Foreclosures and REO – Timeline – Part II

If a home owner fails to make their timely payments the bank or lender will begin the foreclosure process.  The home owner is given several opportunities to satisfy their debt with the bank, if they cannot a date is set for the property to be sold at auction.  In most cases the home owner has until the day of the auction to deliver the monies owed to the lender.  If the monies are not delivered to the lender the auction will take place.

Qualified buyers can bid on the home, within parameters set by the lender.  There is frequently an opening bid set and publicized before the auction.  There are tremendous differences between states and even auctioneers as to how the auction transpires.  It is absolutely vital that a buyer at a foreclosure auction understand the rules and regulations of any auction they are participating in. Some auctions require a cash deposit at the time of the auction, others require proof of financing.  In many states you are not able to inspect the property before the auction, in some states there is a brief window of time in which an inspection can occur.

It is also vital to understand the tax laws regarding foreclosure properties; in many states the highest bidder is also responsible for any tax liens on the property.

The great advantage to buying at foreclosure auction is that you can sometimes get great deals, but only if you are extremely well informed and well prepared.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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Foreclosure and REO Timeline – Part I

If a home owner fails to make their payments on time, the bank or lender who owns the mortgage will begin proceedings that could lead to foreclosure.  This is a process that takes several months and gives a delinquent home owner many opportunities to catch up on their payments.

Sometimes a homeowner will realize that they are not capable of catching up on their payments and that foreclosure is imminent unless they take immediate action.  They have the option to seek an experienced realtor to quickly sell their home – this is called a short sale.

A short sale can be highly desirable for all interested properties if performed properly.  For the home owner it can mean honorably getting out of home loan they can not afford without destroying their credit.  It can also mean that the homeowner walks away with some cash to help them in their transition to a new home.  For a home buyer a short sale can be advantageous because they will frequently be able to purchase the home for below market value.  A Short Sale is advantageous for the bank as it prevents a lengthy and expensive foreclosure process.

The difficulty with Short Sales is they require time.  If a home owner does not recognize that foreclosure is inevitable within enough time to sell, they can miss their window of opportunity.

Come back for the next Blog which details the Foreclosure Auction process.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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Thanksgiving

Centuries ago a group of Pilgrims came to this new land.  They weren’t sure what they would find and when they got here they weren’t truly prepared for the hardships that faced them.  Still, they found there were indigenous people here who were willing to befriend them and teach them how to grow food in this new land.  Their symbolic feast is one that we continue to celebrate today.  It is a reminder to all of us that we must always be thankful for the blessings that are bestowed upon us.  Even in the darkest hour there is something to be Thankful for.

This year I am thankful for my family, for their love and support through laughter and tears.  I am especially grateful for my mother who, like my grandmother, is a pillar of strength.  I am grateful for all of my co-workers at Island Advantage Realty LLC who work tirelessly to help families achieve their American Dream by owning their own home.  And I am thankful for all of the clients this year that came to me with a vision of owning a home and doing it in a financially sound way.  I am confidant that owning a home is high on their grateful list this holiday season and it was my pleasure to be able to help them.  And lastly I am grateful to all of the readers who take the time to read this Blog. Thank your for being my audience.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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Foreclosure and REO

There is a lot of confusion about what REO is, how it differs from foreclosure property and how a home becomes an REO.  For the next few Blogs I am going to detail the foreclosure process to try to shed a little light on the subject.  First I would like to start with a small glossary of terms.

REO (Real Estate Owned) – Bank or Lender owned properties.

Foreclosure – the legal process a bank or lender pursues when a home owner does not pay their mortgage in a timely fashion.

Foreclosure Auction – the sale of real estate to the highest bidder in order to satisfy the debt to the lender.

Short Sale – The sale of real estate before foreclosure with agreement from the lender so a home does not become foreclosed upon.

Sheriff Sale – this is the same thing as a foreclosure auction.

Stay tuned for the next Blog when we share the timeline of foreclosure.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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Where Is Your Financial Future?

We are all looking at the current economic situation and wondering where the bottom is.  I think we are all clear that it will turn around; the question most people are asking is when?  Since we have no way of knowing “When?” I prefer to ask a different question: “Where do you want to be when it turns around?”  Do you want to be still scraping by?  Or do you want to be better off than you are now?

If you want to be better off than you are now then you probably need to make some changes.  If you are in a home that you are just barely able to make the payments, why not take a look at what the payments on an REO property would be?  You might be surprised at how much lower your monthly payment would be.  Interest rates are down, and REO properties are available at a great discount if you are willing to put some work into them.  There are great opportunities to not only help you in today’s crisis but to start you on the road to a better financial future. Where do you want to be when the economy turns around?

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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Inspecting REOs

One of the great advantages of buying an REO property is the ability to inspect it. When a property is in foreclosure it usually isn’t possible to have it inspected, in many cases it isn’t even possible for you to view the inside, not so with REO.  With REO property you have the ability to have an independent contractor inspect the property for you so that you can have a detailed list of the necessary repairs the property will need if you take ownership.

