First time home buyers are facing a number of barriers to becoming first time home owners today. Included in these barriers is the current market, the increasing cost of a down payment and a lack of confidence in today’s economy. These barriers are very real to everyone looking to buy homes; however, they are not insurmountable. Most adults admit to finding home buying intimidating and money related issues are a big concern that often makes the potential home buyer back off. Many have concerns about finding the right home and find the entire process to be intimidating. Being able to shop for homes online and obtain as much information about the home and the neighborhood without the pressure of a sales agent is appealing to the people intimidated.

Some of the top real estate agencies in the industries have addressed this concern by delivering a large and fresh collection of listings with new features that allow the buyer more options to remove the uncertainties they may have. By providing comprehensive information with relevant tools and links to local realtors online realtor sources help make the process of buying a home easy and less stressful.

The first time home buyer is looking at the area differently today. Naturally the rate of crime is still a top concern; however, being close to daily conveniences is a close second. This is due to environmental concerns as well as the ever increasing price of gas. The home buyer of today is willing to sacrifice cultural and recreational amenities for environmentally green features over buying other houses in today’s housing market. The importance of community and concern over gas prices are evident as buyers look for accessibility with just a small percentage of home buyers being willing to sacrifice the closeness to work and shopping. Green features such as solar panels and energy saving appliances are more important than the more luxury amenities.

Understanding the mortgage as well as the entire financing process during times of change is a major issue and barrier of the first time home buyer. The majority wish the process of taking out a mortgage was easier to understand. Some of these buyers report that understanding financing and the uncertainty of the lending process is the most intimidating part of buying a home. The recent changes in the percentage of down payment required for a mortgage is a major issue for many buyers as well. The lack of money for a down payment prevents around a quarter of buyers from buying a home; more even than buyers with poor credit, low income or lack of confidence in the economy.

The majority of first time home buyers will make sacrifices to save money and earn extra money to be able to buy a home in today’s housing market. These sacrifices include spending on personal luxuries, clothes, shoes and accessories. Buyers are willing to go out less often, clip coupons and even cancel vacations to buy that first home.

J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as First Time Home Buyer where you can find today’s mortgage rates as well as a wealth of information on getting a First Time Home Buyers Loan .

Talking to many people today they are looking forward to becoming a first time home owner and with the prices of homes sinking rapidly they think it is a great time to buy. Homes that would previously be far out of reach are now becoming more affordable, to the excitement of the potential first time home buyer. Unfortunately, according to several reports, mortgage insurers have been upping their standards in the United States. What this means for the first time home buyer is they have to be at the top of the bar that is raised to obtain the mortgage.

Mortgage insures are defining an ever increasing number of markets as declining. In these areas that they list as declining they are requiring a higher down payment as well as higher premiums. This means that the homes that were thought to now be affordable are still out of reach for the first time home buyer. The buyer will have to have a substantial down payment and in the declining economy saving 5 to 15 thousand dollars for a down payment is out of the question.

The market that seems so appealing to the first time home buyer and others hoping to cash in on the floor dropping out of the housing market may not be as profitable as once thought. The national home price index fell about 16% from its peak in the second quarter of 2006 and in some markets houses are selling for 50% less than a year ago. They; however, are not being sold to many first time home buyers but instead to developers hoping to turn a profit.

Additionally there is a surplus of foreclosed homes today making prices fall even farther. Between the foreclosures and other homes on the market there are plenty of affordable homes to choose from. If only the tightened mortgage standards would allow people, including the first time home buyer to clear out the inventory. There are ways of obtaining a substantial down payment and the first time home buyer with control of his credit score and shows reliability and responsibility will be able to cash in on the falling house prices and afford the unaffordable dream home. With private buyer assistance programs, gift money from family, savings over time and the sale of high dollar assets even the first time home buyer will be able to meet the heightened lending standards of the mortgage insurers.

