Wonder what the foreclosure market in Liberty, MO looks like? Check out Liberty, MO Foreclosures and see for yourself!
Ron Henderson & Associates
Keller Williams Kansas City North
According to a recent survey of Keller Williams agents across North America, the majority of homes close on time, but what can keep a home from closing?
Common Reasons for Delayed Closings
1. Short sale approval took longer than expected
2. Appraisal issues
3. Lender took too long
4. Loan underwriting took longer than expected
5. Additional documentation needed
6. Buyer did not provided documents to lender in a timely fashion
7. Home repairs needed to be conducted
8. Could not close with an active dispute on credit
9. Additional requirements by down payment assistance program
10. FHA loan requirements took additional time to complete
11. HOA application
12. Escrow company did not complete all required activities in a timely manner
13. Title issues
If you'll notice, 8 of these have to do with the lender. That's why it's so important for you as a consumer to go with a lender recommended by your real estate agent.
There are a ton of mortgage companies out there which give you a lot of options as far as who you'd like to work with. The fact is though, that in the end, you are only going to work with one lender. Your agent on the other hand, has had the opportunity to work with lots of lenders, because sometimes clients come to their agent with the lender already chosen. Thus the agent is forced to complete the deal with a lender they don't know. The agent quickly learns who is a good lender and who is not.
So when you're buying a home in Kansas City and your agent gives you some lenders to call, be sure to do exactly that. Your transaction is much more likely to close on time if your agent already has a relationship with your lender.
The lender wants to keep the agent happy so that the agent continues to send them business. Additionally, the agent gets absolutely no financial gain from recommending a lender to you. Lenders are prohibited by law from paying agents for referrals. The only advantage an agent gets when you choose a lender they recommend is peace of mind! And that means YOUR transaction is more likely to be a piece of cake rather than a delayed mess!
-Elizabeth Gilbert, Licensed Executive Assistant
I was driving into the office this morning and heard an ad on the radio. Maybe you’ve heard it too, and it just really makes me shake my head in disbelief.
It goes like this: A lady has invited her friend over to see her new home and the friend comments about how nice it is. The lady then says, “Yeah, and can you believe this was a foreclosure? I bought this house for $29,900 and my payment is only $190 per month!”
Then the ad goes on to say you should call them for a list of foreclosures in your area.
OK. Here’s where I have to set the record straight! Sure, you can purchase a foreclosure for $29,900. In fact, there are over 100 homes priced between $29,000 and $30,000 in the Heartland MLS right now. What they don’t tell you on the radio though, is that these homes are super tiny and in just poor condition or they are larger homes in absolutely terrible condition. Take it from me, the majority of these homes smell terrible!
Secondly, no bank is going to loan you less than $50,000 unless it’s an FHA 203k loan in which case you would be borrowing additional funds for the repairs and your monthly payment would no longer be $190. Which, by the way, does not include taxes and insurance.
Bottom line, there is no such thing as a $30,000 move-in ready home for $190 per month. Oh, and to get the list of foreclosures, you likely have to pay a fee. You can easily get the list for free from a Realtor®. Just don’t expect them to show you every home on the list!
-Elizabeth Gilbert, Licensed Administrative Assistant
A typical $29,900 foreclosure looks like this:
According to the most recent Realtors® Confidence Index, buyers continue to be discouraged with the extended short sale process, resulting in foreclosures that could have been prevented. New resources from the National Association of Realtors® aim to help Realtors® and consumers successfully navigate the short sale process to help more homeowners avoid foreclosure.
“Our members report that short sales are often riddled with delays and red tape,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “As the first, best source for real estate information, Realtors® are dedicated to help streamline and improve the short sale process for both buyers and sellers.
I would certainly agree with the frustrations over the amount of time it takes to get a short sale approved. Some of the lenders I've worked with jump on board relatively quickly, but others like Bank of America can drag out 6-12 months.
I think I've been more successful than most, but I've had 3 short sales this last year that ended up going into foreclosure. Honestly though, all three sellers simply waited too long before contacting me. When your already 6 months late on your payments and they're sending you a final notice of sale (via certified letter) it's much harder to stop the foreclosure at that point.
Pre-Foreclosure is the term used for homes that have been scheduled for a foreclosure sale but have not yet gone to auction or been sold off. Often times this period of time can range from anywhere from a month to a year, depending on the customs and laws of the state or county. Just because they have not yet been sold off does not mean they cannot be purchased, as many home owners look to sell their home before a foreclosure sale takes place.
What are Pre-Foreclosures?
