The process of home buying can sometimes be overwhelming and chaotic. The better prepared you are about the process, the less stressful it will be. Today's market has opportunities knocking at every corner. Prices are phenomenal, rates are low, and inventory is high! Knowledge of today's market means everything. Whether your a first time buyer, seasoned investor or somewhere in between...My goal is to arm you with the knowledge and information to make an intelligent and informed decision. If you are interested in buying a home...Remember I am just a click away, or call if you prefer!
Contemplating whether to let a home go through foreclosure - v- short sale? If you have fallen behind on your mortgage payment, Salvaging your credit may not be an advantage to doing a short sale. According to the experts.. there's no difference on the effect a short sale has on your credit score versus a foreclosure. In the end... if your are 59+ days delinquent on your mortgage, you can expect your credit score to drop 200-300 points. The main reason why many sellers are choosing to sell a property as short sale is...the advantage of being able to buy another home within two years! Versus the three- to five-year period required when foreclosed. As always, seeking legal and tax advice is crucial before making the decision to foreclose or short sale.
Myths & Facts about Foreclosures!! In today´s current real estate market, many buyers are turning their interest to foreclosures (REO's, bank owned) And it´s no wonder.... San Diego Foreclosures are often discounted up to 20% below the current market price. 60% of all residential sales in the last year, have been properties bought in a foreclosure.
Actually this is partially true. When buying a foreclosure at a trustee's sale, the property is sold at a public auction, so yes; being a serious investor would be true to this fact. California law allows the trustee to require any bidder to provide cash or cash equivalent at a trustee sale, and there is no inspection period. All your investigation need to be done prior to auction.If you're going to be buying "on the courthouse steps", knowledge is key and you need to know what you are getting in to. What this myth doesn't tell you is most foreclosed homes are never sold at these trustee sales. When this occurs,
the foreclosed home is "bought back" by the Bank;. And now it is a bank owned property or also known as REOs. ("Real Estate Owned", i.e., by the bank) REOs are a big part of what we are seeing sold on the market today by Realtors® and these homes can be financed.... with as little as 3.5% on a FHA loan, or 100% financing with a VA loan. (upon qualification).
Fact: Foreclosures are Sold As Is? True. "As is" means once you've conducted your inspections, you are now buying that property in its current condition. With most banks will you still have the right to do your inspections, and we strongly recommend you do! Generally the bank will not fix/repair any items found during that inspection period. However there are some exceptions. Such as lender required repairs. Which are found in FHA or VA financing. Now we´re not talking anything major repairs, but possibly replacing a missing stove, water heater, some minor health and safety issue.
Therefore, it is always in your best interest to fully conduct a thorough inspection. Once your inspection is complete in the allotted, it is your decision to move forward or cancel the transaction.
The requirements for owner disclosure are also relaxed, and for the most part except. The law assumes since the bank has never occupied the property, the bank has no knowledge about the property first hand.
Myth: After you Buy a Foreclosure, the Foreclosed Former Owner Can Cure the Debt and Get the House Back... this is true to some extent in some states Outside of California.Most of these homes are sold in a judicial foreclosure. The previous owner may often be subject to the buyer's "right of redemption". A period lasting up to 1 yr, in which the buyer can get cure the debt and get the house back. However in California, the majority of homes are sold using a "deed of trust". There is no right of redemption after the trustee's sale.
Myth: Banks are Desperate to sell, and Will Accept Almost Any Offer
Not exactly true. We all know San Diego has experienced a high volume of REO sale. And yes, the banks do want to unload such properties. However, the majority of these properties have already been discount by 20% and more up front. In other words, the discount has already been built into the list price. Because foreclosures often represent good bargains, you may find yourself in a multiple offer situation. Sometimes driving the offers up. Where the highest bidder wins...factoring terms and most importantly the banks net.
Remember, this is not because the banks weren't willing to offer a bargain. This is simply because they
listed the home as a bargain up front.
