Is now a good time to buy a foreclosure?

This is a very common question from both real estate professionals and prospective buyers. Obviously, because local market conditions vary, the answer is different from market to market. But there are questions that buyers in any market should be asking before they make an offer on a property in foreclosure.

What’s the first step buyers need to take?

You need to be preapproved for a loan before shopping for a foreclosure. If you’re thinking of buying a foreclosure as an investment or second home, you need to understand that financing the home will be more difficult and more expensive than financing a primary residence. Lenders typically charge higher interest rates and require a larger down payment for investment or second homes.

How can you tell a bad foreclosure from a good one?

Certainly there are great deals in many markets for both investors and buyers looking for a primary residence. But making a sound deal can be tricky. Buyers need to be wary of unpaid liens, including mortgage debt, taxes, construction loans, home equity lines of credit, and possibly a second or third mortgage. Any or all of these financial obligations could become your responsibility when you purchase a property in foreclosure. Unless the property goes through a foreclosure auction and becomes a bank-owned REO, the outstanding foreclosure liens and fees could be simply transferred to the new owner-you.  Don’t fall into the same financial trap as the previous owner.

What are the costs of buying a foreclosure?

It takes money to make money. The best opportunities are for buyers with cash. If you are planning to rent out the property or even resell it for a quick profit, make sure you consider the carrying costs, including sales commissions, marketing costs, vacancies, taxes, insurance, and maintenance costs. Once you’ve calculated all the expenses, add on another 10 percent to 15 percent. If you don’t build in a “surprise fund,” you might be the next foreclosure statistic.

How does choice of neighborhood affect foreclosure investments?

If you’re looking for a good investment you should generally avoid neighborhoods overrun with foreclosures, particularly newer subdivisions in overbuilt exurban areas. Investors will be tempted to buy foreclosures in these areas because they offer the steepest discounts-but they also carry the most risk of further depreciation. Look in well established neighborhoods with good schools and transportation. If you’re in a market where prices are still falling, factor the falling prices into any offer you submit on a foreclosed property.

Source : NAR

Please feel free to call me if you have any questions.  If you’d like to see a list of foreclosed properties in your area, I have access to lists of foreclosed and short sale properties anywhere in the state of Utah.

I know this store will be a great addition to Midway, especially for local residents like myself who live less than 5 minutes away.  It will also be convenient to winter tourists staying at Midway’s Zermatt and Homestead resorts. I’m very happy to have it here, and think most others in Midway will agree!

http://www.marvelousproducts.com/Can-I-give-my-dog-p/information-can-i-give-my-dog.htm

As always, feel free to comment!

Here’s a great article I found on the NY Times.  CLICK HERE.  This is pretty right on… please take a few minutes to read it.  I am still so blown away that some people don’t think Americans should have access to BASIC, AFFORDABLE, health care… and I can’t understand why everyone is so afraid of the public option.  Without the public option, there will be no real reform.  As long as companies are motivated by their bottom line to DECLINE people and DENY procedures, it’s not going to work.  There must be a public option available to people.  Those who like their ‘employer based’ coverage can keep it.  Those who don’t have the OPTION of ‘employer based’ coverage — and who are DECLINED by private companies, like me, can have a good, affordable public option.  Sorry – but #37 just is NOT good enough.

Here’s a funny video

This is an article I came across from a very reputable bi-partisan source. The claims that are being made by opponents of health care reform are nothing but lies, and it was passed around in a very large chain email to try to scare people. Here are just a couple of my favorites.  See the link at the end of this article for the full story from FactCheck.org.

