© Mcalester Real Estate Group  2012
McAlester Real Estate

Mistakes to Avoid

With Foreclosures

1 million U.S. properties made Foreclosure filings as on June 2015.If you are a property hunter then there are plenty of opportunities to invest in the foreclosure market. But if you need to do your homework before investing in any property or else it would cost you more. This article will enlighten you about the costly blunders you need to avoid while investing in the foreclosure market.

To see a list of forclosed properties in

the Storm Lake area, call Randy

Milborne at 605-780-4392

1. Don’t limit your search to foreclosure property only You need not limit your searches to foreclosure properties alone just because they are competitively priced on the market. There are a lot of traditionally listed properties located in nice neighborhood. Yes you can get foreclosure properties for great deals but the properties may be damaged or needed repair before moving in. If the foreclosure property is near a bad neighborhood, then the money you have invested in the property will not provide you with the same level of satisfaction after a few years of living in it. If you are selling the property in the future then it may not fetch good money because of its location. So keep your options open and keep searching for the property that would best suit your needs instead of focusing on the prices. Hire the help of a professional You need to hire a professional real estate agent who has amble experience in foreclosure market transactions. He/she can help you find the short sale or bank-owned properties that are worth investing your hard earned money. The real estate agent needs to be paid a commission but it's worth it because he/she deals with the complexities in the foreclosure market transactions. The real estate agents can help you get the ownership of properties that you desire for a lower price. You also need the help of a lawyer for legal advice because certain property transactions can get complicated and require legal advice. Your real estate agent is not a lawyer so paying head to his words can get you into trouble. Budget You need to have a budget on how much you are willing to spend on foreclosure properties. You need to learn more about the neighborhood in which the foreclosure properties are listed to know what type of future expenses you need to encounter. Your knowledge about the location and the property can also provide you with greater bargaining power. You can target a specific neighborhood where you want your future home to be and keep track of the foreclosure listing within that area. You can also automate this process by asking your real estate to notify you only when the properties meet your size and cost. You also need to Securing early financing because you may need to money on time to show that you are really interested in the property rather than watching. Inspect The Property Inspecting the property before buying it, helps the new owners avoid a lot of problems. You can find critically damaged areas inside the structures that may affect the property in the long term. The previous owner of the property may have hidden certain flaws in the construction of the property or have hidden critical damages that cannot be easily identified to prevent the loss of value of the property. You can use the American Society of Home Inspectors website (www.ashi.org) to find certified inspectors to do the inspection of the property for you. These inspectors know where to look for flaws and they can help you make an informed decision about the property. If possible tag along the inspector when he/she is inspecting the property. You need to ask question, take notes and try to get as much as information from the certified inspectors because you can use the information to your advantage when negotiating a deal with the parties who have listed the property in the market. The certified inspectors charge anywhere between $300 to $500 therefore make sure, you utilize their services to the maximum. Keep watching If you are unable to buy a foreclosed home due to it’s the high price, then you should keep a tracking the property. The value of the property may decline in the future. If you are interested in flipping the property and reselling it then you should be viewing the foreclosure property with a long-term perspective in mind. Then only you can make profit by reselling the property.

Why you need title insurance on

your forclosed home…

The title is what gives you ownership of a property. As a buyer you want a clear or clean title — one that doesn't have liens for unpaid taxes against it, or claims of ownership by a faraway aunt or uncle, or a surprise easement through the backyard to reach power lines or a cell phone tower. As for your lender, he wants to know that the loan is going to a legitimate transaction — the seller really does own the property and therefore can sell it to you. The Title Search In other words, nobody wants an unpleasant surprise after the settlement. So a couple of things happen. First, a title search is conducted. Public records are examined manually or by computer or both. It depends on how pertinent records are kept in your area. The searcher looks at deeds, wills, and trusts, tracing the history of the property back many, many years. Among the important questions is whether all past mortgages and liens have been paid. Does anyone hold an easement? Are there any pending legal actions? But what if the title search misses something and it comes back to bite after you've moved in? This could happen. Buyers have even been known to lose their houses because of clouded ownership — some past problem that wasn't discovered. Title Insurance The way to avoid losing everything is to buy title insurance, which is available from title insurance companies, title agents, or, in some states, attorneys. Title insurance is a one-time, up-front investment with rates based on the purchase price of your home and the type of policy you buy. Some are more comprehensive than others. The policy protects you by making the insurance company liable for most claims against your ownership. If a critical document was overlooked during the title search and you actually lose the house, you'll likely receive damages — but only if you bought an owner's title insurance policy at closing. You can see why experts advise you to do this. Make sure you understand the policy you're buying — what it covers and what's excluded. The owner's policy should cover your full sales price. If you want a policy that covers the value of your home as it increases, ask about adding an inflation rider. Your lender wants a policy, too. He or she won't even loan you money unless you buy a separate lender's title insurance policy to cover the bank's interest in your property. The lender's policy should be for the amount of the mortgage. Shopping for Title Insurance The only time you can purchase insurance is at closing. Whether buyer, seller, or both pay for the coverage varies according to local custom. In some areas the seller buys the owner's policy and the buyer pays for the lender's policy. Both policies take effect on closing day. A congressional subcommittee hearing on title insurance in early 2006 looked into why consumers were paying so much for title insurance. They found the industry rife with joint ventures between title insurance companies, real estate brokers, and lenders and heard that these deals are a factor contributing to rates higher than they should be. The Federal Citizen Information Center  website offers advice on title coverage and cost savings from the Department of Housing and Urban Development. Buyer's Tip: You need a clear title on closing day and two title insurance policies — one to cover the owner, the other the lender. - From Zllow.com
Foreclosure Picture
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Yatch Club

Mistakes to Avoid

With

Foreclosures

1 million U.S. properties made Foreclosure filings as on June 2015.If you are a property hunter then there are plenty of opportunities to invest in the foreclosure market. But if you need to do your homework before investing in any property or else it would cost you more. This article will enlighten you about the costly blunders you need to avoid while investing in the foreclosure market.

