© Mcalester Real Estate Group  2012
McAlester Real Estate

How To Buy A

Forclusure

If you are looking to buy a home then buying a foreclosed home can help you save a lot of money. As a house hunter your primary motto should be to get the best property available in the market for the lowest price. A real estate owned (REO) property is owned by the lender because the previous owner of the house has defaulted the loan. Usually these kinds of properties are owned by the bank.

To see a list of forclosed properties in

the Storm Lake area, call Randy

Milborne at 605-780-4392

How to buy a foreclosed home You can buy a foreclosed home through a public auction done through a real estate agent. You need to take into consideration many factors before investing your hard earned money in REO properties. The main difference between a typical real estate property and an REO property is that it takes more time to negotiate the price of a foreclosed property because this kind of properties need multiple levels of approval, from multiple parties. The bank will have to approve the offer submitted by the potential buyer. In some cased you also need the approval of the investor owning the property. The good thing is that most foreclosed properties are priced in the market value so that the property gets sold as quickly as possible. As a potential buyer you need to submit a reasonable offer because most banks are known to approve fair offers quickly. You need to know about the unknown property condition because the bank may or may not have maintained the records of the property repairs or maintenance. You need to access the property and check its condition yourself to know whether the property is in good condition or not. Potential buyers are allowed by the bank to do a professional home inspection to ascertain the condition of the property. If the bank is doing the same, then the bank is liable to provide the customer with a complete a Seller’s disclosure. A real estate transaction also comes with additional expenses like the cost of documents that are needed by the lender. The bank also needs earnest money from the buyer who is interested in the property. The’ earnest money’ is also an indicator of how much money the potential buyer willing to pay as down payment.  Before the closing of the deal the buyer should also work to coordinate the date on which the possession of the property is finalized. All the necessary paperwork’s for the transaction of the property need to be done before a particular date. The time frame can also be extended if the issues persist. As a buyer of the property, you also need to determine how much money you can afford. Make sure the cost of your mortgage, property taxes and insurance are just under 36% of your income because then only you can afford the property. Becoming prequalified gives you an added advantage of making an offer. To get prequalified you need to provide your financial information, employment history and the funds you have in hand to pay for the down payment. The prequalified status shows that you are genuinely interested in the property than just going through the property. Finding foreclosed homes You can get great deals on REO properties by enquiring about such properties through banks. You can also search Google to find out great deals on foreclosed homes .Government websites also highlight top REO properties. A public foreclosure auction is done to get the ownership of the property officially transferred to the bank. If the property is not sold during the foreclosure auction, then the property is listed with a real estate agent. You need to quote fair prices to the real estate agent because only then you would be able to get the deal. Remember the price of the foreclosure keeps on changing when more and more institutions are involved in the process. Every institution involved in the sale of such property makes a commission from the sale. You also need to buy the property as soon as possible because, if the real estate agents are unable to sell the property within a particular frame of time then the bank will transfer the authority to the auction company. The auction companies usually sell the properties for a higher price to the general price so make sure you get hold of the property before that.

