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 For a list of current Wilmington NC real estate Foreclosures click here

BANK OWNED: 6 Reasons Why Foreclosures Are Bargains   Foreclosed or bank-owned homes are very attractive to buyers seeking bargains. They understand that lenders and government organizations don’t really want to own homes, but would rather move their “non-performing assets” off the books as quickly as possible, minimizing carrying costs. That can mean a great value for the right buyer.

Still, there are other bargain opportunities out there — homes for sale in the pre-foreclosure stage (including short sales) and homes being sold at foreclosure auctions — sometimes at discounts significantly better than at either other stage of foreclosure. So, why would a buyer prefer a foreclosed/bank-owned home?

• Condition. Lenders and government organizations selling foreclosed properties sometimes make repairs that return these properties to livable condition before putting them on the market — or they discount the prices accordingly to sell more quickly.

  Homes sold pre-foreclosure or at auction can be in much worse shape, either due to neglect by their cash-strapped former owners or damage caused by disgruntled residents or vandals.

• Inspections. With foreclosed homes, you have the opportunity to order professional inspections — for structural integrity, systems, pests, mold, radon, etc. Although the home may be sold “as is,” indicating the seller is not willing to rectify any problems, at least the buyer can find out in advance what problems the property may have. If buyers have inspections conducted before making a purchase offer, they don’t have to go any further if the report shows problems they’re not willing to deal with. Or, they can make a lower offer to factor in the costs of making needed repairs. If the buyer’s intent is to conduct inspections after a sales contract is signed, buyers can include an inspection contingency in the contract that would allow them to terminate the sale if the inspection shows problems with the home.

  Although professional inspections are also possible with pre-foreclosure and short sales, buyers of homes being sold at foreclosure auctions frequently do not have the opportunity to order professional inspections – and may not even be given time to conduct a personal inspection of the home’s interior. These buyers take the risk that the home sold at auction – usually “as is” with no warranty or disclosure requirements — comes with significant and costly physical problems that would have to be corrected at the buyer’s expense after the purchase.

• Title issues. Sellers of most foreclosed homes will deliver a General Warranty Deed to the buyer, which guarantees that the seller owns the property and has the right to sell it. After repossessing the property, institutional owners – lenders or government agencies – will usually pay off any known outstanding liens and taxes, relieving the next buyer of those obligations. (However, buyers should still ensure a title search is conducted and purchase an owner’s title insurance policy for extra protection.)

  With pre-foreclosure and auction sales, by contrast, the buyer must be wary of possible unsettled claims and unpaid taxes or liens that would transfer with the property – not uncommon with these types of sales. Even if the buyer conducts a title search and can negotiate to have those issues resolved, unrecorded liens can show up between the search and settlement/closing on the property. Paying off those obligations can be an expensive surprise that cuts into the savings from buying the discounted property.

• Evictions. By the time an institutional owner puts a foreclosed property on the market, former owners or tenants have already been evicted from the premises.

  Buying a pre-foreclosure or auction property, however, risks being in the position of having to enforce evictions – often an expensive, frustrating and time-consuming process (in some states it can take up to a year to accomplish).

• Ease of purchase. Although the process of buying a foreclosed property may present some additional wrinkles compared with buying a traditional home, the challenges pale in comparison with arranging the purchase of pre-foreclosure and auction sales.

  With a short sale (a type of pre-foreclosure sale), you must not only negotiate with the seller, but also with the seller’s lender(s), who can reject your negotiated deal with the seller if it does not meet the lender’s requirements. In addition, the process can take many more weeks, sometimes months, to accomplish compared with a traditional home sale. In fact, many attempts at short sales never reach the settlement/closing table.

  Foreclosure auction sales present their own challenges, with bidding procedures that vary by location. In some states, bidders must bring to the auction the full amount of their bid in cash or a cashier’s check. In other states, bidders must have a substantial cash deposit on auction day and be able to arrange financing for the remainder within a short period of time – sometimes as little as 24 hours — or forfeit the deposit. In addition, a thorough knowledge of the local auction process is essential to winning an auction bid, which is why novices are seldom able to win over seasoned professionals at foreclosure auctions.

