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

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.

What Can We Expect For 2009?

We are very optimistic about real estate in 2009. The markets of the past few years have set this year up to be one of great healing and activity. The market slowdown of 2006, the crawl of 2007, and the economic roller coaster ride of 2008 all have served to bring Buyers and Sellers to their senses. We believe 2009 will be a year to stabilize, recover, and move forward.

Our reasons for optimism are plenty. We have the “Perfect Storm” Market for a Buyer. Interest rates are at a 37 year low with the potential for government-directed further reductions in the near future. There are many homes to choose from in most market segments and most of the deadwood, exorbitantly high priced properties, has been removed or is so out of touch with reality that it doesn’t confuse the market anymore. This is good for both Buyers and Sellers. The many overpriced listings of unrealistic Sellers previously served only to confuse other Sellers and cause Buyers to wait for the market drop. Well … the market has dropped, and most Sellers have adjusted their expectations to where they are closer to reality.

Entry level housing is currently available for payments that aren’t much more than rent with little or nothing down given the marvelous interest rates. Many first-time home Buyers are looking and acting right now before the market gets traction. They are delightfully surprised with what they can buy and how affordable it really is today.

At the other end of the market, the just, or soon to be, retired folks will soon be coming to grips with their stock portfolio losses, generally touted in the media at 40% for most of them. They are/will realize that the home they wanted to buy has also dropped that much percentage-wise, and is pretty close to the being the same percentage of their total net worth that it was when they panicked, picked up their marbles, and went home to wait and see what was going to happen.

While Sellers have gone through a tortuous 18 month steady decline in their home’s market value, for the Buyers their stock loss was “instant”, 30 days, or so. BAM! It was, of course, unbelievable. Then it was real … then really real. As they recover from their shock they will be ready to take action, and we believe real estate will be the preferred investment avenue of choice for those looking to mitigate their losses and to protect their economic future.

Our Advice: Real Estate prices are generally around where they were in 2003, and the stock market is around where it was in 2003 - they are about on par with one another. The entire world is working to remedy the economic situation. With that much positive intention it only makes sense that the collective consciousness of the Nation, now one of panic, denial, and inactivity, will change to one of positive expectation and decisive action. As it does everyone will breathe a little easier and the fun and joy will return to our industry.

This is the year of the solution and you can be a part of it. The rebound will come later, but we look to a recovery in 2009 that will establish a new foundation for our market. Get off the sideline and into the game – its where the action is!

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