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Thinking of Purchasing a Distressed Property?

by Pamela J. Windom, p.c.

Considering Purchasing a Distressed Property?   Think Again......!!!

Distressed property is property that is facing foreclosure or property that has been recently acquired by a lender through the process of foreclosure.  If you are considering purchasing a distressed property, I urge you to think about it, then think about it again.....get informed and then think about it again before entering into a contract.  If that sounds a bit redundant, it's because purchasing a distressed property is a process that is not for the faint of heart.  True, distressed properties are often priced below the market to facilitate their sale, but there can be great risk involved in purchasing one. 

So how do shortsales play into this?...well....a short sale is any sale where the purchase price fails to pay off the mortgage or other liens against the property and provide a clear title.  If a seller is in such a position (often referred to as the seller being upside down in their house) they must obtain consent from their creditors (also known as 3rd party approval) to permit the reductions in the funds required to close and provide clear title to the new owner.  Since the sale will require 3rd party approval, buyers often have little control over the process and timeline related to the transaction.  I urge you to consult a realtor that is familiar with the short sale process in order to protect your interests during the course of the transaction. 

If you have any questions regarding short sales or foreclosed properties, feel free to call on me.  I will be happy to assist and help you in determining if purchasing a distressed property is really right for you.

Remodel or Move ???

by Pamela J. Windom, p.c.

Boy, is this a loaded question…..so many things to consider

~  Will remodeling accomplish what you really want?         

 Adding space, just for the sake of making room, may not be the solution.  If you are really fed up with specific elements of your home, it's time for a change

~  Budget- What is your overall budget?  Can you get what you want for the money you wish to spend on your remodel? 

Remember, when remodeling you are paying top dollar for new materials and labor.  Could you get these same amenities by purchasing a pre-owned home and pay a fraction of the cost.

A new loan-  Is the interest rate, currently available for a new loan, less than your current rate on your home loan? 

 If there is a significant difference in these 2 interest rates, you could see significant gains over the long run and take the opportunity to enjoy the added amenities of a new home?

Taking out a small second- How high will the interest rate be on the second you take out? 

It pays to know exactly how much that second is going to cost you.  Perhaps you may want to consider refinancing with cash out at close of escrow to fund your remodel project.

How much can your neighborhood take?-  Are you going to end up being the biggest house on the block? 

Over building in your current neighborhood could wreck havoc when it is time for you to sell….think ahead.

The disruption of remodeling-  Remodeling takes time and often means major adjustments to your lifestyle during the remodel.  Are you going to be without a kitchen for several weeks….just how fast can you get a roof put back on after changing your roofline?

Timing-  Is your family growing?  Do you have to consider the possibility of parents moving in with you? 

Take a look at some of the possibilities in your life.

Do payments matter?  Have you suddenly come into a large sum of inheritance that you can use to help finance the project or a new purchase?  How will your payments be affected? 

Consider all of the options

In a buyer’s market vs. in a seller’s market?

It’s all a game of percentages….In a buyer’s market you have more buying power with your dollar, while the opposite is true in a seller’s market.  Buying up in a buyer’s market can present real opportunity.

Knowing Your Options During Difficult Times is a Must!

by Pamela J. Windom, p.c.

         Home ownership comes with certain responsibilities...payments, upkeep and the like.  We enter into it with optimism and in most cases, great pride, knowing that we have worked hard and met one of those milestone goals in our life.  It is a momentous occasion when one actually takes title, is handed the keys and enters their home for the first time.  While everyone shares these final steps of the journey in common, once you cross the threshold, the tale of home ownership becomes an individual journey.  Life happens, circumstances change and what once seemed like the ideal situation can become the source of great stress.

         Some of the most frequent situations we as realtors come upon, that can change your circumstances in the blink of an eye, are loss of a job, divorce, death and medical emergencies.  In our current economy, more and more people are finding that their jobs are being cut and they do not have a contingency plan in place that can bridge the gap until they secure a new job.  It is becoming a more prevalent scenario…..bad things are happening to good people who have had the best of intentions.

         If you find yourself unable to make your house payment, regardless of the reason, I first and foremost encourage you to contact your mortgage company to see if they have options available that will help you avoid foreclosure.  A foreclosure will follow you for years on your credit record. 

        Because of the current economic situation, many lenders are finding creative ways to help keep people in their homes.  The bottom line is... lenders are in the business of loaning money, not owning real estate.  They really do not want to take possession of your home and carry it on their books until it can be sold.  Options that are currently coming to light are reductions in interest rates, delayed payment options, reductions in loan balances and the willingness of lenders to consider having folks sell their homes as a short sale.  Speak with your lender!!!!  Did I say that loudly enough…..SPEAK WITH YOUR LENDER!!!!  Do not stick your head in the sand.  Find out what your options are.  Take control of the situation and find out what will cause the least amount of damage to your future credit rating.  If a short sale is the best scenario for you, call me (541-431-6498).  You need a professional to guide you through the process and I will be happy to help.    

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