Category Archives: Bank Owned

Coldwell Banker NRTDA Closes 400 Residential Lots Totaling Over $10M in Sales!

Posted on September 16, 2011 by | Leave a comment

Coldwell Banker NRT Development Advisors (NRTDA) is pleased to announce that they have closed over 400 disposition lots in the past nine months, generating sales of over $10 million.

Over the past year, NRTDA has worked with several national banks to oversee all aspects of listing, selling and closing residential lots in 15 states across the U.S. Lots range in size from one-tenth of an acre to more than 35 acres in neighborhoods including Blue Valley, Echelon, Middleton Plantation and Traditions, and are priced from $1,500 to $700,000.

Brad Horner, president of NRTDA, says that his company hand selected 100 local real estate sales associates who are experts in REO lots and have a minimum of three years experience to help market and sell the disposition lots. “The main challenge of selling disposition lots is the fact that the majority of these properties have been sitting on the market because of incorrect pricing,” says Horner.

“All of our agents are responsible for compiling a strong market profile and suggesting a new list price for the bank in order for their assigned lot to sell within 30-90 days.”

Horner says due to current financing restrictions, 98% of the buyers are paying cash. The majority of the buyers are either single-family homebuilders buying several lots in specific neighborhoods, or end users who purchase a lot to eventually build a home. “The prices on these lots are so affordable that we’ve seen dual offer situations,” says Horner. “Buyers are coming off the sidelines to get what they consider a “once in a lifetime” opportunity to purchase in areas that they thought they’d never be able to afford.

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Posted in award winning real estate, Bank Owned, Bank Owned Lots, Foreclosure, Uncategorized

Block Talk: Year-Over-Year Changes in Atlanta Distressed Sales

Posted on August 26, 2011 by | Leave a comment

By Judy Price

For this week’s column, I pulled numbers from our Universal Database to see how the Atlanta market is performing in distressed sales (as a percentage of overall sales numbers) year-over-year for 2011 vs. 2010.

  

The table above summarizes year-over-year changes (to date) in the amount of sales in FMLS that were foreclosure, lender-owned, corporate or short sale. The only category to see improvement is single-family new construction homes. While the supply of distressed inventory remaining in this category is at 8 months, as discussed in my April 22nd column, the amount of inventory is continuing to decline which is resulting in the year-over-year improvement in this distressed number.

As to the other categories, a continued increase in distressed sales can result in additional downward price pressure to a market bouncing along the bottom. However, the low months of remaining supply of resale distressed inventory is positive and provides some hope that we are working through some of the distress. What remains to be seen is how much shadow foreclosure inventory Atlanta has coming as the banks continue to work out the process.

A quick reminder on my methodology. For the single-family home data, I pull numbers from a 6-county area of Cherokee, Cobb, Fulton, Forsyth, DeKalb and Gwinnett. For Condos/Townhouses, I use a 4-county area of DeKalb, Cobb, Fulton and Gwinnett. Respectively, over 80% of sales occur in these counties.

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Posted in Bank Owned, Block Talk, Distressed Sales in Atlanta, Foreclosure, Housing stats in Atlanta, Market data

Serious About Buying a Foreclosure? Give Serious Thought To Your Offer

Posted on August 25, 2010 by | Leave a comment

By: Marty Griffin

In real estate it has always been about “location, location, location”, and then along comes REO.  Now it’s about “price, price, price”.  We all know that “price” sells; it always has but let’s not get too carried away.  There is a “great price” and then there is a “ridiculous offer”.   It is so tempting in these challenging times to see just how low the seller/bank will go.   This is not about throwing a dart at a price on the wall.  It pays to work with an agent who understands the subtlety of appraisals, the net carry value (what is owed the bank by the previous owner), the value of the neighborhood, etc.  If you are serious about a foreclosure, do your homework.  Make an offer that makes sense.  Demonstrate to the seller that you are a serious buyer not just a bottom feeder.  When the seller knows you are serious, thoughtful negotiations will begin.  Throw out low ball offers and the seller will more than likely come back to you at full price.  A good deal is a good deal for everyone involved in the transaction.  The buyer wants to feel like they got a good value at a great price.  The bank wants to feel like it has done its fiduciary duty and accepted the best deal it could, under the circumstances, for its stockholders.

