Foreclosures & Short Sales: Agents Not Updating Listings When Offers Are In!
July 24, 2008 by Katie Wethman · 2 Comments
Looking at short sales and foreclosures? Better have your agent call the listing agent before you take your time to go see them – chances are that they may already have an offer in and you’re wasting your time and energy. And if the listing agent doesn’t answer their phone or call back (which happens [...]
Housing Bill: Buyer Credits, Loan Limit Increases, FHA Changes
July 23, 2008 by Katie Wethman · Leave a Comment
Breaking news on the latest version of the Housing Bill, now on a fast-track to a vote and onto the President’s Desk, where he has signaled he will sign it. The newest developments: Permanently increase the conforming loan and FHA loan limits (previously $417,000, and increased to $729,750 in the Washington, DC, area in 2008) [...]
IndyMac Closing – Impact on Their Bank-Owned Properties?
July 7, 2008 by Katie Wethman · 1 Comment
Indymac Bank today announced they are closing down their loan operations and laying off 3800 people. While this is certainly bad news for the lending industry as a whole, it’s also bad news for buyers on two fronts. First, and most obviously, fewer lenders means less liquidity. The ripple effect though will impact foreclosures already [...]
Short Sales: Are They Worth a Buyer’s Time?
May 30, 2008 by Katie Wethman · 1 Comment
Yes. No. Maybe. If you’re looking for an absolute, don’t bother reading this post. I’ll go out on a limb and say usually it’s a waste of a buyer’s time—the odds are certainly against it. What is a short sale? It’s a sale where the debt owed combined with the costs associated with the sale [...]
Foreclosure Risks: Title Defects
April 13, 2008 by Katie Wethman · 2 Comments
One risk of buying an REO (bank-owned) property that you rarely hear about is the potential for title issues. Buyers incorrectly assume that since liens are typically extinguished in a foreclosure, that the title is free-and-clear. Not always so! Let’s discuss the process. Lenders require buyers to obtain title insurance on the property. These policies [...]
Housing Bill: Senate Amendments Create Buying Incentives
April 4, 2008 by Katie Wethman · Leave a Comment
The senate started piling on amendments to a proposed housing bill that, if passed, would add some interesting incentives to buy. Of particular note is a proposed $7000 tax credit (not a deduction–a credit!) to anyone buying a foreclosed home (see my post: “I want to buy a foreclosure.”) A credit that size would indeed [...]
Foreclosure Risks: Financing Complications
March 26, 2008 by Katie Wethman · Leave a Comment
Buying a bank owned property creates a multitude of financing risks—not because a buyer may have any particular problems with their credit or loan otherwise, but simply because the transaction is complicated and timing is difficult to control (read previous post on timing difficulties in buying a foreclosure here.) It’s critical that buyers protect themselves [...]
Foreclosure Risks: Property Condition & Inspections
March 19, 2008 by Katie Wethman · 1 Comment
One of the most common scenarios in a bank owned (or REO) sale is that the property is “as is.” But most people don’t understand exactly what this means, or how to protect themselves from buying a home that may need tens of thousands in repairs. Let’s back up a moment, and put “as is” [...]
Foreclosure Risks: Unpredictable Transaction Timing–Don’t Pack Those Boxes Yet!
March 15, 2008 by Katie Wethman · Leave a Comment
I’m often asked about the risks involved with buying a foreclosure. This is the second post in a series of as-yet-undetermined size. (Have a question on the risks? Contact me.) The first post on REO Bank Addendums covered the all encompassing risk—the risk that the bank can basically do whatever they want, including walking away [...]
Foreclosure Risks: Read Those Bank Addenda!
March 13, 2008 by Katie Wethman · 10 Comments
I get a lot of questions on foreclosures. How could I not? Some neighborhoods are flooded with them (though some are not…see the graph in my post on Beyond Auctions.) Buyers want to know if they’re a good deal, what the risks are, and how they can get in on one. I’ve decided to write [...]
