Three Top Reasons Purchasing a Foreclosed Home Can Be So Difficult

Three Top Reasons Purchasing a Foreclosed Home Can Be So Difficult

You may have heard how much money can be saved in purchasing foreclosures in NYC. However, the time spent may not be well worth it to you. Also, some foreclosures in NYC don’t present the value you would expect. However, just how much can you expect at such a discounted price? You would think the banks are eager to get it off their hands. However, this is not the case as it could be months if not years. Here are the top 3 reasons purchasing a foreclosed home can be so difficult.

1. The Homes Condition
Many homes that are in foreclosure in NYC are not in the best condition and sold “as-is”. This is a “what you see is what you get” scenario. Most homeowners that have already defaulted on their loan, are disgruntled, and may even want to damage the home; they are not in any financial position to make repairs either.
2. Homeowners Are Still in the Property
Another reason foreclosures NYC are so complicated is because the family may still live in the home. It may seem somewhat odd, but you may actually need to go through an eviction process to get them out of your home.
3. Title Search Needed
It’s advised to perform a title search before you purchase a foreclosed property in NYC. Unfortunately, sometimes the title and deed may have transferred around with the sale of mortgages, so this could take some time. You want to see if there are any liens on the property because they could transfer over to you. If you are aware beforehand, you can then make the appropriate offer on the home to offset that debt.

 

 

Top 5 Reasons Your Short Sales Process Could Be So Lengthy

Here are the top 5 reasons your short sales process could be so lengthy.

1. The Second Lender is Not Cooperating
A short sale means the entire balance of the loan is not going to be paid. Losses will be had. Sometimes, a secondary lender may not agree to the terms and it’s a back and forth issue between the two lenders.

2. The Home is Vacant
If the home is vacant, there could be a stipulation that the homeowner needs to live in the property. Then, it’s a matter of waiting for them to move back in. Also, if the home is vacant, it could be vandalized, which means that at closing there could be additional unexpected repairs that need to be taken into account.

3. There May be Lien’s or Judgments Against the Home
A professional realtor should check for any liens or judgments on the home. It’s easy to look at the public records for them. A buyer may walk out on a short sale purchase if there are liens because they can pass on to them and become their responsibility. This could offset the cost of the short sale.

4. Documents Come Up Missing
A short sale NYC package must be completed and approved before a short sale can proceed. If any of those papers come up missing, they must be resent. Through emails, faxing, and postal mail, it’s easy to be misplaced and claimed missing at the last moment.

5. The Realtor is Not On the Ball
Sometimes, the realtor is inexperienced and will not be following up with emails and phone calls to the lender. The paperwork could then be buried. Using an experienced short sale specialist, like Premier Real Estate NYC is a guaranteed way to keep the lender in check.

Signs that You are Headed Towards Foreclosure

Foreclosure rarely ever happens overnight. There are extenuated circumstances that can lead to foreclosure, such as illness or a sudden job loss. Typically, before you go through a foreclosure, you will have issues prior to the foreclosure notice. Here are some of the signs to look for that you may be heading into foreclosure.

Problems Budgeting for the Necessities
Not having the budget for luxuries is a problem that many of us go through. However, if you often have issues, budgeting for the necessities in life, there is a good chance that you may not be able to pay your home payments in the future. When you are buying a home, go over the non-negotiable expenses in your budget, such as loan payments, utilities, and maintenance upkeeps, so that your budget is not overstretched by your home. [Read more...]