How Can I Find Foreclosures?

How can a person go about finding foreclosures? Well, it is relatively easy and should cost you nothing. There are many sites that boast they will send you every foreclosure you can imagine if you "sign-up" or "pay a registration fee" or even "become a preferred member." PLEASE DO NOT PAY FOR THIS INFORMATION!!!

A REALTOR can get you all of this information and even navigate you through the difficult waters of buying a foreclosure. Better yet, I am going to give you a free tidbit today. www.bidselect.com. This website will allow you to search all HUD foreclosures in any state, county, or city that you choose. How great is that? And you did not even have to pay for that.

www.pyramidrealestate.com is another website that will have foreclosures which you can search the same way. I am giving you this info because I do not want to see you spend another hard earned dollar on something you can get for free.

The sites are useful and help get you started but I must advise that you contact a REALTOR in order to evaluate the properties you are looking at. It is a REALTOR'S job to know the homes in his or her area and have much more background information that any other source could ever possibly claim to have. I personally know all of the foreclosed properties that are for sale in my area even though I did not originally sell most of them. This is because I am personally involved in my area and have accurate, up-to-the-minute data which gives me a better understanding of any and all foreclosures in my area.

I work with many investors who rely upon me to help them make informed decisions which will benefit them financially. It is my desire to know everything I possibly can about any and all foreclosures in my area and even those out of my area. I have yet to hear from anyone that I steered them wrongly about an investment or personal home purchase. And I never charge up front! Can these websites boast that type of record? I think not and challenge any one of them to put their track record up against mine.

So the next time you want to know about foreclosures in your area or you are thinking of purchasing some investment property, start by contacting me or any other REALTOR in your area. Explain what you want, what you hope to accomplish, and what your expectations are of me; then we can start looking for the best property for you. I encourage you to look at these websites for properties as well as many others, such as my website: www.TomWorks4U.com. But I beg that you turn to a professional when you are ready to purchase. Purchasing a foreclosure is not easy nor do the asset managers try to make it easy. Make your life easier and contact a REALTOR today!

Is It Easy To Buy A Foreclosure?

The simple answer to that is, "NO!" Foreclosures are mean, angry, volatile, unrelenting creatures that make no sense what so ever! But once you get past all of that, there is a diamond in the rough just waiting for you to polish it!

Buying a foreclosure is not easy for the simple fact that no mater whether you are dealing with a government owned property or a bank owned property, there are tons of hoops to jump through (very little regulation or accountability for their actions, time lines that they almost never meet, unworldly expectations of you, etc.) Here is a basic rundown of buying a foreclosure from start to finish:

• Make an offer on the foreclosure (6 page contract)
• Wait 7 to 10 days for a response
• Find out there are multiple offers so there are new forms to fill out
• Make "Highest and Best" offer on property
• Wait another 5 to 7 days for a response
• If my offer is accepted, now I have a 9 to 15 pages "Contract Addendum" to initial and sign which supersedes my original contract and states that if closing is delayed due to my fault (inspections, surveys, lender, etc.), the seller will charge me a $100 per diem. That Gets EXPENSIVE!
• Have inspections done and find out there is or is not a serious issue with the property. (You only have 10 calendar days to have any and all inspections done.)
• Waiting to get signed contract back from seller so I know we have an actual contract.
• Title work is usually ordered through the seller's choice of title company. This usually saves the buyer money.
• Hope there are no encumbrances or judgements against the property.
• Wait for lender to give final "Loan Commitment" stating that they will lend on the property.
• Still waiting for signed contract from seller.
• Find out from Lender how much I am going to need to bring to closing in the form of a Cashier's Check.
• Show up for closing with check in had and excitement over my new investment and potential rainfall! Finally get a copy of signed contract from seller.

That is a basic rundown of what happens during the contract period but also imagine yourself doing all of this while riding a massive roller-coaster. Dealing with HUD can be even more agonizing because they tend not to know what is going on. Example: I have an accepted contract on a HUD property. Two weeks into the contract, I get an email stating that my contract has been voided and the bidding process will be reopened tomorrow morning. Why? What happened? What did I do? It is not due to any fault of my own. The asset manager and the area contact have not been in communication so the asset manager does not know that I have sent my earnest money to their title company nor does he know that I have submitted my pre-approval letter. He does not bother to follow-up with the area contact and elects to reopen the bidding. I lose the deal!

Now, that example is an extreme one but it has happened. You just need to make sure that you and your agent are aware of all time lines and keep in constant contact with the asset manager or the district contact. Know your rights and responsibilities as well as make sure you have an agent representing you that is very knowledgeable of the whole process.

Are You A First-Time Homebuyer?

Are you a first-time homebuyer? If so, you are running out of time to take advantage of the $8,000 tax credit being offer! In order to take advantage of the tax credit, you need to buy a house before November 30, 2009. If you do not close on a house by that date, the federal government will not give you your tax credit. This is your chance to get a little of the recovery money that so many of the large corporations are taking advantage of.

It is a great time to buy so what are you waiting for? Here is a little information on the tax credit:

• A first-time homebuyer is someone who has not owned a home in the last three years.
• You cannot purchase the home from a spouse, direct ancestor, child, or grandchild; however, you do qualify if you purchase a home from siblings, nephews, nieces, or others.
• Single taxpayers with incomes up to $75,000 and married people with incomes up to $150,000 qualify for the full tax credit.
• If you are married, both spouses must be first-time homebuyers. If more than one unmarried individual is buying the property, the credit can be split among all the purchasers who qualify. However, the total credit taken cannot exceed $8,000 for homes purchased in 2009.

The state of Missouri has done something that very few other states have done. They are allowing homebuyers to use this tax credit the day of closing to help with closing costs and downpayment. Unlike most other states, the homebuyer gets immediate use of this money and does not have to wait until they file their taxes. How great is that?!

So, what is keeping you on the fence about buying? Interest rates are great, home prices are down, there are plenty of properties to choose from, the state and federal government are offering you help, and you, as the buyer, has the negotiating power in this market! Jump off the fence and buy! There is no better time than now! Good luck and enjoy your new home.