Saturday, November 21, 2009

FREE LIST OF HUD HOMES IN CENTRAL OHIO

Free list of HUDS in Ohio!! I specialize in the Central Ohio area!!
Posted by Molly Hay under For Buyers, Listings, Fave Neighborhood, Ask a REALTOR, Columbus
If your looking for a free list of HUDS in Central Ohio I have designed this website for you! Every week I pick select Showcase HUD Homes that offer the most instant equity!! If you don’t find what you are looking for please email/call me and I will email all the HUD Homes in the area of your choice!!

http://mollyhay.postlets.com

HUD Home for sale in Newark!! Newer Built and a ton of equity!

HUD Home for sale in Patakala!! Offering a lot of Instant Equity!!

This HUD Home offers everything!! Perfect Floor plan and Popular Location!!

WOW!! Beautiful HUD Home in Perfect Condition!!

Awesome HUD Home with over $60,000 in instant Equity

Wednesday, November 18, 2009

Extension of homebuyer tax credits now law

President Obama signed a measure today that includes an extension of the $8000 first homebuyer tax credit that was set to expire at the end of November. In addition, the bill creates a $6500 tax credit for homeowners who purchase a new residence.

The $8000 tax credit is open to new homebuyers through April of 2010. To be eligible, first time homebuyers must have an income of not more than $125,000 for individuals and must be acquiring a home for $800,000 or less. The IRS will have increased ability to recognize and stop fraudulent use of the tax credit.

The $6500 tax credit is available to those who would like to acquire a new home after having occupied their current residence for at least five years. This credit could be claimed by those with a closing date of Nov. 6 or later.

The $24 billion bill has substantial momentum due to the inclusion of jobless benefits that extend the amount of time individuals can claim unemployment by up to twenty weeks

This is awesome news for anyone who was thinking about selling their existing home and for first time buyers to have another shot of finding their first home!! For sellers who are selling their existing home the $6,500 can help you in a couple of different ways. For example: If your losing a little on your current home, If you need help with a down payment or closing costs on the second home or to pay off debt.

Call Molly Hay today for further details! 614-581-2086

Thursday, October 8, 2009

M/I Homes just announced a new product starting in the low $100's!!!

M/I Homes has just rolled out 5 new Eco series plans with PHENOMINAL prices!!! The homes have slab foundations standard (community specific) and start as low as $109,900!!! They are on traditional lots with an average size of about 50x120! We are now building the Eco Series in the following areas:
Blacklick
Canal Winchester
Pickerington
Worthington
Grove City
Marysville
Galloway
Gahanna
Westerville/new albany area
Pickerington
Gahanna (COMING SOON!)
Call me today to get additional information or to schedule a tour!
MOLLY HAY 614-581-2086

Tuesday, October 6, 2009

HUD Home For Sale: 4BR/2.5BA Single Family House in Blacklick, OH, $140,000

For Sale: 4BR/2.5BA Single Family House in Blacklick, OH, $140,000

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HUD Home For Sale: Good Condition: 3BR/2BA Single Family House in Pickerington, OH, $141,000

For Sale: 3BR/2BA Single Family House in Pickerington, OH, $141,000

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HUD Home For Sale: 3BR/2.5BA Single Family House in Pickerington, OH, $150,000

For Sale: 3BR/2.5BA Single Family House in Pickerington, OH, $150,000

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HUD Home For Sale: 4BR/2.5BA Single Family House in Reynoldsburg, OH, $175,000

For Sale: 4BR/2.5BA Single Family House in Reynoldsburg, OH, $175,000

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HUD Home For Sale in Hamilton Schools: 3BR/1BA Single Family House in Columbus, OH, $58,000

For Sale: 3BR/1BA Single Family House in Columbus, OH, $58,000

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HUD Home For Sale, Westerville Schools: 3BR/1.5BA Single Family House in Columbus, OH, $92,000

For Sale: 3BR/1.5BA Single Family House in Columbus, OH, $92,000

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HUD Home For Sale in Obetz:Unheard of deal!!: 4BR/2.5BA Single Family House in Obetz, OH, $80,000

For Sale: 4BR/2.5BA Single Family House in Obetz, OH, $80,000

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Friday, August 28, 2009

HUD Update on $100 down!! This is important!!

The $100 down payment financing is available on most properties through FHA approved lenders. Please note that the $100 down offer applies if the purchase price is over $25,000 and is less than or equal to the appraised value of the property. If the purchase price is greater than the appraised value, the purchaser may obtain a new FHA appraisal to support the higher mortgage amount or must pay cash in the amount of the difference between the appraisal and the purchase price less $100. Buyer is responsible to secure an approved lender who will accept a new appraisal. For more information on updates visit http://www.nhmsi.com/announcements.html

Saturday, July 18, 2009

For Sale: 3BR/3.5BA Single Family House in Columbus, OH, $75,000

For Sale: 3BR/3.5BA Single Family House in Columbus, OH, $75,000

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For Sale: 3BR/1BA Single Family House in Grove City, OH, $83,000

For Sale: 3BR/1BA Single Family House in Grove City, OH, $83,000

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For Sale: 2BR/1BA Townhouse in Columbus, OH, $75,000

For Sale: 2BR/1BA Townhouse in Columbus, OH, $75,000

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For Sale: 3BR/2.5BA Condo in Columbus, OH, $74,000

For Sale: 3BR/2.5BA Condo in Columbus, OH, $74,000

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For Sale: 3BR/1.5BA Single Family House in Columbus, OH, $98,000

For Sale: 3BR/1.5BA Single Family House in Columbus, OH, $98,000

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For Sale: 3BR/2.5BA Single Family House in Canal Winchester, OH, $95,000

For Sale: 3BR/2.5BA Single Family House in Canal Winchester, OH, $95,000

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For Sale: 4BR/2.5BA Single Family House in Blacklick, OH, $129,000

For Sale: 4BR/2.5BA Single Family House in Blacklick, OH, $129,000

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For Sale: 3BR/2.5BA Single Family House in Blacklick, OH, $165,000

For Sale: 3BR/2.5BA Single Family House in Blacklick, OH, $165,000

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Saturday, June 13, 2009

New Ways to use the $8,000 tax credit for your down payment in Ohio!!

