Category Archives: distressed properties

Buying A Bank Owned Home – The Pros, Cons, and Reality

 

 

Many buyers hear about all the great deals that people are getting on foreclosed homes, and they want in on the action. The problem is that there are downsides to everything.

Before making a rash decision to go out and buy a bank owned home, you need to first consider the pros and cons:

 

PROS

1.    Getting A Home For Below Market Value – Who doesn’t want a deal, right?

2.     Less Competition – A lower pool of buyers have the ability to finance and then put money into a home to fix it up. This could be a good opportunity for the right person, and especially critical as we head into a possible seller’s market.

3.     Great Opportunity– A foreclosed home may be the only way for someone to afford a particular neighborhood or suburb.

4.     Return On Investment  – Buyers who buy a bank owned home and fix it up can end up with a large amount of immediate equity.

5.     Alternative To Building – Building a home takes time and is not always a feasible option for everyone. Buying a bank owned home and fixing it up to your specific tastes allows you to get the end product that you want, without the cumbersome process of building.

 

CONS

1.     Money – It takes money, sometimes a lot of it, to fix all needed repairs that are typical in a bank owned home.

2.     Risk – Foreclosed homes don’t have property disclosures, so you don’t know what you are getting.

3.     Neglect – Bank owned homes have been sitting vacant, sometimes for years. The lack of maintenance may lead to unanticipated problems down the road, some ending up to be costly.

4.     Time Is Money – Buying a bank owned home often requires a huge investment of your valuable time. It can be like having a second job.

5.     Financing – Some banks won’t lend on a home if it is not in decent condition. This would require a buyer to pay cash, or get a specialized construction loan, which is not always feasible.

 

THE REALITY

The biggest problem we see is buyers jumping head first into buying a foreclosed home without giving it much thought. Many have heard success stories about people buying a bank owned home and assume they can easily do it too.

I have no doubt that a ton of people are successfully buying bank owned homes for 5%, 20%, or even 50% below market value. However, there are risks involved and they need to be considered.

Unless you have experience buying and fixing up homes, the process tends to catch most buyers off guard. They often fail to properly calculate the amount of money needed to improve the home, which can lead to their financial downfall. This is especially true for first-time buyers.

A bank owned home can be a fantastic opportunity to get the home of your dreams at a great price. You just need to consider the pros and cons to make sure it is the right thing for you.

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ABOUT THE AUTHORS

The above information is compliments of The Schuman Team, Amy and Dan, of Howard Hanna Real Estate Services. They specialize is luxury homes, relocation, and first-time buyers.

They can be reached at 216-346-3235 or 216-403-9189 or via email, danschuman@howardhanna.com or amyschuman@howardhanna.com.

The Schumans service the following Cleveland area suburbs: Aurora, Bainbridge, Bay Village, Beachwood, Bentleyville, Chagrin Falls, Cleveland Heights, Gates Mills, Highland Heights, Hunting Valley, Lakewood, Lyndhurst, Mayfield Heights, Mayfield Village, Moreland Hills, Oakwood Village, Orange, Pepper Pike, Shaker Heights, Solon, South Euclid, University Heights, Westlake, Woodmere.

Buying A Bank Owned Home – The Pros, Cons, and Reality is the property of The Schuman Team and may not be duplicated or used without their written consent.©March, 2013

Foreclosure Update In The Cleveland OH Real Estate Market

foreclosure crisis

UPV26H3RVW99Lately, the foreclosure crisis has been a hot topic and we wanted to give our readers an update as to what is going on nationally, and specifically, what it means to them here in the Cleveland area. We would like to thank one of our local mortgage partners, Sean Hadley of Heritage Mortgage, for providing us with this great information.

To begin, close to 300,000 homes are entering the initial foreclosure process nationally every month. Unfortunately, there is no reason to believe this large volume will start decreasing any time soon.

In recent weeks, the news has been dominated with stories about how lenders are not being able to legally foreclose on these properties. The ability of the lenders to foreclose was recently put into question.  Apparently, documents were being improperly handled or not executed correctly, and some large lenders were told that they couldn’t continue legally foreclosing on homes.  This led to numerous large banks calling for a moratorium on all foreclosures so they could take some time to re-evaluate their paperwork.

Nationally,  the overall economic impact of the stoppage will probably be very minimal, provided the situation resolves itself in the near future. In areas where there are a lot of foreclosures, and where these mortgages are owned by lenders who temporarily halted foreclosures, there could be a shortage of inventory, thus temporarily increasing prices. However, this will be limited only to areas where there is a high concentration of foreclosures.

On a local level, many of the local banks cited that they were comfortable with their internal procedures and were doing business as usual. So at least here, there does not seem to be any major problems. For those looking to buy a foreclosed home in Cleveland, there may be some situations where a buyer  may be temporarily inconvenienced by the situation and simply have to wait for a particular home to come on the market. Overall, there doesn’t seem to be a huge concern that this crisis will greatly affect the local real estate market.

As always, conditions can change quickly, so we will continue to update you on this situation as we get more updates.

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About The Authors

The above information pertaining to Cleveland Real Estate News was provided by The Schuman Team, Amy and Dan, of Howard Hanna.  They can be reached at 216-346-3235 or via email, danschuman@howardhanna or amyschuman@howardhanna.

We service the following Cleveland area suburbs: Bainbridge, Bay Village, Beachwood, Bentleyville, Chagrin Falls, Cleveland Heights, Gates Mills, Highland Heights, Hunting Valley, Lakewood, Lyndhurst, Mayfield Heights, Mayfield Village, Moreland Hills, Oakwood Village, Orange, Pepper Pike, Shaker Heights, Solon, South Euclid, University Heights, Westlake, Woodmere.

Foreclosure Update In Cleveland OH Real Estate Market  is the property of The Schuman Team and may not be duplicated or used without their written consent. ©October,2010

Solon Ohio Real Estate – List Of Foreclosures and Other Deals

Solon Ohio Real Estate – List Of Foreclosures and Other Deals

In our experience working with buyers they are always searching for a great deal.  So with that in mind, I’ve put together a list called “Dan’s Deals”, Solon OH area homes that offer tremendous value to a buyer.

These homes have been labeled a “deal” based on various factors. Some may be well priced bank owned properties, some have highly motivated sellers that may be relocating or getting divorced, and others may simply be the nicest homes in a given price range.

By personally touring the Solon real estate market, we gather a lot of information that is simply not available to the general public. In addition, as Solon residents for over 10 years, we have friends in every neighborhood in the city and are often able to gather “insider information” on homes and their sellers.

Some of these homes may be our personal listings but most are just homes that we happen to think stand out in providing excellent value for Solon home buyers. We try to include homes in different price ranges as well. Here are just a few homes on this week’s list of Dan’s Deals:

DAN’S DEALS FOR THE WEEK OF AUGUST 30TH, 2010

Price Range: Under $200,000

 Solon Oh home for sale

It was almost impossible to buy a home in Solon for under $200,000 3-4 years ago, but the market has changed. There are now quite a few homes currently on the market that are extremely affordable. This particular home is only $150,000 and has a lot to offer. With 3 Bedrooms and 1 ½ baths, it is in ideal location, close to the top ranked Solon Schools and nearby shopping. It also has hardwood floors, a full basement, and a spacious back yard.

 

 

Price Range: $250,000- $400,000

In the mid level price range, this house is an absolute steal. It is a distressed property but has a lot to offer. Over 3200 square feet with an open floor plan, finished basement, 3 car garage and located within a popular Solon neighborhood, this is a great home for a patient buyer. The deal will be worth the wait.

Price Range: $750,000+

 

Solon Oh luxury home for sale

 

I had a chance to tour this home recently and was very impressed with the quality of construction, floor plan, and amenities offered by this home. It is located within one of Solon’s premiere luxury home subdivisions, has a great lot, and is perfect for grand scale entertaining. It has all the features you would expect of a luxury home plus an incredible basement, complete with a theater and exercise room. This fine Solon luxury home stood out as being competitively priced compared to much of the competition and I would recommend it being put at the top of your list if you’re in the market for a luxury home.

 

If you are looking to buy a home in Solon OH and would like to see our complete list of deals or want more information on the properties referenced above, please email or contact us at 216-346-3235.

Below are other articles of interest pertaining to Solon Oh:

Solon – A Special Community

Why You Should Use A Local Agent

Solon Schools

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About The Authors:

Dan and Amy Schuman are Solon OH residents. They specialize in Solon luxury homes, working with buyers relocating to Solon, and first-time buyers.

For Ohio and Solon OH real estate and homes see Solon real estate

For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235.

VIEW ALL SOLON OH HOMES FOR SALE BY CLICKING BELOW

 

search all solon homes for sale

 

CHECK OUT THE SCHUMAN TEAM’S AWARD-WINNING WEBSITE

 

Solon Ohio Real Estate – List Of Foreclosures and Other Deals is the property of The Schuman Team and may not be duplicated or used without their written consent. ©August,2010

Cleveland OH Real Estate – Short Sale Home Buying Seminar

Cleveland OH Real EstateShort Sale Home Buying Seminar

FREE Home Buying Seminar in Cleveland Ohio

 

 short sale seminar

 

LEARN:

*    How To Purchase A Cleveland OH Short Sale, Foreclosure or Bank Owned Property

*    Financing Options, Changes In The Law, Credit Score Rules

*    How To Use The Internet To Find A Home In This Cleveland Metropolitan Area

WHEN:

Saturday, September 25, 2010 10:00AM

WHERE:

Keller Williams Realty Greater Clevland

29225 Chagrin Blvd

Cleveland, OH 44122

216-346-3235

Seating is limited. Please contact us to RSVP.

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This post is provided compliments of The Schuman Team, Keller Williams Realty Greater Cleveland. The Schumans specialize in luxury homes, working with buyers relocating to Cleveland, and first-time buyers.

For Ohio and Cleveland OH real estate and homes see Cleveland Oh real estate.

For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235.

SEE ALL CLEVELAND OH AREA HOMES FOR SALE BY CLICKING BELOW:

 

 

view all Cleveland luxury homes

 

 

 CHECK OUT THE SCHUMAN TEAM’S AWARD-WINNING WEBSITE

 

Cleveland OH Real Estate – Short Sale Home Buying Seminar  is the property of The Schuman Team and may not be duplicated or used without their written consent. ©August2010

Understanding Short Sale Transactions | A Guide to Short Sale Facts & Myths

This post was written by one of our peers, Bill Gassett. He is one of the nations top producing real estate agents and services short sales in Metrowest Massachusetts. We wanted to share this post with those looking to get more information on Cleveland OH short sales as we feel it is very well written and will provide you with a great foundation regarding a short sale transaction. For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235.

Via Bill Gassett Metrowest Massachusetts Real Estate (RE/MAX Executive Realty):

            Understanding Short Sale Transactions | A Guide to Short Sale Facts & Myths

                                                                                                                                                         Short sales in Massachusetts

A short sale unfortunately has become a common buzz word in the Real Estate industry. For those that have been hearing the term “short sale” and don’t quite understand what it means, a short sale is a legal lender approved solution designed to assist a home owners who is financially strapped to get out from under their mortgage debt.

A short sale is negotiated through the mortgage holder of an owners home where by the mortgage holder agrees to take less than what home owner owes on the property.

A quick example of a short sale would be if a home owner owes $400,000 on their current mortgage and their home is only worth $350,000. The lender in this example would agree to take a short fall of $50,000 at closing.

In some cases the mortgage holder may completely wipe out the debt and the home owner does not have to repay the 50,000. Many lenders may require a seller to sign a note and repay the debt over a certain amount of time. Typically the debt will be reduced and the owner may receive favorable repayment terms of the short fall.