With that being said, there was some good news about the buying process this past week. 

The National Association of Home Builders will be tackling four issues that are critical to the housing sector which comprises more than 15 percent of the GDP.

 (1)   The NAHB is calling on congress to extend and enhance the $8000 first time home buyer tax credit.  They are calling for an extension of the bill to November 30, 2010 and make it available to ALL buyers of principal residences.

 (2)   Correct the faulty appraisal process.  The inappropriate use of distressed and foreclosed sales as comps in determining home values is hurting home values and killing home sales.  NAHB is urging Congress to work with housing and federal regulators to adopt and enforce clear, concise regulatory guidance that will allow appraisers to develop realistic valuations based on sales that are truly comparable.

 (3)   Improve housing credit conditions.  The NAHB is calling on Congress to urge regulators and the banking industry to end the stranglehold on acquisition, development, and construction loans that has emerged as a major impediment to the housing recovery.

 (4)   NAHB will also co-sponsor Net Operating Loss (NOL) relief legislation in Congress.  This would help prevent further layoffs in building and other industries hit hard by the recession.

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Posted in Appraisels, Bank Owned, Home Builders Association of Atlanta, National Home Builders Association

Market Response during the last 18 months!

Posted on June 8, 2010 by | Leave a comment

By: Brad Horner

As we approach the mid-point of 2010, I recently took the opportunity to sit down with Susie Proffitt of The Florida Home Show and Atlanta’s Best New Homes to talk about how our company, our clients and consumers responded to the real estate market during the last 18 months.  

Though economic factors continued to impact the industry and create apprehensions and obstacles for potential home buyers, many of our diverse developer, bank and institutional clients were still able to buck trends and increase qualified traffic and, more importantly, sales.  In the below video, Susie and I discuss how NRT Development Advisors helped them to do so by creating and executing innovative, results-driven marketing and sales strategies, including repositioning, partnerships, events, social media outreach and more.

I invite you to take a few minutes to watch the below video (by clicking on the image), which offers insight regarding how to approach the current market and includes video of the beautiful homes we have the privilege of representing.


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Posted in Bank Owned, Company news, Market data, NRT Development Advisors, Real Estate, Sales and Marketing, Value of a home

Friday Five: Advantages of buying a foreclosed home

Posted on April 2, 2010 by | Leave a comment

By: Brad Horner

The National Association of Realtors recently reported that sales of distressed properties, including foreclosures and short sales, made up 38% of home sales in January 2010 and 35% in February 2010.  There are many reasons that homebuyers and investors alike continue to flock to foreclosed homes; below are the top five advantages:

  1. Price is the obvious first advantage, as foreclosed homes are sold by highly motivated sellers – banks – which often list homes below market value.  In addition to being bargains for owner-occupied residences, foreclosed homes are often sought after for vacation homes or rental properties, as they provide a cost effective entry into real estate investment.
  2. Banks may be more likely to finance foreclosed homes that they have listed, as they have an interest in selling these homes in order to eliminate the costs associated with owning them.
  3. The foreclosure purchase process isn’t very different than the traditional home buying process.  Experienced Realtors can help buyers find foreclosed homes, analyze the market value of a foreclosed home of interest and prepare the offer.
  4. Many foreclosures are brand new construction single-family homes or condo units; therefore they still provide the opportunity to be a home’s first owner.
  5. Purchasing a bank-owned property is considered to be a safe deal for inexperienced foreclosure buyers, as much of the buying risk is eliminated since there are no back taxes owed, no liens on the property and no tenants to evict.

