Real estate professionals, what's your take on foreclosure mess? (Asheville: days on market, for sale)

[rjsurfer]

You can blame this new mortgage mess on my wife and I, just as soon as we decided to purchase a home in WNC the foreclosure market suddenly looks like it will freeze solid.

Not that we were looking only at foreclosed homes but they seem to be at least 20% of the present market. For now it seems foolish to purchase one. We can't imagine being told 6 months after the purchase that we don't really own the home we just paid cash for!!! Yes I know title insurance would seem like the answer but if enough reversals occur can you trust the financial stability of the title companies? Then what...

So, I guess were asking what do you think will happen to the price of home sales in the near future? not just foreclosed properties but straight sales as well??

thanks in advance.

Ron W.

[lovesMountains]

Originally Posted by rjsurfer

You can blame this new mortgage mess on my wife and I, just as soon as we decided to purchase a home in WNC the foreclosure market suddenly looks like it will freeze solid.

Not that we were looking only at foreclosed homes but they seem to be at least 20% of the present market. For now it seems foolish to purchase one. We can't imagine being told 6 months after the purchase that we don't really own the home we just paid cash for!!! Yes I know title insurance would seem like the answer but if enough reversals occur can you trust the financial stability of the title companies? Then what...

So, I guess were asking what do you think will happen to the price of home sales in the near future? not just foreclosed properties but straight sales as well??

thanks in advance.

Ron W.

No one can predict the future, or we'd all get rich

I can only tell you what I would and wouldn't do, okay?

I would NOT look at short sales and I would be almost as leery of foreclosures.

In the first place, they don't really save you any money!

Banks sell these properties "as is" and do nothing to fix any problem these homes have. They simply WILL NOT negoiate any repairs. This means the buyer then has to invest anywhere from ususally $10,000 to $50,000 to make repairs or just to make the house livable again. So there goes your 20% supposed "savings" by buying a foreclosure

At this point, some of these properties have been unlived in and uncared for for going on 2 years, if not more. When that happens to a house you get all kinds of unseen issues that even an inspection won't find. You'll find them after you've moved in though - and likely have to shell out even more money than you planned.

Here is my best advice, quit your vascillating and just do it.

If you are at all watching interest rates you know you can get a 30 year fixed today for about 4.25%!! MY GOD, do you know the last time those kind of rates were available??? Try the 1940's! When they go back up (and they are going to go back up) you will never again see these rates in your lifetime. And getting such a low rate enables you to buy so much more house today then you will be able to buy later down the road. And no one knows when it will happen, but I can gaurantee you there will be a day we'll wake up to the news that rates have gone back up and those still sitting on the fence will have missed a tremendous opportunity.

Quit looking for "the deal/steal of the century" and just find your home - the place you can see yourself living your life and building up good memories. And do it now because waiting and waiting and waiting and trying to figure out how to beat the market is just wasting your valuable time - life is short

[Shooting Stars]

Originally Posted by lovesMountains

I would NOT look at short sales and I would be almost as leery of foreclosures.

In the first place, they don't really save you any money!

Banks sell these properties "as is" and do nothing to fix any problem these homes have. They simply WILL NOT negoiate any repairs. This means the buyer then has to invest anywhere from ususally $10,000 to $50,000 to make repairs or just to make the house livable again. So there goes your 20% supposed "savings" by buying a foreclosure

At this point, some of these properties have been unlived in and uncared for for going on 2 years, if not more. When that happens to a house you get all kinds of unseen issues that even an inspection won't find. You'll find them after you've moved in though - and likely have to shell out even more money than you planned.

Hmmm. Last year, my sister bought a foreclosure house in Minneola, FL for $142.000 that had sold three years prior for $325,000.

Inspection revealed that one wall in the laundry room had a mold problem. My sister stipulated in her bid that the bank would have to repair the mold problem, and that she must be present while it was being done. The bank agreed.

I think whether or not a short sale or foreclosure is a good deal or not must be considered on a case-by-case basis.

[rjsurfer]

LovesMountains,

Thank you for the thoughtful reply, everything you say makes sense...Especially concerning homes in foreclosure and the good possibility that they will be in horrible shape.

Ron W.

[lovesMountains]

Originally Posted by Shooting Stars

Hmmm. Last year, my sister bought a foreclosure house in Minneola, FL for $142.000 that had sold three years prior for $325,000.

Inspection revealed that one wall in the laundry room had a mold problem. My sister stipulated in her bid that the bank would have to repair the mold problem, and that she must be present while it was being done. The bank agreed.

I think whether or not a short sale or foreclosure is a good deal or not must be considered on a case-by-case basis.

That was LAST YEAR, and in FLORIDA - the very desirable western NC market is a bit different.

[motordavid]

Interesting, and pretty good art. from today's NewYawkTimes, on buying a foreclosure house;
it is not the final word, but worth the read, for those interested in chasing a FH.
GL, mD

http://www.nytimes.com/2010/10/16/yo...ef=todayspaper

[lovesMountains]

Originally Posted by motordavid

Interesting, and pretty good art. from today's NewYawkTimes, on buying a foreclosure house;
it is not the final word, but worth the read, for those interested in chasing a FH.
GL, mD

http://www.nytimes.com/2010/10/16/yo...ef=todayspaper

I rest my case

[Bilbono]

Has the dust settled? How are foreclosures going in Asheville? Can anyone recommend a good foreclosure specialist?

[queenofbavaria]

Originally Posted by Shooting Stars

I think whether or not a short sale or foreclosure is a good deal or not must be considered on a case-by-case basis.

agreed. we also bought foreclosure home and the bank was willing to negotiate (a lot) after home inspection even though it was an 'as-is' property.
we are VERY happy with our purchase and our neighbors are happy as well, since the house was sitting empty for many, many months.

we tried to purchase a short sale, but the found out, that short sale does not mean the process will move quickly, but the seller is short on money and it takes very often 6 months or more.

we worked (and are currently working) with a great realtor, who is also very knowledgeable when it comes to construction work and building issues. let me know if you would like me to pass on his contact information.

if you can pay cash, you are usually very interesting to the bank, even that your offer might be quite a bit lower. to many mortgages fall through right now and banks want FC to move along quickly.

[QuilterChick]

Originally Posted by rjsurfer

LovesMountains,

Thank you for the thoughtful reply, everything you say makes sense...Especially concerning homes in foreclosure and the good possibility that they will be in horrible shape.

Ron W.

There is no reason to chase foreclosures or SS in Western NC. As others have said, the hassle and expense is not worth it. You are doing yourself an injustice and missing out on the beautiful properties that are available.

Real estate sales have increased here, and average days on market has adjusted; you can get up to date statistics on the market and price increases from any MLS brokerage office. There is a good inventory of resale properties for sale throughout the mountains due to normal attrition. Also due to the economy, some retirees are selling their 2nd homes and keeping just one home in other states. Also, some retirees who have been here for many years decide to go back to their "home" states to be closer to family. We also see folks "downsizing" to save on upkeep and expenses, they go into condos or smaller homes.

Do yourself a favor and look at everything within your price range and in an area where you want to settle. Best wishes !