Buying Bank Owned Properties - Disadvantages of REO's

Buying Bank Owned real estate can be a great way to get a good deal on a home/property or it could be a nightmarish experience. In order to make sure it is a good deal you need to work with an agent who specializes in bank owned properties. There are many advantages and downsides of buying a bank owned properties, part two of this series will be Disadvantages of buying bank owned real estate.

Disadvantages

*Most often a lot more Due Diligence is involved. These days there are so many bank owned properties that we get a good mix of the good, the bad, and the ugly. There are some gems to be found underneath the rubble! You must have an agent that will educate you on the due diligence process!

*Counter Offers will be verbalized from the bank in most cases.

*Negotiations can go on for a while. The banks are swamped right now and sometimes they only answer offers on certain days or when they get around to it.

*Properties can be filthy, stinky, and vandalized.

*Sold "as is," banks will not fix problems associated with the property.

*Properties are usually winterized and it's up to the buyer to get the water turned back on to inspect the septic and water systems and quality.

*The property may have several offers on the table, make sure your agent educates you on how to make your offer strong.

*Your financing needs to be in place before you place an offer. A pre-approval letter needs to accompany your offer.

*Earnest money will need to exceed the norm...usually 3% rather than 1%.

*Your friends will be jealous when you get a great deal.

Specializing in Bank Owned properties, Preforeclosures, Seller Financed Properties, and Lease Options in Whatcom and Skagit Counties.

What is a Bank Owned Property?

What is a Bank Owned Property?

A bank owned property is a property that has been foreclosed on...has gone to auction and the bank has taken it back and now owns it. Often times the bank will make certain repairs to make the property more attractive. Once the property has gone through the foreclosure process, most liens attached to the property will automatically be wiped off or the bank will settle with the lien holders. This is an advantage over buying a pre-foreclosures.

Often times bank owned properties are priced at Fair Market Value, although they aren't in fair market value condition. Make sure you work with a Realtor that is willing to negotiate the correct market price for the property condition.

For more information bank owned properties visit my website at www.TaraCampRealEstate.com or give me a call... 360-296-3244.

Specializing in Whatcom and Skagit County Bank Owned Properties, Short Sales, Lease Options, and Seller Financed Properties.

Greater Washington Bank Owned properties, Lease Options, and Seller Financed Properties.

FHA Financing - What it is and How it can Benefit you in today's Market!

While the sky is falling and the banks capital is drying up and/or they're hoarding it for a rainy day, I'm here to tell you that there are some great financing options out there to take advantage of in this great buyers market.

One options is FHA financing. No longer are we seeing the strict guidelines of the FHA of yesteryear, but a newer program that's as almost as easy as subprime...o.k, just kidding,...but with insurance backed by the government and less predatory lending programs.

What is FHA?

FHA financing is financing provided by the Federal Housing Administration (FHA), which has existed as a government corporation since 1934. Established under the National Housing Act, the goal of the FHA is to stabilize the mortgage market by providing an adequate home financing system through mortgage insurances. The FHA does not loan money out to borrowers, rather it provides lenders protection through mortgage insurance which protects lenders from the home-owner defaulting on their loan obligations.

Benefits of FHA financing

***Lower down payment (3 percent)

***Down payments and closing costs can be covered through gifts

***These loans are available for all homebuyers

***FHA loans are available to individuals with less than great credit history

***Individuals purchasing a condo do not have to pay an upfront mortgage insurance premium

***There are no cash reserve requirements for a FHA loans on single family residences or duplexes

***FHA for rehab cost added to the loan...not limited to bank owned however!

***Great FHA financing for HUD properties and Bank Owned Properties

Contact me for more information on your financing options, property search, or assistance in getting prequalified.

FHA Financing - Qualification Guidelines

As a real estate professional I find it my duty...my job...my responsibility...my desire to know which financing options are available for my buyers in the Whatcom and Skagit County areas.

Although, I'm no expert on conventional financing, I know enough to keep my buyers informed. One of the more increasingly popular means of financing during these tight times is FHA financing. Find out more...FHA Financing - What it is and How it can Benefit you in today's Market!

