Low Prices on Foreclosures Incite Bidding Wars Among Would Be Buyers
The Seattle Times just published an article this morning on the bidding wars that are erupting between potential buyers for foreclosure and bank owned properties in several areas around the country. Most of the frenzy is taking place in the hardest hit ares for foreclosures such as Phoenix, Las Vegas, Southern California and South Florida.
Investors, flush with cash to spend are flocking to pick up newer built homes in the lower prices neighborhoods popular with first time home-buyers and those with families. Prices on these foreclosed properties are in many cases over 50% less than their peak prices of 2006 and 2007.
With all the attention being paid to these foreclosures, many first-time home buyers in these markets are finding it hard to compete and are making offer after offer in an attemp to land their first home.
While the Seattle foreclosure market has not had the sheer numbers that other major markets have had in terms of total foreclosures and existing inventory, it is still a lucrative market for both investors and those looking for a terrific deal on their next home. Most of the properties sold to a third party at the foreclosure auction recently have been sold in the range of 65-75 cents on the dollar of todays already discounted prices. For investors, it is now common to see several homes available each week at the foreclosure auction that would be cash flow neutral or slightly cash flow postive with a 20% down payment from the buyer and typical financing terms for the balance. Two years ago, that was virtually unheard of in King County. Now is the time to strike if you are looking to pick up a great investment property or personal residence drastically under market value.
Categories: Bank Owned/REO Property, Buy Distressed Real Estate, Featured, Foreclosures, Marketplace Tags: Buy Distressed Real Estate, foreclosure bargains, Foreclosures, purchase foreclosured homes
Major Leage All-Star Purchases Malibu Foreclosure Property
Ryan Braun, the All-Star outfielder for the Milwaukee Brewers knows a good deal when he sees one. Braun just closed escrow on a bank owned foreclosure property located in Malibu that was once listed during the peak real estate prices of 2007 for $8.9M. Braun picked up the Mediteranian styled ocean view villa for the bargain basement price of $4.85M
To read the full story follow this link.
You don’t have to be signed to a Major Leage contract however to be able to pick up a bargain property that is in foreclosure. If you are looking to save 20-50% on the purchase of your next home or investment property then sign up to attend a free workshop presented by Real Estate Investment Firm in Redmond, Washington.
Categories: Bank Owned/REO Property, Buy Distressed Real Estate, Featured Tags: bank owned, Buy Distressed Real Estate, foreclosure bargains, Foreclosure Investing, reo
Contractors Board up House with Former Owner Still Inside
A man in Minneapolis, MN recently became a prisoner in what was formally his home after it was foreclosed on by the lender. As Ted Poetsch was working to get his pet cat into a pet carrier workmen were busy outside his home securing sheets of plywood over the windows and doors.
Luckily, Mr. Poetsch was rescued by his former attorney before long.
If you would like to read the story in its entirety please click the following link.
http://www.upi.com/Odd_News/2009/06/08/House-boarded-up-with-resident-inside/UPI-85621244492422/
Categories: Bank Owned/REO Property Tags: Distressed Home Owners
How to buy foreclosures, bank owned and short sale properties
Buying or investing in properties that are in the foreclosure process is your wealth building opportunity!
Did you know that NOW is the best time to invest in foreclosure properties?
Many people are interested in investing in properties that are in the foreclosure process, but are unsure of the steps to take to get started.
The market conditions of today have converged to create a “Perfect Storm” of opportunity for the savvy real estate buyer or investor. The opportunity is there to purchase your next property at discounts of 20-50% under today’s market value. Never again will the same market conditions exist that precipitated our current liquidity crisis, stock market crash and subprime mortgage meltdown. The opportunity to take advantage of this unprecidented market is now! If you are qualified, committed and motivated we will provide you with an inventory of efficient and profitable assets to meet your short and long term financial objectives.
Our wealth-building services help you confidently invest in properties facing foreclosure
Our dedicated team of investment & foreclosure specialists can help you build an intelligent real estate portfolio that capitalizes on current economic and market conditions to create long term and lasting wealth for you and your family.
Real Estate Investment Firm’s core purpose and mission is to become the industry leader in helping people create true financial success through the acquisition of real estate. We maximize efficiency and profitability for our clients through strategic systems and processes. We are leaders, innovators and educators. We help clients implement the strategies that will ensure they reach their financial goals and objectives.
Come and learn how to “Never Pay Retail” again and purchase real estate at 50-80 cents on the Dollar!
Some of what we will cover in the workshop
- The foreclosure process and timeline
- Recent sales data and market statistics for the region
- Foreclosure trends and market analysis
- Lien priority in Washington State
- Investment Strategies to maximize your return on investment (ROI)
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The importance of establishing an exit strategy before you buy!