OHFA is now changing the program to allow assistance help. How the program works is there will be 2 mortgages set up. 1 with the loan amount and the 2nd loan will be 3% of the loan amount not be due until August 2010! By August of 2010 you will have your $8,000 tax credit to pay this loan off. Now all the first time homebuyers will need is .5% of the purchase price (example: loan amount $100,000, .5% would be $500 down) $500 is typically what your earnest money deposit is! Now is the time to buy! Don’t miss your chance to own a home with this opportunity.

Here is how the program works:

Let OHFA help you with down payment and closing costs through the Homebuyer Tax Credit Advantage Program featuring no interest and no loan payments until August 2010. Eligible borrowers participating in the First-Time Homebuyer Program or Ohio Heroes Program can use the loan to greatly reduce the out-of-pocket expenses associated with buying a home.

If you qualify for one of OHFA’s home loan programs, you can choose to take advantage of the Homebuyer Tax Credit Advantage Program.

•OHFA will issue a loan, as a second mortgage, up to 3% of the purchase price of the home.
•You can use the loan to pay for the down payment, closing costs, or other prepaid expenses incurred prior to closing. Keep in mind that while the loan will greatly reduce your expenses, you may still be required to pay for some costs if they are not covered by the loan.
•If you take advantage of the loan, your second mortgage interest rate will be fixed at 1% higher than OHFA’s current mortgage rates and you will begin paying August 1, 2010.
•You may be eligible for a new federal First-Time Homebuyer Tax Credit of up to $8,000. You may claim the credit either on your 2008 federal tax return, due April 15, 2009, or on your 2009 tax return filed in 2010. More information about the First-Time Homebuyer Tax Credit is available from the IRS web site.
•Incentives are available if you choose to prepay the Homebuyer Tax Credit Advantage loan by June 30, 2010. Otherwise, your mortgage payment will increase slightly due to the added second mortgage loan payment.
Do I Qualify?
To qualify for the Homebuyer Tax Credit Advantage Program, you must meet all requirements for your OHFA homeownership loan program and close on the home by November 30, 2009. You may also want to claim the federal tax credit of up to $8,000 on either your 2008 federal tax return, due April 15, 2009, or on your 2009 tax return filed in 2010. Check requirements for the First-Time Homebuyer Program and Ohio Heroes Program.

In addition, you must either:

•Complete a free homebuyer education course offered by any HUD-approved housing counseling agency, or
•Use the streamlined OHFA homebuyer education program
Call Molly Hay for additional information: 614.581.2086

Understand the steps to buying a HUD home with $100 down

Things You’ll Need:
•Pre-approval
•Hud Authorized Realtor - Call Molly Hay for details. 614.581.2086
•Earnest money
1.Step 1

Find a loan officer, bank or credit union, to have them go over your credit and get a pre-approval.

2.Step 2

Have your loan officer fax a copy of your pre-approval to your Realtor. For this program you must be approved for a Fha loan. Make sure you give your Realtor your loan officer’s name and phone number.

3.Step 3

Find a Hud authorized Realtor - Call Molly Hay for details. If you have not done the previous steps, your hud authorized Realtor can help you find a loan officer.

4.Step 4

Now that your Realtor have your pre-approval, you will know exactly how much of a home you can afford. Never go out to see homes with out this pre-approval, it is nothing like falling in love with a home and to find out later that it is not in your price range.

5.Step 5

Ask your realtor to email you HUDS in the area you are interested in.

6.Step 6

When you find the home of your choice you will need to put down $500 -$1000 - $1500 for earnest money. Earnest money shows that you are serious about the purchase of this home now I know that you are asking your self where does the $100 comes in at. Read the next step. Earnest money will vary depending on the purchase price of the home.

7.Step 7

Fha loans are approved at 97%, meaning you have to pay 3% of what ever your loan will be, for example if your loan is $160,000 your down payment will be $4,800.

8.Step 8

With the Fha loan you will no longer have to pay 3% of your loan. You only pay $100! Now that is a great program and it ends September of 2008.

9.Step 9

The $1000 that you put down as earnest money will go towards your closing cost! Hud will also pay 3% of your loan amount towards your closing cost, I told you it was a great program.

HUD $100 Down Payment Program

Posted by Molly Hay under For Buyers, For Sellers, General Information, Fave Neighborhood, Ask a REALTOR
$100 Down Payment on HUD Homes!

HUD has announced several new sales incentives on HUD homes that will make
these homes more affordable for homebuyers.

HUD has a special program for a limited time only which allows an owner-occupant buyer to pay only $100 down, instead of the usual required 3.5% down, and HUD will pay up to $2500 towards closing costs!!!!

In fact even some of my clients are getting any where from $500-$1500 back at closing!!!

If you ever thought about buying your own home…NOW is the time…
ONLY $100 down payment on a beautiful HUD home
* Large inventory of HUD homes available.

* Loan interest rates are low which means you can buy more home today

* Bargain prices on HUD Homes ready to move into now, Most properties are $30,000 - $100,000 below appraised market value!!!

Here are the requirements:

•It must be an owner occupied home. This is not a program for investors.
•The home must be purchased with FHA financing.
•This loan incentive is also available to owner occupant purchasers who obtain a FHA Home Repair loan. (203K Loan)
•Homes must be purchased through a HUD registered real estate agent.
•You do not need to be a first time Home Buyer
Now is a good time to consider the purchase of a HUD home in the Columbus OH area.

Please feel free to email me your contact information and the areas you are considering and I will email you HUD properties in the Columbus Ohio area.

