Buying a bank owned property ~ delays galore

Bank owned property closing delays!

Sometimes when you buy a bank owned home you might actually close on the home and not get the keys or be able to move in.

Karen Kelley from Brokers Title and Closing company explains on the Verani Blog why there are so many delays when buying a bank owned home.

Foreclosing banks are located all over the country, and they hire asset management companies to assist them with their huge inventory of foreclosures. The asset management companies, who are also not generally local, hire more local firms to coordinate the closings. Because of this multi-layer process and the time zone constraints, delays in closing are typical of these transactions. The local firms require at least a 48-72 hour HUD review prior to closing, and will not allow deed recording nor possession of the property until the HUD is approved by their client, the foreclosing bank.What does this mean for you, the buyer? Read more…

If you are financing your purchase, your lender must give a “clear to close” and send us a closing package so that we may prepare the HUD settlement statement and send it to the closing firm within their required timeframe. Even if the HUD statement is sent to these folks within the timeframe required, they will not guarantee their client, the foreclosure bank, will approve the HUD the day of the closing. This often results in you, the buyer, signing your documents in “escrow” pending final approval of the HUD. An escrow closing means that the deed cannot be recorded nor possession granted until the approval is received.

Broker’s Title & Closing, LLC is committed to providing exceptional customer service and has extensive experience and expertise in closing these foreclosure properties. We want to prepare you with knowledge of how these properties work and make sure the expectations are clear on the process of purchasing a foreclosed property. We will work diligently with the local firms providing constant communication throughout the process to ensure the smoothest, most successful closing process possible.

Call Jay or Monika…. Now

If you’re in the market for a bank owned home and want to take advantage of the Tax Credit which expires on April 30 2010…call us NOW or it will be too late!

Call Monika at 603-548-7728 or Jay at 603-548-7685

Confused about the Tax Credit…watch this short very humorous video form WAHomeownes.com

New Hampshire Real Estate Blog

Jay and Monika McGillicuddy, NH REALTORS

Prudential Verani Realty

2 Main Street Hampstead NH

603-327-0246 direct line

603-434-2377 office

Monika cell 603-548-7728

Jay cell 603-548-7685

NH Bank Owned questions answered ~ Video

NH Home Buyer Questions about Bank Owned Homes

Jay and I often get questions about buying bank owned homes and while there are cautions galore a prudent buyer can take advantage of some fantastic opportunities. Coupled with low prices, great interest rates and a home buyers tax credit makes this the best time to buy in years.

What should I look out for when buying a bank owned home in the winter?

New Hampshire Real Estate Blog

Jay and Monika McGillicuddy

Prudential Verani Realty

2 Main Street Hampstead NH

603-327-0246 direct line

603-434-2377 office

NH October Real Estate Market update ~video

Whats happening in the New Hampshire Real Estate market

October stats were just released by the New Hampshire Association of REALTORS and the numbers are encouraging!

New Hampshire Real Estate Blog

Jay and Monika McGillicuddy

Prudential Verani Realty

2 Main Street Hampstead NH

603-327-0246 direct line

603-434-2377 office

$8,000 tax credit ~ extended and expanded

Home Ownership

$8,000 tax credit ~ extended and expanded

Great news for home buyers and sellers alike.  The $8,000 tax credit for first time home buyers has been extended to April 30 2010 and a new $6,500 tax credit for homeowners who have used the home being sold as their principal residence consecutively for 5 of the previous 8 years.

This will bust open up the real estate market!

This will bust open the real estate market as it will encourage the move up buyer to take the leap! As long as a binding purchase contract is written by April 30 2010 the purchaser has until July 1 2010 to actually close on the property.

Income Limits raised!

The income limits have been raised as well which will include more people:

$125,000 – single
$225,000 – married

Limitation on cost of the home being purchased is set to $800,000 and that sure can buy a lot of home.

Prices-Rates and Homes – all the ingredients are there

Prices are fantastic and interest rates are incredible couple that along with the tax credits and buying a Southern New Hampshire home becomes a must do. All the ingredients are there and now all you have to so is pick up the phone and call 603-548-7728!

Click the link for a comparison chart of the old tax credit compared to the new tax credit

Call your southern NH  REALTOR

Call your southern NH  REALTOR, me of course, and set up an appointment to discuss how the $8,000 tax credit can impact you or learn how it can benefit you to sell your southern NH home.

Jay and Monika McGillicuddy, NH REALTORS

603-548-7728 or 603-548-7685

New Hampshire Real Estate Blog

Jay and Monika McGillicuddy

Prudential Verani Realty

2 Main Street Hampstead NH

603-327-0246 direct line

603-434-2377 office

Buying a Southern NH Bank Owned home

Southern NH Bank Owned Pitfalls

We often get asked questions about buying southern NH bank owned homes and what potential pitfalls there could be. While it’s hard to know in advance exactly what you’ll face, being prepared for almost anything is a wise idea. Some bank owned homes offer excellent opportunities for the prepared buyer and others can be a nightmare. With the $8,000 tax credit expiring soon many buyers are out actively trying to find a home and ban owned homes are very tempting.
I published this article back in April and thought it might be wise to republish it.

Pitfalls of Buying a Southern New Hampshire Bank Owned Property

There are a few pitfalls when buying a New Hampshire Bank owned property that you should be aware of. Currently the Bank REO (real estate owned) side of real estate is thriving. There are literally hundreds of bank owned homes on the market in New Hampshire and more coming daily.

