There is a huge misconception about purchasing a foreclosure property. YES, they typically are under fair market value, however, it is not a quick buy, move right in, type of a process. As a buyer's agent who prides herself, in educating my buyers before allowing them to jump on the first "Great Deal" they see, I would like to briefly comment on the process and open the eyes of the public to the process because there is a great investment opportunity if you know what you are getting into.PRICING:
There is plenty of media coverage criticizing the Real Estate Market in terms of the amount of inventory "For Sale" around the nation - a significant portion are Short Sales or "Foreclosure" properties. Generally speaking a Foreclosure property is one in which the Bank obtains complete ownership of a home once the "owner" defaults on their mortgage. The Banks now have this inventory of properties on their books that they need to sell in order to regain as much of their debt as possible. Therefore, they typically will seek the service of a Real Estate brokerage to assist in selling these properties. A licensed Sales Associate will then preview the property (inside and out) and create a "Brokers Price Opinion" and suggest an "As is" value to the home as well as a value indicative to what it may sell after any repairs are made. The bank then decides on what they want to list the property for - and it is marketed to the "public".
ELIGIBLE BUYERS:
A qualified buyer may be an investor who is a "CASH BUYER" or "first time homebuyer(s)" looking to escape the blackhole of renting and purchase their own place. What I'd like to focus on is the opportunity for the public to purchase a foreclosure property without having a CASH OFFER. Currently, the mortgage industry is qualifying many buyers for renovation financing which bundles the purchase price and extra money for renovations all in ONE MORTGAGE. It is a more involved process in terms of paperwork and requirements to be made before the closing, however, this special financing allows more people to be qualified buyers for foreclosure homes. One mortgage company that I entrust for processing this type of renovation loan is Wells Fargo (Ask me for specific loan officers in New Jersey who "know what they're doing"). With this loan, not only would you invest in the services of a home inspection, termite inspection, etc. but you would also receive estimates on all necessary repairs/renovations before closing and submit them to the lender. The cost of repairs is then added to the amount of the properties purchase price, and then you are given one "mortgage" to pay off without the heavy burden of finding the money to do repairs on the property on top of staying current with your monthly mortgage payment.
Taking the leap into homeownership can be a complex process, but that is why their is an entire industry of professionals to assist you along the way. I encourage you to outreach to these professionals: Realtors, lawyers, Mortgage lenders, Inspectors, your Town Clerk, friends/family for referrals, whomever - to make yourself better educated on the process and go into this process confident you are "backed up" by "experts".
If you are in New Jersey and are seriously interested in purchasing a foreclosure home, please call me to register for a FREE FORECLOSURE SEMINAR being held by my office, ERA Statewide Realty and Wells Fargo on Thursday, June 19th 7pm - 9pm in Cranford, NJ.
ERA Statewide is one of the largest Real Estate companies handling foreclosure properties throughout the entire state of New Jersey. Our sales team have built many relationships with other professionals in our industry to assist the public throughout the purchase of foreclosure properties (as well as maintaining superior customer service within our residential resale division). Please leave me comments and contact me directly with any questions or comments:
Christine Markow
REALTOR (R)
ERA Statewide Realty
Hillsborough, NJ
Office: (908) 874-7797, ext 519
Cell: (908) 444-3106
*All information within this text is deemed reliable but not guaranteed. Content is merely the professional opinion of the author - please check with your local real estate office, mortgage lender and all other local vendors for more information!
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