Business is still business and companies are still in to turn a profit. Making sure you are at the top of the class will ensure you obtaining that mortgage and moving into the home you have dreamt of. Run your credit report, make sure it is in good shape, have a substantial down payment ready and start shopping for that dream home today.

J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as First Time Home Buyer where you can find today’s mortgage rates as well as a wealth of information on getting a First Time Home Buyers Loan .

Allandale is the name of a lovely neighborhood in central Austin, although the area was originally considered to be northwest Austin, before Austin’s expansion into a large metropolitan area. Allandale recently celebrated its 35th anniversary as an active central Austin community, and the Allandale Neighborhood Association has been a presence in the neighborhood since 1973. Currently, Allandale is home to over 21,000 residents, and two of the boundaries of the neighborhood are the MoPac Expressway and Burnet Road, which form the western and eastern perimeters, respectively.

Typical residences in Allandale are three to four bedroom single family homes, most within the $250,000 to $300,000 price range, although more and less expensive housing can be found too. The students in Allendale attend Austin Independent School District schools, and there is an elementary school named Gullet Elementary, as well as a middle school named Lamar and a high school named McAllen High School. Allandale has the 28th largest neighborhood association in Austin, and there is an activity center named the Northwest Recreation Center which is ideal for indoor as well as outdoor sporting activities. The Allandale Neighborhood’s other borders are generally considered to be Anderson Lane and Hancock Drive, as well as Shoal Creek, and the neighborhood is chock full of restaurants, shopping, and various types of dwellings.

The roots of the Allandale neighborhood go back to the 1930s, and at that time, it was considered to be a suburb outside of Austin proper. George Davis was the original owner of most of the land in the neighborhood, and he obtained the land from the President of the Republic of Texas in 1841. A grant of over 3,100 acres was given to him in exchange for his service in the battle of San Jacinto, and some of his descendants still live in the neighborhood today. The Davis family also has a family cemetery on Vine Street to this day.

Housing is slightly more expensive in the neighborhood than in some areas of Austin, and the vintage homes from the 1940s and 1950s frequently boast mature landscaping with large yards, a perfect setting for families with children. There are fixer-uppers to be found in the neighborhood too, along with apartments and duplexes, among other choices. Since Shoal Creek, with its numerous parks and hike and bike trails, runs along the Allandale neighborhood, there is plenty to do from a standpoint of recreation as well.

Some of the eateries in the Allandale area include Phil’s Icehouse, Ginny’s Little Longhorn Saloon, and Amy’s Ice Cream, all local hotspots, as well as many popular family restaurants, including the Hang Town Grill, and the Frisco, which occupied the same location on Burnet for years until it recently closed. A popular park in the neighborhood is named Beverly Sheffield Park, and the park is adjacent to Shoal Creek, and has a beautiful duck pond as well as an Olympic sized swimming pool. The park also includes picnic sites, barbecue pits, ball fields, tennis courts, and a fishing pier, and is a home away from home for the children of the area.

Escapeso helps buyers and investors looking for Austin real estate. Their website provides a map based search of the Austin MLS and updated market statistics on their Austin real estate blog.

It’s bad enough that you are in a predicament like foreclosure. The pain and frustration of not knowing what to do can be maddening. Don’t compound matters by getting involved with a real estate agent who does not have the experience or know how to help you.

The government has recently made it easier to resolve your foreclosure by enacting the the Mortgage Debt Relief Act. This allows a homeowner in foreclosure to avail themselves of the short sale method of resolution to sell the property.

While the application of the law is quite technical, many Realtors are in the field telling their Fort Lauderdale real estate market clients in foreclosure whatever they want to hear without having any business doing so.

As millions of loans are now adjusting and as hundreds of thousands of those loans are in or headed for foreclosure, many homeowners are turning to real estate agents to help them in their hour of need.

Unfortunately, most real estate agents are not properly trained to handle the complexities of negotiating with a bank to successfully help the homeowner.

The agents are at a complete disadvantage as many do not even realize that they are in a negotiation with a trained troubleshooter whose job is to mitigate losses for the lender.