Why Home Insurance is a necessity

and cannot be avoided …

1. Home insurance is a necessity -Every homeowner needs to have a home insurance because home insurance is the best option to protect your homes and the personal belongings in it from unforeseen events that can damage it. It's a fact that everyone needs insurance at some point so why not get yours now. A home is actually a liability and you need to have an insurance policy to get rid of the liability and the associated risks from your shoulders. Moreover you are not paying the full amount of the insurance at a time. You only need to pay a fixed amount every month. 2. Deciding on how much coverage you need - You need to decide how much coverage you need. Paying a lot of insurance is not good too. You need to get the optimum insurance for your property and the things in it. As a rule of thumb you need to buy an insurance policy that covers the amount of the mortgage you are paying. Here’s information on how to get affordable home insurance. 3. Comparing Deductibles- Deductible is the amount that you need to pay when certain mishaps happen to your property or things in it. You need to choose a policy that you are comfortable paying the deductible. For example if you are taking a policy and you need to pay a $100 deductible. The total amount of that policy would be higher than the policy in which you would be paying a $250 deductible. You can also get higher deductibles at reduced rates if you choose the right policies to invest in. 4. Replacement Cost or Actual Cash Value? -When you are getting your property insured then you have the option to choose replacement cost or actual cash value. If you are taking the replacement cost then the insurance company will pay you the amount to rebuild your home or repair the damages caused without deducting the depreciation. You need to insure your home for at least 80% of the replacement value to receive an insurance that covers all of your losses. Actual cash value is the amount that the insured would receive after deducting the depreciation to repair or replace the damage to his/her property. 5. Always do your research- The insurance agent who is selling you the policy is getting a commission from the insurance company. He/she is interested in selling you the highest possible insurance policy to get more commission. You need to do your research properly to find out the best possible insurance for you. The internet is full of unbiased sources that can explain you about the pros and cons of different insurance policies. You can also enquire about your needs to state insurance department. You can always find similar packages from other insurance companies with the help of state insurance department. The consumer publications, public library and your own friends can also provide you with the required information. 6. Insurance agents can offer discounts - In some states the insurance agents can help the customer get discounts from the insurance company. You can also get the insurance at lower prices if you are insuring your home and car together. 7. Basic Coverages Available - You need to find out the basic coverage’s available for your property that you own or you rent to someone else. The basic packages protect you against a number of possible events that cause serious damage to your property. All basic coverage’s protects you against fire, windstorm and theft. Additional types of coverage include property damage, additional living expenses, personal liability and medical payments. 8. Read Your Policy Carefully before insuring - As we have discussed before insurance agents makes commission when they get others to take an insurance policy. If you are not taking time to read your insurance policy then you are sure to suffer losses in the future like you may need to pay additional amounts to prevent policy lapse etc. You should read and understand the key concepts of the policy because it is a legal contract. You also need to keep in touch with your insurance agent and learn about other option’s to improve the efficiency of your coverage. More Info More Info
Foreclosure Picture
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Yatch Club

How To Buy

A Forclusure

If you are looking to buy a home then buying a foreclosed home can help you save a lot of money. As a house hunter your primary motto should be to get the best property available in the market for the lowest price. A real estate owned (REO) property is owned by the lender because the previous owner of the house has defaulted the loan. Usually these kinds of properties are owned by the bank.

To see a list of forclosed

properties in the Storm Lake

area, call Randy Milborne at

605-780-4392

How to buy a foreclosed home You can buy a foreclosed home through a public auction done through a real estate agent. You need to take into consideration many factors before investing your hard earned money in REO properties. The main difference between a typical real estate property and an REO property is that it takes more time to negotiate the price of a foreclosed property because this kind of properties need multiple levels of approval, from multiple parties. The bank will have to approve the offer submitted by the potential buyer. In some cased you also need the approval of the investor owning the property. The good thing is that most foreclosed properties are priced in the market value so that the property gets sold as quickly as possible. As a potential buyer you need to submit a reasonable offer because most banks are known to approve fair offers quickly. You need to know about the unknown property condition because the bank may or may not have maintained the records of the property repairs or maintenance. You need to access the property and check its condition yourself to know whether the property is in good condition or not. Potential buyers are allowed by the bank to do a professional home inspection to ascertain the condition of the property. If the bank is doing the same, then the bank is liable to provide the customer with a complete a Seller’s disclosure. A real estate transaction also comes with additional expenses like the cost of documents that are needed by the lender. The bank also needs earnest money from the buyer who is interested in the property. The’ earnest money’ is also an indicator of how much money the potential buyer willing to pay as down payment.  Before the closing of the deal the buyer should also work to coordinate the date on which the possession of the property is finalized. All the necessary paperwork’s for the transaction of the property need to be done before a particular date. The time frame can also be extended if the issues persist. As a buyer of the property, you also need to determine how much money you can afford. Make sure the cost of your mortgage, property taxes and insurance are just under 36% of your income because then only you can afford the property. Becoming prequalified gives you an added advantage of making an offer. To get prequalified you need to provide your financial information, employment history and the funds you have in hand to pay for the down payment. The prequalified status shows that you are genuinely interested in the property than just going through the property. Finding foreclosed homes You can get great deals on REO properties by enquiring about such properties through banks. You can also search Google to find out great deals on foreclosed homes .Government websites also highlight top REO properties. A public foreclosure auction is done to get the ownership of the property officially transferred to the bank. If the property is not sold during the foreclosure auction, then the property is listed with a real estate agent. You need to quote fair prices to the real estate agent because only then you would be able to get the deal. Remember the price of the foreclosure keeps on changing when more and more institutions are involved in the process. Every institution involved in the sale of such property makes a commission from the sale. You also need to buy the property as soon as possible because, if the real estate agents are unable to sell the property within a particular frame of time then the bank will transfer the authority to the auction company. The auction companies usually sell the properties for a higher price to the general price so make sure you get hold of the property before that.