Visit my HUD website at http://mollyhay.postlets.com

Understanding The Foreclosure Process

What is a Foreclosure?
A foreclosure occurs when a property owner cannot make principal and/or interest payments on his/her loan, typically leading to the property being seized and sold.

How does a foreclosure occur?
The foreclosure process is not very difficult to understand. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure.

After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default (NOD). At the County Recorder’s Office. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off.

If the default isn’t corrected (the loan must be brought current) within three months, a foreclosure sale date is established. The homeowner will receive a Notice of Sale, and this notice will also be posted on the property. In addition, the Notice of Sale is recorded at the County Recorder’s Office in the county where the property is located. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period.

The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are designated in the Notice of Sale. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The winner of the auction will then receive the trustee’s deed to the property.



What Happens at the Foreclosure Auction?


At auction, an opening bid on the property is set by the foreclosing lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. If there are no bids higher than the opening bid, the property will be purchased by the attorney conducting the sale, for the lender.

If this occurs, and the opening bid is not met, the property is deemed a REO or Real Estate Owned. This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender.

When you purchase property at a foreclosure sale, all junior liens other than property taxes are wiped out. Priority of liens is determined by the date of recording. When you purchase a REO aka. Bank REO, you will typically receive the property with a clean title.

Buyer’s Guide to Buying a Bank-Owned or Foreclosure Property

Posted by Molly Hay under For Buyers, General Information, Ask a REALTOR
In today’s market, nearly four out of every five homes sold are bank-owned foreclosure properties. These are commonly referred to as Real Estate Owned (REO) properties

Buying an REO property is very different than a traditional buyer/seller transaction. The process is much more taxing and several more entities are involved in the REO transaction. This can create more time and challenges.

Many REO homebuyers, especially those buying a home for the first time or their first bank-owned property, get frustrated during the process.

Since the REO phenomenon started dominating sales, not coincidently, customer service scores in title, escrow, lending and real estate have plummeted.

I hope you find this guide helpful in your REO Home buying process. While this guide will not change the way the transaction occurs, it may help set more reasonable expectations upfront and eliminate some surprises.

Buying an REO is a great way to save money and get a fantastic deal. Just be prepared for the uniqueness of the process.

What is an REO or bank-owned property?

A property acquired in foreclosure and now owned by the bank that foreclosed on the property is called an REO or bank-owned property.

How did this property become an REO?

The last owner of this home was not able the mortgage payments. The mortgage note holder seized the property and evicted the owner. The bank attempted to auction the property and pay off the existing liens and mortgages. If that was not successful, the bank was then deeded the property by the Trustee. It is now an REO property.

How do banks sell REO properties?

The banks are not in the real estate holding business so they must sell these homes and turn them into cash. Because most foreclosed properties are not successful at auction, REO properties have flooded the market.

In any market, if there is oversupply, the property values depreciate. Because of the depreciated market, the banks are going to take, in most cases, a substantial loss on the property.

The banks have independent, professional real estate agents that assist them is marketing and selling their REO inventory. The banks also assign asset managers who work closely with these agents.

How do banks price their REO properties?

When a bank takes over a property, they conduct their own due diligence to get an accurate idea of the value of the home.

They hire a team of people to assess the current market value of the property through Real Estate Broker Price Opinions (BPO) and, in some cases, full property appraisals.

Based on these findings, they typically price the home within 10% of the current market value. There are always exceptions.

Banks are in business to make money. If they cannot make money, they need to minimize their losses. Banks are looking for a certain “net amount” on each particular property. This “net amount” is based on their research of the current market value minus costs associated with the property. They have priced the home sell quickly but as close to market price as possible.

Many buyers make the mistake of thinking the bank is desperate to get rid of the property. They believe they can submit a low-ball offer and expect to get an acceptance or at least a counter-offer. Think again! Low-ball offers (below 10% of list price) are not typically taken seriously. They may be a waste of your time and your agent’s. Worse yet, you may be perceived as an illegitimate buyer. Banks own many homes in the same area, and they use many of the same agents, so this could adversely affect future offers you make on other properties owned by the same bank or listed with the same agents.

Be reasonable. Do your research with your agent and determine what the home is really worth. Make your offer according to the home’s value, not to list price.

There are stories of buyers making tens of offers and not having a single one accepted. By making offers based on the home’s true value and not what it’s listed for, you can mostly avoid this challenge.

How do I find an REO property?

There are thousands of REO properties in our market. There is only one way to effectively research them all in a timely manner…hire a professional real estate agent. The seller, upon the successful completion of the transaction, typically pays for the buyer’s agent commission. This will cost you nothing, but may save you tens of thousands.

Are REO properties damaged?

Some are. Many are not. It is important to inspect the home yourself before making an offer. Once you have viewed the property, consult with your lender about the damage the home has, if any.

It is equally important to have a professional home inspector inspect the property before you commit to purchasing it. Your real estate professional will refer you to a top quality home inspector. When the inspection is complete, your lender will likely want to review a copy of it. They do this to protect you and their loan collateral, your new home.

Many loan programs will require repairs to be completed before you close escrow. If you do not have the money to do this and the selling bank is not willing to make these repairs, you may need to find another home.

What does “As-Is” mean?

Nearly every bank-owned property today is sold “as is.” You will have to sign a waiver that states you are willing to accept the home in the condition it’s in with no further repair.

If a bank is marketing their home “as is”, there is a possibility that the home needs repair and they are not willing to make them. Have your Real Estate Professional give you a thorough run down on what “as is” means to you during a transaction and once you have closed on the property. In addition, consult with your lender before making an offer on an “as is” home. Not all loan programs will allow you to buy a home that needs substantial repairs.

I am ready to buy an REO property, what do I need to do to get pre-qualified?

If you make an offer on a bank-owned property, they may require you to be pre-qualified with a home loan consultant from their own bank. They do this for two reasons; assurances and opportunities.