Most agents seem to be much more worried about how to make sure they get their commission than helping the homeowner escape foreclosure. In the states with the highest rates of foreclosure, it takes less time to become a real estate agent than it does to become a head cashier at Disney World.

In California you can become a real estate agent and begin selling homes by taking an “open book” exam that only requires a 60% grade or better to pass. In Florida, you can become a real estate agent by taking a one week class where they give you a simulation” of the answers in some courses, and in Nevada which has the strongest criteria, you can become an agent in as little as two weeks.

All three only require a high school diploma. Is this the person that should be handling the “negotiation” of your home in foreclosure? If this was not bad enough, now that we are in such a foreclosure crisis, most have had no experience in this type of market and are struggling to learn and complete what is called a “short sale”.

A short sale is where the lender agrees to accept less than what they are owed in order to facilitate a sale of the defaulted homeowner’s property. Most agents have had little, if any, prior experience in this regard and are using the homeowner’s property as a form of on-the-job-training!

All the while locking the homeowner into the most outrageous one-side listing agreement you could imagine. This is absurd! So we feel it’s important that a Fort Lauderdale real estate homeowner in foreclosure, or for that matter, a homeowner in foreclosure anywhere find out what they are getting into, or what they are already into, if they have already tied their hopes to the newly dubbed “short sale expert” real estate agent.

Here are “10 Questions You Need To Ask Your Real Estate Agent Before It’s Too Late!”

1. How many short sale transactions have you successfully completed? Do you have the MLS numbers of those that you have successfully completed? Remember they are licensed professionals and are not supposed to lie, but that’s another story.

2. How many current listings of properties do you represent that are in foreclosure? Can I have those MLS numbers?

3. Are you a full-time real estate agent devoting all of your time to selling my home and the other homes you have listed in foreclosure? This is a big one! Most real estate agents are in dire need and are only working in real estate part time. They are actually working in real estate as a side job. The worst part about this is they don’t have to disclose this unless you ask. Would you want your Doctor part-timing at Red Lobster?

4. How long have you been an agent / broker?

5. What formal training have you had in negotiating short sales? How much time did you spend in that training? Yes, short sales require specific training. Most agents have little if ANY experience in short sales or took a two hour course in their office and received some certificate calling them an “expert” or certified.

6. Please explain to me, in detail, what marketing you are performing in relation to the sale of my property? Can you please bring me over the ad sheets and invoices so I can see how much you are spending on marketing MY property? You will either laugh or cry when you find out that they can’t do this because they aren’t spending ANYTHING to market your property. You’re in foreclosure hoping your agent is busting their hump for you only to now ask and find out it there is little if any marketing being done.

7. I realize a short sale can not take place without a buyer. Do you have buyers lined up ready to go? You’ll love the answer to that one!

8. As I am in foreclosure and I have special needs, and I have a definitive timeline in which to get my house sold, can I terminate my listing agreement at anytime in case I get an offer that does not come from you?

I mean I have to, I must sell my home and I can’t be burdened with a listing agreement that obligates me if I find my own buyer and I am able to get out of foreclosure.

Will you release me if I find my own Buyer and can emerge from foreclosure? If you are allowed to cancel a listing, MAKE SURE IT IS IN WRITING! Sometimes agents have memory lapses and forget they told you this.

9. How many of your foreclosure listings have ended being auctioned off despite your “efforts”? I would like to know how many times you take listings and have not been able to produce a buyer? Can I have those MLS numbers? This is very important. Anyone can call themselves a short sale expert, prove it!

10. If I do get an offer, and it would allow me to get out of foreclosure, but it would mean there would be no funds left over for you to obtain a commission,would you first of all present it and second of all not stand in my way and chase me down for a commission?

After all, I think you would agree, I am in somewhat of an urgent situation.

By the way..we talked to the governing board here in Florida and an agent would have to forego commissions if it meant you were able to save your house from foreclosure!

