Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Daniel asks…

what is the technical name of that rental arrangement where you live in a for sale house (foreclosure or?

whatever) so that the home looks “lived in” so it theoretically sells faster (lived in..as in nice furniture etc)… its like a new renting trend..what is it called?

Your Questions About Foreclosures

The Expert answers:

Furnished?

Your Questions About Foreclosures

Laura asks…

Buy a home for $300 via Government foreclosure house sales…Is it for real?

I have just seen a TV commercial about government tax foreclosure house sales. They were claiming that you can buy homes all across the US for as cheap as $300 or less. Is this for real? There must be a catch does anyone know? However If there isnt a catch how do i get started.

Your Questions About Foreclosures

The Expert answers:

Im sure theres a catch..i doubt you’ll get a house for $300…if that were the case all these houses in foreclosure would be sold..

Your Questions About Foreclosures

Linda asks…

How should I put an offer to a short sale house?

I live in central NJ with still high real estate market, but plenty of foreclosure and short sale.
There is a house listed for 509k in short sale. It seems to be in good condition in a nice area. So I was wondering how low offer should I put on this house?

Your Questions About Foreclosures

The Expert answers:

I specialize in short sales and help people buy them. As a buyer, you will need to have your agent look at the lowest comparable sales and offer 10% below that (for your area). For example, if in the last 1-6 months the low sold prices were 550, 530, 535 your offer will be for 475k (really 477k, but that number looks weird to the banks). You will also need to ask the seller to pay for all cost and 3% for your closing cost. If the home is owner occupied, then you, not your agent, can contact the owner and tell them that you will give them $2,000 if they use your purchase offer only after close of escrow. The seller gets nothing from a short sale and offering them money will motivate them to use your purchase offer for the short sale. Plus it gives them money to move. Now, the only people who will get the house are people who will offer the owners the opportunity to rent it back or offer them more money (homeowners tend to catch on quick when they realize they can profit from a short sale). If the owners are out of state or nowhere to be found, be creative. 😉

The second part is the BPO. The bank sends an appraiser to the home. It is very important that one of the agents meet the appraiser and give them 3 low sold and 3 low active comps. They should let the appraiser know that the house is in foreclosure and any value at or below 475k would be appreciated as it will help the owner out. Ask for a business card and say that when this is over and if it becomes a success, you will like to send the appraiser a special thank you. The business card will also let you know if this an appraiser or a real estate agent. The real estate agent doing BPOs is doing so in hopes that the short sale will fail and that they get the listing. So they purposely give the bank high numbers. So by knowing who you are dealing with, you know what to expect and what your next strategy is.

There’s more, but these two points should help you out.

Good Luck!

Your Questions About Foreclosures

Maria asks…

Does the house sale price affect property taxes?

Hi… Im looking at buying a foreclosure house here in Minnesota for under $20k… it sold before for around $60k and has $60k in upgrades so its being taxed at around $2,000 per year which is high! Especially if it is selling for $20k.

My question is.. if I contacted the county assessor.. Would I have any leverage in my argument that they should lower the taxes being as its selling for pennies of what it sold for in the past? A sign of the economy.

Why should the county get taxes based on unrealistic property prices? If the property is in disrepair and needs rehab and is now selling for many times less.. Shouldnt the taxes also reflect the economy and get lowered to what it recently sold for?

Thanks!

Your Questions About Foreclosures

The Expert answers:

The answer is maybe. The sale price is a very important guide when the sale is not a distressed sale. A foreclosure is a distressed sale.

Properties are assessed in an area at the same time then the tax calculation is adjusted each year depending on the sale prices of properties from the previous year. That adjustment is known as the equalization rate. It is supposed to make adjustments for changes in the value of all properties. The county will just raise the tax rate on all properties in they assess for a lower price.

The assessor may ask to see your house if you request a change in your assessment.

Your Questions About Foreclosures

Lisa asks…

Theres a foreclosure house for sale? Is this investment opportunity good to go?

and emailed the agent about the property and I got her respond. Tell me what do you think and should ask her?

“Presently, there are no offers pending or in the works on this property. It’s been on the market 9 days so I’m sure at the price there will be investors looking at the property. On foreclosures when there are repairs done, it’s usually only the minimum so the shingles that were replaced would be only to stop a possible leak, etc. The entire roof would not be replaced. Are you possibly looking at this property for a home or an investment? ”

Thanks!
…and what should I ask her* (typo)

Your Questions About Foreclosures

The Expert answers:

Well, first ask her if she can give you a comparable market analysis (CMA) this will tell you what other properties like it are selling for in the area, or even better if it has been appraised recently. Of course you’ll have to get it inspected, at your own cost, to really know what has to be fixed, you never really know, maybe the foundation is bad, the whole roof needs to be replaced, and there is extensive termite damage. Whatever needs to be replaced you should be able to tell if the price of the house And all the repairs makes it worth buying. You sound like you wouldn’t know how much each repair would cost so be careful even if you ask a professional they can tell you don’t know much and will try to rip you off so get at least three estimates for each problem you come across. You can make and LOSE a lot of money in real estate so don’t rush into anything, if this one gets away then maybe it is for the best. Plus, most real estate agents are like car salesmen so don’t trust every word they say, don’t let them rush you or make you feel uncomfortable

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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