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4 Reasons to Consider Foreclosures and REO Properties

There are pros and cons to everything but for buyers considering foreclosure homes and properties for sale, we think the pros outweigh the cons. While homes in foreclosure were once seen as damaged goods, they are now being viewed as a viable option for home buyers  As with anything in life, there are always unknowns but these tips should help with the home buying process, with regard to foreclosures.

So what are the pros of Buying Homes in Foreclosure 

Foreclosures and REO’s provide options.

California real estate has seen a decrease in inventory in recent years. Combine this with the fact that the economic downturn led to an increased number of homes and properties in foreclosure.

If you are willing to look at foreclosure and short sale homes, you and your Realtor have a much larger pool of possible properties to search from.

Homes and properties in foreclosure are more affordable.

 California home buyers can save money and get great deals when considering the option of buying homes in foreclosure.

Although the competition is high, foreclosure properties are usually priced at least 5% below current market value. Sometimes they can even be up to 15% less. Bank-owned properties in California are sold as-is, without disclosures. It’s important to do your homework so that if you do find out a home in foreclosure has a major problem, you can negotiate a lower price.

Foreclosured properties can be hidden gems.

 While some homes in foreclosure need some TLC, there are many options of foreclosure and short sale homes that are actually great finds as is. Just because a California property for sale is in foreclosure doesn’t mean there is anything wrong with the property. Homes in every price range were affected by the economic downturn so it’s not unusual to find luxury homes in foreclosure that are also in good condition.

Banks are ready to sell.

 Properties in foreclosure or sold in short sale are usually bank-owned. Banks are not in the home-owning business. We find that banks want quick turnaround for taking foreclosures and short sales off their hands. If you are a well-qualified buyer serious about making a purchase, banks will want to work with you.

These are just a few of the possible reasons to consider looking at a home or property in foreclosure or being sold in a short sale. If you are looking for your next home in San Diego, Oceanside, Pacific Beach or another nearby area, our team here at Big Block Realty wants to help!

If you would like any additional information or have any questions, please contact us anytime.

Your friends and local real estate experts,

San Diego Realtors

Oliver, Sam, Sandro

The Home Team

Contact us today:

Oliver Graf – Direct: (760)237-8006
Sandro Natale – Direct: (949)290-2599
Sam Khorramian – Direct: (858)518-1533

Have a question? —>Contact or Email us direct <—

Big Block Realty
Always working hard for you!
www.BigBlockRealty.com
CA DRE #01885775

Proudly serving all of San Diego County including: Oceanside, Carlsbad, Leucadia, La Costa, Encinitas, Cardiff, Del Mar, La Jolla, Pacific Beach, Escondido, San Marcos, Poway, Rancho Bernardo, Vista, Chula Vista, Spring Valley, Point Loma, Coronado, all other cities in San Diego!

BUYING OR SELLING?: Don’t forget our Free Home Search Tool.
Search the MLS anytime! http://www.FreeSDHomeSearch.com

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How Does Short Sale and Foreclosure Affect My Credit Score?

How Does Short Sale and Foreclosure Affect My Credit Score?

Well, the Credit Impact for a Foreclosure vs Short Sale can be dramatically different.bigstock-The-house-in-human-hands-17017331

In a challenging market, many homeowners are faced with the decision to try a short sale or just let the property go to foreclosure.

Below are some points to think about when dealing with this subject.

If you have questions on whether missing mortgage payments and selling your property for less than the full amount you owe on it(short sale) will hurt your credit score, the answer is yes.

HOWEVER, that being said, the credit damage done by a short sale is significantly better than a Foreclosure or Deed in Lieu. In a short sale it does not show up on your credit report as long nor is the impact as severe as a foreclosure.

Take a look at some of the most common questions….

Question 1) When will I be able to buy another house? (Primary Residence)

Short Sale: Homeowner is eligible for re-purchasing in 2 years

Foreclosure: Homeowner is eligible for re-purchasing a primary residence in 5 years

Question 2) When will I be able to buy another property? (Investment Property)

Short Sale: Homeowner is eligible to purchase an investment property after 2 years

Foreclosure: Homeowner is eligible to purchase an investment property after 7 years

Question 3) On future loans will I have to disclose what happened with my house?

Short Sale: There is no disclosure required for a short sale

Foreclosure: On any future loan applications (1003 mortgage) when they ask, “have you ever had a property foreclosed upon…” you will have to mark YES, affecting what programs will be available to you and interest rate that you would qualify for.

Question 4) How will my Credit Score be affected?

Short Sale: Only late or missed payments on the mortgage will show up as derogatory items on the credit report. After the sale is completed the mortgage will report as paid or settled. Short Sales can affect your score differently depending on how many payments are missed, sometimes as little as 50 points. A short sale will have an affect on your score for approximately 18-24 months.

Foreclosure: The credit impact of a foreclosure is MAJOR and can reduce your credit score anywhere from 250-300 points and stays with you on your report for 7-10 years.

Question 5) How will my Credit History be affected?

Short Sale: Short sales are currently NOT reported in the credit history of a credit report. The loan is generally reported as “paid off, settled”

Foreclosure: A foreclosure will remain as public record on a homeowner’s credit history for 7-10 years, sometimes even longer.

For all the information on Fannie Mae’s guidelines, go to…https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

If you would like more Free information on Short Sales and foreclosures, please contact us anytime.