Here’s a bonus question to ask … can you please give me your answers to the above questions in writing on company letterhead?

Let me save you the trouble Mr. Homeowner,your agent isn’t spending any money on your listing, short sales are the “in thing” right now and your agent has had no experience in short sales, and he has no buyers or else the home would not be on the MLS.

You might want to start packing if you do not carefully and thoroughly interview the real estate agent that comes knocking on your door.

We would be happy to assist any homeowner in the greater Fort Lauderdale real estate market or any homeowner in the State of Florida who is in foreclosure and needs help navigating the labyrinth of a short sale transaction.

Our professional team approach to foreclosures and short sales allows you to work with a one-stop shop. We have a property inspector, attorney, title company and experienced loss mitigators on our team ready to handle any foreclosure problem.

Robin Sing-Cunningham. Is a real estate agent serving Broward County, Florida. I live in Fort Lauderdale with my husband and I specialize in Fort Lauderdale Real Estate.

You can reach me at my Fort Lauderdale Real Estate Blog.

In the recent past it was not uncommon to find no-down payment loans from lenders for homebuyers. Unfortunately lenders are tightening standards and requiring a down payment of some degree. This is making it a little more difficult for the first time homebuyer to get into home ownership. Today it is difficult to find a zero-down loan program and lenders are making it advantageous for the buyer to have a down payment.

The obvious advantage is in the amount being financed; the more money down, the less financed and the smaller the monthly payments will be. A down payment becomes instant equity once closing and this equity can then be borrowed against with home equity loans and lines of credit. It is recommended to first time homeowners, by most lenders, to reserve money for closing costs, unexpected expenditures and maintenance of the home and not allocate all savings to a down payment.

With today’s economy many people, particularly the first time homebuyer, to come up with a down payment. Below is a list of practical ways that a down payment can be obtained:

* Automatic Savings Plan. Set up a savings plan with your employer and your direct deposit banking to divert a particular percentage of your paycheck to go into a savings account. In most cases you do not even miss the money and it will quickly grow into a substantial savings for a down payment.

* Give Money. Parents, grandparents and relatives can give a monetary gift for a down payment; however, often a lender still wants to see a decent amount of money in savings such as 1 to 5 percent of the cost of the home.

* Sale of Assets. Selling a car, boat or motorcycle will often give you enough money for a down payment on a home. These items can always be replaced in the future.

* Liquidation. Liquidating stocks, mutual funds, savings bonds and other investments is a quick way to obtain a down payment.

* 401(k) Loan or Dispersal. This is usually allowed in a company’s plan; however if in the form of a loan, you must remember this will be coming from your paycheck each week until it is paid off. Remember this when budgeting. If you can get a dispersal figure in the taxes and penalties.

* First Time Homebuyer Programs. Explore your options from several lenders for the first time homebuyer or other programs for teachers, police officers, military or other public servants.

In general a lender will want to know how you obtained the money you are using for a down payment to see that you have been able to properly manage your money. Most of the time only a certain percentage of the down payment can come from a lump sum gift or dispersal; lenders want to be assured you will manage your budget wisely. There are government programs that can assist homebuyers who are unable to save much for down payments such as an FHA loan or a Veterans loan. Grants and government assisted programs often have to be qualified for and many people actually make too much money to qualify for the assistance.

J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as First Time Home Buyer where you can find today’s mortgage rates as well as a wealth of information on getting a First Time Home Buyers Loan .

In the recent past it was not uncommon to find no-down payment loans from lenders for homebuyers. Unfortunately lenders are tightening standards and requiring a down payment of some degree. This is making it a little more difficult for the first time homebuyer to get into home ownership. Today it is difficult to find a zero-down loan program and lenders are making it advantageous for the buyer to have a down payment.

The obvious advantage is in the amount being financed; the more money down, the less financed and the smaller the monthly payments will be. A down payment becomes instant equity once closing and this equity can then be borrowed against with home equity loans and lines of credit. It is recommended to first time homeowners, by most lenders, to reserve money for closing costs, unexpected expenditures and maintenance of the home and not allocate all savings to a down payment.