They want assurances that you are truly qualified to make an offer. While you may be pre-qualified by another lender, they will still want to review your credit, income and asset scenario in their own systems to make sure they are selling the home to a truly qualified buyer.

It is not negotiable in most cases and most banks will not consider your offer without a pre-qualification letter from their own institution.

This is legal for them to do this. However, you are not required to use this bank for your new mortgage loan; you just need to be pre-qualified through them. You can use whichever lender you choose for your actual purchase.

If you don’t want to be pre-qualified through numerous lenders, you may want to reconsider making offers on bank-owned properties or ask your agent to narrow your search to banks without this requirement.

The banks also want to create a business relationship opportunity with you, as well as your agent.

Do not let this mandatory pre-qualification discourage you. This is truly in your best interest. Many times, the Home Loan Consultants from these banks have been authorized to offer steep discounts and other incentives if you proceed with a loan from their bank. It certainly doesn’t hurt to have multiple lenders competing for your business.

In many cases, the bank is taking heavy losses on the property. If they can recapture the mortgage loan, at least it is not a complete loss. This creates an opportunity to parlay the great deal you got on the home with a great deal on your mortgage as well.

I am pre-qualified and ready to make an offer. What is next?

Your offer is submitted to the listing agent. The listing agent may have to submit to the Asset Manager, who works for the bank, and this is where the negotiation happens. It may take a few days for a response. Be patient. Do not bother writing in a short deadline for the seller to respond. They may not pay attention to it.

The bank will likely respond in the first 48 hours. Some banks take 3 - 5 business days. Once again, be patient. This is not your regular seller.

You will not get a response over the weekend or holidays. All offers submitted over the weekend will be presented the following business day.

As a rule of thumb, REO listing agents will tell you if you make an offer and do not hear back within five business days, the offer has been rejected. Do not wait around for the rejection or the counter. It may never come. Come back with a better offer or find another property.

What does bring my “highest and best offer” mean?

Because the homes are priced so well, it is very common for the bank to get multiple offers.

If the bank gets multiple offers, instead of making a counter proposal to you, they may go back to all of the potential buyers and ask for each buyer’s highest and best offer.

This means come back with your best offer, as the bank will choose one at this point. In many cases, the bank will not return counter-offers after they have requested this.

If you are presented with this opportunity, it means you are in the running. You now have one more opportunity to increase the price or better the terms of your offer. You can choose to do nothing at this point but it may not get you anywhere.

Meet with your agent. Determine the true value of the home. Review your down payment, closing costs needs, and loan terms and then come back with your best shot.

I made a list price offer but they didn’t respond. Why?

Many REO properties, especially those listed below market value receive multiple offers. Some houses sell above list price. The bank is like any other seller in the market. They can choose not to accept your offer if one comes in they think is better than yours.

If you offer list price and ask for your closing costs to be paid and another buyer offers list price and doesn’t seek closing costs, the other buyer’s offer is stronger.

How long will it take to complete my transaction and move into my property?

Traditionally, buyer and seller contracts are 30 days. However, this is not a traditional buyer/seller transaction. In today’s REO property market, many buyers feel more comfortable with 45-day closings. Many banks have late fees of $100 or more per day past the contracted close of escrow date. These fees add up quickly so it is important to understand what problems can arise that may make you late.

What can make me late?

Aside from the regular loan process, which sometimes takes longer in today’s stricter lending environment, there are many challenges unique to REO properties.

When the previous owner of your new home was foreclosed on and the bank took possession, a “Trustee’s Deed” was issued in the bank’s name. If this process is not executed properly, it may cause delays when the county is trying to record the deed into your name. There is little that you can do about this except wait until it is corrected. I have seen this issue take between one day to seven weeks to resolve.

If a Home Owner’s Association (HOA) manages the community, your title company will request an HOA demand on the property. This demand will ensure that the bank pays any association fees and fines at close of escrow. If they are not paid at closing, they will transfer with the property into your name and will then be your responsibility.

It’s pretty likely that there hasn’t been an actual person living in this home in sometime. This means the home has not been kept. There may be a lot of fines (landscaping, upkeep, trash, etc.) levied from the HOA.

This can take time and be complicated but is necessary that it is done and done correctly. For more details, ask your escrow officer. It’s their responsibility to get this resolved.

For the most part, if the close of escrow is delayed by problems that are out of your control, the bank should not penalize you. Just be sure to do your part in a timely manner, and you should be ok.

I am in escrow and we discovered a bunch of repairs that need to be made to the home…what do I do now?

Many people that have lost their homes to foreclosure have been struggling financially. This usually means the home has not been kept properly and is in need of repairs and general maintenance. Other homeowners, once they know they are losing their home, damage the property purposely.

When buying an REO property, you must be prepared to do some repairs. Banks may not agree to make these repairs. They may not pay for these repairs. This may require out-of-pocket expense for you.

They may be willing to help with some, but don’t plan on it. Know what you are buying before you make your offer and be prepared to spend some money for repairs before you move in.

In most contracts, you can back out of the purchase if you find problems with the property or in loan qualifying in a certain time period. This is called the due-diligence period.

Make sure you know how long this due diligence period is when entering into a contract. Complete all inspections within that period so you can make an informed decision on whether or not to proceed with the purchase. It is important to respect these deadlines because they are strictly enforced.

Some repairs will be obvious when you visit the property. Others may be identified during the property inspection and the appraisal process. The inspector will identify repairs issues and may be able to give you a written estimate of the cost to repair the property. In some cases, an appraiser may also call for repairs to the property to bring it up to livable or safe condition.

Identify these issues quickly so you know what you are facing and have the opportunity to cancel if necessary. Again, this will help protect your deposit money.

You will want to be cautious buying a bank-owned property if you barely have enough money for the down payment and closing costs unless you have arranged for repairs with the seller.

I have signed my loan docs and I am still waiting for my keys. What is taking so long?

