Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Sandy asks…

My house is under agreement – do I have to wait until after the sale to put an offer on a foreclosed home?

We really love this foreclosed home – we actually tried to put a bid on it one week ago, but our house wasn’t sold yet and the bank said they didn’t want any contingencies. Now our house is under agreement and closing July 27th. Should we try to put in an offer again, or should we just wait until July 27th, so there will be absolutely no contingencies? We could live with my inlaws for a few weeks I guess if we had to (yay! lol), I’m just dying to get into that house! lol

Your Questions About Foreclosures

The Expert answers:

You should submit your new offer with you still being contingent but also disclosing your closing date and that your house is in escrow.

You are basically 30 days out at this point which is as fast as the bank is likely to close on any offer that comes in. Also, you can provide a cover letter describing the strength of your buyers. I don’t know your situation financially, but I don’t see why you would expose yourself to going completely non-contingent.

I am a Real Estate broker in So. Cal. And this is what I would recommend if you were buying there. Banks have a lot of properties right now and you are making a decently strong offer since your home is in escrow. You might be surprised how fast the agree, depending on the condition of your real estate market there.

Don’t hesitate to get an offer over right away. But please keep yourself protected by the contingency. Most agents don’t consider a house in escrow the same as a completely contingent deal, where the home is only up for sale.

Good luck!

Your Questions About Foreclosures

Betty asks…

What are some tips for buying a house in the current economy?

Just looking for some tips dealing with home loans, realtors, private sale or foreclosedhomes. Have you encountered any bad situations you can share? What are some tips to make home-buying safer?

Your Questions About Foreclosures

The Expert answers:

Do some research of your own on the internet, find a lender, find a real estate agent, a home inspector and a good real estate attorney.

Be practical about what you can afford and don’t look at things above your pre-approval amount.

If you find a house you love, make an appropriate offer and don’t automatically go in with an offer 5% or 10% below – if the house is priced correctly, it might actually sell ABOVE asking price. Don’t nickle and dime the price – if you like a house, bid what you feel is appropriate (based on the info your agent has given you and what you have seen) and be prepared to walk away or be outbid if there are other offers on the table.

Knowledge is key – the more information you have, the better off you are to make a better decision and the more likely you are to get the house you are dreaming of.

Your Questions About Foreclosures

Susan asks…

My home is for sale, and also is being foreclosed in 3 months?How do I sell it before then?

The realtor is not doing much for me,could he be waiting to buy it at foreclosure?

Your Questions About Foreclosures

The Expert answers:

Get realistic.

If case you don’t know the market for home sellers just got crappy. It ain’t your realtor-its the market-aka the buyers

Your Questions About Foreclosures

James asks…

Michigan tax tribunal?

I was wondering for the state of Michigan I was told by the city I live in that the state tells them they do not have to recognize foreclosed home sales for the tax assessment. I was wondering if this is true or if their blowing smoke up my rear. I had looked up and down on the internet and I cannot find anything. Thanks in Advance

Your Questions About Foreclosures

The Expert answers:

They are telling you the truth. Assessed values are at least loosely linked to Fair Market Value. FMV is determined using “arms length” transaction histories. Using figures from a distressed sale can artificially affect true FMV either upwards or downwards. This is a standard practice in real estate appraisals, whether it’s for determining values for tax purposes or in delivering an appraisal on a property for commercial purposes such as qualifying for a mortgage loan or establishing an asking price for a property offered for sale.

When a distressed sale takes place it is not a good indicator of what the FMV of the property is. For instance, a home is purchased for $150,000 and is foreclosed upon 2 years later, with a balance outstanding on the mortgage of $140,000. However the value of the home has actually dropped to $120,000 due to the collapse in the real estate market. The foreclosure shows statistically as a “sale” for the $140,000 of the mortgage balance but is NOT an accurate barometer of values in the area. This would skew property values upward artificially.

A foreclosure could skew the numbers the other way as well, say if a property is worth $150,000 with a $100,000 mortgage balance and a $125,000 value. The sale would show as $100,000 and if it was used in establishing FMV for other property values in the area it would tend to bring them down artificially.

If you are attempting to challenge a tax valuation for property tax purposes, your comps must only include sales histories in the area that meet the “arms length” concept, i.e what a willing seller would accept from a willing buyer absent any outside economic influence.

Your Questions About Foreclosures

Carol asks…

Will opening a Chase Banking account be a bad decision after having a home foreclosed by Chase?

Hi – My home was foreclosed this year by Chase Home Loan Finance. The auction was in October. Recently I’ve been needing to change my checking account to another bank, and from looking in my area Chase bank has many convenient locations for me. However, I’m extremely worried as I wonder if they can try to grab my money from the chase checking account to pay for any funds that they lost due to the sale of the home they financed. Any advice?

Your Questions About Foreclosures

The Expert answers:

30 years ago that happened to my father. The bank froze his account and later seized the balance.

Maybe laws have changed, but I wouldn’t trust them with my money under these circumstances.

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures