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Archive for the 'Foreclosures and Short Sales' Category
Cash continues to drive the REO Market
Cash is still King
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There was an interesting article in DS News about how cash investors are pushing down prices. According to a quote in this article “In December 2011, data collected for the HousingPulse 
Survey shows that the overall proportion of cash buyers in the housing market surged to a record 33.2 percent, up from 29.6 percent a year earlier.” There is also a Press Release put out by Campbell, that essentially was repeated by DS News.
I did a quick calculation of Colorado Springs home transactions for 2011 and came up with the following information on what type of financing was used for home purchases in the area;
Cash 19%
Conventional Financing 31%
FHA Financing 19%
VA Financing 31%
One of the reasons that the numbers are different from the national average in the Colorado Springs Housing market, could be because of the strong military presence in the area which is shown by the 30% of home buyers that use VA financing.
This article has several key points on why Read the rest of this entry »
Are Colorado Springs short sale disclosed?
Colorado Spring Short Sales are now disclosed
Search for Short sales in Colorado Springs
- Buying a short sale vs. a foreclosure, what’s the difference?
- Tips to buying a short sale
- 8 reasons NOT to buy a short sale
- 12 questions to ask before writing a contract on a short sale
Every MLS around the US, and in Colorado, has their own policy about short sale and how these are disclosed in the local Multiple Listing Service. The MLS that serves the Colorado Springs area, (PPAR) recently made a change in their rules to reflect a change in their policy regarding short sales. In the past, it was an optional disclosure in the Pikes Peak area. As of January 1, PPAR now requires that Listing Agents disclose if a property is a short sale and if the seller has signed the Short Sale Addendum, which is required by Colorado Real Estate Law.
The following policy was adopted by the RSC Board of Directors on November 17, 2011: “The listing broker shall, on each listing filed with the PPMLS, disclose to other Participants whether a Colorado Real Estate Commission Short Sale Addendum has been signed by the seller. Such disclosure shall be made upon submission of the listing to the PPMLS. If a Short Sale Addendum is signed after the listing is submitted to the PPMLS then disclosure must be made within 72 hours of the time the seller has signed the Short Sale Addendum and for the purposes of enforcement this disclosure shall also be treated as a status change pursuant to Section 1.6 of the RSC Rules and Regulations.”
Since this change has been made, there is now a new field that is required in the PPAR database when listings are being entered, “ShortSale Addendum Signed by Seller. This is a sortable field, both by Realtors and the public. As I’ve written before, short sales are not the right fit for every buyer, for many buyers and investors, they may be the perfect option.
One important thing to note: One of the many challenges about Listing Properties, is that if the property is priced at a certain price it is not a short sale. But if an offer comes in on the property that is 10% less than the original Listing price, this could change the status of the property from a “Normal Listing” to a Short Sale. Hence, in this case mentioned above, a property wouldn’t be listed as a Short Sale, since when it was listed at the current price, it was not a short sale. Sound confusing? It is!
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To find out more information about buying a home or Short Sale Home in Colorado Springs area, call ….
Kathy (719-287-1049) KTorline@msn.com
HUD homes are always, always sold “as-is”
HUD properties are sold “as-is”
Search for Colorado Springs Foreclosures
Related Articles:
- 8 biggest mistakes made by Colorado Springs home buyers
- Buying a short sale vs. a foreclosure, what’s the difference?
- 9 key things to know about buying a bank repo
- Banks, how low will they go?
- 7 things to know about Bank addendums and Foreclosed Homes
It’s important for any homeowner or Colorado Springs Real Estate Investor to realize that all HUD properties are always, always sold “as-is”. In case you wonder exactly what that means, here’s a quick summary:
- The property is owned by HUD (SECRETARY OF HOUSING & URBAN DEV), and the seller will not fix any flaws before the sale.
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You can still do an inspection, but don’t except any items to be repaired or fixed
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If you are getting a loan on the property, discuss the property’s condition with your loan officer. Regardless of what the lender wants the condition of the property to be, HUD will not do any repairs.
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If the property incurs damage to it between the time you put in an accepted offer on it and close on the property, HUD will not fix it. A window broken, a mirror removed, pipes that are missing, all of these things won’t be fixed.
