FORECLOSURES in St. Charles County
Foreclosures in St. Charles County are plentiful as they are through much of the country. Many times this is an attractive market for the first time home buyer looking for a fix'r upper and a deal. Foreclosures often have some built in issues to deal with that are not found on other purchases.
For example foreclosures will many times have buyers who will attempt to get financing with an FHA loan because of the lower down payment needed. The issue with FHA loans and Foreclosures is often with the appraisal process. The FHA appraiser will find things that they will "predicate" the loan on (basically saying these items need to be fixed before they will close the loan.) The issue with the Foreclosure is that you don't yet own the property and so technically should not be fixing or altering the property in an manner creating a kind of, "chicken and the egg" situation.
Recently I become certified thru a local bank to work with a new product they are rolling out to eliminate this issue. Basically, once we find a foreclosure property for you to purchase, the bank will have their appraiser go out and see the property giving it an ARV (After Repair Value). Remember this is a local bank product for foreclosures, not a Fannie or Freddie product for foreclosures.
Once the repairs that need to be done are identified, the bank will have one of its contractors go in, complete the work and then send the appraiser back out to confirm that all of the work is complete.
It should be noted that "you" will have say when it comes to colors and materials but the end number must fit within the ARV. For example if the home you find has an ARV of $125,000 you probably would not be putting in granite counter tops increasing the repair cost.
Foreclosures are a large part of the inventory in St. Charles County and will continue to be for a while. This type of forward thinking should help reduce the inventory levels on foreclosures and over all while allowing first time home buyers to take advantage of te foreclosures on the market and achieve their goal of home ownership. It should also be noted that this program is not only for first time home buyers either, there are many other groups that can take advantage of the foreclosures as well with this program.
Understandably there are other details associated with the program that are best discussed over the phone or in person so feel free to contact me directly at 636/485-5242 or to get you started I have included a link to a list of foreclosures in St. Charles County to get you started. If you have questions and would rather email me you can do that as well PieperRealtyGroup@gmail.com I am happy to answer questions about foreclosures or any other type of housing.