REO Speed Sellers

So, You want to buy a foreclosure!

2009-03-21T12:24:00.004-05:00

With the high rate of foreclosures there has become an abundance of homes on the market that are bank owned or REO's. This has opened up a new market for home buyers to consider and in many cases the opportunity to get a good "deal".

These transactions are basically the same as a typical real estate sale but some things can be handled a little bit differently. You must remember that now you are not dealing with a Homeowner with motivations and emotions but with The Bank. (No warm and fuzzy feelings here)

Some things that you might consider to help your transaction go smoother might include:

1. If you are serious about purchasing the home take the time to put it in writing. Don't ask your agent to call with a verbal offer. Banks do not consider verbal offers.

2. Have a pre-approval letter from your lender to present with the offer. If you take the time to get your financing lined up in advance you will know exactly how much house you can afford to buy. The lender will complete the credit approval process and it will only be subject to the appraisal of the property that you decide to buy. When you present the letter with your offer the Bank is assured that they are dealing with a ready, willing and ABLE buyer.

3. When making a CASH offer on the property you need to provide Verification of Funds showing the Bank that you do have enough funds available to close according to the contract.

4. Keep the offer clear and concise and try to avoid any gray areas. The less complicated the offer the more likely it is to get accepted but if you need the Seller to help with closing costs be sure and include a dollar amount or percentage of the purchase price. Also confirm with your lender that it is allowable under the guidelines of the loan program you are using.

5. Most Banks have their own pre-printed Addendums that must be used. Make sure your Realtor has all Addendums required and that you have read and understand them. These forms typically must be signed with no changes or the Bank will not accept them.

6. If you will be getting an FHA or VA loan be sure to consider the condition of the property because the underwriter may require certain repairs to be made to qualify for these loans and the Bank may not be willing to do them.

7. Remember that Banks are aware that these properties typically are in need of repair and usually price it accordingly. Many times the owner of the property that was foreclosed on will strip the home of appliances, lighting and fixtures. In most cases a BPO (Broker Price Opinion) has been done on the property and noted the these items and based the value on the property AS IS.

8. Be patient. When your offer is presented to the Bank the person reviewing it can be handling several properties and it may take a while for a response. It can sometimes take several days and usually longer at the end of the month.

9. Understand that most Banks sell properties in AS-IS condition. Inspections are usually allowed at the buyers expense but primarily only to let the purchaser satisfy themselves as to what they are purchasing. You should not expect them to make repairs that are found in an inspection because the were probably already aware of the problems and negotiated the price accordingly.

10. Be sure and check with the listing agent to completely understand how the utilities will be handled for the inspection since these vacant homes will usually not have power, gas and water turned on.

11. If the Inspection does reveal problems that need to be addressed submit them in writing to the Bank for their review.

12. If you are getting a Mortgage make sure your lender gets the loan package to the closing Attorney at least three days prior to closing so that the HUD can be prepared and reviewed by the seller. Banks typically do not attend the closing but sign all of the papers in advance.

13. Banks usually order Title work when they acquire the property and have it updated for the closing. Some states have a Right of Redemption so make sure you understand if that will apply to your purchase. If a property has already been purchased from the Bank and is back on the market by the new owner there can be a problem in getting clear title until the Right of Redemption period has passed. Be sure and have your Realtor and closing Attorney check into these items for you.

14. Banks typically dictate who will be handling the closing and will usually not vary from this choice so be prepared to close your Mortgage and sale with the closing agent of their choice.

So, as cold and calculating as it may sound, purchasing an REO or Bank owned property is usually well worth the extra trouble that you may experience to get it. For many Homebuyers it affords them the opportunity to purchase a larger home than they otherwise would have been able to buy.

WELCOME TO THE NEW EXPERIENCE OF SHOPPING FOR A FORECLOSURE! MAY IT BE REWARDING EXPERIENCE FOR YOU!

HAPPY HOUSE HUNTING!!!

DEBBIE HUTCHINS 205-368-2474 BOBBY FARRIS 205-365-1563

"YOUR REO SPEED SELLERS"

REO SPEED SELLERS

2009-01-13T17:47:00.017-06:00

REO Speed Sellers

Debbie Hutchins and Bobby Farris have been

Speed Selling Homes

in the Greater Birmingham Area since 1984.

They pride themselves on

Teamwork ~ Integrity ~ Knowledge ~ Education and Client Satisfaction

Their Area of Expertise is Over the Mountain and Shelby County. With a constant desire to improve their skills they have attained many Realtor designations including GRI, ABR, CSP,CRS and CRB. They are both Life Members of the BAR Circle of Excellence, the Re/Max 100% Club and the Re/Max Hall of Fame. Teamwork lends itself to the time management and good customer care.