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Remember, you are purchasing this HUD home in it’s present physical condition. The seller is selling you the house without any warranties or guarantees of its condition whatsoever.
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If you do an inspection and decide you no longer want the HUD home, you may or may not get your Earnest Money back.
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HUD homes typically have a property Condition Report that is listed in the addendum section on HUDhomestore. It’s important to throughly review this information before you put in an offer on a HUD property.
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Kathy (719-287-1049) KTorline@msn.com
Are foreclosures down?
Have foreclosures decreased in Colorado?
Search for Colorado Springs Foreclosed Homes
Related Articles:
- 8 biggest mistakes made by Colorado Springs home buyers
- Buying a short sale vs. a foreclosure, what’s the difference?
- 9 key things to know about buying a bank repo
- Banks, how low will they go?
- 7 things to know about Bank addendum’s and Foreclosed Homes
Here’s some of the facts about Colorado Springs Foreclosures, according to a recent article by RealtyTrac:
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One out of every 168 households in Colorado were in some stage of foreclosure (The national average of one out of every 213 homes in some stage of foreclosures)
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Boulder showed the lowest foreclosure rate of major cities in Colorado, with one out of every 342 households in some stage of foreclosure
- In the Denver-Aurora metropolitan statistical areas, one out of every 156 households were in some stage of foreclosure
- Nevada posted the nation’s highest state foreclosure rate — one in every 44 housing units with a foreclosure filing in the third quarter
- Colorado Springs has one out of every 171 households in some stage of foreclosure, a decrease of 24% from last year
According to the reports on the El Paso Public Trustee’s Web Site; there are 334 NEW foreclosure starts in August 2011 (year-to-date) vs. 427 for the same month in 2010. There have been a total of 2315 NEW foreclosures in 2011 vs. 3200 for the same period number last year. The statistics show that the numbers are definitely down.
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To find out more information about buying a home or Short Sale Home in Colorado Springs area, call ….
Kathy (719-287-1049) KTorline@msn.com
BPO’s can kill a short sale
Killer for Colorado Springs Short Sales
Search for Colorado Springs Foreclosed Homes
Related Articles:
- 8 biggest mistakes made by Colorado Springs home buyers
- Buying a short sale vs. a foreclosure, what’s the difference?
- 9 key things to know about buying a bank repo
- Banks, how low will they go?
- 7 things to know about Bank addendum’s and Foreclosed Homes
One of the fastest way to “kill” a short sale you are trying to purchase, is for the lender to receive an inflated BPO.
Let’s start with the basics
What is a BPO? The initials stand for Broker’s Price Opinion; and most lenders will order at least one, maybe two or three BPO’s , which is how they come up with a value on a property.
Who does the BPO?
BPO calculations are not an exact science, they are based on an opinion. M
ost lenders will hire Realtors to put together a BPO on a property, and in turn pay a Realtor a fee for the BPO. The fees can range from $25.00 to $125.00; and in my opinion the lenders get what they pay for. As an example, a typical BPO order requires the Realtor to drive by the property, take pictures, upload the pictures, find 3 active properties and 3 sold properties; and put all of the information together in some of format that the lender requires. A BPO can take from 3 hours to 7 hours to complete. If the lender is paying $25.00 that equates to $8.00 an hour; not much pay for how much work they are asking to have completed. At 7 hours it equates to less than $4.00 an hour. Most Realtors will try to complete the BPO as quick as possible.
Many lenders don’t have many requirements for a realtor to be qualified to do a BPO; hence a brand new agent who doesn’t have any experience actually selling properties can qualify.
It’s important to know that BPO’s are not an exact science. As an example, if I was hired to do a BPO for a house selling in a Stratton Meadows, a subdivision in Southwest Colorado Springs, near Fort Carson, I could choose from 40 houses that have sold in 2011. If I narrow the list down farther to houses less than 1000 square feet there are 27 houses that sold. The sold prices have ranged from $45,000 to $105,000. Hence if I pick the higher-end houses for the BPO, my final value for the BPO will come out higher. If I choose the lower end houses for the BPO, my valuation will come out lower.
