Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Thomas asks…

What happens to the potential buyer when a short sale home goes into foreclosure?

I have an offer on a home that has been accepted by the seller but is awaiting the bank’s acceptance. Problem being, the house had a notice of default almost one month ago and I have been waiting to hear from the bank for roughly three months. What happens to my offer if the house falls into full foreclosure and the bank still hasn’t accepted my offer?

Your Questions About Foreclosures

The Expert answers:

If the house is foreclosed your offer is void. Nothing else will happen to you.

Your Questions About Foreclosures

Jenny asks…

Which are better and cheaper to buy: homes in foreclosure or home for short sale?

So we are looking for a home but like many people, do not want a back breaking mortgage. I’ve found many homes for short sale and that are in foreclosure here in Georgia. I have not yet been able to determine which homes are better and cheaper to buy. Some sites list all of the homes with photos and detailed information. Some sites only list one photo of the outside of the house with very basic information and for the frustrating ads, some sites list a satellite photo of the house with the general statement that “this home is in foreclosure“. blah blah blah. IDEAS please.

Your Questions About Foreclosures

The Expert answers:

Buying a property via short sale could be time consuming. For some reason the banks are not responding in a timely manner. I consider a timely manner withing 72 hours of the offer being submitted. As I understand it once you have submitted an offer there could be anywhere from a week to 2-3 months before an answer is received.

Yo appear to have the horse before the cart. You indicated you did not want a back breaking mortgage, which would indicate you did not have a pre-approval/pre-qualified letter from a mortgage banker or broker.

Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.

In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.

He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

#1 One month of pay stubs for each person that will be on the mortgage.

#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

#3 Two years of federal income tax along with the W-2 that match.

Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

Make sure your mortgage broker explain all your options so you may make an intelligent decision.

What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

So select the best option for you and your financial situation.

You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

Your mortgage broker will now order an appraisal to show proof of the property value.

The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.

After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

I hope this has been of some benefit to you, good luck

“FIGHT ON”

Your Questions About Foreclosures

Lisa asks…

Is there chart data available on existing home sales which excludes foreclosure sales?

As a long term and somewhat successful stock investor I trust the charts. I have not had much success finding charts representing the Existing Home Sales market, particularly when looking for information which excludes foreclosure sales, which would tend to skew the data. Is this information boiled down somewhere in say a monthly chart covering the past few years?

Your Questions About Foreclosures

The Expert answers:

Because over half of the houses sold are foreclosures they no longer skew the data. Since appraisers no longer have to take foreclosures into account, as they are the rule of the market, not the exception, no one is seperating the data.

Your Questions About Foreclosures

Donna asks…

Where in Virginia Beach, VA can i find foreclosure homes for less then or around $1000?

Where in Virginia Beach, VA can i find foreclosure homes or short sales or auctions to buy home less then $1000. What do i do or agents do i go to or just how. I really want to find something foreclosed for less then 1000 can anyone guide me into the right direction please…………thanks in advances
Usual it is advertised as that just wondering i no its possible maybe rare but possible any way of getting hold of a list or where to find the foreclosed home auctions???

Your Questions About Foreclosures

The Expert answers:

Those are scams you see advertized.

If a bank was selling that cheap the tellers would buy them all up.

Auctions are at the court house, you will have to call for a schedule. The banks set a reserve, which will be roughly 80% of the value.

Your Questions About Foreclosures

Laura asks…

Can a foreclosure home be used as a comp for a VA appraiser?

We had a VA appraiser appraise the house we are buying. One of the comps he used was a forclosure bank sale home which drove the appraisal price down. Can they use a forclosure home as one of the comps. This drove the price down about $18,000 from the agreed upon price and $30,000 difference from there appraisal done in August.

Your Questions About Foreclosures

The Expert answers:

Technically, it can be used but the factors that influenced the purchase price must have been considered by the appraiser. If your story is accurate, the sale may have been below market value and if so, should have been adjusted accordingly. The specific category of adjustment is called “Conditions of Sale”. This adjustment category reflects non-market motivations of buyers and/or sellers. Conditions of sale are considered to be at market levels when properties are properly exposed to the market for a reasonable period of time, when the transactions are arm’s-length in nature, and when there are no unusual circumstances or extraordinary motivations.

If the foreclosed property was not properly exposed to the market (short marketing time, bank sold “to get it off their books” rather than at a market price, etc.), then it may have not been a good sale to use or at least should have been adjusted accordingly. If the bank had owned the property for awhile, had been marketing it and still was unable to sell it, then the new price that helped indicate a market value of $18,000 lower could very well have been at market. This should have been discovered by the appraiser through the confirmation process (contact with the listing broker for the bank). A simple call to the appraiser might clear up this fact if it is not included in the comments section of the report. Keep in mind that the appraiser is not legally allowed/required to speak to you regarding the appraisal (their client is the bank) but many residential appraisers may do so in order to smooth things over (be nice when you call).

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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