MILPITAS CA. COSTLY MISTAKES TO AVOID IN BUYING GOVERNMENT FORECLOSURES

MILPITAS CA.  COSTLY MISTAKES TO AVOID IN BUYING GOVERNMENT FORECLOSURES

Milpitas CA.  Costly Mistakes To Avoid In Buying Government Foreclosures.  You can really save money when buying a home by purchasing a foreclosure. Nonetheless, even though it is possible to find foreclosed properties at the HUD Homestore, it is still possible to make some very costly errors.

1. What about taxes? The truth is that the majority of people make an overpayment when it comes to the transfer taxes on their foreclosure buy. A little known fact is that the majority of government foreclosures are free from transfer taxes, which may amount to over $5,000 in some areas. This varies from state to state, but generally speaking transfer taxes for changing from the ownership of the Federal Government to that of a private buyer (in this case, you) will be waived. Most lenders don't know about this since foreclosures usually are only a very small part of their daily activities. They may not know about this, but even if they do, it may be unimportant to them while still representing good savings for you. Even though your savings will depend upon the county and state in which the home is situated, you must also let your escrow company, title company, loan officer and real estate agent know about this rule.

2. What about over-bidding? People who haven't studied up will often over bid. Keep in mind that if you bid higher than the asking price, the current appraisal must be discarded and a new one ordered. Not including the extra cost, new appraisals can bring additional problems. If the market isn't too hot and homes are not selling fast, it's a good idea to underbid.

3. Paying for an Appraisal - You do not need to pay for an appraisal if you are buying a foreclosure from the business holding the foreclosure. As an example: Say you are buying a home that is a HUD foreclosure. You could request the current appraisal and use it in financing the purchase. This will save you four or five-hundred dollars. When you use the appraisal that already exists, you will save time and energy because you won't have to tell the appraiser that s/he can't lower the home's value due to cosmetic problems since it is a foreclosure. Basically, it is always wise to take advantage of the free appraisal offered by the VA or by HUD.

4. Be Sure to Make the Most of Your Home Inspection - It is absolutely necessary to have any home you are purchasing through foreclosure inspected. Then you will have some idea of the kind of repairs that are necessary and whether or not you will be able to manage them. The repair escrow will also be affected. The value of a home inspection is greatly enhanced if you join the inspector on site. You bear the price of the home inspection so it is important that you receive what you need. It is important that the inspector realize that this property is being foreclosed upon. You should let the inspector know that it will be helpful to you to have a list of things that must be fixed when you purchase the home. When you have this list, you may be able to convince HUD to raise the escrow amount they have offered to make repairs.

5. Be Sure to Maximize Your Investment - If you don't understand the ways you can make money by purchasing a foreclosure, you are missing a great opportunity. Since the home is being foreclosed upon, the Federal Government should let you combine the amount of the repairs that must be made with that of the mortgage. In this way, you can keep that money in your pocket, which is the right place for it.

Remember to inform your Home Inspector of all repairs you want to have done during your meeting with him. You should always complete this list in advance of his visit. After the Home Inspector has made an annotated list, it can be brought to HUD. This will indicate to them that they have not sufficiently reported all the problems about the home. It will prove that there are more repairs and that they must be added to the loan. The loan may be a little bit more; however, you will have the home in a condition that you have chosen.  Milpitas CA.  Costly Mistakes To Avoid In Buying Government Foreclosures

Let us know if we could assist you in purchasing an REO (bank owned property).  We are experienced REO and Short Sale Listing Agentswho have successfully managed countless REO Sales to the closing table.  We are well versed in the criteria and analysis needed in valuation of REO's for accurate Broker Price Opinions (BPO).  We have thorough knowledge and experience of the REO process, We know the timeliness of tasks and deadlines needed in REO transactions.  We keep constant contact with all stakeholders in the sale and give "wow' customer service.  Milpitas CA.  Tips To Know When Building Your Foreclosure Portfolio. 

Call (408) 316-0793 or email (rpablaza@comcast.net).  Let us help you manage your REO to the closing table.

For more information about REO's and Foreclosures  check out my other blogs:
6 Tips Buying An REO (Bank Owned Property) in Milpitas CA
Double Ending REO Sales in Milpitas CA