The lender will typically take the BPO price and come up with a decision from this document on what to accept on a short sale offer. In this particular Stratton Meadows subdivision, my BPO can be as low as $50,000 or as high as $90,000. The high BPO valuation could definitely kill a deal, as a qualified buyer may only want to pay $60,000 to $70,000; but the bank may say that they’ll only accept a minimum of $70,000 based on the recent BPO they received.
Seems to me the process is flawed. Maybe a lender should always get 2 to 3 BPO’s and average them out? Every realtor who has ever been involved in short sales has a story about a transaction that didn’t go through because the BPO was too high, hence the transaction never went through.
Seems like there should be a better way.
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To find out more information about buying a home or Short Sale Home in Colorado Springs area, call ….
Kathy (719-287-1049) KTorline@msn.com
144 Potential amazing deals
You can Buy a home under $100,000 in Colorado Springs
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There are (174) active listings of single family detached homes available for sale in the Colorado Springs area that are priced under $100,000! Even though 34 of these are short sales, that still leaves 14
0 homes on the market that are less than $100,000. I don’t have exact numbers, but several years ago, there were very few livable homes on the market that were priced under $100,000.
These homes range in price from $27,000 to $100,000, and from 480 square feet to 2600 total square feet. Most have 2 to 3 bedrooms, and some also include garages.
Some of these active listings do qualify for FHA & VA financing, and some only offer Cash or Conventional financing. Here are some of the areas where there are homes under $100,000:
- 33 Homes in Central Colorado Springs
- 12 Homes in Southwest Colorado Springs
- 4 Homes in East Colorado Springs
- 22 Homes in Southeast Colorado Springs
- 19 Homes in Fountain Valley (close to Fort Carson)
- 9 Homes in Powers area (close to Peterson Air Force Base)
- 9 Homes in Old Colorado City area of Colorado Springs
- 12 Homes in Southwest Colorado Springs (close to Fort Carson)
Whether you are buying your first home, or your first investment property, some of these homes are amazing deals.
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To find out more information about buying a home or an investment property in Colorado Springs area, call ….
Kathy (719-287-1049) KTorline@msn.com
Highest and best offers are becoming more common
Highest and Best offer on Colorado Springs REO Properties
Search for Colorado Springs Foreclosed Homes
Related Articles:
- 8 biggest mistakes made by Colorado Springs home buyers
- Buying a short sale vs. a foreclosure, what’s the difference?
- 9 key things to know about buying a bank repo
- Banks, how low will they go?
- 7 things to know about Bank addendums and Foreclosed Homes
If you are interested in buying a Colorado Springs Foreclosure, get prepared for the “highest and best” discussion. Many lenders are pricing their properties very attractively, hence
they often attract multiple offers on the same property.
As soon as multiple offers come in, most banks will have the Buyer’s Agent talk to their Buyer; and have the Buyer submit their highest and best offer. Essentially the lender wants the best price they can get for the property. (just like any seller).
Here’s some tips when you get the phone call about submitting your highest and best offer.
(1) Don’t be surprised about the highest and best conversation,
(2) Keep the emotion out of decision; and don’t get offended that the bank is asking you for your highest and best offer.
(3) If you want to change your original offer; don’t get caught up in a bidding war. Think of it logically. What do you want to pay for the property? It’s important to know that some bank-owned properties are actually being sold for more than the asking price.
(4) Many banks will have you sign a document saying that you were notified about submitting your highest and best offer.
(5) Highest and Best offers don’t always mean changing the price. It can also mean making the offer a quicker close, changing to a cash buyer with no financing, no other contigencies, changing the amount of Earnest Money.
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Kathy (719-287-1049) KTorline@msn.com
It’s important to understand the deeds on foreclosed homes
Buying a Colorado Springs Foreclosure? Make sure you understand general warranty deeds vs. special warranty deed.
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Related Articles:
- 8 biggest mistakes made by Colorado Springs home buyers
- Buying a short sale vs. a foreclosure, what’s the difference?
- 9 key things to know about buying a bank repo
- Banks, how low will they go?
- 7 things to know about Bank addendums and Foreclosed Homes
With a general warranty deed, the seller warrants that the title being transferred to the buyer is valid and free of any title defects back to the beginning of time. 