Your friends and local real estate experts,

San Diego Realtors

Oliver, Sam, Sandro

The Home Team

Contact us today:

Oliver Graf – Direct: (760)237-8006
Sandro Natale – Direct: (949)290-2599
Sam Khorramian – Direct: (858)518-1533

Have a question? —>Contact or Email us direct <—

Big Block Realty
Always working hard for you!
www.BigBlockRealty.com
CA DRE #01885775

BUYING OR SELLING?: Don’t forget our Free Home Search Tool.
Search the MLS anytime! http://www.FreeSDHomeSearch.com

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Short Sales- A better way to sell your home and avoid Foreclosure

Short Sales- A better way to sell your home and avoid Foreclosure!:

The effects from the last market can still be felt today.

Nearly 20% (9 million people) of homeowners across the US are “upside down” on their mortgages. Meaning, they owe more on their mortgage balance than their properties are actually worth.

Short Sales and Real Estate San DiegoSome people thank that they should just walk away and give up their home to foreclosure…

But Hold On!

There is light at the end of the tunnel…

There can be some big time benefits to doing a Short Sale rather than a foreclosure.

To the homeowner there is little difference because either way they will be a walking away from a depreciating asset

BUT the benefits of a Short Sale are in favor of the homeowner.

Let me explain,

Credit Impact: For starters Short Sales affect a person’s credit significantly less than a foreclosure (most of the time, please contact a professional to examine your case individually). Someone who “Short Sells” a property is more likely to qualify for a new mortgage in as little as 12-24 months, whereas a foreclosure and/or bankruptcy will haunt someone for up to 7 years. Depending on how many late payments (if any) are missed during a short sale, will determine how much your credit drops while a foreclosure will leave a massive mark.

Stress: On top of the credit impact most people never talk about the effect on homeowner’s moral when they are going through a foreclosure. It’s never a good feeling for someone that is just watching the bank take their their house away. With a Short Sale, the homeowner will have more time to make moving preparations and the lender will work with you to come up with a resolution.

Homeowner Help: In a Short Sale the homeowner is 100% involved in the process, making their own decisions with the help and guidance of a Short Sale Professional (contact us today for assistance). The Short Sale specialist will handle all communications with the lender, as well as market and sell the property with the help of an Real Estate Agent. This allows the homeowner a great alternative to foreclosure and is a very dignified way to sell a property!

If you, or someone you know is upside down on a property or facing foreclosure contact a Short Sale Specialist once they have missed at least one mortgage payment or decide you need to sell.

We would gladly help if you need any assistance.

Your friends and local real estate experts,

San Diego Realtors

Oliver, Sam, Sandro

The Home Team

Contact us today:

Oliver Graf – Direct: (760)237-8006
Sandro Natale – Direct: (949)290-2599
Sam Khorramian – Direct: (858)518-1533

Have a question? —>Contact or Email us direct <—

Big Block Realty
Always working hard for you!
www.BigBlockRealty.com
CA DRE #01885775

BUYING OR SELLING?: Don’t forget our Free Home Search Tool.
Search the MLS anytime! http://www.FreeSDHomeSearch.com

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Understanding The 3 Step California Real Estate Foreclosure Process

Understanding The 3 Step California Real Estate Foreclosure Process…

In this market, there are many challenges for homeowner that could cause them to fall behind on their mortgage payments. It could be anything from job loss to a death in the family.

man_question_markWhat ever the reason is, as you fall behind on the payments you have state regulated guidelines that the lender must follow before they can foreclose on the property.

In a recovering market another potential scenario is when a homeowner needs to sell but the value of the house is “upside-down”, the market value of the home is actually less than the amount owed on the mortgage. In this scenario you could try a short sale, however if unsuccessful the threat of foreclose becomes real.

Foreclosure is the proceeding in which a mortgage holder, bank or other secured creditor sells or repossesses a real property after the Homeowner has failed on the terms of their agreement (a mortgage or a deed of trust).

Whatever the reason, after consistently missing payments the lender will usually consider the loan in default and begin with the foreclosure process. The Lender will have the right to sell the property or even call the loan due.

In California short sale / foreclosures have 3 steps in the timeline towards the property being sold.

1. Notice of Default (NOD):
A Notice of Default is a public notice given to the homeowner. It could be posted on the window or door, or mailed. When a borrower is in default, or behind in mortgage payments, the lender will attempt to collect by any means necessary, including seizing the home. In California lenders usually do not file an NOD until the homeowner is at least 90 days behind in payments. At this point many homeowners will try a short sale to avoid the property going to foreclosure.

2. Notice of Trustee Sale (NOTS):
A Notice of Trustee Sale is a public notice, given to the homeowner and published in a newspaper communicating a date for auction. This is also generally posted on the door; it is generally at least 21 days before the sale takes place.

3. Auction:
An auction is a public place, usually a courthouse, where properties are auctioned to the highest bidder.

Contact us today if you have questions or would like some assistance.

Your friends and local real estate experts,

San Diego Realtors

Oliver, Sam, Sandro

The Home Team

Contact us today:

Oliver Graf – Direct: (760)237-8006
Sandro Natale – Direct: (949)290-2599
Sam Khorramian – Direct: (858)518-1533

Have a question? —>Contact or Email us direct <—

Big Block Realty
“Helping You Win In This Market”
www.BigBlockRealty.com
CA DRE #01885775

BUYING OR SELLING?: Don’t forget our Free Home Search Tool.
Search the MLS anytime! http://www.FreeSDHomeSearch.com

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Posted in FreeSDHomeSearch