With today’s economy many people, particularly the first time homebuyer, to come up with a down payment. Below is a list of practical ways that a down payment can be obtained:

* Automatic Savings Plan. Set up a savings plan with your employer and your direct deposit banking to divert a particular percentage of your paycheck to go into a savings account. In most cases you do not even miss the money and it will quickly grow into a substantial savings for a down payment.

* Give Money. Parents, grandparents and relatives can give a monetary gift for a down payment; however, often a lender still wants to see a decent amount of money in savings such as 1 to 5 percent of the cost of the home.

* Sale of Assets. Selling a car, boat or motorcycle will often give you enough money for a down payment on a home. These items can always be replaced in the future.

* Liquidation. Liquidating stocks, mutual funds, savings bonds and other investments is a quick way to obtain a down payment.

* 401(k) Loan or Dispersal. This is usually allowed in a company’s plan; however if in the form of a loan, you must remember this will be coming from your paycheck each week until it is paid off. Remember this when budgeting. If you can get a dispersal figure in the taxes and penalties.

* First Time Homebuyer Programs. Explore your options from several lenders for the first time homebuyer or other programs for teachers, police officers, military or other public servants.

In general a lender will want to know how you obtained the money you are using for a down payment to see that you have been able to properly manage your money. Most of the time only a certain percentage of the down payment can come from a lump sum gift or dispersal; lenders want to be assured you will manage your budget wisely. There are government programs that can assist homebuyers who are unable to save much for down payments such as an FHA loan or a Veterans loan. Grants and government assisted programs often have to be qualified for and many people actually make too much money to qualify for the assistance.

J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as First Time Home Buyer where you can find today’s mortgage rates as well as a wealth of information on getting a First Time Home Buyers Loan .

Saving a substantial amount of money for a down payment on a house is not always plausible in today’s economy with raising food and gas prices. Many people today are living paycheck to paycheck and are not able to save for the required down payment that is often up to 20 percent of the price of the house. Without a substantial down payment people often have to resort to less attractive loans with adjustable interest rates. Adjustable interest rates have led to many families losing their homes to foreclosure when they can no longer afford the payments due to raised interest rates.

There are buyer assistance programs that are approved to work with the Federal Housing Administrations loans. One such program is AmeriDream Inc that allows the seller to give up to six percent of the purchase price of the house back for closing costs or down payment. This program has allowed many people to become first time home owners. Unfortunately this nonprofit program is being threatened by the U.S. Senate and the Department of Housing and Urban Development who want to do away with nonprofit programs of this type. They feel that these programs allow families to purchase homes they cannot afford and according to Senator Kit Bond of Missouri, the surge of national foreclosures show what happens when borrowers overextend themselves. Sen. Bond feels that all homeowners should wait until they have saved for a down payment.

HUD proposed an elimination of these programs as well last fall and was blocked in court; they continue to try. HUD reported that nonprofit down payment assistance was used in nearly 15 percent of all FHA loans that default within the first 90 days. From last October to February down payment assistance was used in nearly 40 percent of all FHA loans. Ann Ashburn, president of AmeriDream questions the reliability of HUD’s data. She states; “Down payment assistance funded in part by sellers has a 9 percent success rate, according to the independent U.S. General Accounting Office. To ban this program would be to virtually eliminate 100,000 HUD-qualified first-time home buyers.” If this were to happen it would not only be bad for the communities but also for the economy.

According to its web site, over 280,000 families have used AmeriDream to buy a home. According to one such home owner, the assistance did not make them more likely to default on their loan but instead helped them get in the door; an accomplishment that had been a long time coming.

