Many people are exploring the idea of purchasing a foreclosed or bank owned property. They have heard stories of great deals to be had on buying a REO. And while these homes may be obtained at a discounted price they may or may not be a great deal. Usually these homes will require some amount of remodeling. Every now and then you find one that is in move in condition, but more often than not extensive remodeling is required to end up with the home of your dreams. Even if the home looks good on the surface the homeowner who was struggling to make mortgage payments for a time before the home was foreclosed on has probably deferred maintenance on what may be crucial systems in the home. Before you make the decision to buy it is necessary to carefully weigh the hidden costs in order to answer the question “should you buy a fixer upper”.

If you woud like a list of the foreclosures for sale in a particular area, contact me; I would be happy you a list of Charlottesville foreclosures for sale.

This article may provide you with some helpful information.

How to Assess the Real Cost of a Fixer-Upper House

When you buy a fixer-upper house, you can save a ton of money, or get yourself in a financial fix. Read

1 Comment

Fannie Mae and Freddie Mac have given overextended borrowers a Thanksgiving present.  The mortgage giants have temporarily suspended foreclosures through January of 2009.  They have directed their loan servicing organizations and attorneys to suspend foreclosure sales and evictions on occupied single family homes.  This has been implemented as support of the modification program which was announced on November 11 and is due to begin on December 15.

Inman News has published an article going into more detail on these new developments.  According to the article "Fannie’s streamlined modification program is aimed at the highest risk borrower who has missed three payments or more, owns and occupies the primary residence, and has not filed for bankruptcy. The program creates a fast-track method for getting troubled borrowers into an affordable monthly payment through a mix of reducing the mortgage interest rate, extending the life of the loan or even deferring payments on part of the principal. Servicers have flexibility in the approach, but the objective is to create a more affordable payment for borrowers at risk of foreclosure."

This new development should offer a chance for many borrowers to keep their homes and avoid foreclosure.  According to Inman Freddie Mac expects to approve workouts on 84,000 or an estimated 140,000 who are delinquent on Freddie Mac owned mortgages.

To read the article click here.

No Comments

We have been reading about the increasing number of foreclosures all across the country, and while Charlottesville, Virginia has not been hit as hard as many areas, it is no exception to this growing trend.  You may be thinking that the purchase of a foreclosure would be a good investment opportunity.  Before making that step it is important to understand the foreclosure process and to realize what is the best stage in that process in which to time your investment.

There is a good article by Glen Beck titled Not All Foreclosures Are Created Equal in todays Realty Times.  This article explains what is involved in investing in foreclosures in the various stages of the foreclosure cycle. According to Mr. Beck:

"By far the best, easiest, safest, and most lucrative way to buy foreclosure properties at this time in the cycle is to be buying at the third and final stage of the process, that being bank owned properties (REO's) after the auction is over.  Because of the huge volume of foreclosures now on the market at record levels, the huge number that will be coming in over the next 12-18 months, banks are lowering their prices daily just to move the inventory."

In addition Mr. Beck states that "As an investor and licensed realtor that has bought homes in all stages of the foreclosure process, for myself and amy investors and clients, I am directing my clients to take full advantage of what could be one of the best foreclosure buying markets we will ever see."

If you would like information on Charlottesville, Virginia foreclosures or Albemarle foreclosures, Fluvanna foreclosures, Louisa foreclosures, Orange foreclosures or Greene foreclosures, give me a call.  I would be happy to speak with you about this section of our local real estate market.

Additional information on foreclosures:

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

Contact

, e-PRO, SRES, NHD, REALTOR®, Real Estate III, Charlottesville, Virginia at 434 960-0161, pam@JumpintoGreenerPastures.com, to list your property for sale or to buy a property in the following areas in Central Virginia: Charlottesville, Albemarle County, Keswick, Glenmore, Ivy, Crozet, Earlysville, Free Union, Cismont, Scottsville, Fluvanna County, Troy, Palmyra, Lake Monticello, Louisa County, Louisa, Mineral, Spring Creek, Orange County, Gordonsville, Orange, Barboursville, Greene County, Ruckersville.

To view all of the Charlottesville, Virginia and Central Virginia Homes for Sale click here and click on the mls search button.

Visit my website Jump into Greener Pastures or read my blogs Charlottesville Real Estate Talk and Charlottesville Horse Farms and Country Homes

3 Comments

When a foreclosed home does not sell at auction, it becomes a (REO) real estate owned or bank owned property.  Since the banks are not interrested in keeping assets, like homes, that require maintenance, they will probably be interested in selling the property.  Usually the banks will get an asset managemant company to handle the sale and this comapny will then retain a local real estate agent to list the property.  The property will usually be listed to sell for whatever the market will bear.

In a purchase of a foreclosure, it is important for buyers to be represented by a
REALTOR who understands the unique processes and paperwork involved in that particular kind of transaction.  Each lending institution has their own addendums and special forms.  Buyers of foreclosed homes should realize that it is necessary to have a great deal of patience as delays, problems and a lot of red tape are the norm.  It is important for these buyers to also realize that the whole transaction is slanted to favor the bank.  In a typical foreclosure purchase the buyer waives many of the rights that they may have in a traditional home purchase.  For that reason, it is a good idea to have the advice of an experienced real estate attorney as well as a buyer's agent who understands the foreclosure process.

However, for the educated buyer the purchase of a foreclosed home may present a very good opportunity.

If you are considering the purchase of a foreclosed home, I will be happy to talk with you about this unique process.  I would also be happy to help you find foreclosed homes in the Charlottesville and Central Virginia real estate market that may suit your particular wants and needs.

1 Comment

According to the July Foreclosure Market Report just released by Realty Trac, the leading online foreclosure market report, Virginia is now among the 10 states with the most foreclosures.  The three states with the highest foreclosure rates are Nevada, California, and Florida.  The additional states in the top ten are Arizona, Ohio, Gerogia, Michigan, Colorado, Utah and Virginia.

In Virginia the areas with the most foreclosures are Northern Virginia, Prince William County and Fredericksburg.  We are lucky that the Charlottesville area, although we are seeing an increase in foreclosure activity, is still seeing much less than many parts of the country.

However some foreclosures are starting to come onto our local market.  These can present a valuable market for the savy buyer.

To read the entire article click here.

Contact me if you would like to discuss the possibility of finding a foreclosure or would like information on the Charlottesville real estate market.

Click here if you would like to search all of the homes currently on the market.

No Comments