If your shopping for home in the Twin Cities area(mn), here are some pointers that may make your home buying experience go more smooth.
1. Currently there a few types of property you can buy. Bank-owned, Short-sale, FSBO and homeowners.
Bank-owned home: These are home that the bank has taken over after the redemption period is up. Most homeowners that go into foreclosure trash the homes before they leave. These house maybe great deals since the property will need work. You will need to be honest with yourself about the work you can do and what you will have to pay to have done.
Make sure your agent has worked with bank-owned homes and understands the process. The banks can be very slow returning signed purchase agreements, paying for repairs and more. If your agent sets a closing date that is within two months and problems arise, they may have to fill for an extension so you don't get charged with a $50-150 per Diem charge per day(ouch). Here is the catch, if the bank take longer than the projected closing date, the buyer DOESN'T GET A PER DAY FEE.
Bank owned homes in the Twin cities area (mn) only use a few title companies for you to close at. This makes scheduling really difficult. The Banks get a discount for using the title company since the Lawyers that file the foreclosure own the title company.
Short Sales: There are two kind of short sales; non-negotiated and pre-negotiated.
A. Non-negotiated is were an agent has put a home on the market and is waiting for an offer to take to the bank so that the bank can assign a person to handle the negotiation. This process can take 3-6 months.
B. Pre-negotiated (What I do) The agent has had the bank come out and find out the home is worth to them and what they need to get for it. Since the bank has already has assigned someone to the file, the process is much short and is more likely to close.
In Minnesota if a bank has a sheriff sale on the home(the homeowner is more than 90 days late on their payment) the homeowner has 6 months to redeem and pay back all what is owned. That is where the short sale works, but if it runs close to the end of the redemption period, both seller and buyer maybe out of luck.
For Sale buy owners: Deal or no deal is the question? Do you go to a Doctor when your sick or do you do it yourself? With all the down payment assistance and seller paid closing cost through FHA, it would hard for someone that is not trained to take advantage of these programs.
Homeowners: These are your best sellers, if their home is not over priced due to second mortgages or ARM.
http://woodburyrealestategroup.com/
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