One mortgage broker and owner of a financial company feels that nonprofit programs are coming under scrutiny due to the FHA limit being raised making it a relevant product for more regions. The FHA exists to help people buy houses. Taking away the programs will take away the opportunity to purchase houses for a large number of families. A certified mortgage specialist states that the elimination of these programs will make the housing market worse. The things that have happened in lending over the last few years was not because of having no down payments to buy a home, it was due to having no proven ability to pay the loan. Lenders will often approve loans that are realistically out of range for many families.

J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as First Time Home Buyer where you can find today’s mortgage rates as well as a wealth of information on getting a First Time Home Buyers Loan .

One of the first things a lender will do before granting a loan for a home is to run a credit check on the buyer. This will help them assess they buyer’s ability to pay a loan and see how they have managed their bills and money in the past. A credit report will show the money that comes in and goes out and how much a buyer will be able to afford. There is a lot to be told with a simple credit report. Yet so many first time home buyers have no idea what their credit score is or even how to find out. According to one consumer credit counseling service “the first time people think about their credit is when their in the market for a home. Often the last thing they do in the buying process is to look at their credit report, but that is really the first thing they should do. Your credit score will determine the interest rate you get or even whether you will be extended a loan at all.”

When first considering purchasing a home the buyer should run a credit report; everyone is entitled one free report a year. There are three companies that provide credit information, Experian, Equifax and Transunion and you can obtain your credit report from them online. Look closely at your report and identify any information that is not correct; dispute this immediately. When your report is pulled before you begin shopping for your home you will have time to fix errors, improve your score and you won’t fall in love with a home you simply cannot afford.

Even if you go to your local credit bureau to obtain your credit report it usually is a small investment. It is not uncommon to have information that is false on the report and fixing these errors as soon as you can helps to obtain the loan with the best credit rates as possible.

A FICO score is appointed to you based on your credit report. FICO is the most widely used scoring system and stands for Fair Isaac Corporation and is intended to demonstrate the likelihood a borrower will default on his or her loan or declare bankruptcy. To obtain the score, generally a borrower is compared to other consumers. One borrower that has two late payments over 30 days will be scored against similar delinquent-payers. That borrower will then be graded according to risk variables used by the scoring model and will be ranked within the group of similar borrowers. Most of the larger banks and lenders build their own credit scoring models and will use that.

Statistical models to generate a credit score is subject to federal regulations that prohibits a credit scoring model from using biases such as race, skin color, religion, sex and marital status. The credit scoring model must also be empirical and statistically sound and if a borrower is denied based on the credit score the lender must state the specific reasons such as “too many delinquencies.”

J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as First Time Home Buyer where you can find today’s mortgage rates as well as a wealth of information on getting a First Time Home Buyers Loan .

More and more people are realizing that it’s not just the American real estate market that’s turned into a buyer’s market. The East European real estate market is also benefiting from a housing boom and many Americans are discovering that a European vacation home is well within their reach. Real estate in Eastern Europe is in a unique situation. Real estate properties are currently low enough to be attainable, yet are rising quickly enough to offer a healthy return on the investment.

Soaring Property Values In Eastern Europe

Property values in Eastern Europe are rising, but are nowhere near their peak. This combination makes now a great time to buy. East European real estate can be purchased for as little as 40,000 to 60,000 euros in countries such as Romania, Turkey and Poland.

Industry experts expect the market to explode in the next 20 years and are encouraging their clients to buy now. It is expected that over 24 million people will be searching for a home to rent or buy throughout Eastern Europe and because of this large influx of people, money will pour into Eastern Europe. In turn this will encourage new industry, jobs and housing options.

Your Financial Situation

Finances play an important part of any real estate transaction. Obviously before looking into purchasing East European real estate, you need to make sure your finances are in order. Do you have the funds available for down payment, taxes and any required maintenance and upkeep the property requires?

After looking at your own finances, the fun begins! It’s time to start researching countries. Are you interested in a property in Poland or a Turkey villa? East European real estate can be overwhelming at first so a little research is a must.

Find A Company That Specializes In European Real Estate

A company that focuses on East European real estate is vital. For most Americans, traveling back and forth multiple times to house hunt isn’t a viable option. This where an Eastern European property company comes into the picture. They can help find properties that fit your specifications and can help narrow down your geographical area if needed.