• Redemption issues. Lenders may not put foreclosed homes on the market until the state’s mandatory “right of redemption” period has expired. Not all states mandate a redemption period, but in states where they do exist they allow a specified amount of time for the foreclosed homeowner to buy back the property after it sells at auction.

  If you purchase a home at auction, you may be in the position of having to turn it back over to the foreclosed homeowner who is able to reclaim it by buying it back from you. The buy-back price could simply be your costs of purchasing the property, not necessarily reimbursement for any improvements you make afterward – depending on how the state law is written. In addition, if a redemption period still applies to the home after you purchase it, you would be prevented from selling the home until the redemption period expires – which could be up to a year in some states.

The market has been brisk for months now, and we officially made another list!  The Wilmington NC real estate market made the top 14 best housing markets for the next 5 years.  To find out about our area, or to look for Wilmington Beach areas please visit www.cbbaker.com

From the Money Insider:

13. Wilmington, North Carolina

Wikimedia Commons

Annualized expected growth from Q3 2012 – Q3 2017:
7.1%

Home prices in the Wilmington metro area are down 25.6% from their Q2 2007 peak.

The metro has a population of 369,685, an unemployment rate of 9.8%, and a median family income of $61,100.

Data provided by CoreLogic Case-Shiller Indexes

Read more: http://www.businessinsider.com/best-housing-markets-for-five-years-2013-5?op=1#ixzz2Uh9Q0LsB

Get more ideas here.

1. Paint, panel or paper
Keep in mind, light colors make rooms look larger, dark colors smaller (cozier). If you like soft colors (pale pinks, greens, blues, yellows), they’re ideal for enlarging small rooms. Perk them up with accents in deeper tones or with interesting textures (such as sponging some walls or adding sisal).

If you like a touch of the dramatic, paint a door in primary colors or add a “fool the eye” scene (such as a landscape that seems to be seen through glass). Don’t be afraid to put reds and pinks together, or blues and greens. For real drama, add white trim to deep colors. Remember, if you’re thinking of selling your home soon–neutral tones are “safer.” Splash color around using upholstery, throw pillows, artwork and other furnishings.

2. Give small rooms extra dimension
Put in floor-to-ceiling mirrors. Place one at right angles to a corner window to bring in the outdoors. Mirrors at different angles create a patchwork of repeated patterns that can be interesting, light reflecting and fun.

3. Light up the house
Consider creative lighting, including:

• Spotlights to point up art work
• Track lights to illuminate bookshelves
• Indirect lights or decorative wall sconces wherever shadows are too deep
• Under-counter lights in kitchens and workshops
• Using incandescent or halogen lighting, which is warmer than fluorescent

4. Transform your floors
Look under foot to refinish, recarpet or retile. Wood floors can be bleached, pickled, stained, painted almost any color or made unique by installing ceramic tiles in the kitchen, or a block of patterned wood (inside a wood border) in the center of a dining room or bedroom.

5. Open spaces and clear surfaces
Go with the trend of fewer furnishings and belongings in view. For things you want handy but not displayed, create storage places:

• A window seat
• Narrow shelves inside closet and cabinet doors
• A tip-down triangular tray (for brushes, sponges, etc.) built into the cabinet at the front of the kitchen sink
• A wall system with cubes of different sizes, some with shelves, some with drawers
• A “Murphy” bed that folds into the wall

6. Large family kitchens
Top-grade is the trend in appliances, including microwave ovens, disposals and compactors, work islands that sport stainless steel double sinks or a down-vented stove, plus side bookshelves or lift-up table top. The dining end of the kitchen might be equipped with comfortable chairs, a desk, or book shelves. A fireplace turns the kitchen into a homey family room where everyone lingers.

