Foreclosure Does Not Mean For Sale
July 4, 2008Everyone is using the word “foreclosure” to attract you. Just search for Boise foreclosures, and you’ll see thousands of websites. What surprises me is how few are Realtors or licensed agents.
There are many dot-coms selling membership for access to lists of “foreclosures”. Once a default notice is published, the home shows up on websites everywhere as a foreclosure. However, the majority of these homes will never be for sale.
The Mortgage Insurance Companies of America recently reported that 67,967 loans with mortgage insurance fell 60 days behind in May, 2008. Remarkably, 59.8% of those homeowners got back on track. Therefore, roughly 60% of the foreclosures on many websites will be a waste of time.
The remaining 40% have months before the default sale and many options, including a repayment plan, modification of loan, partial claim on FHA, forbearance, refinance, re-instatement or bankruptcy (ask your attorney). If all else fails, a short-sale is better for your credit than a foreclosure. Since the average foreclosure costs lenders around $40k, many are willing to allow a work-out; liquidation short-sale.
Now we’re down to maybe 5-10% of defaults making it to a foreclosure sale- your area may differ from Boise Idaho. If you want to buy at the trustee sale at a local title company, you’ll need cash for the full amount and a willingness to buy on short notice with limited inspections and limited title guarantees. And these sellers won’t pay for a buyer’s agent.
Now let’s talk accuracy. Many dot-com lists are based on public records and don’t reflect a pending offer or sale until the sale is recorded, which may be months too late. Life is too short to work with a bad list of maybe for sale homes!
Your local Realtor has access to the most accurate and useful information. Today, there are 300+ homes listed by Realtors subject to short sale in the Boise area. Also, nearly 190 foreclosed homes from HUD, VA and Banks, which come with no delays, less worries about clear title and the safety of inspection and financing contingencies. And professional representation for you paid by the seller.
Dan Rowe ABR GRI CRS, Broker/Owner of Dan Rowe Realty, Boise Idaho www.repomandan.com
Since 1991, representing buyers on Repos; pre-foreclosures, foreclosures, foreclosed homes and short sales in Boise, Meridian, Eagle, Star, Kuna, Nampa, Caldwell & Middleton Idaho.
