Question Details

Mt, Home Buyer in Colorado

Should I wait after the foreclosure dump by banks to buy a home?

Asked by Mt, Colorado Fri Jan 14, 2011

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Homeowners who have had a bankruptcy, foreclosure or short sale years ago just got approved to buy a new home. Nowadays, many lenders have flexible loan programs that you can take advantage of. Visit an expert in your area to see if you qualify. You can also search online.
Check if you qualify for a mortgage. Try
0 votes Thank Flag Link Sat Aug 24, 2013
GREAT MYTH for anyone to wait to purchase a home. Interest rates are low, you receive annual tax benefits owning a home AND if you keep renting you making YOUR landlord rich

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Sat Jan 15, 2011
We are buying real estate everytime we find a great deal. This is the best buyers market in many years. The market will settle down some time in the future and then buying at retail will make sense. Today the only properties that you should consider are the "Foreclosures & Short Sales" you can find 30%-40%-50%-60% discounts on beautiful homes to hold and rent or to live in. Find a great deal hold til the market upturns then sell and take your big profit.

You should check to find the real estate average value in your area. The local Realtor Assoc will publish the yearly and monthly appreciation or the rate of decline which will help to determine what is a deal for you. We have had an across the US decline in real estate vaules these rates are very helpful to investors.

We are buyers in every market up or down you need to understand the trends and buy ahead on them.

As a buyer "Short Sales" & "Foreclosures" are all about the money, the money you can save versus buying a retail MLS home. If you can't save 40% - 50% - 60% on a home including any repair or cleanup cost you should run away. There are too many excellent choices for a qualified buyer.

I have sold and purchased "Short Sale" & Foreclosure" homes in beautiful condition fully furnished where the sellers just walked they wanted out. Also homes that were junkers but the deal was too good to pass up it's all about the $$$.

My wife and I live in a home we recently purchased as a "Short Sale" it was alot of paperwork and time for me the agent. But in the end the bank reduced the amount they were owed on the loan by $325,000 we got a great deal. The home did not need any repairs as most foreclosures do it was move in beautiful condition. With "Short Sales" be flexible your time frame and with the location to get the best deal.

Thank you,
Bill Carey, Broker/Realtor
Certified Short Sale Seller Specialist
Cell 704-905-0740
Fax 866-343-5945

Henderson Properties
Charlotte's Premier Real Estate Company
0 votes Thank Flag Link Sat Jan 15, 2011
The consensus among housing economists is that prices will bottom out by mid year 2011 because of banks dumping the backlog in shadow inventory (distressed homes). We will not see Fall 2010 prices until Fall 2013. Mortgage interest rates, however, are on the rise and likely to continue in that direction. A 1% increase in the interest rate can decrease the amount of mortgage (and house) you can afford by 10%. This may well be the time when you can can get the most house for the money (if you need to buy with a mortgage). If you are paying cash mid year may bring the lowest prices. In any case, as always, if you find a home you like and can afford, then buy it now.
0 votes Thank Flag Link Sat Jan 15, 2011
With the potential for interest rates to rise, and plenty of properties on the market already to choose from , I would say no if you find one that really works for you.
0 votes Thank Flag Link Sat Jan 15, 2011
If that's the only reason you are waiting, then don't wait.
Web Reference:
0 votes Thank Flag Link Sat Jan 15, 2011
Mt all real estate is local. In my area I have people looking for forclosure properties from time to time. I just ran a search the other day for a client and in a 72 sqare mile area in the price rangethey were looking in there were 14 listed properties and 7 were pending. Butler county had about 270 forclosures in November and 180 in December. In my area there is no big inventory of lender owned homes to be brought to market. Home prices have been steady to trending up depending on the price range over the last year. Check with a local Realtor® to get their feel on the local market.
0 votes Thank Flag Link Sat Jan 15, 2011
It really depends on your price range, what happens to interest rates, and your personal situation.

In the $200,000 or lower price range, an interest rate increase of 1% will wipe out a $10,000 decrease in the home price and your mortgage payment may actually be higher.

In October, rates hit a historic low. Since then, they have crept back up to the 4.75 - 5.00% range.

If you wait to purchase a home, the price may decrease and more foreclosures may come on the market but supply and demand may kick in and the interest rates can go up. It is unpredictable exactly what will happen.

At some point, you have to make a decision. Buy now when rates or low or gamble that prices will come down enough to offset any possible rate increase.

If you plan to stay in your new home a while, the difference in waiting versus buying now shouldn't make much of a difference.

Hope this is of some help.

Joe Finnerty
Long & Foster Real Estate, Inc
Lehigh Valley Office, PA
0 votes Thank Flag Link Sat Jan 15, 2011
That would depend on the bank, if you are planning to get a mortgage. If you are signed on to apply for a loan to one of the banks that are badly hit by this foreclosure problem, then you may have to wait until they sort out the numerous loss they had. But if you have enough funds or has a different lender, the time to buy a home is totally up to you.
0 votes Thank Flag Link Sat Jan 15, 2011

If you find a home that you like, buy it. Interest rates are great, and home prices are as low. Rates are as low as they were during the Great Depression, and the home affordability index has never been better. Be patient in your search, find a home, and buy it. There may be a large amount of Shadow Inventory (foreclosures that are not currently listed), but banks will not dump them. The United States and the Financial Institutions cannot afford to dump the inventory. They must slowly put the homes on the market. In the mean time they use a portion of the banking profits, to slowly absorb the losses. What does this mean to the housing market? It will take about three to four years to sell all of the Bank Owned Homes that currently exist. Every market is different and some markets will sell the inventory quicker. You also have to remember that New Housing Starts have been down, and some areas will see housing shortages in the near future. I suggest you talk with a knowledgeable Realtor in your area.

Best of Luck!
0 votes Thank Flag Link Sat Jan 15, 2011
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