5 common myths you must know when buying foreclosures.
Myth is derived from the Greek word mythos, which means “word of mouth. Myths usually explain natural phenomena such as the creation of the world or universe using a story which includes a goddess and other supernatural characters. In the foreclosure world many myths are told and taught to sell a product or an idea. These myths can include products such as no money down or buy property for less than a cup of coffee. Like most of the Greek mythology and great fictional characters like Zeus and Hercules they are only meant to exercise our great imagination.
1.- All in Bad neighborhoods ( bad Stigma)
This is a very common myths many home seekers think that foreclosures are only located in high crime areas. This myth can not be further from the truth. Foreclosure happens when a borrower doest make their monthly payments. Some common reason why home owner’s fall into foreclosure are sickness, death in the family, unemployment, lay-off and/or unforeseen accidents. Lastly a extremely common reason is simply that the property is not selling for what the home owner owes on the mortgage note. None of these reasons are bias; it can happen to anyone, anywhere from the most humble poor neighborhood to the riches hills of Hollywood.
2.- UnCooperative banks
Do you remember the last time you went shopping and received awesome customer service, Rarely does this happen, Banks can be the same way! One would think after all they lost thousands of dollars already why would banks want to lose more money. Many home owners repeating have tried to call banks and negotiate on their own, sadly they hang up the phone fraustrated and disappointed with their lenders. Its weird how banks are willing to take thousand of dollars in lost and take back property from the original homeowner to resell it to a new buyer; costly them even more money. Would it not be great it banks could forgive the missing month’s payments and help the original home owners. This is a long shot but now a days banks are doing this! This process is called a short sale refinance; we have learned that around five lender are doing this to prevent great loses.
3 Everybody makes money on foreclosures.
Is every business a successful business? No; not every business is a successful business in Fact many new business fail the first year. Can everybody succeed in foreclosures? NO. Foreclosures although can be a profitable business; not all purchases make can be a smart buy. At times one may lose and invest more than needed into a property. Keep in mind every foreclosure is not a good deal don’t let the image fool you. Bidding at auctions sometimes can be tricking and a lost. When attending auctions one does not know the condition of the property. At times one can get into a bidding war with other buyers and end up buying a property over priced, thinking it is still a good deal. Another mistake can also be buying a property with open permittes and code violation; buying on the spot required you to buy the property AS-IS, there is no turning back. Doing your homework on communities, neighborhoods should never be underestimated. Only those who know Real Neighborhood value and can purchase at 30-40% below market value and succeed longevity.
4 Foreclosures sale for a lot a less than market value
IF you were a seller wouldn’t you want to receive top dollars for your home? I expect your answer to be absolutely. Keep in mind that Banks have a good idea of the value of the home. Prior to listing the property they order BPO and appraisals to value the home. Most banks at times list the property very high and work on reduction. Be patience not all Foreclosure sales are below market value.
5 Banks won’t finance a Rehab or Foreclosed home.
This myth can be true depending on the condition of the home. For instance if you want to finance a destroyed property keep it mind that it would be appraised and valued at the lowest possible price, example a completely rehab home. Always expect for the lowest possible value when waiting for the appraisal report. Now if the home is in good condition most banks will definelty lend money on it. Just a small hint you might get different perks if you financed thru the same lender that foreclosed on the property!
To many Real Estate has been a way to a great lifestyle and the road to financial freedom. TO others it has been a deep pitfall which lend to great disappointment. Don’t allow these 5 common myths to fool you. Click here to read a CNN report of Foreclosure Avoid traveling the wrong path to achieve your financial freedom. Call us today 305364-0037 for profitable listing of foreclosures in your area. Were a click away, awaiting to serves all your real estate needs today.
Ready to move to Miami? We have several Miami Homes, Miami Foreclosures, Miami Rentals, Miami luxury foreclosures, Miami Condo foreclosures. Search the Local MLS for Hundreds of Miami Homes and Miami Real Estate. Please contact us for a list Miami homes.
