Foreclosures the best purchase option for first time home buyers

by Dan Havey on August 23, 2011

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In the last couple of months 40% of all the total sales in Maricopa County were foreclosures 40% of the total market were foreclosures and that’s not including short sales and so normally someone is doing a short sale because their bank is not willing to work with them to do the loan modification so we could be taking 50% maybe 60% I don’t know off of the amount of supply that we have in the market as soon as we do that we are going to start to see the bottom of this market.

SO right now again I think it is a fantastic time to get out there with government intervention it’s a great time to get out there and buy a house.

Most people who are out there looking at homes today they have already met with a realtor or they have met with their mortgage planner or both and they are ready to get out there and go.

One of the things that is still happening out there is it is still a cold buyer’s market.

The buyer can still go buy a home that fits their needs, their families needs that they can grow with and the seller in most cases and I am talking about the majority of the cases is willing to pretty much do what ever they can as long as they get somewhere close to where they need to yield on this property they are willing to pay all of your closing costs in almost every case and if there are some repairs that need to be done then they are willing to do those again in almost every case.

It has to be of course within reason and it also has to be repairs that need to be done.

For instance if you want granite countertops because you do not like the Formica that is in there no the lender is not going to pay for that.

But if there are no countertops then the lender in most cases will do that.

It has to be a primary residence they are not going to do this for investors we have had a lot of cases moving past that point you can get the lowest interest rates in July get the seller to pay most of your closing costs, you do need to get in and get preapproved, not prequalified – preapproved for a loan so you have that check with you when you go out to make an offer you are approved and we can close that loan in a hurry and you will not have any problems.

And one of the things that you did mention is about the home owners and the sellers and one thing especially here in Arizona there are so many people who are upside down in their homes right now you have the same issues in Florida and California everybody knows the states where they have been really hard hit and so it is really difficult for a seller who is $100,000 upside down in their home put their house on the market and get it sold and be able to give a good deal to a first time home buyer so that why I think in this market right now the foreclosures are some of the best deals out there where you have a motivated seller you have a vacant house in some cases you even have financing available from the seller of the property being a Fannie Mae or somebody like that and so the foreclosures right now are definitely the hot spot in the market what we were saying a couple of minutes ago was that there’s a potential that coming six months from now these foreclosures could be gone.

And that is great for everybody Yes it is great for everybody and now is the time to get in there and snap them up and I have heard anecdotal stories just recently my brother recently picked up a couple of REOs and he is paying somewhere between $30,000 and $50,000 for these things, two of them were tri-plexes.

And I know someone just the other day bought one for $45,000 it was a three year old house they had to clean the carpet and moved the tenant in the next day and that was actually someone who worked in your office Michael one of his clients.

Pretty easy to cash flow on a $45,000 house It’s really easy to cash flow on a $45,000 house and the rent on that was probably about $1200.

So I do not know what are they making 500, 600, 700 dollars a month and in that case it was an investment property and they bought it with money out of their IRA in that case.

But what I am saying is that’s the kind of prices you can get.

Now I am not saying go buy the $45,000 house because I do not know what the neighborhood was like he said it was brand new but maybe you have to buy the $150,000 house but the biggest thing is make sure you get pre-qualified first.

Don’t start looking at foreclosure properties or any other property until you go to Velocity Financial and get yourself pre- qualified.

The phone number to call is (480)Velocity you can call now and talk with Leslie she will take your information I will call you back in the morning if you would like but (480)Velocity and that is Velocity Financial and we will be right back.
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