It is so important to take advantage of the opportunity to inspect REO property. You have to remember that when buying REO property you aren’t facing another home owner at the negotiation table; you are facing a bank that is represented by a host of lawyers.  The good news is that banks and their lawyers will be less emotional than the average home owner, but you do want to make sure that you represent your own interests by having a professional inspection and great real estate professionals in your corner.

Island Advantage Realty LLC is the recognized leader in REO real estate for the Metro NY and Long Island area, if you want to buy an REO property and are interested in working with the best please contact us.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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Happy Endings

I love it when a client finds the perfect home.  At Island Advantage Realty LLC we are all about matching a client with a home that meets their needs. I recently had the pleasure of working with a couple with three children.  It is one of those great success stories.  The couple met and fell in love in their twenties.  They married and planned on having a family, although no children seemed to be in their future.  They spent a fortune on infertility and even delayed home ownership, spending the money they had saved for a down payment on treatments.  They were not successful. 

In their late 30’s they decided to adopt and were thrilled when a birth mother chose them to adopt her unborn child.  They were devastated when the mother changed her mind the day after the baby was born.  They decided they couldn’t take the emotional upheaval, they abandoned the idea of being parents and took the last of their savings and went on a trip to Hawaii.  Five days into the trip they got a call that would change their lives.  They were told that their children were at home waiting for them.  Three siblings had become available for adoption after the tragic death of their parents.  My clients had not planned on adopting three children but it only took them one second to say yes to a ready made family.

Now they were back from Hawaii with three children, no home and their savings depleted.  Luckily they came to Island Advantage Realty LLC.  I was able to help them find an REO property with four bedrooms a big back yard and the perfect price tag.  I love a happy ending!

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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Renting vs. Buying in Today’s Market

In any market there are some pretty good rules of thumb when deciding whether it is smarter to rent or buy.  If the cost per square foot to buy is similar or lower than to rent it usually a smarter decision to buy.  While it is true that there are additional expenses involved in owning as opposed to renting there are also tax implications to be considered.
Generally the cost of property insurance and property tax are offset by the tax deductions that come with home ownership.  So if all things are equal it is generally smarter to be building equity than to be throwing money away on rent month after month.

In today’s market this is more poignantly true than at any other time. With the tremendous influx of REO properties on the market it is often less expensive monthly to purchase an REO home than it is to rent it.  This implies two things for consumers:
1. It is possible to buy an REO home and rent it for a profit, creating instant income property.
2. Buying an REO right now is a stronger financial choice than renting and can actually save you money monthly.

With the economy in its current straights more Americans are looking for ways to create more income and to save monthly on their bills.  REO property has the ability to accomplish both of these tasks.

For more information about how you can change your financial future using REO property please contact us at Island Advantage Realty LLC.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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The Perfect Ingredients

When making the perfect Thanksgiving meal it is important to start with the perfect ingredients.  It goes without saying that you need to start with the freshest Turkey.  I love to hear how families improvise around the turkey.  At my family’s Thanksgiving there are 5 kinds of stuffing.  My Mother always makes an oyster dressing that came from my Grandmother’s famous recipe.  My cousin Jerry’s wife always brings a cranberry, apple, cornbread stuffing that is very fruity; my Aunt Celia brings a wild rice and mushroom stuffing.  My Uncle Bert conjures up a pecan, sausage stuffing that is on the spicy side and my sister always makes a whole wheat, vegetarian stuffing, which is the only thing that her health minded husband will eat.

While everyone has different tastes about the stuffing, we all agree on one thing, the turkey.  Everyone, that is, except my brother-in-law, who enjoys an interesting dish called Tofurkey, that is some form of tofu. He loves it and that is all that matters.
We all have our preferences whether it is stuffing or homes.

One of the greatest things about the current REO market is the wide range of variety that is available.  The common thread between all of the properties is: VALUE.  These homes have great value and are being offered at a price that will increase the owner’s equity faster than a typical home.

If you are interested in finding the perfect ingredients for your REO dream home, please contact Island Advantage Realty LLC.  We are the recognized experts in the REO market for Metro NY and Long Island.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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REO Realities

When a home falls into foreclosure but fails to sell at auction it becomes REO property or bank owned.  Right now there are more REO properties on the market than at any other time.  These properties come in a wide variety of conditions, prices and locations.  There are some important things to remember about REO properties:

1. REO properties are offered at a discount, but the discount is not for nothing.  It is to offset necessary repairs to the home.  Frequently these homes have neglect issues that require attention.  Don’t expect to see spotless homes when viewing REO properties.  Instead you will find properties that need some work. Don’t be dismayed, the more work they need the deeper the discount will be.
2. REO properties have a very specific time line for closing.  It is absolutely crucial that you work real estate professionals who have proven expertise in the REO field.  They will be able to effectively guide you through the stringent time line that is required by banks.
3. Value is value in this market or any other.  If you keep value in mind when shopping for REO properties you will be guided to great properties that will make great investment opportunities.

For more information about purchasing REO properties in the Metro NY or Long Island areas please contact Island Advantage Realty LLC. We are skilled professionals with the expertise to help you own one of these valuable homes.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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