Why Home Insurance is a necessity

and cannot be avoided …

1. Home insurance is a necessity -Every homeowner needs to have a home insurance because home insurance is the best option to protect your homes and the personal belongings in it from unforeseen events that can damage it. It's a fact that everyone needs insurance at some point so why not get yours now. A home is actually a liability and you need to have an insurance policy to get rid of the liability and the associated risks from your shoulders. Moreover you are not paying the full amount of the insurance at a time. You only need to pay a fixed amount every month. 2. Deciding on how much coverage you need - You need to decide how much coverage you need. Paying a lot of insurance is not good too. You need to get the optimum insurance for your property and the things in it. As a rule of thumb you need to buy an insurance policy that covers the amount of the mortgage you are paying. Here’s information on how to get affordable home insurance. 3. Comparing Deductibles- Deductible is the amount that you need to pay when certain mishaps happen to your property or things in it. You need to choose a policy that you are comfortable paying the deductible. For example if you are taking a policy and you need to pay a $100 deductible. The total amount of that policy would be higher than the policy in which you would be paying a $250 deductible. You can also get higher deductibles at reduced rates if you choose the right policies to invest in. 4. Replacement Cost or Actual Cash Value? - When you are getting your property insured then you have the option to choose replacement cost or actual cash value. If you are taking the replacement cost then the insurance company will pay you the amount to rebuild your home or repair the damages caused without deducting the depreciation. You need to insure your home for at least 80% of the replacement value to receive an insurance that covers all of your losses. Actual cash value is the amount that the insured would receive after deducting the depreciation to repair or replace the damage to his/her property. 5. Always do your research- The insurance agent who is selling you the policy is getting a commission from the insurance company. He/she is interested in selling you the highest possible insurance policy to get more commission. You need to do your research properly to find out the best possible insurance for you. The internet is full of unbiased sources that can explain you about the pros and cons of different insurance policies. You can also enquire about your needs to state insurance department. You can always find similar packages from other insurance companies with the help of state insurance department. The consumer publications, public library and your own friends can also provide you with the required information. 6. Insurance agents can offer discounts - In some states the insurance agents can help the customer get discounts from the insurance company. You can also get the insurance at lower prices if you are insuring your home and car together. 7. Basic Coverages Available - You need to find out the basic coverage’s available for your property that you own or you rent to someone else. The basic packages protect you against a number of possible events that cause serious damage to your property. All basic coverage’s protects you against fire, windstorm and theft. Additional types of coverage include property damage, additional living expenses, personal liability and medical payments. 8. Read Your Policy Carefully before insuring - As we have discussed before insurance agents makes commission when they get others to take an insurance policy. If you are not taking time to read your insurance policy then you are sure to suffer losses in the future like you may need to pay additional amounts to prevent policy lapse etc. You should read and understand the key concepts of the policy because it is a legal contract. You also need to keep in touch with your insurance agent and learn about other option’s to improve the efficiency of your coverage. More Info More Info