A special warranty deed warrants title only for the time period in which the seller owned the real property. It gives no warranty for problems prior to that point
As an example, if there was a title defect before the bank acquired the home at the foreclosure trustee sale, the bank would not have liability to the buyer under a special warranty deed. But they have liability to the buyer under a general warranty deed.
Hence, in order to limit their liability a bank that acquires a home at a foreclosure sale only provides a special warranty deed to the buyer.
If only a special warranty deed is furnished, it’s important for the new purchaser to have title insurance to cover any defect in title. If there is a problem, the buyer should be able to recover damages from the title insurance company for most defects in title, including those defects in title that occurred prior to the seller acquiring the real property.
The Colorado Contract to Buy and Sell Real Estate, has a specific section relating to deeds:
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Kathy (719-287-1049) KTorline@msn.com
The 2nd can blow the deal
Do you want to buy a Colorado Springs Short Sale?
Search for Short sales in Colorado Springs
Related Articles:
- 5 tips to buying a short sale
- 8 reasons NOT to buy a short sale
- 12 questions to ask before writing a contract on a short sale
Short sales can be difficult to negotiate, but they aren’t impossible. When I’m representing a buyer in a short sale; I always do my homework on the property. I typically have the Title Company pull an O & E (Owners and Encumbrances report) so I can see what type of liens are on the property and how many liens are on it. I know from past experience the odds are much better for approval if the home only has a first loan; vs. a first and a second loan.
It’s important to know that each lien holder needs to agree to the short sale. Even if the first and the second are with the same lender; they all need to agree to a “short sale payoff”.
Some Realtors have the misconception that if both the first and second are with the same lender, you’ll only have to work with one negotiator to get approval. In my experience, this isn’t true with most lenders; although I’ve heard that some banks are starting to change this. Most of the time, the seller and the Realtor have to submit a short sale package to each lien holder. Both lenders have to agree to accept the short sale. There are many times the first mortgage holder agrees to the short sale; but the second doesn’t agree. Or if they do agree, the second wants more money.
The second lien lender may be holding a note that’s worthless in a foreclosure. If the first lien holder forecloses, the second lien holder typically gets nothings. But second lien holder who has the second mortgage is in a pivotal position; they have the legal power to block the short sale by refusing to agree to the deal.
It’s very difficult to find exact statistics on this; but my guess is that 75 % of short sales with only a first mortgage reach final approval and close; but the percentage drops to closer to 25% when a property has a first and a second mortgage involved.
There are currently 383 homes that are listed as short sales in the Pikes Peak MLS. I wonder how many will actually get the short sale negotiated and sold to a buyer before being foreclosed on.
If you want to buy a Colorado Springs Short Sale; make sure you know the facts before you submit your offer. If you’ve just found your dream home that is listed as a short sale; you need to be realistic about the odds of getting it accepted; especially if it has a first and a second mortgage on it.
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To find out more information about buying a home or Short Sale Home in Colorado Springs area, call ….
Kathy (719-287-1049) KTorline@msn.com
HUD Homes are almost perfect for Investors
Colorado Springs HUD homes and investors
Search for Colorado Springs HUD homes
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In my opinion, some of the best properties currently available for sale for Colorado Springs Real Estate Investors, are Colorado Springs HUD Homes. They are listed two different places, both in the Local MLS and in the HUD web site, www.hudhomestore.com. There are many reasons to buy HUD properties, including that they require low down payments.
Earnest Money Policy
BUT, it’s very important for real estate investors to know that once your bid gets accepted and you don’t close on the property, there is a very good chance you are going to loose your Earnest Money. On most home purchases, investors as well as homeowners, assume they can inspect a property and if the property has additional inspection items that the buyer didn’t except, they can cancel the contract and get their Earnest Money back. Not so, on HUD properties. According to the Forfeiture and Extension Policy for Investors, unless you have a special circumstance, you will forfeit your Earnest Money. Special circumstances includes death, loss of a job, serious illness. Essentially the policy says nothing about inspections.
The form also goes onto say that if acceptable documentation is not provided, or provided in a timely manner, 100% of your Earnest Money will be forfeited.