Just like you executed many documents at your loan signing, the seller has a stack of closing documents to sign as well. Remember, the seller of your home is a bank or some other financial institution. It may take the representative who is authorized to sign off on these documents days or even weeks to get around to it. Your trusted and skilled escrow officer will make sure to stay on this for you.

So, there you have it. Complicated? Yes. Frustrating? Sometimes. Time-consuming? Quite often.

At the end of the day, hopefully, you are getting a new home for you and/or your family at a much-discounted price so it will all be worth it.

The best tip we can give you is to remain positive and be patient. Expect the challenges. There will likely be some. Together with your professional real estate agent and experienced escrow officer, we will all do our very best to get you through it successfully.

Please call Molly Hay to get a list of Bank Owned, REO, and Foreclosed properties. 614.581.2086

Buyer’s Guide to Buying a Bank-Owned or Foreclosure Property

Posted by Molly Hay under For Buyers, General Information, Ask a REALTOR
In today’s market, nearly four out of every five homes sold are bank-owned foreclosure properties. These are commonly referred to as Real Estate Owned (REO) properties

Buying an REO property is very different than a traditional buyer/seller transaction. The process is much more taxing and several more entities are involved in the REO transaction. This can create more time and challenges.

Many REO homebuyers, especially those buying a home for the first time or their first bank-owned property, get frustrated during the process.

Since the REO phenomenon started dominating sales, not coincidently, customer service scores in title, escrow, lending and real estate have plummeted.

I hope you find this guide helpful in your REO Home buying process. While this guide will not change the way the transaction occurs, it may help set more reasonable expectations upfront and eliminate some surprises.

Buying an REO is a great way to save money and get a fantastic deal. Just be prepared for the uniqueness of the process.

What is an REO or bank-owned property?

A property acquired in foreclosure and now owned by the bank that foreclosed on the property is called an REO or bank-owned property.

How did this property become an REO?

The last owner of this home was not able the mortgage payments. The mortgage note holder seized the property and evicted the owner. The bank attempted to auction the property and pay off the existing liens and mortgages. If that was not successful, the bank was then deeded the property by the Trustee. It is now an REO property.

How do banks sell REO properties?

The banks are not in the real estate holding business so they must sell these homes and turn them into cash. Because most foreclosed properties are not successful at auction, REO properties have flooded the market.

In any market, if there is oversupply, the property values depreciate. Because of the depreciated market, the banks are going to take, in most cases, a substantial loss on the property.

The banks have independent, professional real estate agents that assist them is marketing and selling their REO inventory. The banks also assign asset managers who work closely with these agents.

How do banks price their REO properties?

When a bank takes over a property, they conduct their own due diligence to get an accurate idea of the value of the home.

They hire a team of people to assess the current market value of the property through Real Estate Broker Price Opinions (BPO) and, in some cases, full property appraisals.

Based on these findings, they typically price the home within 10% of the current market value. There are always exceptions.

Banks are in business to make money. If they cannot make money, they need to minimize their losses. Banks are looking for a certain “net amount” on each particular property. This “net amount” is based on their research of the current market value minus costs associated with the property. They have priced the home sell quickly but as close to market price as possible.

Many buyers make the mistake of thinking the bank is desperate to get rid of the property. They believe they can submit a low-ball offer and expect to get an acceptance or at least a counter-offer. Think again! Low-ball offers (below 10% of list price) are not typically taken seriously. They may be a waste of your time and your agent’s. Worse yet, you may be perceived as an illegitimate buyer. Banks own many homes in the same area, and they use many of the same agents, so this could adversely affect future offers you make on other properties owned by the same bank or listed with the same agents.

Be reasonable. Do your research with your agent and determine what the home is really worth. Make your offer according to the home’s value, not to list price.

There are stories of buyers making tens of offers and not having a single one accepted. By making offers based on the home’s true value and not what it’s listed for, you can mostly avoid this challenge.

How do I find an REO property?

There are thousands of REO properties in our market. There is only one way to effectively research them all in a timely manner…hire a professional real estate agent. The seller, upon the successful completion of the transaction, typically pays for the buyer’s agent commission. This will cost you nothing, but may save you tens of thousands.

Are REO properties damaged?

Some are. Many are not. It is important to inspect the home yourself before making an offer. Once you have viewed the property, consult with your lender about the damage the home has, if any.

It is equally important to have a professional home inspector inspect the property before you commit to purchasing it. Your real estate professional will refer you to a top quality home inspector. When the inspection is complete, your lender will likely want to review a copy of it. They do this to protect you and their loan collateral, your new home.

Many loan programs will require repairs to be completed before you close escrow. If you do not have the money to do this and the selling bank is not willing to make these repairs, you may need to find another home.

What does “As-Is” mean?

Nearly every bank-owned property today is sold “as is.” You will have to sign a waiver that states you are willing to accept the home in the condition it’s in with no further repair.

If a bank is marketing their home “as is”, there is a possibility that the home needs repair and they are not willing to make them. Have your Real Estate Professional give you a thorough run down on what “as is” means to you during a transaction and once you have closed on the property. In addition, consult with your lender before making an offer on an “as is” home. Not all loan programs will allow you to buy a home that needs substantial repairs.

I am ready to buy an REO property, what do I need to do to get pre-qualified?

If you make an offer on a bank-owned property, they may require you to be pre-qualified with a home loan consultant from their own bank. They do this for two reasons; assurances and opportunities.

They want assurances that you are truly qualified to make an offer. While you may be pre-qualified by another lender, they will still want to review your credit, income and asset scenario in their own systems to make sure they are selling the home to a truly qualified buyer.

It is not negotiable in most cases and most banks will not consider your offer without a pre-qualification letter from their own institution.

This is legal for them to do this. However, you are not required to use this bank for your new mortgage loan; you just need to be pre-qualified through them. You can use whichever lender you choose for your actual purchase.

If you don’t want to be pre-qualified through numerous lenders, you may want to reconsider making offers on bank-owned properties or ask your agent to narrow your search to banks without this requirement.