FHA guidelines are one of the easiest forms of financing to qualify for these days.

FHA loan Qualification Guidelines

• 2 Years of steady, consistent employment


• Last two years Income should be consistent or increasing


• 2 year clean credit history required


• Bankruptcy's must be at least 2 years old, current credit must be good


• Foreclosure's must be at least 3 years old, current credit must be good


• New mortgage payment cannot exceed 30% of gross income

There are great options for FHA all across the board. Contact me for more information regarding financing options in this buyers market. Search for Washington bank owned properties, seller financed properties, lease options, and more.

Bellingham Real Estate - Preforeclosures and Bank Owned Properties

Whatcom County and the Bellingham real estate and market has held strong compared to most areas of the country in regards to home values and market conditions. Over the last 12 months our market has continued to see declines in housing prices and has experienced about a 10% decline in values from the same time last year.

Within the last few months preforeclosures have almost doubled, although the percentage of those that actually end up bank owned are definitely fewer. Short sales and bank owned properties are a big percentage of home sales these days. Which means overall they're bringing down home values in those areas.

For more information on Buying a Bank Owned Property, Short Sale, or other property give me a call.

Tara Camp

ConnectRealty.com/tara

Search Greater Washington Bank Owned Properties at www.ConnectRealtyHomeSales.com

Bank Owned Properties - How to make a strong, acceptable offer!

How to make your offer on a bank owned property stand apart.

1. Have a great Buyer's agent on your side, because the listing agent isn't going to negotiate for you!

2. Have your pre-approval letter ready when you present your offer.

3. Present the offer with 3% or more (of offer price) earnest money.

4. Have your agent include comparables sales if they support your offer.

5. Put together a list of repairs that need to be done to the property along with photos as evidence.

6. Pay all cash...if you can!

7. Make a clean, solid offer...the bank usually don't make repairs...so don't ask them to.

8. Make a clean, solid offer...with as few contingencies as possible.

9. Offer a quick closing...

For more information on Bank Owned Properties, give me a call.

www.taracamprealestate.com

www.connectrealtyhomesales.com

HomeSaver Advance

HomeSaver Advance is the latest attempt of the fed. to assist homeowners in default. Basically the program is designed to help homeowners who have fallen behind because of a temporary set back and can otherwise afford/pay for their home. The jist of it is that your current lending institution can provide you with a unsecured loan that will cover any unpaid mortgage payments(arrearages). You will be charged 5% interest over 15 years(not too shabby). This loan can be applied to principle, interest, attorney fees, or anything else associated with your loan. Oh yeah, the loan has to be Fannie Mae owned or securitized in order to qualify for the program. Don't worry, if you got a conventional loan you most likely fit in this box.

To See the full Article click on the title: HomeSaver Advance

Creative Financing Might Help Sell your Home

Have we Hit Bottom?

Yes, Even I ponder that question...In my opinion the answer is no! I have kept a watchful eye on markets across the nation and if anything things are getter worse. Credit stardards are tightening and money is drying up. O.k., certain markets certainly haven't experienced the infux of foreclosures, but when the money dries up it will affect every market.

As a foreclosure specialist, I have noticed recently that not only are subprime mortgages defaulting, so are prime mortgages. Looking at properties being listed these days, I'm finding over-leveraged properties and owners of all credit ratings. Therefore, the problem not only being subprime lending, but a culmination of lax lending standards, high LTV's, and over-priced real estate.

Please follow the link to a great msn article...click on the title "Have We Hit Bottom?"

Market Conditions and The Near Future of Real Estate

Well, the Real Estate Market here in Bellingham has held up pretty nicely compared to most of the country. Compared to prices of January 07' prices have fallen a bit but overall the market has held strong. Inventory is up and the number of units sold is down about 15%. With the lending standard of the banks getting more stringent and a their lack of funds to lend, I think the number of sales will decline even more. There will be a need for creative financing and creative sales strategies. In my opinion, financing will be harder to come by and interest rates will only get higher.

Please click on Title Market Conditions and the Near Future of Real Estate to view related video.