To find out more information about Colorado Springs Foreclosures and Colorado Springs HUD Homes, Call ……
Kathy (719-287-1049) KTorline@msn.com
Homeowners have 6 options when facing Foreclosure on their Colorado Springs Home
6 options when facing Foreclosure
For more information on selling a house through a Colorado Springs short sale, Email Kathy at KTorline or call 719-287-1049
Even though foreclosure filings have continued to decrease in El Paso County, there are still plenty of home owners facing foreclosure. It’s important to realize that there are options to a
foreclosure on your Colorado Springs home
- Do Nothing - Homeowners who do absolutely nothing, WILL lose their home to a foreclosure. Their credit history will be affected and they probably won’t qualify for a loan for 5 to 7 years. They’ll also have to disclose on future loan applications if they have ever been foreclosed upon. This information will be included on their Credit reports for the next 7 to 10 years.
- Loan Modification - These can be very difficult to qualify for, however it may be possible to utilize the existing mortgage company to refinance the debt or extend the terms of the existing loan. This may allow the owner to catch up at with more affordable payments.
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Forbearance - A mortgage company may temporarily suspend or reduce monthly mortgage payments for a specified period of time.
- Deed in Lieu of Foreclosure - The property is given back to the bank instead of the bank foreclosing on the home. They often require that the home has been listed for sale. Some lenders are also offering some assistance for relocation.
- Bankruptcy - This option can liquidate all debt and/or allow more time. There are several types of bankruptcy filings including Chapter 7 and Chapter 13.
- Short Sale - When a homeowner owes more then the home is worth, it may be possible to negotiate with the lender for a short sale. Some lenders are also offering some assistance for relocation.
The Freddie Mac web site, the Fannie Mae Web Site, and the HUD Web site have some great tips for homeowners facing foreclosure; including a section on how to avoid Foreclosure Scams.
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Kathy (719-287-1049) KTorline@msn.com
6 tips to get your offer accepted on a Colorado Springs bank owned home
Tips to get your offer accepted
Search for Bank-owned homes in Colorado Springs
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- 8 biggest mistakes made by Colorado Springs home buyers
- Buying a short sale vs. a foreclosure, what’s the difference?
- 9 key things to know about buying a bank repo
- Banks, how low will they go?
- 7 things to know about Bank addendums and Foreclosed Homes
It hardly seems like you can pick up a newspaper anymore without hearing about the great deals there are on bank owned homes, including Colorado Springs bank owned homes. 
Yes, there are some good deals, but there is also a lot of competition in getting these great deals; as everyone else reads and see the same articles about the “deals” . I recently attended an informative class taught by Tom Lazzaro, a top REO Agent in Colorado Springs with SellState Alliance Realty; and here’s some of his tips as well as some of my top tips on getting your offer accepted
- Check the days market that the home has been bank-owned. The longer the home has been on the market, the more the bank may be willing to accept a lower offer. Banks normally have built in formulas on when they will lower the price on a home. If the house just got listed, chances are the bank is going to hold firm on the price.
- Offer Price: The bank is not going to accept 50 cents on the dollar. Even if the home is priced wrong; the bank thinks that it is priced correctly. Be ready to put in a realistic offer.
- Earnest Money: Sometime offering more Earnest Money can give your offer a better chance of being accepted, especially when there are multiple bids. Also, it’s important to know that more and more banks are asking for certified checks for Earnest Money.
- Closing Date: Quick closing dates are also appealing to the bank. If you need to wait 90 days to close, it will make it harder to get your offer accepted.
- Realtor: Work with a Colorado Springs Realtor who understands bank-owned properties and how to get offers accepted
- Contingencies: Banks won’t accept an offer contingent on the sale of another house.
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Kathy (719-287-1049) KTorline@msn.com
7 things to know about Bank addendums and Foreclosed Homes
Want to buy a Foreclosed Home for Sale in Colorado Springs?
Get ready to sign the bank addendum
Search for Foreclosed homes in Colorado Springs
Related Articles:
- 8 biggest mistakes made by Colorado Springs home buyers
- Buying a short sale vs. a foreclosure, what’s the difference?
- 9 key things to know about buying a bank repo
- Banks, how low will they go?