Myth: When You Buying a Foreclosed property, you pay the Amount Owed on the Loan. False. When the bank picked up the mortgage at the trustee sale... it's usually"upside down"...more is owed on the property than what it's current worth. Typically, before the bank places it on the open market... it is reassessed , then placed on the market for sale. This new assessed price is then negotiated by you and the bank that owns it.
Fact: Great buys found in foreclosures.As mentioned above, foreclosures are often listed at 20% (or more) under the current market value. For example; if you were to multiply that 20% by 0,000, that´s a savings of ,000! And although a foreclosure may not be in perfect condition, or may need some minor cosmetic repairs. A savings of ,000 is a pretty good way to go! Lucky for you there is an oversupply of foreclosure to choose from and which to get your piece of the pie.
It´s no wonder over 60% of the homes selling in today´s market are foreclosures! So, if you are considering buying a foreclosure... I hope this bit of information has been helpful. Contact me anytime, for guidance and help with any and all of your Real Estate needs.
Is Selling an option? We all know someone, perhaps even yourself, who is looking to purchase a home or pick up an investment. Which is wonderful, prices are great, and interest rates are low. But... did you know this market also creates an opportune time to sell! Yes it's true, you will be selling for much less then you would have 4 yrs ago... but you will also be stepping up into a property you may have otherwise not been able to afford (4yrs ago). You see, when prices start to climb back up and you start gaining more equity in your home, you may think that's great.... but, the other homes out there are also doing the same. And remember it's not only the price of the house that goes up...many times interest rates increase, as well as increased property taxes! Which means, a larger payment for you. The ability to sell now, can creates a wonderful opportunity to buy a home you may not be able to buy when the market has turned!
Opportunity is everywhere! The market is flooded with buyers. Your home maybe just what their looking for. So, if you are considering selling, call me! Together we'll figure out... if the right time for you to sell, is now?.
Brenda Miranda (619)846-9088
When to buy? How do I know when the bottom of the market has hit?
Ah, this is the wise old questions, on many minds! Reality is, no one knows! What we do know is... Real Estate a cycle and as history has shown us throughout the years, it will bounce back! So the question is... no if it will turn, but when? Here are some key events to watch for... when the cycle starts to turn.
The slowing or halting of new home construction & their sales, sellers receiving multiple offers on properties, market time (amount of time property is available) is less than 45 days, and inventory starting to decline.
Hummm, sound familiar? You maybe noticing a few of these events now!
New home construction and their sales are at an all time low. The lowest it has been in 50years! Without new construction being built, and San Diego's constant growth of new comers... this equals, an increasing amount of sales with it current inventory. Which leads us dealing with "multiple offers". Some of you may have already experienced this. When a property receives multiple offers, as we've seen lately.. this drives the prices of the property up ( in most cases). 1st time buyers are flocking in to taking advantage of the current market. With affordable prices, (many which we haven't seen in a decade), and interest rates at an all time low. It's no wonder there are hundreads of buyers activily looking for a place to call their own.
If a property is market at a competitive price, they are gone within the 1st week or 2. The majority of bank owned properties listed, are being pricing to sell...rather than sit on the market. If you are currently looking for property, I'm sure you know, and may have experienced... homes which are priced under 0k are receiving multiple offers! As far as the properties that have been on the market for over 90 days, you will start to see some great price reductions. So, keep your eyes on the prize, or someone will swoop in to close the deal.
Inventory has been plentiful, and we will most likely continue to experience more inventory... among short sales & Bank Owned property over the next year. However, we should start to see those prices start to level off. With the stream of buyers currenlty in the market to buy, and the flood of offers being placed on properties.... a turn around is inevitable, and the upsurge will hit before you know it!
So, forget about trying to time the market...for you may let this opportunity of home ownership slip away!
Contact me anytime, for future guidance or help with any Real Estate needs! Brenda Miranda 619-846-9088 brenda@sellmesandiego.com
Weichert, REALTORS - Elite
(619) 846-9088
8954 Rio San Diego Drive
Suite 201
San Diego, CA 92108