5 common Myths you must know when buying Miami Foreclosures
Myth is derived from the Greek word mythos, which means “word of mouth. Myths usually explain natural phenomena such as the creation of the world or universe using a story which includes a goddess and other supernatural characters. In the foreclosure world many myths are told and taught to sell a product or an idea. These myths can include products such as no money down or buy property for less than a cup of coffee. Like most of the Greek mythology and great fictional characters like Zeus and Hercules they are only meant to exercise our great imagination.
1.- All in Bad neighborhoods ( bad Stigma)
This is a very common myths many home seekers think that foreclosures are only located in high crime areas. This myth can not be further from the truth. Foreclosure happens when a borrower doest make their monthly payments. Some common reason why home owner’s fall into foreclosure are sickness, death in the family, unemployment, lay-off and/or unforeseen accidents. Lastly a extremely common reason is simply that the property is not selling for what the home owner owes on the mortgage note. None of these reasons are bias; it can happen to anyone, anywhere from the most humble poor neighborhood to the riches hills of Hollywood.
2.- UnCooperative banks
Do you remember the last time you went shopping and received awesome customer service, Rarely does this happen, Banks can be the same way! One would think after all they lost thousands of dollars already why would banks want to lose more money. Many home owners repeating have tried to call banks and negotiate on their own, sadly they hang up the phone fraustrated and disappointed with their lenders. Its weird how banks are willing to take thousand of dollars in lost and take back property from the original homeowner to resell it to a new buyer; costly them even more money. Would it not be great it banks could forgive the missing month’s payments and help the original home owners. This is a long shot but now a days banks are doing this! This process is called a short sale refinance; we have learned that around five lender are doing this to prevent great loses.
3 Everybody makes money on foreclosures.
Is every business a successful business? No; not every business is a successful business in Fact many new business fail the first year. Can everybody succeed in foreclosures? NO. Foreclosures although can be a profitable business; not all purchases make can be a smart buy. At times one may lose and invest more than needed into a property. Keep in mind every foreclosure is not a good deal don’t let the image fool you. Bidding at auctions sometimes can be tricking and a lost. When attending auctions one does not know the condition of the property. At times one can get into a bidding war with other buyers and end up buying a property over priced, thinking it is still a good deal. Another mistake can also be buying a property with open permittes and code violation; buying on the spot required you to buy the property AS-IS, there is no turning back. Doing your homework on communities, neighborhoods should never be underestimated. Only those who know Real Neighborhood value and can purchase at 30-40% below market value and succeed longevity.
4 Foreclosures sale for a lot a less than market value
IF you were a seller wouldn’t you want to receive top dollars for your home? I expect your answer to be absolutely. Keep in mind that Banks have a good idea of the value of the home. Prior to listing the property they order BPO and appraisals to value the home. Most banks at times list the property very high and work on reduction. Be patience not all Foreclosure sales are below market value.
5 Banks won’t finance a Rehab or Foreclosed home.
This myth can be true depending on the condition of the home. For instance if you want to finance a destroyed property keep it mind that it would be appraised and valued at the lowest possible price, example a completely rehab home. Always expect for the lowest possible value when waiting for the appraisal report. Now if the home is in good condition most banks will definelty lend money on it. Just a small hint you might get different perks if you financed thru the same lender that foreclosed on the property!
To many Real Estate has been a way to a great lifestyle and the road to financial freedom. TO others it has been a deep pitfall which lend to great disappointment. Don’t allow these 5 common myths to fool you. Click here to read a CNN report of Foreclosure Avoid traveling the wrong path to achieve your financial freedom. Call us today 305364-0037 for profitable listing of foreclosures in your area. Were a click away, awaiting to serves all your real estate needs today.
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Ready to move to Miami? We have several Miami Homes, Miami Foreclosures, Miami Rentals, Miami luxury foreclosures, Miami Condo foreclosures. Search the Local MLS for Hundreds of Miami Homes and Miami Real Estate. Please contact us for a list Miami homes.