• “YOUR HEALTH CARE WILL BE RATIONED!” FALSE!!!! It says nothing whatsoever about “rationing” or anything of the sort. Actually, it’s favorable to families and individuals, placing an annual cap on what they could pay out of pocket if covered by a basic, “essential benefits package.” The limits would be $5,000 for an individual, $10,000 for a family.
• “A GOVERNMENT COMMITTEE WILL DECIDE WHAT TREATMENTS AND BENEFITS YOU GET” FALSE!!  Actually, the section starting on page 30 sets up a “private-public advisory committee” headed by the U.S. surgeon general and made up of mostly private sector “medical and other experts” selected by the president and the comptroller general. The advisory committee would have only the power “to recommend” what benefits are included in basic, enhanced and premium insurance plans. It would have no power to decide what treatments anybody will get. Its recommendations on benefits might or might not be adopted.
• “ALL NON-US CITIZENS, ILLEGAL OR NOT, WILL BE PROVIDED WITH FREE HEALTHCARE SERVICES.” FALSE!!  That’s simply not what the bill says at all. This page includes “SEC. 152. PROHIBITING DISCRIMINATION IN HEALTH CARE,” which says that “[e]xcept as otherwise explicitly permitted by this Act and by subsequent regulations consistent with this Act, all health care and related services (including insurance coverage and public health activities) covered by this Act shall be provided without regard to personal characteristics extraneous to the provision of high quality health care or related services.” However, the bill does explicitly say that illegal immigrants can’t get any government money to pay for health care. Page 143 states: “Nothing in this subtitle shall allow Federal payments for affordability credits on behalf of individuals who are not lawfully present in the United States.” And as factcheck.org has said before, current law prohibits illegal immigrants from participating in government health care programs.

I’m so tired of the scare tactics and lies.  And I really don’t understand – WHY is everyone so ‘scared’ of a public option??  As the video from my last post points out, a public option is simply competition.  If it’s better and more affordable, then it works, and we all win!!  If it’s NOT, then it will simply fail.  The reason ‘everyone’ (ie. the insurance companies and everyone who believes their lies) is so scared, is because then they might actually have to be FAIR with people.  They might actually have to STOP DISCRIMINATING against people with pre-existing conditions (like me).  They might actually have to PAY for preventative care for people in situations like mine.

Please take a few minutes out of your day and read the full article from factcheck.org. Educate yourself on what the bill ACTUALLY says.

As always, please feel free to comment.

ANY past history of melanoma = AUTOMATIC DECLINE for ALL insurance companies. And even in “high risk pools”, such as Utah’s “HIPUtah plan”, my melanoma is excluded for a minimum 12-month period. This means, even if I sign up for this RIDICULOUS policy that covers very little, and is very expensive (OVER $400/month for even reasonable coverage!!), if within 12 months of coverage, I get another spot of melanoma, no costs associated with it will be covered. Any costs associated with even getting CHECKED for melanoma within that 12-month period will not be covered. Do the insurance companies want me to NOT get preventative care, and to potentially let what would otherwise be a very minor thing turn into something that could be a lot more serious, just so they don’t have to cover it? The simple answer is YES! They don’t really give a shit about me. They only give a shit about their bottom line.

I’m self-employed. I’m a real estate broker, and an “independent contractor”. I don’t have an employer-based option for health care. Even if I did, my ‘pre-existing condition’ would still be excluded for a certain period of time. I was browsing online today, and came across an article that had the headline: “REALTORS Covered by NAR With New Limited Health Insurance Program”. Sounds pretty good – right? Well, turns out that by “limited”, it actually means “COVERS NOTHING”. They are basically taking money for almost nothing. The list of “Plan Limitations and Exclusions Applicable to All Benefits” is so long it took me almost an hour to read and digest. One of the “exclusions” reads as follows: Treatment or removal of warts, moles, boils, skin blemishes or birthmarks, bunions, acne, corns, calluses, the cutting and trimming of toenails, care for flat feet, fallen arches or chronic foot strain; I called an agent with the company who administers this plan, and told him my situation. He rudely told me “NOPE, won’t be covered”. Not only WON’T they cover me, they won’t let ANYONE on their plan get checked or treated for melanoma. Checking for melanoma involves the removal and testing of abnormal-looking moles. Melanoma is the deadliest form of skin cancer, but is almost 100% curable if caught early. These people would prefer if I DON’T EVEN GET CHECKED!!! Wow… I guess that’s the “free market” on health insurance. Pad the bottom line. Screw the patient!!!

