Foreclosure Information from Realty Trac
<Search Foreclosures FREE For 7-Days!
Free access for 7 days, try it out! No strings, no contracts, no hassles and
you can cancel at any time. Hurry! Foreclosures sell fast. Visit RealtyTrac.com.
With virtually every Bank, Government and Institutional property you'll find
your next home waiting for you
RealtyTrac, Inc., the leading online marketplace for foreclosure properties,
provides all the resources that home seekers, investors and realtors need to
locate, evaluate and buy properties at below market value. Founded in 1996,
RealtyTrac sets a new standard for online real estate services by offering the
largest database of pre-foreclosure and foreclosure properties, with more than
500,000 properties across the country, comprehensive property data, productivity
tools and extensive professional resources. RealtyTrac hosts close to 2 million
unique visitors monthly, and is the exclusive foreclosure data provider to AOL,
Home Gain, MSN House and Home, The Wall Street Journal Real Estate Journal and
Yahoo! Real Estate.
Buying a Foreclosure Property Below Market Value: Five Tips from the Pros
House hunting can be a very daunting experience, especially in today’s real
estate market. Both investors and home buyers have been priced out of the market
by escalating costs, and good real estate deals are increasingly difficult to
find.
But there are bargains out there, for people who know where to look.
“For people willing to do some homework, the foreclosure market offers some
of the best opportunities in real estate today,” explains James J. Saccacio,
chief executive officer at RealtyTrac, the leading online foreclosure marketplace.
Web-based services such as RealtyTrac give consumers access to foreclosure and
pre-foreclosure information that was previously available only to professional
real estate brokers and investors. Today, homebuyers can use these services
to assist them identify and research potential home purchases, as well as the
tools and professional resources they need to help them close the deal.
With interest rates ticking up and ARMs adjusting upward, experts predict an
increase in the number of foreclosure properties on the market. RealtyTrac,
which provides all the foreclosure data for both MSN House and Home and Yahoo!
Real Estate, has already compiled a list of over 550,000 foreclosure properties
across the country.
“Foreclosure properties can be a terrific investment, or give home buyers a
much more affordable option than traditional properties,” notes Saccacio. “But
they’re not a way to get rich quick, and a foreclosure purchase needs to be
approached in an educated, intelligent manner.”
Saccacio offers five tips to help you close a deal on a foreclosure property:
1. Learn about the different types of foreclosure properties, and the foreclosure
process.
There are three basic types of foreclosure properties, representing different
stages in the foreclosure process: notice-of-default (NOD) and notice of trustee
sale (NTS), which are both pre-foreclosure properties; and real-estate-owned
(REO), a foreclosure property which has been re-purchased by the bank.
For most consumers, buying a pre-foreclosure property from a private homeowner
is the best option. It’s important that both the buyer and the seller see the
situation as a win-win situation, in order to ensure a smooth process. In this
case, the seller is able to get out from under a mortgage without destroying
their credit rating, the lender is saved the time and expense of foreclosing
on the property, and the buyer gets a below-market price on a home.
Foreclosure auction sales are typically the domain of the professional investor.
These properties are formally in default, and sold to the highest bidder at
an auction. Buyers are required to be physically present at the auction, and
must pay 100% of the sale price in cash, on the spot. Though foreclosure auctions
can offer significant savings, they are not for the feint of heart or the uninformed.
Unless the buyer is already familiar with a particular property, there is usually
little time to examine it. And the buyer will be competing against professional
investors—and sometimes even the lender—at the auction.
Once the lender officially reclaims a home, it becomes a real-estate-owned property
(REO). While REO properties typically offer more time for evaluation and a more
standard bank-managed transaction, their prices are usually very close to full
retail market value.
CHART: Stages of the foreclosure process Stage Positive Negative Pre-foreclosure:
Notice-of-Default, Notice-of-Trustee Sale - Highest potential savings - Potential
win/win scenario benefits all parties - Chance to evaluate property - Buyer
/ Seller negotiations can be difficult\ - Time pressure to complete transaction
before auction Foreclosure: Auction sale - High potential savings - Immediate
property ownership - 100% of the sale price required in cash - No time to evaluate
property - Competing with professionals Foreclosure: Real Estate Owned (REO)
- Affords significant time to evaluate property - Traditional bank financing
- Lender often rehabs property - Lowest potential savings
2. Secure financing early
It’s important for a buyer to be pre-qualified before engaging in discussions
with a seller. This ensures that the buyer is in a financial position to purchase
the property, and is in the strongest possible position to negotiate. It’s best
to work with a lender who understands the foreclosure process, and can guide
the buyer through certain steps, such as ensuring that a property is FHA-compliant.
