Tricks & Traps of Foreclosures - Buyer Beware!

 Considering buying a foreclosure? Here are some tips that may help. When dealing with a bank for an REO (Real Estate Owned) property expect tricks & traps at every junction. Here are just a few that you'll want be aware of.

- "AS IS WHERE IS" - Banks sell properties in a strictly as is condition. If you look at a foreclosure and it needs substantial work to make it livable, don't expect that the bank will make these repairs prior to closing. Anything short of an environmental or health hazard will ultimately be the buyers responsibility. Make sure your inspections are thorough even if it costs a bit more initially.

- "Real Estate Disclosures" - There aren't any! The bank has never seen or lived in the property and has zero knowledge of the history, prior or existing defects, or the surrounding areas. typically a Sellers Disclosure is obtained by a buyer prior to submitting an offer. Don't expect any from a bank.

- "Contract Terms" will change - Your initial offer may be accepted verbally however, soon thereafter you will receive a whole new set of documents & addendum's to review and sign ASAP if you expect the contract to move forward. You'll find that many of the terms, times and conditions are very different than what you thought was accepted. The only thing that is accepted is "price". All other conditions will be incorporated in the bank or investors contract. Take it or leave it.

- "Escrow Deposit"- You will likely be required to work with the banks chosen escrow and Title Insurance company. They will rush you for your deposits and afterward take their time on processing the required signatures and meeting deadlines. Typically they are slow and unorganized "Foreclosure Mills".



Have realistic expectations. Work with a Broker who is familiar with the process and potential complications. Call 561-306-6736 or email directly with any questions about buying a foreclosure.

Condos for Less Than the Cost of a New Car

With so many condos in South Florida available for less than the cost of an average priced new car it's no wonder I've been running my tail off this summer. Buyers with cash are taking full advantage of the overwhelming wealth of inventory now glutting the market. In many cases buyers are looking for deals on several at a time hoping to grab up a couple and make some extra cash monthly. Holding them a few years or more until the market stabilizes is not difficult since the rental market for inexpensive homes and condos is strong.

Cash is king in these instances. In many cases lower real estate values and stricter financing regulations make it difficult to obtain any financing on these condos. That together with the fact that foreclosure sales are often awarded to cash buyers with no financing contingencies. Some savvy buyers are building up a small inventory of real estate that may in fact become their financial salvation in the future. Others are just looking for ways to live inexpensively while maintaining ownership interest in property.

International buyers seem much more eager than domestics to snap some of these properties up. Seeing the advantages of having a place of their own when visiting the area and not being as affected by the economies in their countries they are taking full advantage of opportunities and benefitting from the seemingly unending depression of the American real estate market, particularly the one here in South Florida. Opportunities continue to pour into the marketplace. The tremendous backlog of foreclosures still being accumulated should allow this market trend to continue for some time to come.

If you or anyone that you know is considering buying or selling a property in Southeast Florida please contact me directly at 561-306-6736 or by email ges.rellc@ymail.com or rebuygeorge@yahoo.com

Lessons In Defining the Next American Dream

Housing prices peaked 40 months ago in May 2006. What have we learned from the great housing bubble and crash ?

Obviously, we have learned that housing prices can be extraordinarily volatile. No one can ever again say foolish things like housing prices never fall. People who bought with a standard mortgage in the years close to the boom have lost all of the equity in their houses. Buyers and lenders should never again think that an area’s recent price increases are the sign of a strong market where prices have nowhere to go but up. In the long run, price increases are followed by price drops, and caution needs to be taken in booming markets.

The second lesson of the housing debacle is that there is extraordinary pain in both housing busts and booms. When housing prices soared, ordinary Americans found it increasingly hard to afford a house. During the boom, many hoped that housing prices would stop rising and even decline, not understanding the terrible impact that declining housing prices would have. Large swings in housing prices, can be extremely painful.

The third lesson is that the response to the American housing crisis has been incredibly foolish. We've used public resources to encourage ordinary Americans to bet all they could on the housing markets. We have allowed billions of tax payer dollars to bail out of firms that had lost on those mortgage gambles. We continue to provide billions of tax payer dollars to the same institutions that were instrumental in creating the bubble that burst what once was the American Dream.

All of these "lessons " leave me wondering what the next American Dream will be.

Perhaps a much less volatile, more comforting lifestyle with a reassurance that we live in a country that cares for it's citizens emotional, financial and physical well being. That the people we've put in charge are truly capable of handling those responsibilities. That we the people and our families are the beneficiaries and not the victims of big business and big government.

For more on today's housing market call 561-306-6736 or email rebuygeorge@yahoo.com

1st Time Homebuyer Tax Extension Possible

Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.

Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit.
He was quoted by the Las Vegas Sun saying, "It's something we can get done."

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren’t as good, observers say.

Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)

For more on the First Time Homebuyer Tax Credit contact me at rebuygeorge@yahoo.com

George Sinacori

Is Great Credit Still Important ?

It may seem like an odd topic for discussion or consideration at a time in our economy when overextended credit has gotten us into such a mess. If you've had a difficult time getting a loan lately it can be unsettling although there may be some comfort in knowing that your not alone. Because of the condition of the markets, getting a loan will become increasingly more difficult.

Our credit scores reflect our behavior as borrowers. You may not consider your credit score as important as it was a few years ago being that it's so difficult to get any these days. Credit and credit worthiness still matter for many reasons. You may eventually need a new mortgage because you're relocating for employment or for any number of reasons. You may need your good credit to send a child to college. You may need it to continue using credit cards because your income has fallen or disappeared for awhile. Your good credit may help get you through the difficult, unexpected times that seem to inevitably sprout up on us from time to time. We can't always know when our credit may be a factor but if a need to borrow becomes apparent it could be too late to repair any credit problems.

Our credit is something that we still have control over. We can see our credit history and credit report in the privacy of our own homes by going to annualcreditreport.com . A copy of your FICO score which is the combined credit rating from 3 reporting agencies is available also at myfico.com . Currently the median FICO score is 720 but that number may very well change in coming months. As more people default on loans the average or median score will get lower.

If your considering a new mortgage the rule of thumb now is the larger the down payment the better the rate as long as your credit is good. If you don't have a large down payment there are still good loans available. FHA insured loans require as little as 3% down even if your credit score is below average. It would be great if these conditions for lower scoring people were available for other types of loans. Until they are our credit score is crucial to our survival and we can protect it, improve it and preserve it.

Check your credit report for any possible errors. Look for accounts you may not recognize and report any discrepancy to the credit bureau. They could be an indication of identity theft. Report any incorrect late payment recordings or other derogatory errors that could negatively affect your score. They should respond to your requests in no more than 30 days. Preserving our credit may seem like an exercise now but at least it's something that we each still have complete control of.

For more information on FHA or conventional mortgage requirements or for the latest available mortgage programs and rates call or email George Sinacori 561-306-6736. Visit GES Realty online or any of my websites to search for a home in Southeast Florida.