Tuesday, January 27, 2009

Can We Buy A Bank-Owned Property In Disrepair With A New Loan?

Many homes for sale these days are owned by a “bank”, properties that were taken back by the lender for non-payment. With their “floors of attorneys” it is natural that the banks are to be protected when they sell their assets. As such, when you buy a bank-owned property it is As-Is … no disclosure, no repairs, no liability for condition of the home. That is understandable as they have no knowledge of the specific property, but the very nature of their situation and ownership has worked against them.

When a bank takes over a property they immediately turn off the utilities and “winterize” the home. In the summer this “winterizing” process leads to the demise of the landscaping … no water and the plants can’t grow. As the prior owners weren’t making their payments it is often the case that they couldn’t afford to keep up the property maintenance. Paint, carpet, windows and more are often required with such properties. This type of property is really price right these days so how do you buy one with a minimum down if it needs substantial repairs in addition to the acquisition cost?

The FHA 203k Streamline is, perhaps, your means to owning such a property and enjoying it in a rehabilitated state. With this loan program you can have up to $35,000 set aside for repairs as a part of your loan. Acceptable repairs can include remodeling kitchen and bathrooms, new exterior work like stucco, replacing plumbing fixtures, new flooring and roofing, and major landscaping improvements. If you can demonstrate the ability you can “self-help”, government talk for doing it yourself. If you are hiring a contractor it is a good idea to get him on the job before you venture to get his ideas on what can be done and at what cost.

The loan can be used to refinance and rehabilitate as well as for a purchase. It is only for owner-occupied properties, though it can be used for up to a four-plex provided the owner lives in one unit. Manufactured homes in accordance with HUD guidelines qualify, and you can even move a home from one lot to another. Safety code violations must be corrected and energy conservation standards met while no luxury improvements as defined by HUD are allowed.

Our Advice: The FHA 203K or the FHA 203K Streamline could be the means for letting you buy a home and making it your dream home with the needed repairs and alterations. The criteria differs between them. Talk to a Lending Professional about these programs and how you can get preapproved to go shopping in the bank-owned arena of properties. Your lender will detail the specifics of the loan and the mechanics for implementing it for you. The down payment is minimal and the rewards many.

Don’t be lamenting from the sidelines in this market. The FHA 203K program can help you buy a diamond in the rough and shine it up all at a great price with one loan. It’s worth a phone call to see how it could work for you. Don’t experiment with lenders … if you don’t know one ask your real estate agent for the names of reputable lenders that can help you. Get your Agent, Contractor and Lender working together and you will undoubtedly have a winning combination with you being the Victor! When it comes to choosing professionals to assist you with your real estate needs…
Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Sunday, January 4, 2009

It's Not Every Day We See Our Critters In The Newspaper! Corky Makes Her Debut!

Oh! The Joys of Country Living!

We live in a small community in Northern Nevada just 15 minutes from Lake Tahoe and an hour south of Reno.

Although we have lived and worked in
Carson Valley for a long long time we just moved “out” to the country 5 years ago. Leaving our ”in town” home of 25 years to relocate on to 5 acres was a long term goal for Lisa. Jim … with the bribery of a new Kubota tractor to “farm” with … was a fairly easy convert.

This morning, a quite country Sunday, we opened out local small town paper to find a good sized photo of our newest miniature donkey smiling at us from the second page! Apparently someone on the
Record Courier staff thinks she’s as cute as we do!

For All you Carson Valley Real Estate or to look through all our Northern Nevada Real Estate Listings …
Search the Entire Northern Nevada MLS …Click Here

Something Good Happened Yesterday At the Office … We Were Busy!

Could it be that we are off to a great start? Something good happened yesterday at the office … we were busy! Yep! January 2, 2009 was a busy day!

Well … OK … not 2005 “BUSY” ; but, busier than we have been in quite some time. Regular people walking in the office to ask about real estate possibilities, other agents calling to set up showings of our listings, RE/MAX agents in their offices meeting buyers and sellers! Yeah! Real business going on!

We definitely have a long way to go … but this is a very good start!

Experience is Priceless! Call Lisa and Jim for all your Northern Nevada Real Estate needs! If we can’t help you we know someone who can! Email carsonvalleyland@hotmail.com or dpwtigers@hotmail.com 775-783-6854 or 775-783-6855, cell 775-781-5472 fax us at 775-782-4117.