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Blue Ridge GA Real Estate / North Georgia Mountain Homes / Blue Ridge Real Estate /

Why foreclosures aren't always good "DEALS"

Posted by at 7:30 AM on Friday, September 05, 2008

I'll be the first to admit that I watch the foreclosure listings with an eagle eye. I see every one of them as they come on the market. I have daily reports from the banks that let me know what homes they are taking into their inventory, but I also know that just because it's a foreclosure it's not necessarily a good "DEAL." There's a lot of behind the scenes work and expensenses that go into a foreclosure before it actually makes it onto the market. Some of these expenses include, the attorney's fees for performing the necessary legal work and physically crying out the property on the courthouse steps. The REO Company’s fees for coordinating the locksmith to re-key the property and listing the property and negotiating contracts on behalf of the lender. There is also the cost of holding the property while evicting a possible resident. As well as the cost of hiring appraisers and agents to value the property and contractors to clean the property of anything left behind by the former resident. Then there are fees to pay the real estate and REO Company for listing and marketing the home. All of these fees compiled on top of a home that may have already had a mortgage on it that was in excess of it's value means that the bank or lender's gross sales price needs to be higher when they sell the home on the open market.

There are a good amount of foreclosures that are terrific deals but sometimes the best deals can be found on a property that's actively listed on the open market. We've seen banks that are willing to take a short sale in lei of foreclosing on a property. What that translates into is that the money the lender was going to have to spend to foreclose on the property can be transferred into a savings by the buyer. I've also seen sellers that are willing to bring money to the closing table in order to sell their property.

Kristy Petrillo

Re/Max Town & Country

770-843-0310

Top Producing Agent in the North GA Mountains.

www.georgiamountains.com

www.vacationblueridge.com

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User Comments

Foreclosures, I Agree!
I couldn't agree more with your above article. I think the general public has a misconception about foreclosures. It doesn't have to be a foreclosure to be a great deal. Many of the top builders are pricing new construction homes to sell fast!

Posted by on Tuesday, September 09, 2008 At 07:03 PM

agree
I've been looking for a foreclosure and totally agree. It seems like the homes that have been foreclosed on are the less desirable homes that weren't selling for a reason. What's been your experiance with Short Sales?

Posted by on Thursday, September 18, 2008 At 03:28 PM

Foreclosures/Short Sales
We are so fortunate to live and sell in a market like this. Prices have not dropped very far on the good/desirable properties. We are very familiar with and have been involved in a lot of short sales.

Posted by on Monday, October 27, 2008 At 08:09 AM

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