About Lauderdale Lakes Townhome Foreclosures
If you're planning on buying a property in the near future it helps to know the different types of foreclosure properties and the financing options available for each.
There are four types of foreclosure properties: HUD, Fannie Mae, Freddie Mac and REO's (bank owned or corporate owned).
HUD foreclosure properties are single family homes, condos and townhomes that were insured by FHA. You can search for HUD homes yourself by logging on to the HUD Homestore website www.hudhomestore.com . The site allows you to search, save searches and will notify you when a new property becomes available that matches your search criteria. These properties were previously financed by FHA and as a result, financing is often easier than with traditional purchases. And no, these are not just junkers, but homes that are often excellent properties with great previous purchase prices.
We're finding that HUD foreclosure homes typically run 10-15% under the current market price. However, offers should be close to the HUD asking price. A specially trained HUD property agent can explain why and structure your winning offer. HUD requires that buyers' submit their bids on HUD homes through a registered and approved real estate broker. Rent 1 Sale 1 Realty offices are registered and approved, and our agents are trained in submitting bids correctly.
Some of the benefits of owning a HUD foreclosure condo, townhome or home are:
1. Qualified buyers only need $100 down;
2. You can get up to $35,000 towards repairs for properties in need of renovation;
3. The homes have been examined for certain defects;
4. The decision process and closing time are relatively short;
5. In many instances these properties are available for both owner occupants and investors.
HUD foreclosure properties account for a small percentage of the total foreclosure properties on the market. However, this inventory is expected to grow in the coming years due to the fact the majority of loans in the last few years have been FHA financed.
Fannie Mae foreclosure properties are condos, townhomes and single family homes that were insured by Fannie Mae. You can search for these foreclosures on the Fannie Mae website www.homepath.com and it's closely related cousin Freddie Mac (website: www.homesteps.com).
The benefits of owning these properties are tremendous. Great values and special low downpayment financing make these homes extremely attractive for home owners. Investors can buy Fannie Mae properties with as little as 10% down. Currently Fannie Mae is offering to apply 3.5% of the purchase price toward the buyer's closing costs.
Freddie Mac also offers a two year buyer protection plan when you buy one of their properties.
A large portion of the foreclosure market is comprised of properties owned by banks and private asset management companies. These properties are often priced to sell and many financing programs are available to purchasers. They are easy to buy when working with a real estate agent trained in the bank and corporate owned segment of the market.
All of the foreclosures tend to close relatively fast and without problems. They offer an excellent pricing alternative for the home buyer and investor.
Note that HUD, Fannie Mae, Freddie Mac, banks and asset management companies require buyer's to have a pre-qualification letter from an approved lender or bank prior to submitting a bid on a foreclosure property. Rent 1 Sale 1 Realty offers this as a free service through our preferred and approved lender Academy Mortgage. You can click here to receive your letter.
Feel free to call the Rent 1 Sale 1 Realty office nearest you for more information or contact our Corporate office at 561-383-9100 or 1-877-471-7620.
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