Category Archives: Real Estate

Risks, Rewards of Buying Foreclosures

Posted on July 6, 2012 | Leave a comment

It’s hard to look at the rock-bottom prices for foreclosures and short sales in the Chicago area and not feel you could get a great deal.

Contact the appraisers at www.scappraisals.com for foreclosure value questions.

After all, homes that are going for 50 percent off might seem like a once-in-a-lifetime opportunity. But buying troubled properties is a frustrating, time-consuming process, filled with hassles and potential risks.

“You buy a short sale or foreclosure as is. No warranties. That can be a problem,” said Steve Hovany, a housing analyst and president of Strategy Planning Associates in Schaumburg.

“Foreclosed properties often are handyman’s specials. Many of them have been vacant for months or years and require major repairs. Not only that, but some previous owners may not have been nice to the house that ruined their life.”

Sara Benson of Chicago-based Benson Stanley Realty, added: “Some angry owners with foreclosed homes put concrete down drains. The house may be literally destroyed. The buyer may get just a shell and the land.”

Disclaimer: for information and entertainment purposes only

It Pays to be Proactive in a Short Sale

Posted on July 5, 2012 | Leave a comment

Under new guidelines set down by Fannie Mae and Freddie Mac, underwater borrowers who are seeking to sell their homes for less than what they owe must now receive decisions from their lenders within 60 business days. But if they are not careful, floundering borrowers can cause delays beyond the two-month deadline.

Contact the appraisers at www.scappraisals.com for short sale values.

The new rules, which took effect June 15, apply only to loans owned or rolled into securities by Fannie and Freddie. But because the two mortgage giants are the main conduits between primary lenders and investors in mortgages, their precepts cut a wide swath.

More than 10 million homeowners are said to be underwater with their mortgages. Not all want to get out. Many are content with their current situations and have no intention of moving, at least for now. Others continue to hold on in hopes that values will start rising again.

Unfortunately, others need to go, and many of them would rather sell at a loss through a short sale — a loss their lenders would have to absorb — than have their homes taken away.

The new 60-day rule became necessary because lenders were taking an inordinate amount of time to make up their minds — eight months on average at one point, according to RealtyTrac, a foreclosure data firm. It took so long to receive an answer that many would-be buyers became tired of waiting for a decision and went elsewhere.

But borrowers need to realize that the rules cut both ways. While lenders are required to adhere to faster timelines, borrowers also must do their part. Otherwise, they can short-circuit their own short sale.

A decision can be delayed, for example, if all the paperwork the lender requires has not been supplied. If something as simple as a photocopy of a driver’s license is missing, a borrower might have to start the process over, says Steven Horne of Wingspan Portfolio Advisors, a firm that services nonperforming loans.

Consequently, Horne and others agree that the most important thing a borrower can do is engage the services of a real estate professional or attorney who has experience in short sales, preferably with their particular lender. Not to bash rookies, but now is not the time to allow someone to cut his or her teeth on a deal.

Disclaimer: for information and entertainment purposes only

Remember, Home Buyers: You Have the Right to Negotiate Everything

Posted on June 29, 2012 | Leave a comment

Everything — in real estate, absolutely everything — is negotiable.

Recent economic reports indicate that real estate sales are on the increase, especially since mortgage interest rates are at an all-time low. But, despite what experts tell you about sellers having the upper hand, it still is a buyer’s market.

Contact the appraisers at www.scappraisals.com for value questions. An appraisal of the property before negotiation may help in the negotiation process.

Home buyers, especially first-timers, do not understand that they have the right to bargain and negotiate all aspects of their real estate purchase.

Potential buyers should not hesitate to make a low offer on a house. The real estate broker or agent has a duty to submit any offer — no matter how ridiculously low it may seem — to the owner of the house.

A seller has three options when an offer is received. She can reject it out of hand, accept it or make a counteroffer.

If your offer is rejected, you can always present another offer that is closer to the seller’s asking price. Or, if price is a concern, you can look for something else.

Disclaimer: for information and entertainment purposes only

Category Archives: Real Estate

Risks, Rewards of Buying Foreclosures

It Pays to be Proactive in a Short Sale

Remember, Home Buyers: You Have the Right to Negotiate Everything

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