FAQ
Answers to some of the more frequently asked questions about foreclosures.
A: Real Estate Owned. It’s the term the banks use to identify their foreclosure properties.
A: HUD homes are FHA-insured loan foreclosures. The government owns them. The properties are classified as “insured” or “uninsured”. Those that are insured are in good repair and FHA will insure a new loan for a new buyer for the home. Uninsured properties are typically fixer-uppers, and the buyer will be responsible for his or her own financing. Find out more on their website, www.hud.gov.
A: Unfortunately, they are not. They are listed just like any other property. The best way to find them is by working with a real estate broker who specializes in this kind of home, or by searching the web for sites like www.fanniemae.com or www.homesteps.com.
A: Not really. When negotiating with an asset manager at a bank for the purchase of a foreclosure, you should realize that this is a professional seller. A good asset manager will work hard before a property is ever listed to determine fair market value. They order appraisals and hire a broker to advise them about the property’s condition and value. Then, they price them accordingly. Often the amount owed on the property is actually far greater that its worth—which was likely cause of the foreclosure in the first place. .
A: Sometimes. The asset manger in charge of the property will confer with his broker prior to listing it to determine if it is a good candidate for repair or rehab. He will then proceed with a marketing strategy—either “as-is” or “repaired”. The as-is properties are priced much lower, and the bank typically does not make repairs for these. They feel any repairs should be the responsibility of the buyer since the property’s price is discounted.
A: Call me! I have a team of agents ready to find the right property for your investment portfolio. Nashville was recently voted in the top 3 cities in America to buy a foreclosure. Take advantage of this incredible opportunity! The buyer hotline number is 615.554.5375.