Bank-owned properties are easy to find, as many banks have them listed on their Web sites.  Or you can also visit www.CBBankOwned.com to view nearly one thousand bank-owned new construction homes in Georgia and Florida markets and also learn about upcoming open houses.

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Posted in Bank Owned, Foreclosure, Friday Five, REO

To Buy or Not to Buy

Posted on March 14, 2010 by | Leave a comment

By: Holly Rabits

The pendulum continues to swing back and forth with regard to today’s real estate market and economy. One month sales are up, prices are down. The next month, the prices are up and sales are down. Still, based on an overall year to date comparison, according to the National Association of Realtors, things are beginning to improve and hopefully employment will follow suit.

Florida which ranks in the top 3 of distressed markets in the United States is also beginning to see a shift. One would hope so, as in my 30 years in real estate, I have never seen prices or mortgage rates at this level. Opportunity knocks and then there is the proverbial “BUT” in the equation.

While mortgages are being offered at wonderful rates, the qualification process both for the buyer and the property are getting more stringent. Changes are happening literally every day. A buyer can purchase an entry level home or condominium in areas of Florida for as little as $20 to $30,000 dollars. Higher end homes have slashed prices 50% or more to try to generate interest.

The tax incentive which expires in April has been a key component to driving entry level, owner occupied sales. There are now opportunities for existing owners to receive a tax credit as well, once they sell their home, at a below market price. Still, the opportunity is great to purchase more for less.

With this said, inventory is lower and absorption is gaining BUT there are still more foreclosures coming to market which will affect pricing.

Hopefully loan modifications will become more effective and people can hang on to their homes which will help in terms of stabilizing and improving the Florida market.  This will take many of the foreclosures and short sales out of play which will reduce inventory and strengthen demand, as well as raise prices!

It’s a slow boat but the ship has definitely left the dock and if you are considering a primary residence or second home in Florida. Now is the time to get serious.

Ask lots of questions, inquire about condo HOA’s and percent of developer rentals as well as the percent of investor owners. Make sure the HOA is not more than 15% in arrears. These are part of the perimeters that qualify a condominium for financing. Be prepared to have your financing in order before you purchase or have verifiable cash. Always inspect the property with a licensed inspector before closing. Check out national real estate websites. They offer great information.

Last but not least, contact a REALTOR to guide you through the buying process. We at CBNRTDA are here to help and know the rules to make your purchase easy and worry free.

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Posted in Bank Owned, NRT Development Advisors, Real Estate, Sales and Marketing

Types of loans available for REO homes

Posted on December 9, 2009 by | Leave a comment
In today’s current economy, REO homes – or bank-owned homes – present an advantageous opportunity for buyers looking for a good deal. However, there is a misconception about REO homes, as many people seem to think that there are limited loan options when purchasing an REO property. Actually, two very popular loan types are available for REO home purchases: FHA and Rural Housing loans.

FHA is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration that is issued by federally qualified lenders. Benefits include:

 - Lower down payment than conventional financing – only a 3.5% down payment required

 - More forgiving credit standards

 - Gift funds are allowed for closing costs and down payment

 - Seller concessions are available up to 6%

 - Asset reserves are not required at closing

 - The maximum loan limit is $346,250 for the Atlanta area

 - There are multiple loan limits, including 15-, 20-, 25- and 30-year loans

The USDA Guaranteed Rural Development Loans program (Rural Housing) offers attractive terms for eligible buyers purchasing eligible rural properties. We can help you determine if your buyers can take advantage of these program benefits, such as:

 - No mortgage insurance (PMI)

 - 100% financing

 - Loans are available up to $417,000

 - Non-traditional credit is even allowed in some circumstances

 - And asset reserves are not required

There are different guidelines for each loan type, dependent upon product type, condition of the house and the buyer’s circumstances. Speak to your mortgage counselor about your specific needs to determine if either of these loan types are an option for you. You can also visit www.hud.gov for additional information about FHA loans and www.rurdev.usda.gov for additional details about Rural Housing loans.