There is quite a bit to know about short sales from both a buyer’s and seller’s perspective. I have been successfully been completing Massachusetts short sales over the last three years. In fact (knock on wood) I have never had a short sale that did not get approved! Successfully completing a short sale is about understanding the process.

Many consumers make extremely poor choices by working with Real Estate agents that don’t have a lick of experience with getting short sales approved.  Picking a good short sale Realtor is critical to your success.

The following is a number of specific topics about short sale transactions that you would want to be aware of if you are planning to either buy or sell one of these types of distressed properties.

Massachusetts short sale RealtorsStop making mortgage payments during a short sale? ~ Whether or not a home owner should continue to make mortgage payments is a common question that many sellers want to know when considering a short sale. The most common answer to this question is YES, however it really depends on the lender! Click the link to understand all the considerations.

Picking the right short sale Realtor ~ Picking a Realtor to work with in a short sale is very different than a traditional transaction. You want to work with an agent that has experience successfully closing this type of transaction. Remember as a seller you could potentially be facing a foreclosure. There are many mistakes that are made by agents handling short sales. Don’t get caught with your pants down!

Questions to ask a short sale listing agent ~ If you are thinking about buying a short sale there are some specific questions you can ask the listing agent to determine the probability that the short sale will be approved or not. These short sale questions will also help determine if the Realtor handling the short sale knows what they are doing!

Acceptable hardships for a short sale ~ On many occasions when doing a short sale the lender is going to require some kind of hardship on the part of the seller. Short sale hardships however, have become less rigid recently and some lenders are becoming more concerned strictkly on whether the short sale would benefit them more than a foreclosure sale.

Short sale tax consequences ~ Understanding the tax consequences in a short sale is one of the most important considerations for a home seller. Whether the short sale home was a primary residence or an investment property can have different tax implications.

Getting short sale debt released ~ Getting the debt released on a short sale is obviously a very big deal. Many Realtors that are working with short sales don’t have any knowledge of how to get the debt released. A seller needs to pay particular attention to this detail as you can expect to be hearing from a collection agency without it!

When to do a short sale home inspection ~ This topic is important to understand from both a buyer’s and seller’s perspective. A home inspection should be done before short sale approval and NOT after. Read the article to understand why it benefits both the buyer and seller to do so.

Strategic default vs short sale ~ There are many home owners who are deciding just to walk away from their homes. Fannie Mae has started to crack down on this practice and is now penalizing borrowers from getting a mortgage for up to seven years! A perfect alternative to a strategic default is a short sale.

These articles were published on my Massachusetts Real Estate blog where I talk about numerous topics that are important to consumers who may be thinking about buying or selling Real Estate.

I am successfully completing short sales through out the Metrowest Massachusetts area. So far, knock on wood, I have a 100% success rate for short sale approval! If you need to complete a Massachusetts short sale please feel free to get in touch.

If you are outside of the Metrowest Massachusetts area and need to do a short sale please give me a call or email and I would be happy to refer you to a Realtor in your location that handles short sales and knows what they are doing! I have referred short sales to other Realtors all around the country.

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About the Author: The above Real Estate information on understanding short sale transactions was provided by BillRE/MAX Executive Realty Metrowest Massachusetts Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356.

Have a home to sell in Metrowest Mass? I have a passion for Real Estate and love to share my marketing expertise!

For Metrowest Massachusetts Real Estate and homes see Massachusetts Real Estate. Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my MLS Property Finder Site.

I service short sales in the following towns in and around Metrowest Massachusetts: Hopkinton, Milford, Upton, Southboro, Westboro, Ashland, Holliston, Mendon, Northboro, Shrewsbury, Hopedale, Medway, Grafton, Northbridge, Uxbridge, Franklin, Framingham and Douglas MA.

Click here to view Bill Gassett’s Real Estate profile.

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