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 [...]
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 [...]
WSJ: "Beyond Auctions" Article on Buying Foreclosures
February 12, 2008 by Katie Wethman · 1 Comment
There’s a fantastic article today online in the WSJ: “Beyond Auctions: Ways to Buy Foreclosed Homes.” It explains why there are actually very few bargains to be had in foreclosure auctions, and why buyers (especially first time buyers) need to instead focus on bank owned property (REO). There’s a good list of do’s and don’ts [...]
Q3 Trend Report – What are you waiting for?
November 8, 2007 by Katie Wethman · Leave a Comment
The Metropolitan Regional Information System (MRIS, the group that runs the Multiple Listing Service) has released its Q3 Trends in Housing Report. It’s an interesting read. You can view the full 22 page report here. Some highlights: – Job Growth: Over the 12 months ending in August 2007, over 47,000 new positions were added-—5.8% above [...]
"I want to buy a foreclosure."
September 21, 2007 by Katie Wethman · 3 Comments
I’m interested in foreclosures is something I often hear from clients, but few people really understand the process, and specifically what it means to buy a foreclosed property. It’s not for the faint of heart. Though you can occasionally find a bargain, there are unique risks involved with buying a foreclosed or bank-owned property. First, [...]
Sub-Prime Mortgages: Crisis Averted?
September 1, 2007 by Katie Wethman · 1 Comment
I’ve posted here before that there were signs that the sub-prime mortgage mess, while unfortunate for many, was not the crisis that the press makes it out to be. The housing market is just too important to this economy, and while no one is screaming “bailout”, there have been consistent signs that the country is [...]
