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Real Estate Banker Pre Foreclosure Article
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What To Watch Out For In Pre Foreclosure Houses
from:There are a lot of pre foreclosure houses available on the market, many that have excellent investment potential. However, like with any investment, there are some risks associated with purchasing pre foreclosure houses. By knowing what to look out for and what to avoid, investors can reduce the risk of having what looks like a great investment turn into a liability.
The key concepts to keep in mind when buying pre foreclosure houses and properties include:
• Location – no matter how good of a deal you may get on pre foreclosure houses or properties, if they are in remote areas or in neighborhoods that are traditionally hard to sell, they are not really a bargain. If you can afford to hold on to the property for a longer period of time and have reason to expect the area will transition into a desirable neighborhood due to new expansions, subdivisions, shopping centers or other attractions location is not as critical. In some cases the pre foreclosure properties are located in other high pre foreclosure areas, which means the area will be saturated with investors trying to sell homes they have purchased. This will make resale options less and will also decrease the profit you will make on the property.
• Condition – some pre foreclosure houses will be maintained in excellent condition, but generally expect some type of repairs. Since the homeowners have been financially strapped, they are less likely to have painted, upgraded or added to the value of the property, especially if they knew they were heading for a foreclosure. In some cases the owners may have actually contributed to the poor condition of the house, although this is relatively rare.
• Back taxes – in some cases pre foreclosed houses and properties will also have large amounts of back taxes that need to be cleared up in conjunction with the transfer of the title. This can add thousands of dollars to the cost of the property, so make sure you are aware of any taxes owing or other liens against the property.
• Upgrades – if you are considering pre foreclosure properties that are older homes, they will need to be upgraded before they can be put on the market as rentals or properties for sale. Often rental properties are only upgraded with new paint and carpet, but a house for sale may need the fixtures changed, flooring upgraded, windows and roof replaced and even the kitchen or bathrooms remodeled. If you can do some or all of the work yourself this can save costs, however it will still take time and money.
If you are new to buying pre foreclosed houses, consider taking a weekend course or completing an online program to help you become aware of both the benefits and the risk to this type of investment.
Real Estate Banker Pre Foreclosure News
Foreclosure-prevention efforts bog down - Kansas City Star
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In cleaning up mess, FDIC may have sped Utah banks' end - Salt Lake Tribune
In cleaning up mess, FDIC may have sped Utah banks' end Salt Lake Tribune The five banks had on their books a total of $175 million in foreclosed real estate, which darkened their financial picture and ultimately caused their demise. Although the amount is a small fraction of the $11.5 billion in foreclosures that lenders in ... |
Foreclosures reach lowest level since 2007 - CBS News
 CBS News | Foreclosures reach lowest level since 2007 CBS News (MoneyWatch) Good news on the housing front: Foreclosure activity is at its lowest level since July 2007, according to new data from real-estate research firm RealtyTrac. In April, the number of default notices, scheduled auctions, ... Foreclosures fall again, for now, survey finds Foreclosures Plunge to Five-Year Low in U.S. Recovery: Mortgages REAL ESTATE: Sales still weak in Inland area |
Foreclosure filings up in Philadelphia region - Philadelphia Inquirer
 ABC News | Foreclosure filings up in Philadelphia region Philadelphia Inquirer Philadelphia foreclosure filings fell about 11 percent from March, but were 24 percent higher than April 2011, continuing a six-month trend confirmed by a number of other sources, including CoreLogic, the real estate information provider. Report: Fewer US homes foreclosed upon in April Foreclosures Plunge to Five-Year Low in US: Mortgages |
Are Declining Foreclosures Good News for Housing? - DailyFinance
Are Declining Foreclosures Good News for Housing? DailyFinance Last week, an especially tasty morsel was reported by real estate data company Realty Trac: Foreclosure filings for April represented the lowest since 2007, falling 14% from a year previous. In addition, the Mortgage Bankers Association noted that ... |
Q&A with Cleveland on Responsible Banking Law, New in NYC - MetroFocus (blog)
Q&A with Cleveland on Responsible Banking Law, New in NYC MetroFocus (blog) As we looked at foreclosures and defaults, our depository banks had a fairly low inventory of REOs [Real Estate Owned properties] and foreclosures in their loan portfolios with the city, where they were working on development projects and development ... |
Mortgage Banking Update - May 24, 2012 - JD Supra (press release)
Mortgage Banking Update - May 24, 2012 JD Supra (press release) by Ballard Spahr LLP on 5/24/2012 The US Supreme Court today unanimously rejected the US Department of Housing and Urban Development's interpretation of Section 8(b) of the Real Estate Settlement Procedures Act. HUD, in its Statement of Policy 2001-1, ... |
Speeding Up Short Sales - New York Times
 New York Times | Speeding Up Short Sales New York Times Expedited sales as a result of the new directive will benefit the entire housing market, said Michael McHugh, the president and chief executive of Continental Home Loans and the president of the Empire State Mortgage Bankers Association, a trade group. |