Bank addendum’s can be scary documents for buyers to sign; as they are completely in favor of the bank, who is the seller. Colorado Real Estate Contracts are considered very “buyer
friendly”, but addendum’s for bank-owned properties gives up many of the rights the buyer usually has when buying a home
1. “As-Is”: The addendum will state (usually several times in several places, that the Buyer accepts the Property in “AS IS” condition at the time of closing, including any hidden defects known or unknown. It will remind the Buyer that it is the right and responsibility of the Buyer to inspect the Property and the Purchaser must satisfy himself/herself as to the condition of the Property.
2. Inspections: Regardless of the dates written in the Colorado Real Estate Contract, the addendum will set out the terms and deadlines of the inspection. It also will say something about the Buyer acknowledges and agrees that he/she is not relying on any statements or representations made by the Seller or Seller’s agents (including but not limited to information disclosed in the MLS) as to the condition of the Property and/or to any improvements.
So regardless of the verbiage and statements in the MLS, it’s up to the Buyer and the Buyer’s Agent to do their due diligence.
3. Earnest Money. More and more banks are asking for 10% Earnest Money in the form of a certified Check. The addendum will normally state the terms of keeping the Earnest Money. It may say something like ……….. In the event Buyer defaults in the performance of this Contract, it is expressly agreed that the entire earnest money deposit shall be paid to Seller as liquidated damages for, among other things, the additional cost of carrying the Property and lost marketing time which the parties acknowledge and agree are difficult to calculate.
4. Locks and Utilities: The addendum will often times explain who is responsible for changing the locks before or after closing; as well as information that the buyer needs to get the utilities changed to the Buyer’s name after closing.
5. Assignment of the contract: Some addendum’s will allow the contract to be assigned and some won’t. It’s important to understand the options.
6. Risk of Loss: If the property becomes damaged before closing, the addendum will typically explain what the seller will or will not fix and the buyer’s options to accept the damaged property in “as-is” condition.
7. Survey: The addendum will typically explain that if the title company requires a survey, it’s the Buyer’s Cost to get the survey.
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Kathy (719-287-1049) KTorline@msn.com
VA short sales and security clearances
Did you know that a foreclosure (or late payments) may affect a home owners security clearance and could cost their job?
If you would like some other helpful advise on selling your home, please feel free to call Kathy at 719-287-1049, KTorline@msn.com
Related Articles:
- How to buy a Fort Carson HAP home, or a Peterson AFB Hap Home
- 12 things to know about the HAP Housing Program for military
- 12 Acceptable Reasons for a Short Sale
If a homeowner has a job that requires a security clearance, they may want to consider a short sale vs. letting their house foreclose. Or they may want try for a loan modification before being forced to sell
the property.
A security clearance is needed in jobs where a person needs to have access to classified information. Usually, a police officer, a CIA agent, a military officer, or even a federal contractor is required to have a security clearance to be qualified for his position or role. The cancellation of their security clearance may mean a person is no longer qualified for such a role or job. Thus, a foreclosure may result in the loss of employment for a police officer, military officer, CIA agent or federal contractor!
Employers have the right to conduct credit checks on their employees, particularly those who hold sensitive positions. In fact, some employers say that foreclosures are one of the most serious events that can happen to affect an individual’s security clearance other than a felony or even some misdemeanors.
On the other hand, a short sale is usually recorded on a borrowers credit report as “paid in full” or “paid in less than full.” Thus, an employer may not even be aware that the employee has used a short sale.
Many people who have security clearance have a VA loan on their house. It’s important to know that lenders with VA loans may consider a short sale for home owners, even if the home owner isn’t late on their payments. This is good news for military personnel at Fort Carson, Schriever AFB, Air Force Academy and Peterson AFB.
VA Short sales are called Compromise Sales when there is a hardship. Here are some examples of situations that are considered hardships:
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FINANCIAL SITUATION OR JOB WILL REQUIRE HE/SHE TO RELOCATE.
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A DECREASE IN INCOME.
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MAJOR MEDICAL EXPENSE.
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THE DEATH OF A PRINCIPAL WAGE EARNER, SPOUSE OR FAMILY MEMBER.
These are some examples of situations that are not considered hardships:
- DESIRES A LARGER HOME.
- NO LONGER LIKES THE NEIGHBORHOOD
- HOMEOWNER OWNS OTHER HOMES AND/OR HAS SUFFICIENT ASSETS THAT CAN BE LIQUIDATED.