“Types of loans avialbe for REO homes” is part of NRT’s podcast series.  To hear this podcast or another podcast focused on home buying, please click here.

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Posted in Auction, Bank Owned, FHA financing, First-time homebuyer, Real Estate

What to research before buying in a multi-family community

Posted on December 7, 2009 by | Leave a comment
Buying a home or a condo within a community has become a great option for many buyers. First-time buyers use them as an entryway to property ownership, and busy professionals and retired empty nesters alike enjoy the maintenance-free lifestyle that these communities offer.

But they come with additional considerations beyond what’s included when purchasing a single-family home. Here are the top five items to research in advance:

1. Understand exactly what you are buying when you make an offer, as the word “condo” refers to a legal form of ownership, not a particular type of property. Condo buyers generally own only the interior space of their homes; the exterior structure, land and amenities are usually owned collectively by all of the owners in the complex. Be sure to ask who owns the interior walls? What about the land beneath the home? What maintenance are you responsible for? Do you have your own parking? How many and what kind of vehicles can you park?

2. Research the homeowner’s association—and its board members. Ask for a copy of the association’s financials, including a certified budget and the latest annual reserve study; this can help you determine whether any fee increases are imminent. How is the association organized, and who runs it? How are voting percentages determined, and what would be your percentage?

3. Be aware of all related fees, including monthly association fees any special assessments. How are association fees charged and is there a limit on increases? Check whether utility charges and amenities are included, including pool maintenance. Also, be clear about what maintenance is included in the association fee, and what the condo owner must maintain.

4. Review the complex’s declaration, which helps you determine the monthly condo fee; the bylaws, which include items such as architectural requirements should you want to make any external changes to your condo; plats and plans; and rules and regulations. If the condo association is incorporated, your real estate attorney will want to review the articles of incorporation as well as any proffered disclosure documents. Also, have your attorney check for any “use restrictions” that might prohibit you from renting out the unit, which some associations include to protect financing and refinancing options.

5. Ask about the ratio of units that are rented versus owner-occupied. Your lender will likely require this information.

Condo ownership can be an attractive homeownership option for many buyers. But, it’s important that buyers do their research about the legal and financial implications before making an offer, in order to feel confident when getting to the closing table.

“What to research before buying in a multi-family community” is part of NRT’s podcast series.  To hear this podcast or another podcast focused on home buying, please click here.

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Posted in Bank Owned, Closing, First-time homebuyer, Real Estate

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How to Select a Comp

Posted on November 30, 2009 by | 1 Comment

How does a Realtor figure out the best price when selling a home? How does a seller know if a home purchase is a good deal? Comps.

Comps, or comparable homes, are used by Realtors, sellers, buyers, lenders and appraisers to determine a home’s value. Comps are pulled for both homes currently on the market and recently sold homes.

But what data is included when considering comps? How do you know if you’re comparing “apples to apples,” as they say? These are the factors you should consider:

Price – When determining a home’s value, it’s important to look at the final sales prices of similar homes that sold in the past three months (not just the prices that homes are currently listed for). The final sales prices show what such a home could actually sell for in the current market.

Age of house – The age of a home is important, as the potential need to fix major items such as a roof or plumbing should be taken into consideration.

Features – Also look for the presence or absence of similar characteristics, such as chimneys, decks, walk-in closets and oversized bathtubs. And don’t forget about upgrades. Even though a house may be 20 years old, the insides may not be. Did the previous owners renovate a kitchen to include today’s hottest features? Were new energy-efficient features installed throughout the house (such as appliances and insulation)?

Size – This includes the number of bedrooms and baths, additional rooms such as a study or playroom, number of garages, and lot size.

