It’s in the news and has been for several months now; financial institutions may be holding back their inventory of Minneapolis foreclosures and national foreclosures.Why on earth would they do that?
For those of you who are wondering what would cause lenders to hold back on listing Minneapolis foreclosures, here’s a little information that might enlighten:
April 2009, the San Francisco Chronicle published a news article about the state of foreclosed homes. In the article, Rick Sharga, vice president of RealtyTrac said, “We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market.” With an already glutted market, imagine what would happen to real estate if those 600,000 foreclosed properties flooded the market further.
October 2009, CNN Money.com stated in an article, “Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.” According to the report, one in every 136 homes – a staggering 937,840 homes - were in foreclosure.
Financial institutions know that the foreclosures could cause a severe drop in the average price of housing. Should prices fall farther, faster, lenders would not be able to recoup their losses.
Some may be holding a few properties back for a “rainy day” – for when the prices start to rise again.
Even though lending institutions are holding back on some of their inventory of Minneapolis foreclosures, there are still some great deals to be found.
If you’d like to find a great deal on a foreclosed Minneapolis property (including Minneapolis lofts and or condos), I can help. Call me now at 612.877.1676 or email me at ben@cityoflofts.com for more information.
Even, perhaps especially, in an economic downturn, people are trying to make a living in the real estate market. “Flipping” condos used to be a great way to make a little cash, but not now. Many are now looking at long-term cash prospects, such as renting property, and Minneapolis foreclosures seem to be a good start. But are they? Let’s take a look.
Finding a good rental property isn’t easy. It’s not like shopping; you can’t go into a real estate store and grab the first condo off the rack that looks good on you. It’s a process of investigating, gaining knowledge and being realistic. This is especially true when looking at Minneapolis foreclosures.
Homeowners who suffered foreclosure were unable to pay the mortgage. We all know that.What people usually don’t think about is that the homeowners were probably also unable to pay for upkeep. This means that you, as the buyer, have a larger possibility of buying a money pit rather than a moneymaker. Keep this in mind as you look over a few tips for finding good rental property:
Location – Since you’re looking at foreclosed properties rather than properties that are already set up for renting, you can’t check established rental records. However, you can ask your real estate agent for a list of areas with less people moving out and more moving in. As well, look at areas with surrounding retail development. New shopping malls, theatres and restaurants will bring in more people to an area.
Addition and subtraction – It’s time to do the math. Ask your real estate agent for what the going rental rates are in the area you’re looking at. You’ll need to find out if the rent you can charge will take care of expenses as well as bring you profit. Figure the yearly income you can expect to make and then subtract mortgage payments and operating expenses. If your math produces a negative balance, don’t buy the property.
Taxes – Once you pay expenses, your income is taxable. Now, while you can depreciate rental property, you can’t depreciate the land it’s on. Talk to a real estate agent or accountant to decide whether it’s worth it or not.
If you follow these three tips and remember to pay attention to the amount of repair needed, you might just find some fantastic deals on Minneapolis foreclosures. Take a little time to make sure renting is for you, and then get started.
If you’re looking for potential rental property, I can help. Call me at 612.877.1676 or email me at ben@cityoflofts.com for more information.
When you’re looking to buy a home, and especially when you’re looking at foreclosures in Minneapolis or anywhere else, title searches are important.
Many buyers make the mistake of settling for a quitclaim deed without doing a title search. Unfortunately, the person who signs the quitclaim deed may not be the actual person holding the title. If there are any liens on the title, the new owner may get an unpleasant surprise at closing. With foreclosures in Minneapolis, the possibility that there is a lien on the title is even greater.
What is a title search?
Title searches are performed by title companies or lawyers. These companies and attorneys search the public records for information on the property’s ownership. The goal is to find out if there are any problems with the title.
What kind of information can a title search give you?
A complete title search will cover such things as:
•How many mortgages the property has
•Any liens, such as judgments or mortgages, on the property
•Taxes owed on the property
The purpose, other than finding current information, is to establish chain-of-title - who owned the property at what time, who they sold it to and so on. Title companies look for proof that any encumbrances have been taken care of, as well as easements, rights-of-way and anything else that can affect the title.