The process of foreclosure begins when a homeowner defaults on their loan. Generally when this occurs, the lender involved will issue the homeowner a notice of default, and for all intents and purposes this begins the preforeclosure period. From here on out many things may happen—the homeowner may raise the money to pay off their default debt to the bank or lender and stay in their home, the lender issues a Notice of Sale and arranges to put the property up for sale at a later date, or the homeowner finds someone willing to buy their home and avoids a foreclosure sale. This last option is becoming increasingly common, as investors and home buyers alike often look to find great homes for sale at extremely low prices through the preforeclosure market. Buying or investing in preforeclosure homes can be extremely lucrative, because often times a homeowner will be willing to sell off real estate in danger of foreclosure for very low prices simply to avoid a foreclosure sale. Many buyers end up finding deals of anywhere up to 50% off the true market value of a property. Since real estate sold by agents and brokers dominate the market, it can be hard to find properties available through this means. A good idea is to consult a pre-foreclosure specialist to find property available in your area, as well as information on how to go about purchasing these valuable properties. If you have questions about buying a pre-foreclosure home in the Greater Kansas City area, please contact Ron Henderson at 816-651-9001 for more information.
How Preforeclosures Begin
Low Prices on Pre Foreclosure Homes
Finding the Right Pre-Foreclosures
The process of foreclosure begins when a homeowner defaults on their loan. Generally when this occurs, the lender involved will issue the homeowner a notice of default, and for all intents and purposes this begins the preforeclosure period. From here on out many things may happen—the homeowner may raise the money to pay off their default debt to the bank or lender and stay in their home, the lender issues a Notice of Sale and arranges to put the property up for sale at a later date, or the homeowner finds someone willing to buy their home and avoids a foreclosure sale. This last option is becoming increasingly common, as investors and home buyers alike often look to find great homes for sale at extremely low prices through the preforeclosure market.
Buying or investing in preforeclosure homes can be extremely lucrative, because often times a homeowner will be willing to sell off real estate in danger of foreclosure for very low prices simply to avoid a foreclosure sale. Many buyers end up finding deals of anywhere up to 50% off the true market value of a property.
Since real estate sold by agents and brokers dominate the market, it can be hard to find properties available through this means. A good idea is to consult a pre-foreclosure specialist to find property available in your area, as well as information on how to go about purchasing these valuable properties.
If you have questions about buying a pre-foreclosure home in the Greater Kansas City area, please contact Ron Henderson at 816-651-9001 for more information.
Just last month, one of my clients was able to purchase this same exact model home, located just 2 streets to the East, for only $440,000. That's almost a $100,000 discount! How did they do it? The home my clients purchased was a bank repo!
Most consumers today understand there are some fantastic deals out there and they typically know that bank owned properties are some of the very best. What they don't realize is that you have to be ready to go with your financing all lined up because sometimes the best deals go fast.
I do list some bank owned real estate in Kansas City myself and I get a lot of calls about these homes, but what most callers don't realize is that the bank is looking for a "non-contingent" offer. This means you either must be renting at the time, already have your current home under contract, or be able to financially afford to buy that new home before you've sold your current home.
To get a REAL deal on a new home like the one above takes a little upfront planning and it takes a buyer that's willing and able to leave their options open and maybe even take a small risk to get a deal done.
If you'd like to see what might be possible for you, please call Ron Henderson at (816) 651-9001 so we discuss your options and prepare you to get the very best deal on a new home.
I have to be honest. I just don't understand why more home sellers are not willing to consider selling their current home and "moving up" to a larger home in this market. I suppose it's because I'm in real estate every day and I see so many incredible deals being made that I get so excited about these wonderful opportunities.
If you listen to the news media, they'd have you believe the sky is falling. I've spoken with so many home owners recently that think they couldn't possibly get their home sold in this market and that's simply not true.
Real estate is a local market and although it may be true that some areas of the country continue to have difficulty, for the most part the Kansas City area isn't effected like that.
Having said this, there are some great opportunities in Kansas City if you plan ahead, retain a great Realtor, and are realistic about the sale of your current home. Let me give you an example.
This last September, a good friend of mine told me he and his wife needed to sell their current home. They live in a two-story home and now that the kids are gone, they're tired to trekking up and down the stairs all the time. John said they wanted a nice home with the master bedroom on the main level.
After taking a look at their home, we took some extra time to tile the master bathroom floor, repaint some bedrooms, replace some light fixtures and then have it professionally staged and photographed (two services I personally provide to all my sellers). It was a beautiful home with large bedrooms, a finished basement, updated kitchen including granite counters, etc.
We put this home on the market at $177,000 and received a full price offer in 3 weeks! The sellers were obviously very happy and realized that although they may have had to sell the home for about $5,000 less than they would have in a "normal" market, the quick sale time made it worth it
Now the best part. When looking for their next home, we stubbled upon a bank repo that was well underpriced at $320,000. This home was only 4 years old and had sold brand new for $390,209. We made an offer at $300,000 and with the sellers putting 50% down, the bank took it! If you question whether they got the deal of the century, just check out these photos.
This home has over 4,000 square foot of finished area, 4 bedrooms, 4.5 bath, finished walkout basement with media room, surround sound installed both up and downstairs, gigantic granite island in the kitchen, a huge wall of windows in the living room that looks out onto their beautiful view of the woods behind their home. The list goes on and on.
I figure the buyers easily got a $100,000 discount on this home and they couldn't be happier! This is only one of the many great deals I've been able to get for my client in 2008. I'm looking forward to helping more people get great deals like this in 2009 too.