The banks also want to create a business relationship opportunity with you, as well as your agent.

Do not let this mandatory pre-qualification discourage you. This is truly in your best interest. Many times, the Home Loan Consultants from these banks have been authorized to offer steep discounts and other incentives if you proceed with a loan from their bank. It certainly doesn’t hurt to have multiple lenders competing for your business.

In many cases, the bank is taking heavy losses on the property. If they can recapture the mortgage loan, at least it is not a complete loss. This creates an opportunity to parlay the great deal you got on the home with a great deal on your mortgage as well.

I am pre-qualified and ready to make an offer. What is next?

Your offer is submitted to the listing agent. The listing agent may have to submit to the Asset Manager, who works for the bank, and this is where the negotiation happens. It may take a few days for a response. Be patient. Do not bother writing in a short deadline for the seller to respond. They may not pay attention to it.

The bank will likely respond in the first 48 hours. Some banks take 3 - 5 business days. Once again, be patient. This is not your regular seller.

You will not get a response over the weekend or holidays. All offers submitted over the weekend will be presented the following business day.

As a rule of thumb, REO listing agents will tell you if you make an offer and do not hear back within five business days, the offer has been rejected. Do not wait around for the rejection or the counter. It may never come. Come back with a better offer or find another property.

What does bring my “highest and best offer” mean?

Because the homes are priced so well, it is very common for the bank to get multiple offers.

If the bank gets multiple offers, instead of making a counter proposal to you, they may go back to all of the potential buyers and ask for each buyer’s highest and best offer.

This means come back with your best offer, as the bank will choose one at this point. In many cases, the bank will not return counter-offers after they have requested this.

If you are presented with this opportunity, it means you are in the running. You now have one more opportunity to increase the price or better the terms of your offer. You can choose to do nothing at this point but it may not get you anywhere.

Meet with your agent. Determine the true value of the home. Review your down payment, closing costs needs, and loan terms and then come back with your best shot.

I made a list price offer but they didn’t respond. Why?

Many REO properties, especially those listed below market value receive multiple offers. Some houses sell above list price. The bank is like any other seller in the market. They can choose not to accept your offer if one comes in they think is better than yours.

If you offer list price and ask for your closing costs to be paid and another buyer offers list price and doesn’t seek closing costs, the other buyer’s offer is stronger.

How long will it take to complete my transaction and move into my property?

Traditionally, buyer and seller contracts are 30 days. However, this is not a traditional buyer/seller transaction. In today’s REO property market, many buyers feel more comfortable with 45-day closings. Many banks have late fees of $100 or more per day past the contracted close of escrow date. These fees add up quickly so it is important to understand what problems can arise that may make you late.

What can make me late?

Aside from the regular loan process, which sometimes takes longer in today’s stricter lending environment, there are many challenges unique to REO properties.

When the previous owner of your new home was foreclosed on and the bank took possession, a “Trustee’s Deed” was issued in the bank’s name. If this process is not executed properly, it may cause delays when the county is trying to record the deed into your name. There is little that you can do about this except wait until it is corrected. I have seen this issue take between one day to seven weeks to resolve.

If a Home Owner’s Association (HOA) manages the community, your title company will request an HOA demand on the property. This demand will ensure that the bank pays any association fees and fines at close of escrow. If they are not paid at closing, they will transfer with the property into your name and will then be your responsibility.

It’s pretty likely that there hasn’t been an actual person living in this home in sometime. This means the home has not been kept. There may be a lot of fines (landscaping, upkeep, trash, etc.) levied from the HOA.

This can take time and be complicated but is necessary that it is done and done correctly. For more details, ask your escrow officer. It’s their responsibility to get this resolved.

For the most part, if the close of escrow is delayed by problems that are out of your control, the bank should not penalize you. Just be sure to do your part in a timely manner, and you should be ok.

I am in escrow and we discovered a bunch of repairs that need to be made to the home…what do I do now?

Many people that have lost their homes to foreclosure have been struggling financially. This usually means the home has not been kept properly and is in need of repairs and general maintenance. Other homeowners, once they know they are losing their home, damage the property purposely.

When buying an REO property, you must be prepared to do some repairs. Banks may not agree to make these repairs. They may not pay for these repairs. This may require out-of-pocket expense for you.

They may be willing to help with some, but don’t plan on it. Know what you are buying before you make your offer and be prepared to spend some money for repairs before you move in.

In most contracts, you can back out of the purchase if you find problems with the property or in loan qualifying in a certain time period. This is called the due-diligence period.

Make sure you know how long this due diligence period is when entering into a contract. Complete all inspections within that period so you can make an informed decision on whether or not to proceed with the purchase. It is important to respect these deadlines because they are strictly enforced.

Some repairs will be obvious when you visit the property. Others may be identified during the property inspection and the appraisal process. The inspector will identify repairs issues and may be able to give you a written estimate of the cost to repair the property. In some cases, an appraiser may also call for repairs to the property to bring it up to livable or safe condition.

Identify these issues quickly so you know what you are facing and have the opportunity to cancel if necessary. Again, this will help protect your deposit money.

You will want to be cautious buying a bank-owned property if you barely have enough money for the down payment and closing costs unless you have arranged for repairs with the seller.

I have signed my loan docs and I am still waiting for my keys. What is taking so long?

Just like you executed many documents at your loan signing, the seller has a stack of closing documents to sign as well. Remember, the seller of your home is a bank or some other financial institution. It may take the representative who is authorized to sign off on these documents days or even weeks to get around to it. Your trusted and skilled escrow officer will make sure to stay on this for you.

So, there you have it. Complicated? Yes. Frustrating? Sometimes. Time-consuming? Quite often.

At the end of the day, hopefully, you are getting a new home for you and/or your family at a much-discounted price so it will all be worth it.

The best tip we can give you is to remain positive and be patient. Expect the challenges. There will likely be some. Together with your professional real estate agent and experienced escrow officer, we will all do our very best to get you through it successfully.