7. Luxurious bathrooms
Make your privacy a pleasure. You might install light dimmers and thermostatically controlled mixer taps, extra mirrors, a solarium window, or create a sunken bath set in a raised floor that houses the plumbing.

8. Year-round comfort
Utility bills can be lower when windows are installed with low-emissity glass (gas filling between panes) that can be twice as efficient as double-glazed windows. They reflect heat, keeping your home cooler in summer and warmer in winter. An invisible coating also blocks ultraviolet light and protects furnishings.

9. Makeover the garage
The car park may not be the most beautiful part of your home, but it may be the most useful space you have–if it’s soundly built, clean, well organized and uncluttered. A garage can double as a workshop, garden house or playground. An automatic door opener is the warmest welcome in wet or cold weather.

10. Consider safety and convenience
Whatever alarm system you add to your basic smoke detector contributes to your peace and security. Electronic “smart” devices can be installed to turn lights, appliances and heating/air conditioning off and on at pre-set times, to warn of intrusion or announce a visitor, to remind you (in a synthesized voice) when you’re due at an appointment or when you’re using too much electricity.

Home improvement possibilities are endless. But if your home can’t accommodate your dreams–with neither love nor money–remember there are homes in the area that will. When you’re ready to explore the possibilities, we’re here to help make your dreams come true.

To search all Wilmington NC real estate, please visit www.cbbaker.com

Lenders Welcome Borrowers With Open Arms

Affordable interest rates mean more people can qualify to buy a first home or move to a bigger home, and lenders are reaching out to make mortgages more attractive. Some lenders even sweeten the pot with low (or even no) closing costs. Recently, best buys have been 15-year and 30-year fixed-rate mortgages. In many cases, the rates for these loans have been just above adjustable rate mortgage initial rates, which are low for a short period of time, then adjust (rise or fall) with the market.

FHA Changes Mean Help For More Buyers

Changes to the Federal Housing Administration’s (FHA) mortgage program opened FHA up to many more potential home buyers. Home buyers with an FHA-insured single-family home loan may now finance 100% of the closing costs on the loan. Previously, FHA allowed home buyers to finance only 57% of the closing costs, which added hundreds of dollars to the up-front cash home buyers need for settlement.

A second important change to FHA was raising the maximum loan amount in high-cost areas and linking the maximum to local housing costs. The FHA’s mortgage limit varies by location and property type, depending on home prices in an area and the number of units in the property. In addition, FHA has higher limits in Alaska, Hawaii, Guam, and the U.S. Virgin Islands because these are considered to be high-cost areas. You can check the current FHA loan limit in your area by going online to: https://entp.hud.gov/idapp/html/hicostlook.cfm

Now borrowers will have to put down 3% of the first $25,000 of the loan amount; 5% of the loan amount between $25,001 and $125,000; and 10% of the loan amount above $125,000.

These changes will interest higher-end buyers in FHA loans and make FHA more accessible to those whom the program is primarily intended to serve — prospective buyers who do not qualify for conventional financing. Traditionally, FHA has served buyers who have lower incomes, make smaller down payments and purchase less expensive homes.

More Good News For Loan Shoppers

Federal regulation now mandates that mortgage brokers itemize all fees they receive to originate or close a loan.

Previously, brokers were allowed to lump miscellaneous charges and premiums into a general fees category, which made it nearly impossible to comparison-shop lender fees. The law applies only to mortgage brokers, not mortgage bankers. Fees really do add up, so when loan shopping, ask up-front for an itemized breakdown of lender fees.

Mortgage Help For First-Time Buyers

An exciting Fannie Mae program may help open the door to home ownership for low- and moderate-income buyers.

The Community Home Buyers Program allows for slightly more debt when qualifying for a loan than standard mortgage plans.

