Here comes the Bubble!

Last year with inventory being down, we had a few months where homes that were priced right we’re selling the day they hit the market. Inventory is even lower this year and I’m seeing the same thing start to happen. The Sellers that are lucky are going to list and sell starting NOW! I wish we could determine how long the bubble will last. We would all be rich if we could see that.

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Sheriff Sales

Let’s talk about the role a Sheriff Sale players in the transfer of real estate. When a property is foreclosed, the Sheriff Sale is how the bank or mortgage company takes ownership. The Sheriff has the power to create a Sheriff’s deed and deed the property to the lien or mortgage holder. Some times the previous owner will sign a “Deed in lieu” of foreclosure and then a Sheriffs sale is not needed.   Some people refer to this sale as an auction. And some investors will buy the property at the Sheriff’s sale. The starting bid will be what the mortgage holder decides it will be. Let’s say John Smith owes $100k in principal and the bank has added $5000 in late fees and interest. Now the total owed is $105k. So the day of the Sheriff Sale, you could buy this property for $105k. That way the mortgage holder is paid off and the lien is released. Just remember some liens can stil come in and attach to the property up to 60 days after transfer of ownership. So you may get stuck paying someone’s child support or taxes. Just be prepared. The Muscatine County Sheriff’s website has a link to the upcoming scheduled sales.  I’m going to add that to my website also. 

RATES dropped?

Wow!!! This isn’t what they keep telling us is going to happen but we will take it. How long will it last? Well it’s the first drop in 10 weeks so I wouldn’t gamble. Get preapproved now and secure the house you want. It may not be your dream home, but it can be your for now home.  Check out my website http://www.lisaheckman.com and select the ‘get preapproved’ link. 

Financing

It seems like a good time to talk about financing. I hear so often the horror stories.  Here are a few things to keep in mind when searching for a mortgage. 1. Stay away from the Internet.  It’s very easy to get approved online. However, the last thing you want is to write an offer on a home, have it off the market, and then have to go back and tell that Seller your loan just fell through. 2.  Get a recommendation from your Realtor. If you have a Realtor that actually sells more than 12 houses a year, they may know which lenders get the deal done.  3. Be prepared to turn over your first born. You think I’m kidding? Well maybe, but the fact is you will be turning over access to your bank accounts, taxes, and any other debt and assets. Your lender doesn’t want to hassle with these things any more than you do but what you need to understand that we live in a world full of fraud. They have to prove you are who you say you are and that you haven’t had large deposits or withdrawals in your accounts. I guess the government doesn’t want drug dealers buying property. All joking aside, you wouldn’t believe the amount of fraud when it comes to mortgage loans.   Being preapproved with a good lender is crucial. Your preapproval tells me as a realtor what you can buy and how I’m going to put the deal together. It doesn’t just tell me how much money you can spend.   Happy New Year!

Fewer Foreclosures!!!!!

Yesterday I had a conference call with my Fannie Mae reps. We talked about foreclosure inventory across the US. Due to lenders tightening up rules and policies over the last 5 years statistics show we are at the same level of Foreclosures as in 2006. Good news for lenders but not so good news for investors or Fannie Mae sales reps who have been recently let go! 

Inventory is moving! We are seeing homes sold after only two to three days on the market if they are priced right!!!! Pricing is the key!!!! 

On a persona note: Tomorrow is Lindseys birthday!