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Real Estate & Finance News That Affects Your Home                                                                            Page  1 2 3 4

SEPTEMBER 2009 - PAGE 3

GREAT BUYS Where To Find The Best Deals On A Home Today Lower home prices in many places nationwide have caught the attention of investors and of those who have been waiting to purchase a home for their own use. If you're looking for a bargain-priced home, we can help you choose from a range of opportunities: Pre-foreclosure sales occur when borrowers find they can no longer afford to pay their mortgage; they sometimes have a window of time to sell their home before their lender starts the foreclosure process. Because time is of the essence, these homeowners often lower the property's price and offer attractive terms to invite a quick sale. (Short sales are part of this bargain category; see stories on page 2.) Foreclosure auctions involve homes where a homeowner has defaulted on the loan and the lender is selling the property at public auction (sometimes called a trustee's sale or step sale). Auction sales are often listed in the local newspaper. Post-foreclosure sales. These homes include real estate owned (REO) by lenders and corporations. Lender REOs are foreclosed properties that did not sell at auction. Corporate REOs are usually homes purchased from a corporation's employees who were transferred before the properties could be sold. Most post-foreclosure properties are listed with real estate agents in the area. Government-owned properties include homes that previously had loans backed by the federal government through programs sponsored by entities such as Veterans Affairs (VA) and the Department of Housing and Urban Development (HUD). Once these loans are in default, the lender takes over the property. Then, the government entity pays off the loan and takes possession of the property. Government-owned homes are generally listed in the newspaper or on the agency's website. The bidding process is conducted through real estate brokers who have taken the government agency's training program. While government-owned homes are sold “as is,” HUD may escrow part of the sales price to bring a property up to its standards to qualify for a Federal Housing Administration (FHA) loan. Tax sales result when homeowners fail to pay their property taxes. The taxing authority schedules the tax sale at which a buyer can bid the amount owed in taxes (or more) and, if the bid is accepted, take ownership of the property. Even then, the original homeowner may have time to redeem the property (by paying the outstanding taxes, penalties, etc.). The rules of these types of sales vary from one locality to the next, so it is essential to be familiar with local processes. Fix-up properties generally are in disrepair and are often sold "as is," with the discounted price reflecting their condition. Estate sales result when people who have inherited properties decide to sell them. Many prefer to sell them "as is" to quickly liquidate the estate. Those who view the inheritance as a windfall may be less concerned about the sales price. Divorce sales come on the market as part of a divorce settlement. As with estate sales, the owners may value a speedy sale over a higher price. Builder close-outs occur when builders near the completion of a housing development. Eager to move onto the next project, builders may lower prices or, more frequently, offer valuable incentives such as free upgrades of appliances, fixtures and materials or special financing. Although any of the above situations may produce a bargain opportunity for you, working with a knowledgeable real estate professional helps you avoid some of the pitfalls of bargain shopping and eases the process at every step. We can serve as your buyer's representative, using our expertise to represent and protect your interests as you negotiate with sellers and move through the purchase process. Deadline Looms For First-Time-Buyer Tax Credit If you are purchasing your first home (or you haven't owned a principal residence in three years), you may qualify for a tax credit of up to $8,000 -- if you buy in time! The tax credit is only available to qualified buyers who settle/close on their homes by November 30, 2009.                                                                                                                                                                                                                           Page  1 2 3 4