Jeff Byrd

Foreclosures:

• Finding Foreclosures: You can search for foreclosures in our Listing Search by checking clicking on the "Advanced Search Option" and checking "Foreclosures".  This will limit your searches to properties identified as "Foreclosure Properties". Some banks do not allow their properties to be identified as Foreclosed Properties.. We are able to identify more of these from our experience and would be happy to help you in your search.  Contact us by phone of e-mail if you would like to be made aware of Foreclosed Properties that may not be readily identifiable or are not yet on the market.
• Buying Foreclosures:  When purchasing a foreclosure it is very important to look at them very carefully with an emphasis on what they may need for repairs.  If a property needs repairs the time to know how much it is going to cost to fix is before you make the offer.  A Home Inspection is strongly suggested when buying a property today but it is even more important when buying many foreclosures.  Some cities also have requirements that work be done prior to a foreclosed property being re-occupied.  Permits may be required for work, and some work may have to be done by a contractor.
• Cash Talks:  When buying a foreclosure  a cash offer talks to loudest to asset managers who are making final decisions.  They know they do not have to wait for financing to be approved.  Many times they require 10% of the purchase price as earnest money so be very sure you are certain you want the property.
• Financing Foreclosures: Financing the purchase of a Foreclosure may be different than purchasing a Non-Foreclosure property, if the property needs repairs.  Some financing such as FHA, DVA and some conventional loans require the property meet certain standards in order to lend money on the property.  If the property is in good shape financing can be similar to a traditional purchase.
• FHA 203K Rehab Financing:  There is an FHA program available that will allow you to purchase a property that needs work and allow you to finance both the purchase and the repairs.  A smart purchase with this type of loan could allow you to take advantage of a distressed property, have it fixed up and end up with decent equity.  In order to convince an asset manager to accept this type of purchase you need to work with a loan officer with a proven track record of completing these loans in a timely fashion.
• Maximizing your Foreclosure Purchase:  The more work it needs the more potential you have for building equity in a Foreclosure purchase.  Remember everyone is looking for the low hanging fruit, the ones that just need carpet and paint.  If everyone wants it the price you pay will go up.  There are less people looking for the ones that need substantial work.  If you go for these, you must proceed cautiously and make your decisions based on realistic cost projections with a reserve for the unexpected.  These purchases are not for everyone. 
• Not all Foreclosures are a Good Deal:  Choose wisely and be prepared to walk away until the right property comes along.  Make sure you combine your acquisition costs with your repair costs and then determine the value after the property is fixed up to determine if it is acceptable to you.