Under Obama’s plan, there would be NO DISCRIMINATION against people with pre-existing conditions (ie. ME!). INSURANCE COMPANIES could not drop coverage on people when they get sick. It would create a new insurance marketplace, “The Exchange”, which would create a real competitive market. It would offer a PUBLIC OPTION (Hallelujah!) for people like me!! It would IMMEDIATELY offer low cost coverage to people with preexisting conditions (ie. ME). It all MAKES SENSE!!! This isn’t just about me. There are millions and millions of Americans in similar situations. Yet some ass holes in congress are fighting tooth and nail to block this plan. They are so deep in the insurance lobby’s pockets it’s sickening. They are spreading treacherous lies, and propaganda, and using the same old BS “Scare Tactics” to try to block real reform from happening. ONE OF THEM even had the audacity to actually YELL FROM THE HOUSE FLOOR “You Lie!” to Barrack Obama as he spoke. This is definitely a new low in American politics, and is SO disrespectful it’s beyond words.

So here’s my plea, to all who read this: Please, Please, PLEASE, call your congressmen. Tell them to SUPPORT Obama’s plan, and make a real change. This can’t wait ANY longer.

Click here to see details on the plan and send a letter to your congressmen.

Click here to contribute to Rob Miller’s campaign. Help him defeat that dick head Joe Wilson, who had the audacity to heckle president Obama from the house floor.

Participate in events and vigils to help pass real healthcare reform. And, if your congressmen don’t listen, VOTE AGAINST THEM IN THE NEXT ELECTION! ORGANIZE for their opponents. Donate to their opponents’ campaigns. That’s one thing that WILL get their attention.

Please pardon my language in this post, as you can certainly tell if you’ve read this far, this is something I’m extremely emotional about.  As always, please feel free to comment.

There are 2 tests you can use to determine if your yard is dry enough to start watering. The first is a screwdriver test. Adequate solk moisture at 6 to 8 inches deep is sufficient to maintain grasses during the summer. A long slender screwdriver pushed into the ground in several locations can give a quick assessment of the moisture condition of the soil. The screwdriver will easily penetrate to the soil depth that is still moist.

The other test is called foot-printing. Walk across your lawn late in the day and look back to see if your steps left footprints. Your footprints will appear in a lawn when the grass has low levels of water. When the blades are compressed by your feet, the low ater levels prevent the grass from springing back. If footprints remain for an extended period of time, it’s time to water.

Taller grass has a deeper root system that draws moisture from a larger volume of soil, and needs less irrigation. Grass should never be less than 2.5 inches after mowing. Mowing once a week is usually enough to maintain the proper height. A lawn that is 3 to 3.5″ will have a better chance of surviving prolonged drought and water restrictions.

To keep your root system healthy, water no more often than every third day, and make sure to turn it off after it rains. If you are served by Park City Municipal, call 615-5301 to obtain your Every Third Day watering sign, and you will be exempt from the every-other-day (odd/even) watering ordinance.

Many of these tips have been borrowed from Tom Ward of the Park City Water Conservation Taks force, so thanks to him for providing this helpful information.

Well, in the next 5 days the dramatic rise sopped and rates have again slipped back down a little – and today our best conventional rates are at 4.875% and FHA loans can be priced at 5.375%. No one expects these low rates to stick around forever and every forecast we see has rates rising significantly over the next 12 months. Buyers should take this into consideration and get their bargains now – a difference of just 1.0% increases the cost of ownership of a $300,000 property by $15,000 in the first 5 years. And anyone with a fixed rate of 5.5% or more should consider refinancing to lock in a lower rate NOW.