Categories: Bank Owned/REO Property, Buy Distressed Real Estate, Featured, Foreclosure Auction, Foreclosures, Marketplace, Short-Sales Tags: Bank Owned/REO Property, Buy Distressed Real Estate, Foreclosure Auction, Foreclosures, Short-Sales
Bank Demolishes 16 Newly Constructed Homes After Foreclosing
Shannon Bennet picks through the site in Victorville, Calif., where homes were demolished rather than completed and sold. © Nick Ut/Associated Press
Guaranty Bank recently foreclosed on 16 new and partially built homes in Victorville CA, a town 85 miles northeast of Los Angeles. Four of the homes were substantially completed and the other twelve were 50% completed or less.
Guaranty Bank, whose parent company, Guarantee Financial Group was recently issued a “cease and desist” order by the Federal Office of Thrift Supervision decided it was cheaper to just destroy the homes rather than complete and re-sell them. Home prices in San Bernadino County where the development was located have fallen 60% from their peak in 2006, according to the firm DataQuick.
Categories: Bank Owned/REO Property, Featured Tags:
Will low interest rates bring buyers back to the table
Conforming 30 year fixed rates mortgage loans have dropped considerably this past week. Locally Citibank and Countrywide are offering a 30 year fixed conforming loan for 4.875% with a cost of 2.250% and 2.000% respectfully.
Will these never before seen interest rates prompt buyers back into buying again or will they sit on the sideline in hopes of obtaining the rumored 4.5% government subsidized rate when the new Obama administration takes office.
Below is a chart obtained from MSN Money detailing available rates, fees & points available in the greater Seattle-Tacoma area.
Loans shown are 30-yr. fixed conforming loans available in Seattle-Tacoma, Washington.
| Financial Institution | Base Rate | APR | Fees($) | Points | Lock | |
| Citibank | 4.875% | 5.111% | 809 | 2.250% | 60 days | |
| Countrywide | 4.875% | 5.114% | 1375 | 2.000% | 30 days | |
| Wells Fargo | 5.125% | 5.325% | 700 | 1.625% | 60 days | |
| Washington Mutual | 5.000% | 5.371% | 929 | 0.875% | 60 days | |
| Chase | 5.125% | 5.383% | 1464 | 2.125% | 60 days | |
| Countrywide | 5.250% | 5.402% | 1375 | 1.000% | 30 days | |
| Citibank | 5.125% | 5.480% | 809 | 1.000% | 60 days | |
| Bank of America | 5.250% | 5.484% | 1400 | 1.875% | 30 days | |
| Wells Fargo | 5.375% | 5.486% | 700 | 0.875% | 60 days | |
| Chase | 5.375% | 5.544% | 1464 | 1.125% | 60 days | |
| National City Mortgage | 5.375% | 5.606% | 1034 | 2.000% | 60 days | |
| Washington Mutual | 4.750% | 5.727% | 929 | 2.125% | 60 days | |
| National City Mortgage | 5.625% | 5.765% | 1034 | 1.000% | 60 days | |
| Wells Fargo | 5.750% | 5.782% | 700 | 0.000% | 60 days | |
| Washington Mutual | 5.500% | 5.793% | 929 | 0.000% | 60 days | |
| ss="s6">Chase | 5.750% | 5.818% | 1464 | 0.000% | 60 days | |
| GMAC Mortgage | 5.625% | 5.868% | 1225 | 2.000% | 60 days | |
| Citibank | 5.750% | 6.038% | 809 | 0.125% | 60 days | |
| National City Mortgage | 6.000% | 6.048% | 1034 | 0.000% | 60 days | |
| Quicken Loans | 6.125% | 6.275% | 1400 | 0.875% | 30 days | |
| Bank of America | 6.125% | 6.287% | 1400 | 1.000% | 30 days | |
| GMAC Mortgage | 6.125% | 6.291% | 1225 | 1.125% | 60 days | |
| Countrywide | 6.250% | 6.315% | 1375 | 0.000% | 30 days | |
| Quicken Loans | 6.500% | 6.568% | 1400 | 0.000% | 30 days | |
| Bank of America | 7.250% | 7.321% | 1400 | 0.000% | 30 days |
With rates this low, anyone looking to purchase a primary residence or investment property definitely needs to look to the foreclosure auction and short sales or REO/bank owned properties to get twice the financial benefits. By buying a distressed property you can pick up a new home at discounts of 20-45% under today’s market value. Combine that with never before seen low interest rates and you can increase your buying power dramatically.
