I get this question frequently so I figured I would write an article about it explaining the foreclosure process here in Horry County. It’s not complicated but does confuse most that aren’t familiar with the process. I don’t want to complicate my explanation and talk more about the actual deals but for those of you who are reading this and don’t understand the process it goes something like this:
1-Get behind on your mortgage payments (start to get calls, letters, etc…) you really have three options from this point on
A. http://www.myrtlebeachshortsales.net Myrtle Beach Short Sales B. Deed
in Lieu of Foreclosure
C. Foreclosure
2-If you can’t get A or B done then you have to move on to C which the bank will have to serve you an official notice of foreclosure which will be about 90-150 days from your last mortgage payment, time varies on bank or servicing company. Then you have thirty days to respond which if you are still trying to short sale your home can buy you time or just delay the process.
3-The bank will then respond back and keeps the foreclosure process moving forward. You can keep playing this game for about 60-120 days until they eventually figure out what you are doing and that the bottom line is you signed on the loan and due owe the money, they don’t care what your financial situation is just that they are not receiving payments.
The whole foreclosure process depending on if you respond can take anywhere from six to twelve months or even longer with the high rate of http://www.myrtlebeachforeclosures.net Myrlte Beach Foreclosures we have experienced over the past few months.
Well the point of the article was how to analyze foreclosures and let’s get to it! First you need to find someone who is an expert on the http://www.myrtlebeachforeclosures.net/">Myrlte Beach Real Estate Myrtle Beach Real Estate market. Most people don’t know the best questions to ask agents to get a feel for their background or personal experience in the market. Most want someone who is vastly knowledgeable about the current market and has participated in many transactions as both a realtor and investor. After you have chosen a qualified professional to represent you then you really have to start narrowing down what type of property you want purchase.
What type of property is best suited for your short and long term goals? Single Family homes, condos, land, or commercial property? Do you pan to have the property as a http://www.myrtle-beach-rentals.com/ Myrlte Beach Rentals Myrtle Beach rental? What most people don’t understand is that commercial assets have also been hit hard in this real estate crisis and more than ever you can find great deals on pre foreclosure commercial real estate in the Myrtle Beach area. I think allot of investors overlook that avenue because they don’t think they can afford it but many are willing to spend $300,000-$1,000,000 on a home and they could have bought a small strip center, car wash, mini storage, or other type of cash flow investment. I encourage my entire client’s to evaluate what their true needs are before purchasing an investment. It’s hard to find out what the real value is today but with prices dropping and supply holding steady if you are at fifty cents on the dollar from the high that is always a good place to start. Also, when looking at foreclosure deals I look at replacement coast minus twenty percent, the reason I use twenty percent is because of construction costs soaring back in 2004-2007. With building permits as twenty five year lows prices for construction is also falling so if you can find investments less than replacement costs once the glut of inventory is off the market you will be in a much better position should you want to sell.
Another aspect to look at when analyze foreclosures are HOA, POA, or regime fees. Many times people don’t understand that they can take up a good portion of the investment even though they include most of your fixes costs such as insurance. There are many great deals on http://www.vacationcondostore.com/ "Myrlte Beach Condos Myrtle Beach Condos you just have to be careful which building to buy in because you don’t want to get eaten alive by HOA fees and/or an assessment, just another reason to make sure you have hired a pro and not a part time realtor.
Other quick things to think about when buying foreclosures are even though 99% are sold “AS IS” I always get an inspection because you never know what is behind those walls. I also encourage all my buyers to purchase a home warranty because just when you think nothing is going to go wrong the hot water heater busts or a pipe bursts. We give all our clients a free home warranty when they buy through us or they get free warranty when their properties are listed with our firm!
Best of luck when looking at foreclosures, it’s a great way to make money in a down economy and if you want to look at
Myrtle Beach rentals this summer now is the time.