Please call Molly Hay to get a list of Bank Owned, REO, and Foreclosed properties. 614.581.2086

HUD $100 Down Payment Program

Posted by Molly Hay under For Buyers, For Sellers, General Information, Fave Neighborhood, Ask a REALTOR
$100 Down Payment on HUD Homes!

HUD has announced several new sales incentives on HUD homes that will make
these homes more affordable for homebuyers.

HUD has a special program for a limited time only which allows an owner-occupant buyer to pay only $100 down, instead of the usual required 3.5% down, and HUD will pay up to $2500 towards closing costs!!!!

In fact even some of my clients are getting any where from $500-$1500 back at closing!!!

If you ever thought about buying your own home…NOW is the time…
ONLY $100 down payment on a beautiful HUD home
* Large inventory of HUD homes available.

* Loan interest rates are low which means you can buy more home today

* Bargain prices on HUD Homes ready to move into now, Most properties are $30,000 - $100,000 below appraised market value!!!

Here are the requirements:

•It must be an owner occupied home. This is not a program for investors.
•The home must be purchased with FHA financing.
•This loan incentive is also available to owner occupant purchasers who obtain a FHA Home Repair loan. (203K Loan)
•Homes must be purchased through a HUD registered real estate agent.
•You do not need to be a first time Home Buyer
Now is a good time to consider the purchase of a HUD home in the Columbus OH area.

Please feel free to email me your contact information and the areas you are considering and I will email you HUD properties in the Columbus Ohio area.

Visit my HUD website at http://mollyhay.postlets.com

Thursday, May 7, 2009

Ways to convert browsers into buyers

CONVERTING INTERNET BROWSERS INTO BUYERS

Experience shows that home buyers and sellers use the Internet for their research long before they are ready to contact an agent. From a home buyer perspective, that's a good thing, because Internet home buyers don't take as much work as non-Internet buyers.

So, what does that mean in terms of converting browsers into buyers? It means that your goal is to design a site that visitors will adopt as their home buyers headquarters. The odds are that visitors will not contact you the first time they visit your site. But, if you provide the right tools and information, they will stay on your site for a while when they visit, and they'll visit more often.

How do you make your site a home buyers headquarters? Here are some tips:

•Make sure the design of your site is professional. A first-time visitor to your site should feel welcome and should want to explore.
•Make sure the navigation is intuitive. Make it easy for your visitors to find what they're looking for.
•Present a compelling marketing message. Tell your visitors why they should work with you as opposed to any other agent. That's where a real estate brand is invaluable.
•Make your contact information easy to find. Make sure your address and telephone numbers are easily accessible.
•Create an information-rich site. This is important for the search engines as well as your visitors.
•Have RSS links to Blogs
•Give half of an article and have the online browser register for the remaining article.
•Have the browser register for a list of REO's, HUD'S, and Short Sale properties
•Give the first time home buyer enough valuable information that they will want to contact you
•Allow them to view 5 out of the 30 listings (exp.) and have them register for the remaining.
There are many book available for real estate agents to capture these leads that visit your website. Ask me about my favorite!!

Monday, May 4, 2009

Ways to sell your home faster

Every seller out there in this down market would like to know the secrets to selling their home faster. Do your homework and hard work up front to make sure your home sells fast. Research as shown by doing these top 10 steps you will accomplish a sold sign faster!

1. Finish the “honey do” list. Just about every homeowner has a string of little repairs that never quite get done. Now’s the time. Fix the screens, oil the squeak, patch the cracks, paint the trim and neutralize the home. Stuff that shouts out “Deferred maintenance!” to every potential buyer.

Cost = A few bucks if you’re handy, a couple of hundred if you hire someone who is.

2. Get inspected. A pre-sale inspection can help in a couple of different ways. Professional inspections can identify problems that could potentially kill a sale. If there are no major problems the inspection can prove that fact to skittish buyers. Having this on a counter during an open house or showing show the buyers that you have nothing to hide and gives them a piece of mind.

Cost = Around $400

3. Pack up the clutter. Clutter will destroy your equity. Too much stuff makes rooms look smaller and focuses buyers’ attention on your possessions rather than the home you’re tying to sell. That’s why many professional stagers recommend removing as much as a third of your things to better show off rooms and closets. You will have to pack anyways so this saves time and headaches for you later.

Cost = $150 to $300 a month for three months storage

4. Depersonalize and neutralize. The first items that should go in those packing boxes: family photos, collections and just about anything else that says “you”. Also repaint walls or replace carpets to neutral shades. This will give buyers a lank canvas to they can imagine their furniture and other belongings in your home.

Cost = $10 and up for paint; $500 and up for carpet

5. Clean, Clean, Clean. Make sure that everything is spotless, that you can eat off of the kitchen floors, and that the bathrooms are sparkling. If you have to do the white glove test. Make sure the windows are clean and baseboards have no dust. Buyers will be looking at all of this and do not want to clean your mess up! Make sure the home smells clean. If you have pets and they have had accidents you will have to replace the affected carpet and padding and have the underlying floor sealed. If your not sure how your place smells call a tactful friend to take a few whiffs and tell you the honest truth!

Cost= $10 or so in cleaning products, if you do it yourself; $75 and up if you hire help.

6. Stage the Rooms. Stand in the doorway to find each rooms focal point, and use furniture placement to highlight that. The back of your sofa shouldn’t block the view of the fireplace, and the dining room table shouldn’t be sharing space with a treadmill. The beds should be the focal point in all rooms. Any piece of furniture making a room look crowded or out of place should be removed. It should look like a model home!

Cost= Nothing if you do it your self, $500 and up to have a professional home stager.

