Property Q&A in Alpharetta>Question Details

Nelly, Both Buyer and Seller in 30022

Foreclosure? Timeline?

Asked by Nelly, 30022 Mon Jan 26, 2009

Hi,
Is this house in foreclosure? I have seen in another website that it was listed by Lender. What does it mean? if a foreclosure, how different will the purchase going to be? any chance it could drop more in price. Why would a brand new house be already foreclosed.
Thanks in advance for answering,
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This question is about this property: http://www.trulia.com/property/1047336943-5521-Farmside-Way-…

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Answers

9
Nelly -

The lender wants this gone as soon as possible, for the highest price to the buyer most likely to close...they are not likely to extend things by finishing the basement. That won't be hard to get done though as builders are now looking for that kind of work. Note that this house has a ways to come down, there are other short sales in there.

Give us a call, not only can we handle negotiations but we can also work from the appraiser's point of view, we're doing a ton of assignments exactly like this.

Hank Miller, SRA, ABR
Associate Broker & Certified Appraiser
Prudential GA Realty
678-428-8276
0 votes Thank Flag Link Mon Feb 2, 2009
Nelly -
Apologies for the delay in response. I did check with the listing agent and the finishing the basement is not their expectation or "included" in that price. That's not to say a creative offer couldn't be made.

I live a few miles from this property and would be happy to show it to you sometime if you like or feel free to contact me if you have further questions.

Best of luck to you!

Lee Adkins
leeadkins@remax.net
404 966 3247
Web Reference: http://www.leeadkins.net
0 votes Thank Flag Link Sun Feb 1, 2009
Thanks to all for your very informative answers. One last question: would the bank finish the basement too included in the listing price, the listing says full finished basement. I will wait it out a little bit to see if the price drops.
0 votes Thank Flag Link Thu Jan 29, 2009
Nelly -

Everyone hit the high points, I'll add the view from the appraisal standpoint. We're regularly completing appraisals on homes just like this - builders losing homes to lenders and lenders having to move them. There are tremendous buys out there - not common - but things do line up on occassion, we had two tremendous deals in Dec and we're working on another. Those are the exceptions though as preparation and luck have to come together.

I just posted a blog on successful distressed home shopping http://www.trulia.com/blog/hank_miller_-_associate_broker and there's more on my site listed below.

Hank Miller, SRA, ABR
Associate Broker & Certified Appraiser
Prudential GA Realty
678-428-8276
0 votes Thank Flag Link Wed Jan 28, 2009
Nelly -
l'm always glad to see consumers educating themselves about the market or a particular property!

To answer your questions first and foremost:
It is in foreclosure currently - there are 6 properties listed in the neighborhood - all of which are new construction. 5521 is the lowest priced - they range from 674K to 586K. Your property of interest is already listed as a foreclosure, so the current price is the "foreclosure price." Banks and their listing agents review prices often on a time table and if they don't sell within a number of days, I would imagine that they will review the pricing.

As some of the other responses mentioned, the bank is willing to potentially complete the home. The listing currently says, "Current price reflects home completion with custom finishes."

I think the other answers satisfy the question of how a new home can be foreclosed on.

The most important advice I can give you is to consider your "exit" strategy. If you are going to stay in the home for 5 or more years, you may be OK on resale. If you may have to sell in the next 5 years, be aware that you could be competing with foreclosure properties or new properties then. A builder or bank can almost always take more of a loss than a homeowner - you don't want to compete with them.

Be sure to ask about the Homeowner's Association Status - has it been turned over to the homeowners yet? Will there/would there be future lawsuits? Would your annual dues go up if they can't sell those other homes?

I think one of the major misunderstandings about our market right now is that you can get crazy deals. There are good deals to be had, but generally speaking, the best way to get a deal is to assume some degree of risk. Everyone has their own personal tolerance for risk. You should be sure that you consult with professionals (realtor, attorney, etc.) to assess that risk and be sure that your "deal" doesn't get you into trouble later.

Best of luck to you! I hope this information helps you!

Lee
leeadkins@remax.net
Web Reference: http://www.leeadkins.net
0 votes Thank Flag Link Tue Jan 27, 2009
Hi Nelly,

It appears that the subdivision's builder went into forclosure, so is now being sold off by the bank. The home you asked about is not quite finished, but the bank is willing to complete the home. There are other homes in Enclave on Johns Creek that are currently completed. Let us know what you would like to do.

Jolie Abreu
Keller Williams Realty Consultants
(678) 894-4409
jolie@helpinghomes.net
Web Reference: http://www.helpinghomes.net
0 votes Thank Flag Link Tue Jan 27, 2009
Nelly, this development was foreclosed upon by the lender who is now selling the property and has stated they will finish the construction of the home to client's specs. You asked why a brand new home would be in foreclosure--many builders in this economic climate have found themselves stretched to the breaking point--and banks are unwilling to extend more credit. So the lender called the note, the builder couldn't pay and foreclosure is the result. For the buyer this means an excellent deal if you're willing to purchase in an area where there may be empty lots for awhile until the market recovers and building begins again! I'd be happy to discuss this more with you or show you the property if desired. Check out my website for more information-- Jane
Web Reference: http://www.jane-oconnor.com
0 votes Thank Flag Link Tue Jan 27, 2009
And yes, this property is banked owned meaning the builder went into foreclosure and the home went back to the bank. Price for the home reflects the home being completed.
Web Reference: http://www.homesbylorie.com
0 votes Thank Flag Link Tue Jan 27, 2009
There are many many homes that are brand new which have been foreclosed! Why? Because the builder could not longer afford to carry the inventory. And there are builders that have properties being sold as short sales meaning the bank is agreeing to take less than what is owed. Why? Because the value of the property has declined to below what is owed.

Purchasing a foreclosure that is listed is very similar to purchasing a listing that is not bank owned. Usually, just a few more addendums. Buying a foreclosure at the court house steps is completely different.

Foreclosures that do not sell require price reductions. Banks are usually aggressive on reducing until which time they get offers. Foreclosures that are priced right usually get multiple offers and bid up.

It would be my pleasure to assist you with your real estate needs. I am REO certified and have helped buyers purchase foreclosures.
Web Reference: http://www.HomesByLorie.com
0 votes Thank Flag Link Tue Jan 27, 2009
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