To see a list of forclosed

properties in the Storm Lake

area, call Randy Milborne at

605-780-4392

1. Don’t limit your search to foreclosure property only You need not limit your searches to foreclosure properties alone just because they are competitively priced on the market. There are a lot of traditionally listed properties located in nice neighborhood. Yes you can get foreclosure properties for great deals but the properties may be damaged or needed repair before moving in. If the foreclosure property is near a bad neighborhood, then the money you have invested in the property will not provide you with the same level of satisfaction after a few years of living in it. If you are selling the property in the future then it may not fetch good money because of its location. So keep your options open and keep searching for the property that would best suit your needs instead of focusing on the prices. Hire the help of a professional You need to hire a professional real estate agent who has amble experience in foreclosure market transactions. He/she can help you find the short sale or bank-owned properties that are worth investing your hard earned money. The real estate agent needs to be paid a commission but it's worth it because he/she deals with the complexities in the foreclosure market transactions. The real estate agents can help you get the ownership of properties that you desire for a lower price. You also need the help of a lawyer for legal advice because certain property transactions can get complicated and require legal advice. Your real estate agent is not a lawyer so paying head to his words can get you into trouble. Budget You need to have a budget on how much you are willing to spend on foreclosure properties. You need to learn more about the neighborhood in which the foreclosure properties are listed to know what type of future expenses you need to encounter. Your knowledge about the location and the property can also provide you with greater bargaining power. You can target a specific neighborhood where you want your future home to be and keep track of the foreclosure listing within that area. You can also automate this process by asking your real estate to notify you only when the properties meet your size and cost. You also need to Securing early financing because you may need to money on time to show that you are really interested in the property rather than watching. Inspect The Property Inspecting the property before buying it, helps the new owners avoid a lot of problems. You can find critically damaged areas inside the structures that may affect the property in the long term. The previous owner of the property may have hidden certain flaws in the construction of the property or have hidden critical damages that cannot be easily identified to prevent the loss of value of the property. You can use the American Society of Home Inspectors website (www.ashi.org) to find certified inspectors to do the inspection of the property for you. These inspectors know where to look for flaws and they can help you make an informed decision about the property. If possible tag along the inspector when he/she is inspecting the property. You need to ask question, take notes and try to get as much as information from the certified inspectors because you can use the information to your advantage when negotiating a deal with the parties who have listed the property in the market. The certified inspectors charge anywhere between $300 to $500 therefore make sure, you utilize their services to the maximum. Keep watching If you are unable to buy a foreclosed home due to it’s the high price, then you should keep a tracking the property. The value of the property may decline in the future. If you are interested in flipping the property and reselling it then you should be viewing the foreclosure property with a long-term perspective in mind. Then only you can make profit by reselling the property.

Why you need title insurance on

your forclosed home…

The title is what gives you ownership of a property. As a buyer you want a clear or clean title — one that doesn't have liens for unpaid taxes against it, or claims of ownership by a faraway aunt or uncle, or a surprise easement through the backyard to reach power lines or a cell phone tower. As for your lender, he wants to know that the loan is going to a legitimate transaction — the seller really does own the property and therefore can sell it to you. The Title Search In other words, nobody wants an unpleasant surprise after the settlement. So a couple of things happen. First, a title search is conducted. Public records are examined manually or by computer or both. It depends on how pertinent records are kept in your area. The searcher looks at deeds, wills, and trusts, tracing the history of the property back many, many years. Among the important questions is whether all past mortgages and liens have been paid. Does anyone hold an easement? Are there any pending legal actions? But what if the title search misses something and it comes back to bite after you've moved in? This could happen. Buyers have even been known to lose their houses because of clouded ownership — some past problem that wasn't discovered. Title Insurance The way to avoid losing everything is to buy title insurance, which is available from title insurance companies, title agents, or, in some states, attorneys. Title insurance is a one-time, up-front investment with rates based on the purchase price of your home and the type of policy you buy. Some are more comprehensive than others. The policy protects you by making the insurance company liable for most claims against your ownership. If a critical document was overlooked during the title search and you actually lose the house, you'll likely receive damages — but only if you bought an owner's title insurance policy at closing. You can see why experts advise you to do this. Make sure you understand the policy you're buying — what it covers and what's excluded. The owner's policy should cover your full sales price. If you want a policy that covers the value of your home as it increases, ask about adding an inflation rider. Your lender wants a policy, too. He or she won't even loan you money unless you buy a separate lender's title insurance policy to cover the bank's interest in your property. The lender's policy should be for the amount of the mortgage. Shopping for Title Insurance The only time you can purchase insurance is at closing. Whether buyer, seller, or both pay for the coverage varies according to local custom. In some areas the seller buys the owner's policy and the buyer pays for the lender's policy. Both policies take effect on closing day. A congressional subcommittee hearing on title insurance in early 2006 looked into why consumers were paying so much for title insurance. They found the industry rife with joint ventures between title insurance companies, real estate brokers, and lenders and heard that these deals are a factor contributing to rates higher than they should be. The Federal Citizen Information Center website offers advice on title coverage and cost savings from the Department of Housing and Urban Development. Buyer's Tip: You need a clear title on closing day and two title insurance policies — one to cover the owner, the other the lender. - From Zllow.com