- THE PROPERTY VALUES ARE NO LONGER A SOUND INVESTMENT
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To find out more information about Colorado Springs and short sales, Call ……
Kathy (719-287-1049) KTorline@msn.com
Can I get a Colorado Springs foreclosed homes for a $1.00?
Can you buy a home for $1.00 in Colorado Springs?
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When a home is being sold by an auction company, the property is listed for $1.00 in the Pikes Peak Multiple Listing Service. The $1.00 listing price is very deceiving; as the homes 
are never sold for $1.00.
There are a variety of different auction companies that are now selling foreclosed properties; and the two biggest are REDC Auction.com and Hudson and Marshall. Both of these companies hold and you participate by attending in person or bidding online. But regardless of which way you participate, the homes are not sold for $1.00.
Here’s a quick example of what happens with an auction property:
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Property is originally listed in the MLS as a bank-owned property.
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Home is on the market for 120 to 180 days and is not sold. This can be because of several factors; but typically it’s because it’s not priced correctly for the conditions, as every house will sell as long as it is priced correctly.
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The owner of the property (i.e. the bank) then contacts an auction company to sell the property.
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The property is then changed in Colorado Springs CO MLS by the Listing Agent to $1.00; and then the property is advertised by the auction company. Buyer’s can pre-bid on the property before the actual auction.
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During the auction, a buyer (or multiple buyers) bid on the property. The highest bidder is notified. The successful bidder signs contract paperwork; but everything is subject to the lender’s approval.
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If the price on the home doesn’t mean minimum reserve requirements; the lender typically won’t accept the offer. The property will then go back on the market, or will be added to another upcoming auction with the same company, or another company.
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Kathy (719-287-1049) KTorline@msn.com
Short sales and teamwork
Colorado Springs Short Sales, it’s all about the teams
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In completing a Colorado Springs short sale, you have many different teams —each with his or her own responsibility. It’s important that all of the teams work together with a common goal.
First off, you have the Seller. The responsibility of the Seller is the same as any seller, but in addition to that they need to provide all of the documentation required for the short sale package and any other documents requested by the lender.
Then there is the Listing Agent. They are responsible for listing the property as well as providing the seller with all the information about the short sale process.
Then there is the Short Sale negotiator. (This may or may not be the Listing Agent.) This individual must be well-organized, tenacious and have a strong understanding of the short sale process.
Then there is the Buyer’s Agent, who represents the buyer in the purchase of the short sale including an explanation of the risks and benefits of purchasing a short sale.
Then there is the Buyer, who needs to be ready, willing, and able to perform. The Buyer should also understand the importance of signing a contract, the short sale process, and the length of time to complete the process.
Other teams include the Bank Employees who do the short sale negotiating, the Escrow and Title officers, and the Buyer’s Lender.
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
12 questions to ask before writing a contract on a short sale
Do you want to buy a Colorado Springs short sale?
Search for Short sales in Colorado Springs
I was out looking at short sale properties yesterday for a buyer who is looking for a Colorado Springs Home, and it was good reminder for me on all of the questions that need to be investigated and asked before making an offer on a short sale.
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There are many things that go into purchasing a shot sale property, and short sales are much more complicated than the average transaction. What’s the most important thing in purchasing a short sale property? The number thing, make sure the Realtor you are using understands short sales, and has a track record of helping buyers purchase a short sale property.
Why do I say this is the number one thing? A good experienced Colorado Springs Realtor, who understands short sales, can make a big different in your transaction. Why, you ask? Because an experienced agent in short sales knows what type of research needs to be done, and what type of questions to ask. Not every short is a good deal, and many short sales don’t make it to the finish line.
Let’s start with the research. What type of info is important to research and what are important questions to know the answers to:
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Is the property priced correctly? Just because the property is priced at $150,000; when it should go for $250,000; doesn’t mean that the bank will accept an offer even close to this low price. Contrary to popular belief; banks don’t give away the property. Many short sale contracts fall apart because the bank didn’t accept the offer from the buyer. .
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How long has the home been on the market? Has it been under contract before? If so what happened to the previous buyers? Did they give up and get tired of waiting for approval? Did their financing fall through? Did they have inspection issues?