Why get title insurance?
Most title companies also offer title insurance. Title insurance, depending on the company, provides a guarantee that the title is clear, as well as insuring that you can’t be held accountable for forgery, fraud, defective records or incorrect signatures that occurred before you received the title. It also guarantees that there is no encumbrance or judgment on the property.
Foreclosures in Minneapolis are a good bet for a great home or investment property. However, make sure you know what you’re getting by having a title search done. As well, spend the money on that one-time fee for title insurance. It may be the best investment you’ve ever made!
Thinking of buying a Minneapolis condo or loft? Let me guide you easily through the entire process, from negotiating the price to having a title search performed to signing your closing papers. Call me today at 612.877.1676 or email me at ben@cityoflofts.com.
Foreclosure is a dreaded word at any time, but the present economy makes it a common dread, one that many homeowners share that normally would never enter their minds. There are new government aid programs as well as tried and true methods for combating Minneapolis foreclosures and every homeowner should know them.
Nip It in the Bud
Procrastination is never a good thing but when it comes to foreclosures it is a death sentence. Most homeowners know when they are on shaky ground and starting to have problems paying their mortgage.
Because it is usually the biggest monthly expense, mortgages are often the first thing to suffer when things get tight. Waiting to talk to your mortgage company about problems until you actually begin missing payments doesn’t leave much time to correct the situation, and believe it or not, most mortgage companies would prefer to work things out than have a “dead” non-performing asset on their books.
Call your mortgage company and talk to them about solutions to your problems. When you call, be prepared to explain the situation that is causing your difficulties to prove that there really is a hardship. Most lenders will send you a pre-foreclosure package that guides you and shows you what you need to do to prove you are under financial strain.
HOPE for Homeowners
HOPE is the HUD program that helps homeowners avoid imminent Minneapolis foreclosures. The government program refinances at a lower rate to help people stay in their minneapolis condos when all other avenues of solution have failed.
Don’t Give Up Without Exhausting All Means
Your condo or minneapolis loft is important and worth the effort it takes to keep it. With the help of the stimulus plan, banks are able to do more than they used to be able (or willing) to do to provide solutions to homeowners to avoid Minneapolis foreclosures.
If you would like more information on what to do in the event of possible foreclosure, please give me a call at 612-877-1676 or email me at ben@cityoflofts.com.
These days, lofts are going into foreclosure like never before. Many factors have contributed to this trend, and as a result, banks have numerous Minneapolis foreclosures that need to be sold as quickly as possible. Explore a few reasons why buying foreclosures now could be a great opportunity.
1. Price – Since there’s an over abundance of foreclosed lofts that need to be sold, many are priced way below market value, which creates a good opportunity for real estate investors to buy.
2. Quick sales – Sellers want to get Minneapolis foreclosures off their hands as soon as possible and they tend to be extremely motivated sellers. Therefore, you could be the owner of a new loft in record time. Also, most bank owned deals, which were taking anywhere from 3 to 18 months, can now often be closed in less than 45 days.
3. Easier to obtain loans - With the help of the stimulus plan, buyers of foreclosures are now finding it easier to get loans.
4. Less competition – Many times, foreclosures aren’t advertised like regular lofts. Also, because of the sheer amount of foreclosures, many bank owned lofts go unnoticed by most people. This means you probably won’t have to compete heavily with other buyers for foreclosed properties.
Although times are still tough for some, if you’re a real estate investor, right now could be the ideal time to purchase Minneapolis foreclosures. It may be a while before deals like these come around again, so take advantage of the rock-bottom loft prices now before they’re gone.
Want to work with a real estate agent who can expertly guide you through the process of purchasing foreclosures? Give me a call today at 612-877-1676 or email me at ben@cityoflofts.com.
Great 02 floor plan, 1 bedroom / 1 bathroom NEVER lived in unit in great Skyscape building - Asking 193k for 875 square feet, 2nd level. Call me for details as this will go fast, 612-877-1676 or email me at ben@cityoflofts.com
