Borrowers who are months behind on their mortgage and facing foreclosure may be surprised to learn that the lender or guarantor of the mortgage may be willing to pay you to relocate following a successful short sale.
Some have asked why they would do this after not receiving payment for many months and possibly a year or more, having forced insurance put on the property and keeping the property taxes current.
Until the borrower pays off the mortgage, the bank is truly the owner of the property which it holds as collateral for the mortgage note. If the property is damaged by a irate and irresponsible borrower or by vandals, the property becomes worth less than it might have been had someone taken care of the property. Properties that are left vacant without utilities are more likely to become vandalized or have squatters move into the property.
If the borrower is not paying the note, the bank in time will get the property back in some condition and they will sell it. So it is sometime advantageous for the bank to entice the borrower to stay in the home, maintain it, and keep the utilities on in the property while trying to sell the property.
Last week, an FHA borrower received $750 from HUD as relocation assistance on a closing I did. This week I have a VA borrower who will receive a $1500 relocation incentive. I have heard of larger amounts to some borrowers in dire straits. While no realtor can promise that you will receive money for selling your home short versus allowing it to go to foreclosure, it may be possible to obtain these funds. More importantly, selling a home short most offend allows the borrower to have the deficient money forgiven.
If you are in a position where you can no longer afford to pay your mortgage, please call and let’s see if I can help you avoid foreclosure.
Please feel free to contact me, Sandi Walker, at 405-213-2992 or visit my website http://www.sandiwalker.net with all your real estate questions.
The market dictates the price of the homes in an area. So depending upon what is happening in your neighborhood is going to have a large effect on what is happening to the price of your property.
Certain things such as unemployment values, crime and the general condition of your neighbors properties have a large effect on your value. Let’s face it, most people don’t want to live next to the eye sore of the neighborhood or an abandon building. In addition, the proximity to certain things like oil wells (in Oklahoma) can have an effect on the type of loan available to a new buyer.
While you have little to no control over certain factors, you can maintain your property, make some updates and help to stabilize your neighborhood.
Maintaining your property by painting, pruning bushes, trimming trees, repairing broken windows, replacing damaged roofs, etc before more serious issues can cause the property to deteriorate can occur are the best way to maintain value.
In addition, making updates to the property to improve and update the property will add value. Often kitchens and bathroom remodels add value to a property. Just make sure you get a quality updates and don’t over improve for the neighborhood.
If you live in a high-crime area, an organized community watch program not only will lower the crime rate but can enhance property values, too. It also helps to live in an area where other homeowners are upgrading their homes, which can help pull up your property value, too.
If you have questions about real estate and real estate values, please feel free to call me at 405-213-2992 or visit my website http://www.sandiwalker.net.
HUD properties are priced based on a FHA appraisal.
Sometimes the FHA appraisal comes in lower than what the market might believe it is worth. Recently there was such a house in our area that was priced ridiculously low and had a low repair escrow. Why the appraiser deemed the property so low is a mystery to me as well as many others. An appraisal is only an opinion of value, but the market always dictates value. So my guess is that buyers who really want the property will bid what they believe to be fair market value and not what the appraiser believes to be the value.
The low FHA appraisal can cause some issues for a buyer, especially if they are obtaining a FHA loan. Any amount bid over the FHA appraisal amount will need to be brought to the closing table as additional down payment money. If the buyer does not have the ability to obtain a conventional loan or does not have the additional money above the FHA appraised amount, they will not be able to bid more than the appraised price. This will limit some buyers from purchasing the home at what they believe to be fair market value.
If a buyer is able to obtain a conventional loan, a new appraisal can be obtained often times at a higher value allowing the buyer to obtain financing for the property without additional required money.
HUD is first and foremost marketing these properties to owner occupants many who only qualify for FHA financing with its lower down payment requirements and easier credit standards. Unfortunately, when an appraisal comes in low on these properties and a frenzy of activity ensues; many FHA buyers will be limited on what they can bid on the property, due to their inability to bring additions funds to the table.