A recent question sent to us via e-mail really had me thinking that maybe people really don’t know the risks involved.

This is part of an e-mail question I received…

“We found a two year old foreclosure home that appears in great shape. I know that looks can be deceiving. Anyways, the Owner/Bank only has “As Is” on all the disclosure paperwork and not allowing me to have an inspection done. By the way, a few weeks ago they finally went to de-winterize the place and found out that the furnace wasn’t done correctly and now needs replaced. Is there a requirement that I can find out what is “As Is”???”

My answer is… I’m not an attorney and you might want to hire one. But let’s look at “As Is” from my real estate agent perspective. Repeat after me…Monika is not an attorney, she is not advising anyone…get an attorney if in doubt.

Okay now “AS IS” usually but not always means that the Bank/Seller mostly likely has never lived in the home and is clueless about its condition.

Typically the buyer has the right to have a home inspection by a qualified person within a specified time frame. “AS IS” would mean that the Bank/Seller may not fix anything or renegotiate the price in the event anything turned up during the inspection. AS IS clauses are usually clearly spelled out in the agreement.

Sometimes the Bank/Seller will require the buyer to de-winterize the property at the buyer’s expense and then re-winterize it after the inspection. Often times a HUD foreclosed home will also require the buyer to turn on the unities in their own name and then turn off utilities and put them back in HUDS name afterwards….all at the buyers expense. Sometimes that can include putting fuel in the tank to be able to run the heating system for inspection…again at the buyer’s expense.

Being asked to sign a contract with an “AS IS” statement is pretty common when buying a New Hampshire foreclosed home but usually there is also an inspection clause allowing the buyer the right to inspect and to walk away from the home if the home inspection is unacceptable. An ” AS IS” clause not allowing an inspection no matter how good the place looks would make me run away.

I’m not sure if the person asking the question had a buyer agent representing them or if they bought directly from the Bank’s agent but buying a bank owned home without representation is not wise in my opinion. There are things a buyer agent can do that the listing agent simply cannot.

We closed on a bank owned home recently, after some investigation we were able to track down a former owners property disclosure of the property and while it was from a former owner and held no legal weight it still gave us a glimpse at some information we would otherwise have never known. Don’t expect the listing agent to do that for you. They won’t. Can you expect a buyer agent to try and track that information down? Yes… but realize that sometimes it’s simply not to be found. But a good buyer agent will make every effort to help their client make the right decisions.

Buying a New Hampshire foreclosed home or short sale can be a fantastic opportunity to own a home at a greatly discounted price but please don’t go it alone. Representing yourself sometimes can be a costly mistake.

Jay and Monika McGillicuddy, NH REALTORS
603-548-7728 or 603-548-7685

New Hampshire Real Estate Blog

Jay and Monika McGillicuddy

Prudential Verani Realty

2 Main Street Hampstead NH

603-327-0246 direct line

603-434-2377 office

Monetize that Tax Credit … 56 Days and Counting!

56 Days and counting…down!

The New Hampshire Association of REALTORS sent out this notice to all NH REALTOR members in hopes they spread the word to the public that the clock is ticking.

Monetize that Tax Credit

90 56 Days and Counting! Do you know how long it takes to close on a home? How about how long it might take you to find a home? Maybe you think there is plenty of inventory available so it won’t be an issue or that sellers are so desperate  that they can be out in a few weeks. The answers are that in reality it might take 45 days or more to close on a loan and you can plan on longer if it is a FHA loan or you are buying a bank owned home. Oh, and about the inventory part, that’s true there is plenty of inventory available BUT depending on your price range there is also plenty of competition. Certain price ranges are seeing multiple offers continuously.  Remember if you have not owned a home within the past three years, you would qualify for  the $8,000 tax credit and remember that  it expires on November 30.  So if you are an eligible first-time home buyers you have roughly 90 56 days  to close on a home purchase before the offer runs out. Once the money is gone who know when or if another such offer will be made.

Don’t miss this prime home buying opportunity and of course if you’re looking for a Southern NH REALTOR to help you find that perfect home and take advantage of the tax credit just give us a call.

Monika McGillicuddy Southern NH REALTOR

I would love to help you… call 603-548-7728

Reprinted with permission from the New Hampshire Association of REALTORS

90 56 days and counting … down!

Are you aware of NHHFA’s Home Advantage program?

A reminder that the clock is ticking for eligible home buyers to take advantage of the federal first-time home buyer tax credit.

For those who have not owned a home within the past three years, the $8,000 tax credit expires on November 30.  In other words, eligible first-time home buyers have 90 days from today to close on a home purchase before the offer runs out.

Are you aware?  In New Hampshire, the tax credit should be considered particularly appealing thanks to a program instituted by the New Hampshire Housing Finance Authority.  This program, Home Advantage, allows buyers to monetize the tax credit at the time of purchase to provide up to $10,000 down payment and closing cost assistance funds.

Learn more!  For more on the Home Advantage program, download NHHFA’s flyer here, or visit their website at www.nhhfa.org.

Do not let this $8,000 gift go to waste!  Be sure to remind your clients that there are 96 days left to take advantage of the federal tax credit, and here in New Hampshire, the Home Advantage program as well.

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