Square footage – Cost per square foot is an important measure in determining a home’s value. For example, if your home’s value per square foot is $250 and the average per square foot of nearby similar recently sold homes is $275, it shows that your home is valued less per square foot than nearby similar homes.

Elevation features – This includes brick, siding, gables, and more. Brick homes are typically worth more than others.

Foundation – Is the home built on a basement or slab? Homes on a basement are typically valued higher because there is more room for expansion.

By analyzing the comps – including the current competition and actual sales prices – sellers can appropriately price their homes to make them an attractive option, and buyers can know that they’re getting a fair deal on a purchase. A Realtor can help buyers identify home sales that are truly comparable and interpret the information about them.

“How to select a comp” is part of NRT’s podcast series.  To hear this podcast or another podcast focused on home buying, please click here.

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Posted in Bank Owned, First-time homebuyer, Real Estate

What is a Short Sale?

Posted on October 26, 2009 by | 1 Comment

By: Joan Hertz

What is a Short Sale?

 A short sale is when the lender/bank will agree to sell the property for less than the mortgage amount that the seller owes to the lender. There are 2 different points of view on a short sale: Perspectives from the seller and the buyer. (We could actually say 3 and include the lender’s perspective!)

Seller

Desperate sellers are looking more and more at short sales as a solution to avoid foreclosure. A short sale will affect the sellers’ credit scores but will have less of an impact than a foreclosure in regards to the negative impact on your future credit. Financial hardship by the seller has to be proven to the lender to begin a short sale. As a seller, if you are behind on your payment and your financial condition has drastically changed, the lender may be more willing to agree to a short sale. Please be aware that lenders can and will opt for foreclosure if they can recuperate money from the mortgage insurer (even if the seller can get an able and qualified buyer to purchase their home at reduced sales price). In the current real estate market, be aware that if you are “upside down” between the current value of your home and what is owed on the mortgage, but you are still making regular payments, the lender will have no incentive to approve a  short sale, and if for any reason you have to sell, the lender will expect you to come up with the difference. If you are considering a short sale, make sure you list the home with a Realtor  who is a Certified Short Sale Specialist. The Realtor will know all the requirements and be able to help you get to the finish line, the closing!!

Buyer

As a buyer, when you are looking at a short sale, the first thing to understand in this process is that the lender is in the driver seat. Flexibility, patience and time are what you need as a buyer to go through the process of getting approval of the sale from the lender. Understand that the contract will have provisions that protect the seller/lender. One provision will state seller to have lender and any lien holder approve the sale and purchase agreement. Some lenders may require that the seller can entertain other offers that are presented to him even after the home is under contract. Remember the lender wants to make sure that he recovers the maximum amount of the outstanding loan.

 How do you make sure all these issues are addressed up front? Engage a  Realtor  who is certified in short sales! The Realtor will make sure that certain necessary language is incorporated in the contract language, such as: Buyer has the first right of refusal or a clause that stipulates no other offers will be considered by the lender. A Certified Short Sale Realtor will make sure that, when listing to promote a short sale or submitting an offer to the lender, the following items are included in the package:

a) Lender contact  who approved the short sale or at least can confirm receipt of short sale package

 b) Contact information for the Attorney who is engaged to do a preliminary HUD to be submitted to lender

c) Results of the title search, which is performed to make sure that no other liens are on the property that will affect the HUD Statement and bottom line of the lender

d) Current Property taxes , HOA Dues and information about who is the Declarant of the HOA

e) Handwritten Hardship Letter from the  seller

f) Complete financial disclosure of the buyer

g) Purchase Contract

h) Preliminary HUD

i) Proof of income for the last 2 years

j) 2 years tax returns

k) Copies of last 2 bank statements

 l) 3rd party authorization form

SO, what is next in the process? Sit back and have patience after an offer is made on a short sale!

For more information about purchasing a short sale, visit: http://www.cbbankowned.com

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Posted in Bank Owned

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