If you are interested in purchasing a HUD property or have other real estate questions, please feel free to contact me. Sandi Walker 405-213-2992 or visit my website at http://www.sandiwalker.net
The rent was do from my tenant who always pays on time, so I knew something was wrong when I didn’t get rent this month. I have been in the house many times over the past four years and everything was fine. This tenant always paid on time and took good care of the property. Floors looked fine until I went in the property today.
So I was shocked to see that the dogs had eaten through the pergo (lamanite) flooring. This stuff is suppose to be scratch and dent resistant but obviously not completely dog resistant. I can’t imagine that this tasted good. Or maybe they were just digging to see what was below the wood flooring. Either way, I now have to replace the floor.
I have been a landlord for a long time. And nothing really surprises me but it still makes me frustrated when people and animals destroy my property.
Lots of landlords do not want to allow pets into their rental property because of potential damage. While other landlords such as myself have decided to allow pets into the property but with a pet deposit. But how much should you charge for a pet deposit. A $200 or even $300 pet deposit is not going to pay for this damage. maybe I should start charging a $500 pet deposit. This is the problem with pets in a rent house. The floor is probably $700-$800 to replace and that is if I do it myself.
So I will take the next several weeks to do some updates and clean the property as well and change out the flooring. Maybe I will put ceramic tile in the livingroom to replace the pergo flooring. Surely the next animals will not eat through it. I could always deny animals in the rental but it has been my experience that they will just sneak the animal into the house.
Investing in rental property can be a way to increase in wealth. Whether you choose to allow pets or not in the rental is a choice only you can make. Pet deposit’s help to pay for some of the potential damage in the property but will most likely never cover all the damage. If damage such as this occurs you may have to file a suit in court to recover the additional damage.
If you have questions regarding investment properties or other real estate questions feel free to contact me at 405-213-2992 or visit my website http://www.sandiwalker.net
In the day and age when everyone is looking for a deal, I sometimes hear “Wow, that house is cheap what is wrong with it.” And I can’t help but chuckle a little bit.
Of course there is a reason everything is priced a certain way. All houses are priced based on location and condition. Remember a property is really only worth what someone is willing to pay for the property. If the property is really priced to cheaply, multiple offers will ensue and the price will go up to fair market value.
Things that change value on a house can be area. What are the other houses in the neighborhood selling for? An oversized home in a neighborhood may look underpriced because the price per square foot is significantly less, but if the area will only allow a certain price to be obtained then it may not really be undervalued. Look at the comparables in the neighborhood to make sure the house is not too large for the area.
How is the crime in the area? Is the neighborhood safe? I always suggest that a buyer drive the neighborhood at day and night, during the week and on the weekend to see the different activity that may be present in the area. Realtors® are bound by fair housing laws and are therefore unable to tell you if a neighborhood is safe or not. Also remember one person’s idea of safe is different than another’s. But if you do not feel safe walking down the street are you really going to feel safe sleeping there or leaving your kids home alone.
Is there a school near by or a park? Are the other houses in the neighborhood dilapidated or nicely landscaped. Does the home back up to a busy street or industrial building? All these things make people want to buy or not buy a home.
The other factor in pricing a home is that of condition. A home that smells nice and is clean will generally sell for more than one with bugs and needs repairs. If the appliances and flooring are out of date, the carpet is stained, or the bathroom has swag lights from 30 years ago, a buyer is going to discount these items from an offer. And most the time the buyer will discount the price more than the actual cost of replacement for their trouble.
If you are handy and have the tools to repair the condition of the property, you may be able to get a good deal on a house that needs some repair. But make sure you get bids or understand the true cost of repairs prior to making that commitment.
If you need help buying or selling a home, please call me, Sandi Walker 405-213-2992 or visit my website at http://www.sandiwalker.net.