This Month in Real Estate September 2010 is here early!
September’s video discusses foreclosures, and how California, Florida, and Arizona topped the list in most foreclosures per state.
Maryland foreclosures too are at an all time high, as I discussed in both July & August, up 56.2% in the first half of 2010, and 10th worst in the US.
What the high foreclosure rate is doing is allowing buyers to take advantage of the market. In 2009, 1 of every 4 second home purchases was a foreclosure. This is partially due to the areas hardest hit being in vacation areas, but also due to the possibility of foreclosures being up to a 20% discount over neighborhood market values.
Byron Ellington discussed tips for buying foreclosures. These are great tips for buying a Maryland foreclosure:
1) Expect a little more time to hear back from your offer than you would from a general seller. Banks have a process that can take 12 days or more to respond back to an offer.
2) Understand that most banks sell their foreclosed homes AS-IS, meaning they won’t make repairs on the house for inspections or other purposes. This is especially important to understand if you are using an FHA insured loan, because often there are repairs required by the FHA appraiser — that the seller (the bank) would not agree to fix. If you are planning to use FHA for your mortgage, make sure to speak with your mortgage professional prior to even looking at foreclosed properties to understand your options and obligations.
3) Each bank has their own policies and procedures, so even if your friend or acquaintance has gone through the process, yours may be extremely different, because each bank if very different.
4) Having a real estate professional on your side is very important to help you navigate the waters.
Contact me for more information about buying a Baltimore foreclosure.
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