Although this program requires a 5% down payment, borrowers can make the down payment with as little as 3% of their money and up to 2% from a family gift or loan from a government or nonprofit agency. In addition, the Community Home Buyers Program waives the common requirement that borrowers have two months’ worth of mortgage payments in savings after closing.

There are special requirements to qualify: Borrowers must attend a series of home-buyer education classes and the borrower’s income must not exceed 115% of the median income in the area. For more information: Fannie Mae, Public Information Office, 3900 Wisconsin Avenue, NW, Washington, DC 20016 or call (800) 732-6643.

Computer Programs Rate Borrowers

There’s a relatively new twist in mortgage lending. Recently, lenders have started to replace traditional underwriter’s judgements on an applicant’s creditworthiness with a computerized credit rating called “credit scoring.”

Both ways of assessing a potential borrower’s ability to pay back the loan — the underwriter’s judgements and credit scoring — rely on much the same information: salary history, credit history from credit reporting companies, ratio of debts-to-income, etc. But credit scoring uses a computer program designed to predict who will default on a loan. It assigns a numerical score to each factor and then adds them up. Credit scoring is objective and designed to uncover hidden problems. For this reason, credit-scoring programs may assign more importance to some factors that the underwriters might overlook.

If you are interested in learning more about any of these new lending procedures, call or e-mail us. We’ll be happy to assist you.

An Ounce Of Prevention

Sometimes a $1,000 disaster can be prevented with a $4 hose. That’s the finding of many Wilmington NC homeowners who end up paying a lot for repairs that could have been prevented with just an ounce of inexpensive prevention.

One of the best places to check first is any place in your home that can be damaged by water. A survey by the American Society of Home Inspectors found that 40% of home maintenance problems are related to water. Water seeping into the basement or crawlspace, leaks from neglected washer and dishwasher hoses, and leaking pipes can leave you wet and poor.

Pay attention to the following items in your home regularly:

Water Threats
• Check for leaks from appliance hoses (washer and dishwasher), connections to the hot water heater and humidifier, outside spigots, exposed plumbing. Tighten all connections.

• After a heavy rain, check for water in attics, basements and crawlspaces. Make repairs as soon as the area is dry.

• Backed-up gutters can cause water to seep back up into the attic. The solution is simple, though: regularly remove leaves and debris from the gutter system.

Electrical System
• Check the circuit breakers about every six months.

• Check switches when lights seem to blink when the switch is touched.

• Keep wall-socket plates secure and replace broken ones.

A/C and Heating System
• Check these systems at least once a year; have them cleaned and serviced. You could save thousands in repair/replacement bills later, and improve operating efficiency thereby lowering monthly costs.

• If you have a fireplace, make sure it is professionally inspected and cleaned annually. Wood-burning fireplaces can cause creosote to build up in their chimneys–a dangerous fire hazard.

To Search all Wilmington NC real estate please visit www.cbbaker.com

The Market has been hot and the inventory is low.

Right Sales Price For Seller Is Buyer’s Call

Proper pricing is critical to a timely sale in any market. Yet, some home sellers today still want to set their price in relation to what their neighbors have sold for or are asking now, sometimes ignoring current market conditions and the differences between homes. When pricing a home — especially in today’s housing market — we find it’s helpful for sellers to understand what governs a buyer’s decision to purchase.

Here’s a quick look at how buyers view price:

• Monthly payments are usually more important to buyers than the sales price.

• The “out of pocket” cash needed at settlement/closing is a big factor with buyers.

• All buyers want to cash in on a good deal.

• Buyers have often shopped the competition and know how your home compares.

• Buyers recognize value and shy away from overpriced homes.

• Buyers don’t want to pay for your mistakes (paying too much when you purchased, over-improving the home, poor-quality remodeling jobs, etc.).

• Buyers have no interest in how much money you need to realize from the sale to make your next move.

• Buyers who work with a buyer’s agent mean business. They are ready to negotiate and close a deal.

Look at your competition and compare… www.cbbaker.com for all your Wilmington NC real estate needs.