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When it comes to foreclosures in Montgomery, AL, do me a favor....

By
Mortgage and Lending with Starkey Mortgage - Where PEOPLE come first!

When it comes to foreclosures in Alabama, do me a favor...

 

foreclosure

 

It's unfortunate that so many people are going through the foreclosure process but to those of us in the real estate industry, it does spell one thing - J-O-B   S-E-C-U-R-I-T-Y.  Let's face it, these houses need to be sold and, in my case, financed.  Sure, we all cringe a little when we land one of these gems but they really aren't THAT bad...or at least I keep trying to convince myself that!  Foreclosures seem to take twice and sometimes three times as long to close then your typical purchase so I am going to keep this soapbox presentation extremely short.  You can thank me later.

I run into a three common hurdles with foreclosures that make for a not-so-fun experience for all parties involved.  If we, the Realtor and the lender, can cover these three bases up front, it will make for smooth sailing on the high foreclosure seas.

  1. Be sure the utilities are on when the appraiser arrives!  This will avoid not only frustration but an added fee for a final inspection
  2. Remind your buyer that the property taxes may very well be double! I'm going to tell them when they are sitting in my office anyway so this may as well be addressed right up front.
  3. Don't forget the surety bond! This is my personal favorite.  Pretty simple math: loan amount > foreclosure amount = surety bond required.  I am often the bearer of this wonderful news and trust me when I say borrowers DO NOT like to hear this the week before closing.    Since Alabama has a Right of Redemption period of 12 months (yes, I said 12 months!) we run into the issue of requiring a surety bond more times than not. 

So if you are selling a foreclosure in Montgomery, AL, do me a favor and remember those three little items. I promise it will make a big difference on even the smallest of transactions.

Posted by

The opinions expressed here are the sole responsibility of the author and do not necessarily reflect the view of Starkey Mortgage

Jennifer Robinson

NMLSR#190994 - Alabama license #50092

 

www.LoansWithJennifer.com

334.549.2445 cell

334.213.2537 office

jenniferr@starkeymtg.com

Comments (7)

Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

Sounds like you do things different in Alabama then we do here in Minnesota.  

Dec 10, 2011 01:09 AM
Ken's Home Team LLC. | 360.609.0226 | Portland, OR & Vancouver, WA Real Estate Team
Ken's Home Team LLC. - Vancouver, WA
- SOLD IS OUR FAVORITE 4 LETTER WORD -

Wow, we do thing different here in WA,  infant we usually have buyers that can close faster than the bank.  The banks here need the 30 days and some buyers with REO's can close in 20 days!  Also what is a surety bond? Never heard of that.

Dec 10, 2011 01:15 AM
Jennifer Robinson
Starkey Mortgage - Where PEOPLE come first! - Montgomery, AL
NMLSR# 190994/AL#50092, Conventional, FHA, VA, Step Up and USDA

We are definitely different in terms of foreclosures.  Alabama has a 12 month Right of Redemption period.  The surety bond, also referred to as a redemption bond, is required by the title insurance company. It insures them against any loss due to exercise of right of redemption by the previous owner of the property.  Too bad I love the south or I might consider a move to Washington or Minnesota!

Dec 10, 2011 01:28 AM
Craig Schaid
eXp Realty - Dadeville, AL
Real Estate Specialist

Thank you Jennifer!! You are GREAT!!!!!!

Such spectacular information...

Craig

Dec 13, 2011 05:03 AM
Martha Givens
Century 21 Brandt Wright Realty, Inc - Montgomery, AL
Stress Free Real Estate!!!

Excellent info!! Making certain your buyer understands the foreclosure lingo and land mines is critical to a smooth closing.  Expectations are everything.

Dec 14, 2011 09:55 AM
Steven Tucker
Century 21 Brandt Wright Realty, Inc. - Montgomery, AL
Foreclosures, HUD Homes, First Time Home

With so many military and other families relocating to Alabama from other states that have never heard of "right of redemption", so true that it is quite different in our state.  Great information, and thanks again.

Dec 14, 2011 11:03 PM
Jennifer Robinson
Starkey Mortgage - Where PEOPLE come first! - Montgomery, AL
NMLSR# 190994/AL#50092, Conventional, FHA, VA, Step Up and USDA

Craig - you are so welcome! 

Martha - as if mortgage lingo wasn't intimidating enough, the foreclosure lingo can be downright scary!

Steven - good point about the military families that move in to our area.

Looking forward to working with all of you in 2012 and making it an awesome year!!

Dec 15, 2011 03:49 AM