is when the bank approves that the seller can sell the home for less than they owe the bank. As a buyer, this means you are able to purchase a home at a great price. As the seller/owner, they are able to sell their home and pay off the bank with less than they owe and avoid foreclosure, in many cases with out severe dings on their credit. Buyers should be aware though that the Short sales process many times takes longer to close than a traditional sale. With the development of HAFA and HAMP programs the banks are now required in some cases to move in an expeditious manner and have clear terms of negotiations for homes in Flower Mound and surrounding areas. Just to give you an example, we were able to help one of our clients purchase a home tax valued at $220,000 for approximately $155,000! At that home price of $155,000 with today's rates the principal and interest on an FHA loan would be only $735.82. Two years ago that same payment would have been a home purchase of only $120,000! Payment scenarios provided are by Shelley Connell. If you would like your own payment scenario run please call Shelley Connell at 972.899.5160.
If you happen to be caught in an economic spiral and need some help please keep the short sale concept in mind. We have seen many people save their credit and even in some cases the banks became more accommodating in working something out. If you have any questions on either side of a short sale or foreclosure in the Flower Mound or surrounding areas please call me, Ernest Pujals at 214-714-5772. If you find yourself in a situation and see no way out on your home, let us see what we can do to help we have been helping people in the Flower Mound and surrounding areas for the last 19 years. Call us Ernest Pujals 214-714-5772 or visit us on the Web at www.ernestrealty.com. If you would like a list of foreclosures or shortsales at no obligation go to www.ernestrealty.com or email at firstname.lastname@example.org .If you would like to refinance your current mortgage, to take advantage of the historically low rates contact Shelley Connell at 972.899.5160 or visit www.shelleyconnell.com. Or to purchase a home in Flower Mound or surrounding areas