Once you choose a few properties to visit, they can assist with any language barriers and local customs that need to be observed. Your real estate company can also help with the small, yet important details like how and where to get currency exchanged and the set up of local services like telephone and utilities.

With the real estate boom happening in Eastern Europe, it’s important to find an established company. When planning an overseas move, you’ll need someone with years of experience instead of someone just starting out in the property business.

By following these guidelines, you’ll be well on your way to a seamless and profitable real estate transaction. Whether you purchase property in Poland, homes in Russia or a Turkey villa, you may enjoy Eastern Europe so much that you make it your permanent home!

Author is a freelance copywriter. For more information on East
European Real Estate or Homes
in Turkey, visit http://www.redence.com.

A foreclosure on a property can be an ideal investment opportunity, if you know how to sort out the good ones from the bad. The foreclosure investment game isn’t about just snapping up the first bargain that comes up at auction. To take strategic advantage of a foreclosure investment opportunity, you will need to keep a few things in mind.

It’s important to consider the quality of the property in question, its location (which includes the amenities of the neighborhood), any liens on title, and more. The following tips will help guide you through the world of foreclosure investment opportunities to find the best ones for you.

More Isn’t Always Better

In fact, when it comes to foreclosures, the fewer there are, the better it is. Don’t invest in a property that is in a neighborhood full of other foreclosures. A high number of foreclosures in an area only serves to decrease the property values in the area, and the resale potential of a property may be challenging if you are competing against other foreclosures. If the property you are looking at is the only foreclosure in the neighborhood, or one of only a very few, your chances of a quick resale are much better.

Location is Everything

The old real estate adage ‘location, location, location’ really is true. It has been said that the right (or wrong) location can determine the fate of nearly every real estate investment. Location is more than just about the physical location of a property, however. Consider the area’s property values, the rate that the area’s properties are appreciating in value, and the area’s proximity to valued amenities, such as reputable schools and convenient shopping. When purchasing any kind of real estate for resale, you need to keep in mind that you can always change the building, but you can’t change its location!

Don’t Be the Heavy

Usually, a foreclosure investment property is vacant when it goes up for auction, usually because the bank or other lender has already evicted the homeowners from the building. Sometimes, however, the previous homeowners are still living there until the property is resold. If you purchase a property in which the previous homeowners are still living, you’ll be responsible for evicting them. And that’s not something anyone wants to do. Getting evicted from your home is embarrassing at best, and the previous homeowners are not likely to be willing to leave gracefully.

The eviction process can be lengthy and expensive. It’s more than just a matter of knocking on the door and saying, ‘OK, I live here now. Get out.’ Save yourself some hassle and some money and ensure that the investment property you are interested in is listed as vacant, and always confirm this before you take over, just to be sure.

Don’t Lien on Me

When considering buying an investment property, ask to see a Warranty Deed. This document will state that the property has no other liens on it, such as building code violations or unpaid taxes. You don’t want to find yourself saddled with debts you didn’t incur.

Inspection, Please!

When investing in a foreclosure property, it’s important to note that these types of properties are usually sold ‘as is,’ or, in other words, the vendor (the bank) makes no guarantees about the condition of the property. This includes the property’s adherence to or failure to meet building standards or any problems with the land on which the property is located.

To prevent any unwelcome surprises in this area, always get the property inspected before you close the deal. An inspector’s report will tell you if you can expect to fork out money for extensive repairs.

See into the Future

When buying a foreclosure property, as with any real estate investment, sometimes the greatest profit lies in an unlikely place. Often, it pays to look beyond first impressions of a property to see it as it could be, rather than as it is. Sometimes all it takes is $500 to give a property the facelift it needs. And the return on your investment is likely to be much more than your payout.

Stuart Anthony Atkinson

www.offplanpropertyexchange.com New homes for sale and property investment opportunities worldwide.