Hunting for Foreclosures
It seems that everyone I come in contact with these days is out to get their share of the mortgage meltdown. First time homebuyers, mover-uppers as well as investors are chasing the “F” bargain… And why wouldn’t they? As a buyer who will owner-occupy the property, one can buy a HUD-owned home for as little as $100 down with FHA financing. And if you qualify as a first-time homebuyer (meaning you have not owned a home for the past 3 years), you will also receive an $8,000 tax refund when you file your amended tax return. Could you resist such an offer? Hardly!
However, be prepared to lose a lot of races in the process. In the hunt for foreclosures, cash is the weapon of choice! If you need to finance your purchase, you are at a disadvantage… Many cash buyers are coming out of the woods, from all over the country, to take advantage of income producing properties at a great price. And sellers love cash! Cash means a quick close, no appraisal problems, no uncertainty on whether the buyer will ultimately qualify or not and whether the property meet meet lender insurability requirements!
Does that mean you won’t be able to purchase a foreclosure if you don’t have the cash? No, but it can become disheartening. And rest assured that there are a lot of properties at a bargain price that are not bank owned! Some sellers have to sell for personal reasons, and will take the necessary pricing step to do so.
As for cash rich investors, a cash bid will allow you to win the property. You may finance 70% of the purchase price after closing. That is a winning strategy you have to keep in mind.
For more information or to search for foreclosures, visit www.BetterHoustonHomes.info or email lucie@mybellaireblog.com