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What did the property originally sale for; when was the last time it sold?
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How many liens are there on the property? Every lien has to be paid off at closing and get released. If there is a first mortgage, second mortgage, and a IRS tax lien; there isn’t a good chance on getting the short sale approved. Are there any judgements attached on the property? Each additional lien is one more hurdle to cross; one more thing that needs to be negotiated.
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When was the property last updated? Are there building permits for the roof, the furnace, the new additions, the hot water heater, etc?
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Has the property been maintained? Many sellers who are in financial trouble have deferred maintenance on their home; there may be many things that need repaired and updated. Is the property priced in accordance with the items that need to be repaired? Read the rest of this entry »
FHA 203K loans and HUD properties, perfect partners
How can I finance a Colorado Springs HUD homes?
Search for Colorado Springs HUD homes
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There are currently 43 HUD homes for sale in the Colorado Springs area and 12 under contract. With new properties coming on
the market every day, home buyers have some great opportunities to purchase these homes. Many of them need some repairs; and are perfect candidates for an FHA 203K loan.
What is a FHA 203K loan?
HUD has an FHA 203K loan that allows home buyers to finance an additional $35,000 in repairs into their mortgage purchase. This program allows the the buyer to have easy access to the funds to improve or repair a property; including improvements identified by a home inspector or an FHA appraiser. The following is a list of some of the repairs that can be completed under this program.
* Repair/Replacement of roofs, gutters and downspouts
* Repair/Replacement/upgrade of existing HVAC systems
* Repair/Replacement/upgrade of plumbing and electrical systems
* Repair/Replacement of existing flooring Read the rest of this entry »
HUD’s Good neighbor program, Half price homes
Want to buy a house at half price?
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The Good Neighbor Next Door program is administered by the Federal Housing Administration. Buyers in the program pay half the
house’s appraised value and commit to live there for three years, but there are some restrictions on who can buy them and where the home are located.
Four things to know about the Good Neighbor Next Door program:
1. It’s not available to everyone: Only Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can participate. Here’s the complete requirements to qualify.
2. Revitalization areas: According to the web site Revitalization Areas are HUD-designated geographic areas authorized by Congress under provisions of the National Housing Act. Revitalization Areas are intended to promote “the revitalization, through expanded home ownership opportunities, of revitalization areas.”
3. Pricing: You have to pay the HUD listing price when bidding on a Good Neighbor Next Door Home. The 50% discount is then taken off of this price.
4. 3 year occupancy required: The buyer gets a “silent second” mortgage for the other half of the sales price. This is a loan that has no principal or interest payments, and if the buyer remains in the house and keeps up his payments for three years, that second mortgage is forgiven.
If the buyer moves out of the house within three years, the program can charge for a prorated portion of the silent-second mortgage. Homeowners are required to certify on a yearly basis that they still live in the home.
The owner can sell the home after 3 years and keep any equity or appreciation in the home.
There are currently 8 HUD homes in Colorado that qualify as part of the Good Neighbor Next Door Program, including one in HUD Home in Colorado Springs on:
3613 Queen Ann Way Price is $85,000 MLS 604877 1102 square ft Townhome
Bid Submission is due on 12-16/2010
To find out more information about Colorado Springs Foreclosures, Call ……
Kathy (719-287-1049) KTorline@msn.com
No utilities are on for most Bank-owned properties in Colorado Springs
Utilities need to be on for inspection
Search for Colorado Springs Foreclosed Homes
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Many bank-owned properties in Colorado Springs don’t have the utilities on, which can definitely cause some challenges to
complete a thorough and accurate inspection.
First of all, without the water being turned on, the inspector can’t check for leaks, which are one of the leading sources of damage and environmental issues within a home. If there are leaks in the pipes, it can result in many holes in the drywall and ceiling to find the leak. Big mess. Also, if there have been leaks, the house may have mold; another big mess.
Second, without the electric on, the inspector can’t check the appliances, outlets, lighting, garage door opener, hard wired smoke alarms, etc.
Third, without the gas on, the inspector can’t check how gas fired appliances function, including the stove, hot water heater, and the heating system.
At first glance it may seem easy to get all of this done. For most homes in Colorado Springs, it’s one call Read the rest of this entry »
