If you are a first time homebuyer, shopping for a mortgage can be an intimidating and overwhelming process.  It helps if you know in advance what to expect and what you will need to do.

• Obtain your credit report and take action to make any necessary repairs to your credit.
• Shop for a mortgage.  Don’t just go to one lender.  Different lenders have different programs.  You need to find the program that best suits your particular financial needs.  Check with mortgage brokers, mortgage lenders, credit unions as well as banks.  Also check and see what mortgage or downpayment assistance programs exist in your locality and if you qualify for any of them.
• Find out the total costs involved in each loan: monthly payment, annual percentage rate (APR), the number and cost of points, broker, origination and underwriting fees, administrative costs, mortgage insurance, and commissions, escrow and closing costs.
• Check the terms for different kinds of loans; the amount of down payment, the term of the loan, and whether the loan is a fixed or an adjustable mortgage and what are the terms of each.
• Negotiate.  Ask the lender if they can offer better terms.
• Once you have decided on the loan you want, you may want to obtain a rate lock.
• Obtain a written loan comittment.

Read the article Beginner’s Guide To Mortgage Shopping in Realty Times.

I would be happy to talk with you about any questions that you might have about the Charlottesville, Virginia real estate market.

Click here to search all homes for sale in Charlottesville, Virginia, Albemarle County and Central Virginia.

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In the first part of this series, I talked about the preforeclosure process which ended with the issuing of a notice of default by the bank.  In this post the next step of offering the home at auction will be discussed.

After issuing the NOD (notice of default), the lender will offer the property for sale at auction.  The auction may take the form of a sheriff's sale or through a private party.  Usually the auction will start with a minimum bid which will cover the balance of the mortgage, interest and any costs associated with the foreclosure.  However, most foreclosure auctions don't even get one bid, because the amount owed on the home is usually greater than the market value of the property.  As a result the lender will end up the highest bidder thus becoming the owner of the property.

If you do decide to bid on a home at a foreclosure auction, there are some points to be aware of.  Often the homeowners are still occupying the home, and will be unwilling to let you in to see the interrior of the home.  This results in your bidding on a property that you have only seen from the exterrior.  In addition you will not be able to bring in any inspectors.  The home will be sold "as is" without any warranties.  It is crucial to do your homework and research the title before bidding on the home to determine if there are any back taxes or leins on the property.

You will need to obtain all of your financing in advance, because public auctions usually demand cash payment at the time of the sale.

If you do end up being the highest bidder and buying the home, you may be faced with evicting the homeowner.  Also be aware that the former owner may try to vandalize the home before leaving.

If the bank does end up as the owner of the home, it is now referred to as a real estate owned (REO) or bank owned property.  I will talk about the special aspects of buying bank owned properties in the next post in the series.

Click here to see all homes for sale including foreclosures in the Charlottesville, Virginia  real estate market.

Charlottesville, Virginia and the Albemarle County area is a beautiful place in which to live.  Now is the perfect time to buy a home is this area and there are some great deals in the local market right now.  We are also seeing more Charlottesville foreclosures as well.

Pam Dent, e-PRO, SRES, NHD
Real Estate III
Charlottesville, Virginia
Charlottesville Real Estate Talk
Jump into Greener Pastures

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Due to this year's volatile mortgage market, we are seeing an increasing number of homes go into foreclosure.  As adjustable rate mortgages continue to reset to higher rates with increased mortgage payments, we will see more foreclosures coming onto the Charlottesville real estate market.  This can present a chance for the knowledgeable home buyer to purchase a home for a bargain price, but it is not without risk, and therefore it is necessary to understand the process.

Preforeclosure occurs when a homebuyer is in default on their mortgage.  After three or more mortgage payments have been missed,and the homeowner has failed to work out a solution with their lender, the lender will issue a default notice to the homeowner and will also publish the notice in the local newspaper.  The notice of default specifies a deadline for the homeowner to pay either the past-due amount or the balance of the loan.  If the property is not reclaimed by the deadline, a notice of sale will be published, formally moving the home into foreclosure.

During the preforclosure phase may be a good time to purchase the home.  This would be called a shortsale.  Although the price may not be as deeply discounted as it could be after foreclosure, there are benefits to buying at this time.  To begin with there may be fewer competing offers at this stage.  We are seeing multiple offers on foreclosed properties in the Charlottesville and Central Virginia area.  Also the purchaser is negotiating with the property owner instead of with the bank.  You are helping the homeowner avoid foreclosure and the ensueing black mark on their credit, so they may be inclined to cooperate.  The homeowner will present the contract to the bank.  Hopefully the bank will be negotiable and approve the sale rather than having to go through the expense of the foreclosure process.  We are seeing many banks that are extremely slow to respond to these short sale offers so any buyer should be prepared for long delays before an answer.

If the home is not sold at this stage and the homeowner has not been able to work out a loan payment plan with the lender, the next step in the foreclosure process will be a sheriff's sale or auction.  The next post in this series will discuss that stage.

If you are interested in discussing foreclosures in the Charlottesville, Virginia area real estate market, I would be happy to talk with you.
To search all Charlottesville area homes for sale including foreclosures and bank owned properties click here.

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Foreclosures in Charlottesville Virginia.  We are seeing as increasing number of foreclosures all over the country and the Charlottesville and Central Virginia area is no exception.  As adjustable rate mortgages reset we will continue to see foreclosed homes come on the market.  While the real estate market in Charlottesville, Virginia has not been as hard hit as much of the United States, we do see foreclosed homes in our local market inventory as well.  Buying these homes can present an opportunity for an educated buyer or investor to purchase a home at a discounted price, but such a transaction is not without a certain amount of risk.  This is not your normal real estate transaction.  For this reason it is essential to have the advice of a REALTOR who has experience in this type of transaction and can explain the special addendums and inherent differences involved in buying a bank-owned home.  You should also understand the process of buying a foreclosure, so that you can decide if purchasing a bank-owned property is a homebuying option that makes sense for you.

Keep an eye on my blog for articles explaining the foreclosure process and for market reports on foreclosures in the Charlottesville, Central Virginia area.

If you would like additional information on Charlottesville Virginia foreclosures, Albemarle County  foreclosures, Fluvanna County foreclosures, Louisa County foreclosures, Orange County foreclosures or Greene County foreclosures, give me a call.  I would be happy to discuss Central Virginia foreclosures and the foreclosure buying process with you.

To search all homes for sale in the Charlottesville area click here.

Should I Buy A Foreclosed Property?

Foreclosures – Not Your Typical Real Estate Transaction – Part 1

Foreclosures – Not Your Typical Real Estate Transaction – Part 2

Foreclosures – Not Your Typical Real Estate Transaction – Part 3

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We Hear a lot about "green" homes these days.  With the rising gas and oil prices, and increased awareness of environmental issues, more home buyers are interested in finding a home that is more energy efficient, with a lower ecological impact.

The following is a list of some of the features that builders strive for in a green-built home:

• energy efficiency resulting in lower utility costs
• cleaner indoor air
• low maintenance and long lasting materials
   
• conservation of water and natural resources
• environmentally friendly construction
   
• sustainability
• higher resale value

There are several green-built homes on the market in the Charlottesville, Virginia area and I would be glad to show them to you. 

Search all of the homes and farms for sale in the Charlottesville area.

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