Another reason to consider pre-qualification is that not all lenders finance
foreclosure properties. Having approved financing in-hand makes negotiations
with both the seller and the lender easier, and may even make it possible for
the buyer to simply cure the default and take over the existing loan to reduce
loan processing fees.
3. Engage a real estate agent as a “buyer’s representative”
Most people hire a real estate agent to sell their home. These “seller’s representatives”
are charged with making the sale and negotiating the best deal for their clients.
“Buyer’s representatives” have the home buyer’s interests at heart, and are
charged with finding the right property and negotiating the best price for their
clients. Picking the right real estate agent will make a buyer’s life much easier.
There are agents who specialize in the foreclosure market, with specific experience
in REO properties. Look for an agent with foreclosure transaction experience,
as well as knowledge of local, regional and state laws. But it’s also important
to consider the agent’s knowledge of the area; their ability to close a deal;
and their access to other professionals (attorneys, lenders, mortgage and title
professionals) to ensure that the buyer is in good hands.
4. Do your homework
Stocks offer higher potential returns for investors than traditional savings
programs, but are also riskier. Similarly, purchasing foreclosure properties
is somewhat more risky than buying traditional real estate properties, but offer
much higher potential savings. With the right examination and due diligence,
buyers can significantly reduce the risks. It makes sense to give any property
under consideration a thorough examination. Here are eight steps for doing a
professional-level exam. CHART: Examination process steps
· Identify desirable neighborhoods – Identify specific neighborhoods where you’d
like to live or own a home. This will limit your search to a manageable size
for you and your real estate agent, and give your a sense of relative property
values.
· Cast a wide net – There are a number of Web-based services that can put hundreds
of thousands of foreclosure properties at your fingertips. Since the best savings
are often found in pre-foreclosure properties, it’s important to check the percentage
of pre-foreclosure (vs. REO) properties in any database before subscribing.
· Determine the property value –Look at the original purchase price, and recent
comparable property sales to determine the current value of the property.
· Find out the amount in default and the remaining loan balance – In order to
determine a reasonable offer price, you’ll need to know—at a minimum—how much
money it will take just to satisfy the debt to the lender. · Run a legal investing
report – Before purchasing any foreclosure property, make sure it is free and
clear of any bankruptcies, tax liens or other financial liabilities. · Assess
the condition of the property– If at all possible, visit the property, ask your
realtor’s opinion, and review pest and structural reports to make sure that
the property is in acceptable condition, or to determine how much of a rehab
budget you’ll need to build in to your deal. · Build a positive relationship
with the seller – Before purchasing the property, try to make sure that you’re
entering into a win-win situation with the seller, so that they’ll do what they
can to make the process easier and leave the property in good condition · Leverage
your timing – Knowing when a property is going to be auctioned gives you an
extra bargaining chip when negotiating with the seller or the lender. 5. Make
a realistic offer Despite what you may see on late-night cable TV, investing
in foreclosure properties isn’t a sure fire “get rich quick” formula. Lenders
aren’t likely to give properties away, particularly in a real estate market
where prices continue to rise. And homeowners in financial distress may be difficult
to deal with, particularly early in the foreclosure process. The keys to a successful
foreclosure property purchase are diligence and patience. As a rule of thumb,
the best savings can be made at the pre-foreclosure stage, where home owners
can avoid a foreclosure and lenders can save the time and cost involved in going
through the process. Another critical point in the process is immediately prior
to the auction date, when all parties might be most open to a last-minute solution.
It’s not unusual to save from 10-30% of the market value on a foreclosure property,
and certain properties offer savings of 50% or even more. An educated buyer—one
who knows how much is owed on the property and what its market value is—can
usually come up with a realistic offer; one that offers significant savings,
while meeting the requirements of the lender. --------------------------------------------------------
Now go out and familiarize yourself with the resources and tools available to
take advantage of the opportunities offered by this formerly-hidden real estate
market. With the experts pointing toward significant growth in available foreclosure
properties, there’s never been a better time to line up your resources and get
informed.>
BUILD YOUR OWN HOUSE! Home * Site Menu * At Home with Ailsa *Ask Ailsa * Ailsa's Bio * Recipes * Tips * Carbon Monoxide Detector * Home Improvement Shopping * 10 Tips to Sell Your House Faster! * Mortgages & Other Financial Stuff! * Real Estate * Home Improvement * Online Education * Travel * Great Gifts! *Financial Prayer * Skin Care * Weight Loss Plan * Freebies! * Books & Magazines *Personal Breathalizer * Shopping * Astrology for 2006 * Flowers * Gifts for Women * Shoes & Clothes* Steve Madden Shoes * Art * Fitness At Home * Get Rid of Cellulite * Gym Tips * More Weight Loss Tips* www.TheScottishDiet.com * Tell a Friend