To assist in the REO and Foreclosure Market they have completed the course offered by Nancy Freeman and Re/Max University "Foreclosures, Short Sales and REO's".

Debbie and Bobby are fully trained in handling REO's and foreclosures as well as BPO's. They understand the importance of servicing the property, handling the utilities, yard maintenance, garbage removal and whatever else needs to be done.

They are professionals that understand the importance of keeping you informed of all activity and marketing and making sure that things run smoothly from contract to closing.

DEBBIE HUTCHINS 205-368-2474 BOBBY FARRIS 205-365-1563

"YOUR REO SPEED SELLERS"

Foreclosures Available in Helena & Pelham

2009-01-06T19:32:00.008-06:00

The following is a list of Foreclosed Properties on the market as of January 6,2009. If you are interested in one of these properties we will need to confirm availability at the time of showing. We can also refresh the list at that time.

To arrange to see these homes please call
Bobby Farris at 205-365-1563 or Debbie Hutchins at 205-368-2474

If you would like for us to set you up on an automatic MLS search that can be delivered into your email on a daily basis please feel free to give us a call with the areas that you are primarily interested in . Then when you see something of interest we can schedule a showing.

REO & Foreclosures

2009-01-06T19:04:00.008-06:00

What is Foreclosure?

Foreclosure is the legal process whereby a lender (bank or secured creditor) terminates the owner’s right to a property that was pledged as security for a debt.

The lender usually then forces a sale of parcel of the real estate or home, often at a public action, to satisfy the debt after the owner defaulted to comply with the agreement between the borrower and the lender.

What is an REO?

Real estate owned is frequently used by its acronym REO. A term used for property acquired through lender foreclosure which is currently held in inventory.

Saving the Great American Dream!

There are 13349 homes on the market in the Greater Birmingham area today and of those 1517 are foreclosed properties.

Statistics show there are 6 major reasons for foreclosure

1. Loss of Income
2. Death of a Borrower
3. Divorce
4. Over Extended Credit
5. Illness
6. Gambling

Understanding the Foreclosure Process could possibly help to prevent some of these foreclosures from ever taking place. There are three types of foreclosure proceedings -

Non Judicial, Judicial, and Strict

Alabama is a non judicial state which means that No Court Action is Required. A Power of Sale clause is found in all trust deeds, which means that if the Trustor does not make the loan payments, the trustee can sell the property at a public auction without having to obtain permission from the courts.

The trustee simply records a notice of default, sends a copy to the Trustor, and after the statutory period, notice of sale is posted on the property.

A seller will usually receive a Demand Letter issued by the lender or lender's agent prior to the foreclosure action being filed. You will need to read your Mortgage to see if a demand letter is required. Most Fannie Mae, Freddie Mac, FHA and VA loans have an acceleration provision that requires this letter.

When the foreclosure is sold and does not produce enough cash to pay the loan balance and costs of sale the law allows for a judgment against the borrower for the unpaid balance called a deficiency judgment. This can result in garnished wages and seized assets. So in addition to the homeowners credit being destroyed by the foreclosure they could be forced into bankruptcy.

And so this great American dream of Home ownership becomes a heavy burden that they can no longer keep. But in the pre-foreclosure stage there are options.

Put your home on the market with a Realtor to get it SOLD.
Work with your Lender to Refinance your mortgage. (30% Equity is usually required) Or they may work with you on Loan Modification.
Let your Realtor talk to your lender about loss mitigation to work out a plan to get the collection amount current.
Let your Realtor negotiate with your lender for a Short Sale. This is where the lender allows the sale of the property for an amount less than what is actually due.

Why would you want to do this?

You may actually be able to save some of your equity.
You can save your credit.
You can avoid loss of future income (deficiency judgment)
You can avoid owing Federal income taxes on the deficiency judgment if the lender sends you a 1099 for that amount.

So if you are in this type situation,

Don't let your home end up in the pile of Foreclosures!

Take action today to save your hard earned equity, protect your credit and future income and preserve your future.

CALL A REALTOR TODAY!

THERE IS NO TIME TO WASTE!

WE ARE AVAILABLE

AND WOULD BE HAPPY TO ASSIST YOU!

Debbie Hutchins 205-368-2474 Bobby Farris 205-365-1563

RE/MAX FIRST CHOICE - PELHAM, ALABAMA

Give us a call TODAY and lets get started

Saving Your American Dream!