Myths of the Foreclosures! How? When? Where? Who knows!

By
Real Estate Agent with ReMax 10

Indeed there are many homeowners, buyers and sellers who have the wrong belief of foreclosures.  Here are a few!

1. The best deals out there are foreclosures!  Many people feel that in order to get a good deal they must buy a foreclosure!  This is a case of is the glass half empty or half full?  While it is true that foreclosures appear to be the best deals...they can also be your worst nightmare.  Consider things like repairs,dewinterizing,closing dates flexibility when selecting one. And, if you happen to pick the right property but the wrong agent representation, you could pick a bigger nightmare!  There are many traditional sellers out there slashing their prices to compete with foreclosures and they are humans you can negotiate with.

2. Getting a Clear Title or title insurance on foreclosed homes are hard to get. Wrong! Even thou Banks were pronounced guilty of robo signing, buyers are protected from later title attacks by foreclosed homeowners by the purchaser's rule, under which the courts would award cash damages to be paid by the wrongful bank to a wrongful foreclosed-on homeowner, rather than reversing the sale. Now title companies have started insuring bank owned homes which protect the buyers interests.

3. If you don't pay your mortgage a foreclosure will happen fast!  Wrong!!!!! Banks are taking there dear sweet time in most states, most states taking up to 14 months or more to process them. While this could be dragging out the market recovery, these delays are keeping the properties warm for the banks until they can get to the foreclosure.

4. Once you have a foreclosure on your credit you can never buy again!  Wrong...if you keep your credit clean after-wards and with the FHA standards you may be able to buy as soon as five years, if you meet FHA standards...and if you short sale your home you could find yourself buying in as little as one year if you were not behind on your mortgage....or two years tops. You get to start all over again!

5. Waiting for this "shadow inventory" to purchase a home? Many buyers think if they wait they may get a better deal because they are discouraged by what they see out there....many trying to buy more than their budgets allow, so they decide to wait until that "shadow inventory" everyone has been talking about gets released. Don't hold your breath....many banks release homes as they sell them to keep from over flooding the market. My advice to buyers get realistic.

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Illinois Cook County
Groups:
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RE/MAX in Illinois
Tags:
buyers
foreclosures
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chicago foreclosures
buying foreclosures
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Rainmaker
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Catherine Ulrey
Keller Williams Capital City - Salem, OR
Equestrian and Acreage Property Specialist

So true!  I don't know why, but the general public seems to always "want" foreclosures.  If only they understood what that really meant.

Nov 17, 2010 08:07 AM #1
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Rainmaker
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Andretta Robinson

Real Estate Broker - Chicago South Suburbs
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