House Hunting | Steal a Deal | Wilmington NC real estate

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Homebuyers Can Still Get A Great Price Even In Today’s Rising Market

Today’s Wilmington NC housing market is well into recovery mode in most areas of the country. Along with rising home prices, mortgage interest rates have also been inching up. If you are among the would-be homebuyers who are ready to come to the party before it’s too late, don’t despair. There are still many opportunities available to steal a great home at a great price—whether you want to buy your first home, a move-up home, a vacation property or an investment property to rent out.

The key is knowing what types of properties still offer bargains in our market. Here are some of the best places right now to focus your search to get a great price:

  • 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 “short sale” homeowners often lower the property’s price and offer attractive terms to invite a quick sale. 
  • 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 sheriff’s sale). Auction sales are often listed in local newspapers. 
  • 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 on the agency’s website or in the newspaper. 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. Paying for a professional home inspection is especially important when considering these types of “sweat equity” properties. 
  • 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 more interested in a fast sale, and 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 approach the completion of a housing development. Eager to move on to the next project, builders may lower prices or, more frequently, offer valuable incentives such as free upgrades of appliances, fixtures, materials or custom build-outs.

Remember, price is just one part of the equation. You’ll want to ensure that these types of properties won’t surprise you with unanticipated and costly physical challenges or legal issues. Working with an experienced real estate professional will help you find a great deal and navigate through the purchase process.

In addition, securing a mortgage with a monthly payment you can afford is critical to any successful home purchase. Call on us to find the right loan program for your low-cost high-value home purchase.

Categories: Buy a foreclosure in Wilmington NC, Uncategorized, Wilmington NC homes

So You Want To Buy A Foreclosure? | Understand The Three Steps | Wilmington NC real estate

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FORECLOSURE:
What Every Buyer Must Know

 In today’s market, you’ll hear lots of terms used to describe “bargain”
properties, distressed, short sale, pre-foreclosure, auction, REO,
bank owned, foreclosure, foreclosed, and more. Confused?
That’s understandable. Some of these terms are interchangeable,
some are not, and some cover a whole range of bargain property types.

 

Foreclosure Overview:

To understand the terms, it’s important to understand the three stages of foreclosure:

  1. Pre-foreclosure stage. This stage begins when the homeowner falls behind on home-loan payments (or sometimes other terms of the loan). Lenders may wait for a second, third or even fourth missed payment before sending the homeowner a Notice of Default — which becomes public record. The homeowner then has a given period of time to respond to the notice and/or come up with the outstanding payments and fees — sometimes by selling the home in a pre-foreclosure sale, also known as a distress sale. (If a judicial procedure is required, it occurs after the notice of default is given.)One type of pre-foreclosure or distress sale is a short sale — when proceeds from the sale of a home are less than the amount of mortgage still owed to the homeowner’s lender. A lender-approved short sale (or short payoff) occurs when the homeowner’s lender agrees to accept the proceeds of the home sale as satisfaction of the mortgage owed, even though proceeds are less than the outstanding debt.
  2. Foreclosure stage. At this stage, the former homeowner may or may not have been evicted — depending on state law — when the lender puts the home up for public auction (after a judgment of foreclosure in those states requiring judicial procedure).If the home sells at the foreclosure auction, (sometimes called a sheriff’s sale, trustee’s sale or step sale) money from the sale is used to pay off the costs of the foreclosure, taxes and other prior liens, service charges and advances, interest and principal on the mortgage, late charges or fees, and liens recorded after the first mortgage. Any amount left over is paid to the borrower (former homeowner). When proceeds from the sale are less than the various amounts owed, the lender may be able to hold the borrower responsible for the difference (deficiency judgment).
  3. Post-foreclosure stage. When a property that does not sell at auction — either because no one bid on it or because bids did not meet the lender’s or agency’s minimum price — the property becomes real estate owned (REO) by the lender or government agency that guaranteed the loan (such as FHA/HUD, VA, etc.). You’ll also hear the term bank-ownedapplied to these properties, whether they are owned by an actual bank or some other type of lender. (Be aware: The term REO also applies to properties purchased by companies from employees who didn’t sell their home on the market before relocating, which is to say that not all REOs are foreclosed properties.)Once the lender or agency has repossessed a property following a failed auction attempt, the home is put back on the market. Most REO properties are listed for sale through real estate brokers and placed on the Multiple Listing Service.

 

At this stage, the foreclosure process is complete, and the property may be accurately described as a foreclosed property, while in the first two stages the home is in foreclosure and should be referred to as a foreclosure property. (You’ll find, however, that real estate writers and others sometimes misuse this terminology; be sure to ask if you are unsure what stage of foreclosure a particular property is in.)

Here is a list of current foreclosures in the Wilmington NC real estate area  Click Here for List…

For a list of Short Sale Homes Click Here….

To search the Wilmington NC MLS, please visit www.cbbaker.com

 

Categories: Buy a foreclosure in Wilmington NC, Buying Wilmington NC real estate, Wilmington NC Market Statistics, wilmington nc real estate, wilmington nc weekly events, worlds largest christmas tree, Wrightsville Beach NC


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Copyright © 2017 Wilmington NC Real Estate Guide. All rights reserved. Disclaimer: All content on this blog is my own opinion and should not be treated as fact or relied upon when purchasing or selling real estate.