Patience and Professional Assistance Required to Navigate Complex Transaction
7/23/2009
PLANO, TX, (July 23, 2009) – In the current market, foreclosures have continued to rise both nationally and locally, making available a wide selection of homes and outstanding values for buyers willing to explore the opportunities, reports Coldwell Banker Residential Brokerage.
Month-by-month increases in foreclosures are breaking records that go back 30 years, according to a report from the Mortgage Bankers Association (MBA). The number of mortgage loans now in foreclosure has risen to almost three percent of total loans, up 76 percent from a year ago.
“The record number of foreclosures has grabbed the headlines, but buying one of these properties is not as easy as it looks,” says Sue Meyer, President, Coldwell Banker Residential Brokerage. “Consumers need skilled consultation from an experienced real estate professional to shop the market for a foreclosed home and navigate through a transaction that varies quite a bit from the norm.”
Meyer commented that lenders are pricing foreclosed homes aggressively and buyers need to be pre-approved for a mortgage before they start their search so they can react quickly when they find the right home. “Buyers also need to be realistic about fixing defects that come up during inspections because many of these homes have been neglected by their former owners,” said Meyer.
Coldwell Banker Residential Brokerage has sales professionals in Dallas/Fort Worth who specialize in representing lenders selling foreclosed homes commonly known as REO properties, which stands for “real estate owned” by a bank or government lender.
The ability to buy a foreclosed home at a deep discount today is illustrated by Pat Schultz, Sales Associate at the Plano office, who recently completed a sale. “A relocation buyer was looking for a 4-bedroom, 3-living area home with 4,000 square feet of living space that was not older than five years. Competing with multiple offers, he paid $220,000 for a 5-bedroom, 3 ½-bath home with four living areas, a study and 3,806 square feet of living area. The previous owner paid $380,000 for it two years ago. The buyer was thrilled with his purchase and plans to live in the home for many years." John DiGiovanni, Branch Manager of the Plano office, attributes the efficiency of the transactions to the expertise of his team in handling REO properties.
Schultz added that buyers interested in a foreclosure need to be patient with the transaction process because buying a home from a bank or government lender can take up to three months. According to Schultz, “You need time for a title search and an evaluation of the condition of the property. In many cases you are in a bidding situation and negotiating with an institutional owner can take time. But with a record number of properties on the market and prices down dramatically from two to three years ago, most buyers tell us the end result is worth the wait.”
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