MORTGAGE BLOG!

Chances are you've heard the phrase; "I am going to cash in on all of the foreclosures that are happening". The perception here is of course, cashing in on an underpriced home, that is, IF the home is underpriced. THIS IS NOT ALWAYS THE CASE! Some banks will stick to a sales price that represents what they have invested in the property, or sell the home at auction and take their losses there. (The auction is another topic, contact Pinellas Financial if you would like more information.)

But some banks will take a "short sale", which means they will take less money than what they have invested in the property if that's all the market will bear. This also prevents them from having to go through the costs associated with foreclosure proceedings. This is where the rest of us have an opportunity. Make a low ball offer!

The most immediate way to begin to look for foreclosure deals is to GO ONLINE! There are many web sites out there that exist for this specific reason. Here are some tips;

1. Do your RESEARCH! Even the "short-sale" price may not be a deal. Just because a home is in foreclosure does not automatically mean it will be a bargain.
2. Foreclosures are risky. Look in your local area. This assures you that you can "see" the property AND the area/neighborhood.
3. Get an inspection. The current owners may have "given up" on care of the home because they feel resentful about losing it. They may not be taking adequate care of it.

Lastly, call PINELLAS FINANCIAL to get pre-qualified to purchase a foreclosure. We are experienced with working with the loss mitigation departments of most major banks. We can help you work out a "short sale" or  pre-qualify you to go to the auction and be prepared to bid on a specific property.

Have a GREAT day!

Well what else can I say? Happy, Happy Thanksgiving! Mortgage news this week is minimal as would be expected. Most are thinking Turkey and Dressing. I did have an experience this week with an FHA closing to remind me of how much "red tape" the goverment loves. In the end, we opted for a conventional product that my office was able to underwrite and get to closing within 48 hours, to make sure and close before the holiday. Am I patting myself on the back? YEP!! Thanks for noticing.

So have a wonderful Turkey day. I will back to the grind on Friday. I am holding the National "Yahtzee" Championships at my house over the holiday if you care to take the challenge. Ha! My children are certainly under the delusion that they have a chance to win. See you all Soon!

Terry

As of the week ending November 9, the Mortgage Banker's Association is reporting that mortgage applications were up 5.5%. So even with the "tightening" underwriting guidelines, consumers seem to be at least, trying to get that loan. And while foreclosures are still "BIG NEWS", refinance applications were up 6.4%. So, there are still plenty of homeowner's with good equity in their homes.

These types of indicator's continue to let us know that "market healing" is on the way. As rates stay nice and low, I continue to believe we have seen the "bottom" and are on our way up. Have a great week!