Gatlinburg Real Estate Updates & Community News » Foreclosure

Government Pressure Expected to Help Reduce Foreclosures

lheraty — Tue, 01 Dec 2009 02:29:22 +0000

The government is putting pressure to decrease foreclosures

With unemployment figures on the rise, the number of foreclosures is expected to keep rising over the coming months and the federal government is trying to do something about it. President Obama created legislation in February that was expected to help those facing foreclosure, yet the programs set in place are reported to have been enforced sluggishly by many of the lending institutions. The pressure is starting this week. The Federal Government is saying “Help these people out!” to the 71 financing companies that are participating in the program. Teams of three people are being sent to monitor the eight largest companies, and these teams will be requested to submit reports twice a day on their progress. Another part of the problem has been incomplete paperwork on behalf of the borrowers. Those that qualify for assistance need to complete their paperwork to move forward on getting assistance. Under the mortgage assistance plan borrowers who qualify can get 2% rates for up to five years, quite a healthy boost for homeowners facing foreclosure. Borrowers will be communicated with to help them complete their part. We've seen a decrease in the number of foreclosures coming to the marketplace here in Sevier County and Gatlinburg which is creating a stabilization of pricing. If this trend continues, we have not reason to doubt it will, with foreclosures trickling on the market and not flooding it, prices may start to increase as early as Spring 2010. For more information on the government’s plan to enforce help for those facing foreclosure, click here.

Short Sale & REO Properties Make Great Real Estate Investments

admin — Thu, 24 Sep 2009 15:50:56 +0000

Short sale & REO properties can make great investments

Short Sale and REO properties make great investments here in Gatlinburg but they are each unique and require some attention to get the deals completed. Todays real estate market is full of bargains and whether the property is a fire sale on the owners behalf, a short sale or an REO there are plenty of properties out there which make sense for the buyer. The complication is often getting the deal done. Whether it is getting a contract accepted, attaining financing or following through until closing a lot of todays deals require the assistance of a real estate professional more than ever. What are the main differences between REO properties and Short Sale properties? REO properties are owned by the lending institution, typically a bank. REO properties have been repossessed and the home owner is out of the picture. REO properties are being sold by a broker division of the bank or by a Realtor hired by the bank. The bank is in the drivers seat and rarely wants to make any improvements or deal with inspection items, preferring to sell a property “as-is”. A Short Sale is a pre-foreclosure sale when the home owner (borrower) is still in the picture but owes more than the house is worth In this case the lender is involved because the lender has to agree to the sale rice and the loss that they are going to take. There may be some room for inspections and contingencies in the short sale scenario but the bank still has the last word and to get a deal done a buyer must be willing to forgo certain issues. In either case, REO or Short Sale, a real estate professional who has experience or knowledge in distressed property can be incredibly useful. These real estate deals are complicated and take knowledge to complete. Contact an experienced real estate broker today to see what is going on in your local real estate market. For more information on REO and Short Sale properties check out Realty Times by clicking here.

A Bargain Isn’t Always A Bargain

lheraty — Wed, 23 Sep 2009 14:28:31 +0000

Investing in REO/foreclosure properties may seem like the thing to do these days but just because a property is being sold at a bargain price doesn’t necessarily mean it is a bargain. The number of foreclosed properties has increased dramatically over the past year and the number of bank owned properties is not yet diminished. It is important to remember that the banks or lenders that have the property on their books want to unload it. What does this mean to you? Cash offer wins. If you need to get a loan to purchase the property then you could be waiting a few weeks to acquire financing. It's important to become pre-qualified prior to viewing homes for sale so that you may act quickly if the right one appears. If someone else has their eye on the property and walks in with cash you will be out of luck. No money, no property. The bank doesn’t care if you get the property or not, they just want the property off their hands. If you are looking to buy an REO property for an investment be aware of two factors: condition and location. Just because a property is inexpensive does not mean that it will make a good investment. Have your Century 21 Four Seasons agent provide a complete CMA prior to submitting an offer to purchase. Is it in a good location? Remember that location matters, whether you will be living in it or not. What is the condition of the house. When it comes to REO property many times you will not be allowed in for an inspection and buying sight unseen can be a real gamble. Do some research and find out what you can about the property before committing to buying it. Your Century 21 Four Seasons agent can help you select the right contractors and inspectors. Certainly buying REO property can be a good investment but it can also be a risky one. Do your homework and have the right real estate partner/agent to make your purchase a success.