How Do You Compete With the Foreclosures in Your WNY Neighborhood!

That is a tough situation. You are limited by your ability to lower the price while your "competition" on the market is foreclosures that can go as low as they want. Unfortunately, you have few options in this position especially since you have zero control over the neighborhood or neighbors.

Some people would say that you should auction your property and get whatever the market will bear for your house, but doing that would mean that you would likely need to pay whatever difference there was between the auctioned value and the mortgage amount which could be significant.

Unless you can demonstrate hardship to the bank, they are unlikely to allow you to short sale for less than you owe to be able to compete with the neighborhood foreclosures.  You might consider seeing if you might qualify for a loan modification to lower your payment so that you could rent out your house after you meet the residency requirement. Doing that might allow you to move out and wait for the market to recover a bit before selling.

If none of those things are options, you need to seek legal advice to find out if you have any other options and to explore what your rights and the banks rights are.

Unfortunately there is lots of homeowner in this situation.  If you are a homeowner who is facing this situation I am truly sorry that you are facing this, but you are definitely not alone. Many are in the same boat.

One of the options you may want to consider is lease option - ask your WNY agent about this (for a buyer who may not have the credit or cash to make a purchase, they buy the option to purchase your home.  It's not a guaranteed sale - it's a lot like renting because you don't know if they will buy.  But you should get cash for the option, and you'll get a "renter" who has a vested interest in the home.  You'll have to follow up with your Realtor and an attorney to see if this is an option for you.)  These options could maintain your good credit. There are a lot of owners who are under water right now.  We are not going to get out of this situation as quickly as we got into it.  This property could be part of your long term investment portfolio if you can see it that way.

Please before you decide to make any drastic decisions regarding this topic please be sure to get counsel from your attorney for he/she can guide you on this matter and if you are dealing with a Realtor. If I didn’t ask for anything I will ask you this? Please make sure this Realtor is experience in this area of sale for this is not for the average agent.

If you should have any question regarding this topic please feel free to contact Me and I will help you beyond belief of this subject matter for I have experience in this field of sale and I will see that you get the representation you deserves and if I can’t help I would be sure to guide to a respectable Attorney who can.

You may want to refer to WNY Home Sellers Will You Ever Consider Rent To Own?

Mark Key

RealtyUSA.com

716-603-8649

mkey@realtyusa.com

How Do You Compete With the Foreclosures in Your WNY Neighborhood!

Foreclosure: Buying A Foreclosed Home In WNY

Foreclosure begins when a property owner defaults on the mortgage of a property, mainly due to financial difficulties or the inability to keep up with the mortgage payments for some reason or another.

In the event that a property succumbs to a foreclosure, it’s most likely that the property has not been maintained as it should have been. This means that perhaps the roof is in dire need of repair, a damaged foundation or the landscaping has been severely neglected, or a number of other maintenance or repair issues that may be costly.

Some foreclosure homes may only need a fair amount of TLC. The amount of repairs needed or required for the foreclosure property may greatly reflect on the asking price. A major fixer upper may be offered at a lower than normal price, whereas a property that is in fair condition may go for a price just the below the market value.

When a mortgage lending institution decides to foreclose on a property, they will file a notice of default that will become a public record for all buyers who are interested in locating foreclosed properties for purchase. There are many places buyers can look to find foreclosed properties such as: various web sites on the Internet, real estate agents or brokers and real estate magazines.

Once the WNY buyer locates a foreclosed property they are interested in, the WNY Home Buyer can assess the public records and check for any liens on the property. Most liens that are placed on foreclosed properties are for unpaid taxes. Interested buyers should also check the values of the neighboring properties before entering into a contract, to make sure they would be getting a fair market value. I personally check the value for all my clients subject property before we move on to the bidding of those particular foreclosure properties.

Novice buyers may be interested in checking out bank owned foreclosure properties. These bank owned foreclosure properties may prove to be at lower risks to the novice buyer. With bank owned foreclosure properties, there are usually no tenants to evict, no liens against the property and no past due taxes.

Some lending institutions may be eager to sell their foreclosed properties and may offer to finance the foreclosed property to the buyer at a low market rate or with a small down payment.

If the lending institution has already done an appraisal, the interested buyer may not have to pay an additional appraisal fee. Most lending institutions that are eager to sell a foreclosed property may also include title insurance that generally removes most of the risks that come with buying properties early on in the foreclosure process.

The more experienced buyer may decide to find a pre-foreclosure property owner about to go into default and offer to buy the property for a portion of the difference between the property equity and the market value.

This may be an acceptable offer to a property owner who doesn’t want to end up losing all of the equity that has been invested in the property. Some pre-foreclosure property owners may offer bargains to a persistent buyer.

This is mostly because at this stage, credit collection agencies are constantly hounding the property owners, who would in turn want to resolve these issues to avoid any further harassment.

Buyers may sometimes find that contacting the owner of a pre-foreclosed property can be difficult. Usually by this time, the property owner may not have any electricity or a telephone.

Sometimes these pre-foreclosed property owners may also be difficult to deal with directly, due to a drug or alcohol addiction that put them in their situation in the first place. Some owners may also be hostile to the buyer or unpleasant to deal with because they are bitter and frightened about losing their home and perhaps they have no other place to go.

Some of these owners may even see the buyers of their foreclosed properties as their mortal enemy and may do some extra damage to the foreclosed property before evacuating the premises.  

Many foreclosed properties are normally sold at prices close to the assessed value. Depending on what city or neighborhood the buyer is interested in, what the neighboring property values are, how long it has been on the market  and what amount of work needs to be done to the foreclosed property will greatly reflect on the asking price.

If you or anyone you may know are looking for foreclosure property in the WNY area please feel free to contact me at 716-603-8649 or contact info page at the top of page and I will get the latest list out to you as soon as possible.

If you would like to be the first to know about the WNY foreclosures list before any other buyer, go to the contact box and leave your e-mail address along with your contact info and state that you are looking for the latest foreclosure list and I will set you up for that service promptly.

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Foreclosure: Buying A Foreclosed Home In WNY

Buying a Foreclosed/ Distressed Home

Concentrate On Distressed-Property Sales

This land of ours is full of distressed Properties  –That is structures and land that were
•    Abandoned by the owners
•    Taken over for nonpayment of taxes
•    Discarded because of building- code violations
•    Left because of fear of new tenants
Distressed properties are problem properties. So unless you welcome solving problems while you earn Big Money stay away from distressed properties.
When you take over any distressed property you may have to:
•    Repair, rebuild, recondition
•    Repaint , reprove, re-roof
•    Drain, dredge, dry
•    Find new tenants,eject current tenants
•    Raise rents; lower rents
So you see, distressed properties not only have built –in problems. They also require a large amount of work on your part. Of course you can hire people to do this work for you. But when you first start you may not have the cash needed to hire the people you need. So keep in mind at all times that in the rule of distressed/ foreclosure properties.
1.    It will always cost you more than you think it will to make BIG MONEY from distressed properties.
2.    It will always take you longer to make money from distressed properties than you think it will.

With these rules in mind you’ll be able to face realistically the everyday problems that occur in the buying, selling, and running of distressed properties.

Buying a Foreclosed/ Distressed Home