Third-Quarter Rise in Foreclosure Filings Is Just the Start: RealtyTrac 10/12/2011 By: Carrie Bay
[The third-quarter tally represents an increase of less than 1 percent from the previous quarter – 0.35 percent to be exact – but is down 34 percent from the third quarter of 2010.
RealtyTrac says it looks as though foreclosure activity is about to do an about-face from the falloff that set in after evidence of robo-signing surfaced.
“While foreclosure activity in September and the third quarter continued to register well below levels from a year ago, there is evidence that this temporary downward trend is about to change direction, with foreclosure activity slowly beginning to ramp back up,” Saccacio said.]
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It seems the public is fixated on …”the foreclosure activity…” in this country, and this article in DSnews.com the other day reminded me maybe that’s the reason 3 out of 4 phone and/or email inquires I get on a weekly basis are about “the best foreclosure deals in Austin, Texas!”
While it is true Texas has the shortest foreclosure process in the country at just 86 days, and we DO have our share of foreclosed homes in the Austin metro area, a foreclosure is NOT ALWAYS THE BEST “deal” when purchasing a new home! I know that will shock a lot of people, and notice I said”..not always”, but there is a lot of baggage that comes with purchasing a foreclosure. The uneducated public naturally believes that because of the “reduced” price, it MUST be a must-have bargain! Don’t get me wrong, there are some fantastic “ foreclosure deals” – I know – I’ve sold a lot of them in my 27 years as an Austin Realtor, but there is a flip side to this story.
First, understand that closing on a foreclosure requires additional knowledge and understanding of the process and procedure. For example – (1) a lender-owned home (foreclosure) requires you to sign additional documentation basically stating you “exonerate the lender from all defects” – you purchase the home “as-is” (2) buyer will always pay for a survey – negotiable in normal sale/purchase (3) the lender may pick their own title company, and the title company can issue a different type deed (4) an inspection is crucial – the lender will not pay for any repairs or a warranty (5) there can be “red tape” and delays when dealing with lenders if you don’t know the “detours” to avoid
Second, understand that foreclosures have a huge bearing on the “rest of the market” in a geographic area – from re-sale homes to new construction homes. Sellers of existing homes have to lower their “listed” price to compete, as do the Builders of “new” homes. I have obtained $20,000-$40,000 discounts for my clients on the last several “new” homes I have sold, and obtained numerous concessions on existing (re-sale) homes from sellers because of their need to compete – including repairs, home warranties, seller paid closing costs, etc. But you must know the questions to ask, and when to ask them..!
So don’t believe all the hype about foreclosure “deals” – some may be true, but only an experienced professional can help you sort through the mounds of “red tape”, “hype”, and general “bs” (that stands for “bad stories..”) prevalent in real estate home buying.
I do the math. I do the research. I know the deal-makers. I know the market. And I work for you! Why me??
http://www.showcaseofhomes.com/realtor-representation.html
Phil Hutson – “..more than just another Realtor!”
Owner/Broker/Showcase of Homes toll free (888) 410-5858