7. Tend to the floors. Keeping them spotless won’t help if they’re dated, worn or stained. You shouldn’t spend a fortune installing hardwood or tile, though, since you’re unlikely to recoup the cost. Look for compromise that can improve the home’s appearance without busting your wallet. Carpets should be steam cleaned to see if they’re salvageable. If not , you may be able to reduce the costs of replacement by offering to do some of the work, such as removing the old carpet when leaving or splitting the costs to the new buyer. Also remove rugs. Little rugs add tot he visual clutter.

Cost = $75 and up

8. Curb appeal. Most people start their home search on the Internet. The first picture they see if the front exterior of the home. If your home doesn’t WOW them, they might never call for a showing. Your front landscaping needs to be in perfect condition. That is their first impression, you’ll need to trim back the hedges and plant flowers. Make sure the lawn is mowed at all times and that no weeds are present. If you have a black top driveway and it needs resealed, do so, it makes the home look new! Research shows by painting the front door a red will attract showings and buyers!!

Cost = $300 to $500 for landscaping, more if you need to fix crack walkways or driveways.

9. Pick the best realtor. Working with a realtor to sell your home is very important. They use crucial marketing techniques to sell your home. Make sure that the realtor you decide to use can really sell. That means somebody who knows your neighborhood intimately and who’s enthusiastic about your home. hat also means someone other agents want to work with and is trustworthy.

Cost = 3% to 6% of the sale price of your home.

10. Set the right price. A seller may think they will test the market with a high price tag, assuming that buyers will make an offer if they are interested, but buyers may assume they are unreasonable and move on. Also you may have your home listed at $140,000 (for an example), but would settle for $132,000. There may be 10 buyers that are pre approved at $135,000 that wouldn’t even look because it wasn’t listed in their price range. Buyer who are actively looking, want a fair priced home. I believe they will buy a home that they feel is a fair value and within their price range. Your goal should be a fair price or something reasonable to the price of the other homes in your area.

Sunday, May 3, 2009

Awesome HUD in Blacklick, OHIO, Licking Heights Schools

Molly Hay | Keller Williams | 614.581.2086


1171 Payne Loop, Blacklick, OH
Attention 1st time buyers!!! Payments are as low as rent...Great

HUD opportunity.
3BR/2.5BA Single Family House
offered at $120,000
Year Built 2001
Sq Footage 1,582
Bedrooms 3
Bathrooms 2 full, 1 partial
Floors 2
Parking 2 Car garage
Lot Size 6,621 sqft
HOA/Maint $0 per month

DESCRIPTION

This HUD property is in great condition. Close in 45 days or less and own this home for only $100 down!!! HUD will give you $2,500 towards closing costs and prepaids. Call today to schedule a time to see this property


see additional photos below
PROPERTY FEATURES














Central A/CCentral heatFamily room
Breakfast nookBasementLaundry area - inside
Yard

OTHER SPECIAL FEATURES











Full Basment
30 yr. fixed at 5% on FHA
Total Payment including taxes, PMI, P/I, HOI = $1009/mo
Waggoner Case Subdivision
Licking Heights Schools

ADDITIONAL PHOTOS


Photo 1

Photo 2

Photo 3

Photo 4
Contact info:




Molly Hay
Keller Williams
614.581.2086
For sale by agent/broker

powered by postlets Equal Opportunity Housing
Posted: May 2, 2009, 9:21am PDT

HUD in Canal Winchester, MOLLY HAY

Molly Hay | Keller Williams | 614.581.2086


5488 Glendalough Street, Canal Winchester, OH
New HUD...Great Price!! Check it out....
2BR/2.5BA Single Family House
offered at $72,000
Year Built 2003
Sq Footage 1,310
Bedrooms 2
Bathrooms 2 full, 1 partial
Floors 2
Parking 2 Car garage
Lot Size Unspecified
HOA/Maint $68 per month

DESCRIPTION

This HUD home is in good condition. You can own this home for $635/mo!!! Don't forget about the $8,000 tax credit for first time homeowners also! Buy this home with only $100 down and HUD will give you $2,500 towards closing costs!


see additional photos below
PROPERTY FEATURES















Central A/CCentral heatHigh/Vaulted ceiling
Family roomBreakfast nookLaundry area - inside
Balcony, Deck, or PatioYard

OTHER SPECIAL FEATURES







FHA 30 year Fixed rates at 5%
Total Payment with PMI, P/I, taxes, Insurance $635/mp
Columbus Taxes

ADDITIONAL PHOTOS


Photo 1

Photo 2
Contact info:




Molly Hay
Keller Williams
614.581.2086
For sale by agent/broker

powered by postlets Equal Opportunity Housing
Posted: May 2, 2009, 9:30am PDT

HUD in Canal Winchester, MOLLY HAY

Molly Hay | Keller Williams Capital Partners | 614.581.2086


3829 Sugarbark Drive, Canal Winchester, OH
$757/mo on this great HUD home!! Check it out !!
3BR/2.5BA Single Family House
offered at $95,000
Year Built 2003
Sq Footage 1,814
Bedrooms 3
Bathrooms 2 full, 1 partial
Floors 2
Parking 2 Car garage
Lot Size 4,965 sqft
HOA/Maint $0 per month

DESCRIPTION

This HUD property has an appraised value of $146,000!!! Over $40,000 in instant equity! Buy this home for only $100.00 down and HUD will give you $2,500 towards closing costs. Call to schedule a tour today!!!


see additional photos below
PROPERTY FEATURES














Central A/CCentral heatFamily room
Breakfast nookLaundry area - insideBalcony, Deck, or Patio
Yard

OTHER SPECIAL FEATURES











Groveport Schools
Built in 2003
New HUD just listed!!
Total Payment with P/I, PMI, taxes, insurance $757/mo
FHA 30 yr. rate fixed at 5%

ADDITIONAL PHOTOS


Photo 1

Photo 2
Contact info:




Molly Hay
Keller Williams Capital Partners
614.581.2086
For sale by agent/broker

powered by postlets Equal Opportunity Housing
Posted: May 3, 2009, 7:59am PDT