A few things to consider before purchasing a distressed property

I have been working with lots of buyers of foreclosed or distressed homes lately and wanted to give you some hints on how to make this type of purchase a little easier. 

First, let’s talk about Short Sale Properties:  A short sale is a home that is listed by a real estate firm for less than is owed to the bank because the currentj0427594_1 value of the home has decreased to the point that they cannot get an offer to cover all encumbrances on the home.  The seller will complete a financial package and submit it to the bank for review and advise that they want to sell the home and that it is expected to be a short sale.  Once an offer is received on the home, the bank will send out an independent person to do an appraisal or Broker Price Opinion on the home to determine current market price.  If they are in agreement, they may accept the short sale.  WARNING:  This process can take a LONG time.  Usually up to 4 months or more and the foreclosure process still moves forward.  It is a game of "Beat the Clock" and there are not guarantees.  Once accepted by the lender, you may still run into title issues on the property that have to be resolved (usually by the seller or buyer) before closing.  It is recommended to have a title report done in advance to uncover any hidden Liens or judgments.  You can get a great deal on these properties but you must be patient and work with the process.

Foreclosures:  These types of sales are much easier to do than a short sale and work the same way a regular sale works other than the seller is a bank and there are usually additional addendums to be signed that state the property is being sold in "as is" condition with no warranties and no liability by the bank.  You need to do your homework UPFRONT on these types of properties and know what you are buying.  In some instances, you can ask the bank to make repairs to enable you to qualify for financing and they may agree to complete them.  They may also pay for closing costs and even a home warranty.  Some banks will waive the appraisal fees and even lower the interest rates if you finance through them.  Work with your Realtor and know all your options. 

Financing considerations:  Please keep in mind that with ALL distressed properties, the banks will require a pre-approval letter from a lender or require you to be qualified with them directly (even though you may still choose a lender of your choice), or require proof of funds if you are paying cash.  They will consider an offer without this and earnest money.

There are lots of finance options out there such as USDA (100% financing), FHA (3.5% down payment), VA (100% for veterans plus possible lower interest rates), 203K (roll renovations into the loan and finance the whole package) as well as conventional loans.  Talk to your lender about the best option for your situation.  If you are considering a Manufactured Home, be sure to let your lender know upfront as some programs are for "Stick Built" home only.  There may also be limitations on loan amounts.  Many lenders  may not finance anything below $35,000.

So, before you begin your search, get prepared, do your homework, ask your Realtor lots of questions and make a smart buy.  Avoid any un-necessary stress by being an informed buyer.

I am here anytime you have questions – just ask!

Search for Distressed Homes in Statesville NC or surrounding areas

Continue reading A few things to consider before purchasing a distressed property

JUST LISTED IN STATESVILLE NC – Valley Brook Community

 
SHORT SALE BARGAIN!  This is a ton of house for under $54 s.f.  As good as new in a growing community in Statesville NC.  You will love this home and a large private yard.  For other distressed homes for sale in Statesville NC, visit my search site or sign up on my website to be added to my weekly list of distressed homes. 
 
 
1151 Valley St Statesville, NC
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Huge house at a great price! Over 3000 square feet of space with open concept living, oversized kitchen with 42" cabinets and island. Upper level has 4 spacious bedrooms and a laundry room. Master suite features a large walkin closet with custom shelving and master bathroom with dual sinks and garden tub. Fenced back yard with tiered garden area and wood play set. This is a must see! Hurry before it is gone. Call Sonya for a preview at 704-450-0588.
MLS# 2004318
$159,900
4 Bed, 2.5 Bath
1151 Valley St
Statesville NC, 28677

EXIT HOME TEAM REALTY

Sonya Leonard
Sonya Leonard
EXIT HOME TEAM REALTY
704-768-3988

 

 

SHORT SALE BARGAIN – 2228 Ballingarry Drive, Statesville NC – Taras Trace Subdivision

 
Sonya Leonard | Exit Home Team Realty | (704) 450-0588
2228 Ballingarry Drive, Statesville, NC
Short Sale! Bring all offers. This is alot of house for the money. Currently price over 30,000 under tax value!
4BR/2+1BA Single Family House
offered at $120,000
Year Built 2004
Sq Footage 2,024
Bedrooms 4
Bathrooms 2 full, 1 partial
Floors 2
Parking 2 Car garage
Lot Size 10,890 sqft
HOA/Maint $0 per month

DESCRIPTION

SHORT SALE! BRING OFFERS. Great house with tons of space. Over 2000 s.f. with 4 bedrooms and 3 baths! Excellent location next to shopping, the Statesville Soccer Park, Greenway access, and the new Recreation Facility. Nice flowing floorplan with bonus room/bedroom over the garage that would make a great media room.
see additional photos below
PROPERTY FEATURES

– Central A/C – Central heat – Walk-in closet
– Living room – Dining room – Breakfast nook
– Dishwasher – Refrigerator – Stove/Oven
– Microwave – Laundry area – inside – Balcony, Deck, or Patio
– Yard    

COMMUNITY FEATURES

– Playground    

ADDITIONAL PHOTOS


Front of House

Large kitchen

Living Room

Breakfast area

Formal Dining

Wood stairs
Contact info:
Sonya Leonard
Exit Home Team Realty
(704) 450-0588
For sale by agent/broker

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Posted: Aug 16, 2010, 12:31pm PDT