What’s the Best Way to Find a Foreclosure For Sale?

The most complete list of active foreclosures is available for free!

Fannie Mae, Freddie Mac and HUD all  list their properties with local Realtors. Also most other banks, mortgage companies and asset companies list their foreclosure properties with local Realtors.

Local real estate sites are the best resources to find the most foreclosures.  Local sites have a link that is fed directly from the local Multiple Listing Service (MLS).  You can search and/or you can also set up automatic searches so you get an email every time a new foreclosure becomes available.

Visit PortCityRealty.com to search for foreclosures and to read more information about purchasing foreclosures.

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This Blog by: Julie Martin, CRB, e-PRO, Broker/Realtor, Port City Realty, Mobile, AL; 
877-880-8110 toll free
251-665-4665 my cell
julie@portcityrealty.com

You can search for properties from a LIVE MLS here. This search should have accurate information since it is fed directly from the Mobile MLS.

Click here to search a LIVE MLS link from the Baldwin County

These links are also on my websites:
PortCityRealty.com
PortCityCondos.com 

Buying A Home

Common questions and Answers

1.    Where do I start? What is the first thing I should do?

First, talk to a lender and start the pre-approval process. A lender can tell you what you will be qualified to purchase and estimate for you how much down payment you will need and what your payment will be.

2.    Once I know my price range, what do I do next?

Then you should talk to a Realtor, preferably a Realtor with Port City Realty.
Here is a link to the  “Real Estate Consumer Agency Disclosure” form. It explains how real estate licensees in the State of Alabama can work with you.

3.    How do the Realtors at Port City Realty work with me? We assist you as a Transaction Broker. We do not require you to sign a Buyer’s Agency Agreement with us in order to show you houses.

4.   How can the Realtors at Port City Realty assist me?The Realtors at Port City Realty can give you information and show you any house in Mobile or Baldwin County that is listed for sale by any company. It does not matter which company’s For Sale Sign is in front of the house. If you are looking in a real estate magazine, it doesn't matter which page you are on. If you have marked properties on 10 different pages, you do not need to call 10 different Realtors. One Realtor can give you the information about all of the properties.

5.   How do the Realtors at Port City Realty have the information about all of the houses? All of the houses, from all of the companies are listed on a computer system called the Multiple Listing Service (also called the MLS).  When a company joins the MLS each agent gets a password that enables them to sign into the MLS and get the information about each house. Port City Realty is a member of Mobile and Baldwin County's Multiple Listing Services.

6.  How can the Realtors at Port City Realty show me a house that is “For Sale” by another company?The Realtors can find the property on the MLS and contact the company that has the property listed “For Sale.” We get our showing instructions from the listing company. Realtors that are members of the MLS have electronic keys that enable them to open secured lockboxes to obtain a key to show you houses that are “For Sale.”

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This Blog by: Julie Martin, CRB, e-PRO, Broker/Realtor, Port City Realty, Mobile, AL; 
877-880-8110  toll free
251-665-4665  my cell
julie@portcityrealty.com

You can search for properties from a LIVE MLS here. This search should have accurate information since it is fed directly from the Mobile MLS.

Click here to search a LIVE MLS link from the Baldwin County

These links are also on my websites:PortCityRealty.com
PortCityCondos.com

Tax Credit for 1st Time Home Buyers Still Available

There is a tax credit for 1^st time home buyers still available in the state of Alabama. You just have to know where to look. There is a Mortgage Credit Certificate (MCC) program for low to moderate income families available through The Alabama Housing Finance Authority.

The Mortgage Credit Certificate program provides a direct dollar-for-dollar reduction in federal taxes worth 20% of the mortgage interest paid each year. The remaining 80% of the interest still can be claimed as a tax deduction.

Home buyers who would like to use this program must use a lender who is participating in the program and must meet established income and sales price limits.

This program can be used with FHA, VA or Conventional Financing and can be combined with The Alabama Housing Finance Authority’s Step Up program.

You can go to The Alabama Housing Finance Authority’s website to get more information, including participating lenders and income limits that apply.

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This Blog by: Julie Martin, CRB, e-PRO, Broker/Realtor, Port City Realty, Mobile, AL; 
877-880-8110 toll free
251-665-4665 my celljulie@portcityrealty.com 

You can search for properties from a LIVE MLS here. This search should have accurate information since it is fed directly from the Mobile MLS.

• 10 Tips To Help You Submit An Offer On A Foreclosure And Get It Accepted

10 Tips to Make it More Likely Your Offer is Accepted.

1. Make sure that there are no blanks left unfilled in your purchase agreement - Every issue in the purchase agreement should be addressed.

2. If you are getting a mortgage you need a pre-approval letter from a bank or mortgage company that  states what type of loan you are getting and how much you will be financing. Some banks/asset companies will require that you get a pre-approval letter from a certain lender. You do not have to use their lender, but if they say they require a pre-approval letter from a particular lender it is wise to get them what they want.

3 If the offer is cash you will need to provide proof of funds from your bank.

4. Certified funds for earnest money is helpful. The higher the dollar amount the more serious you will look.

5. Timing is crucial. The sooner you submit the offer the better, but check the listing or with the listing agent for any timing limitations. If you are bidding on a property where you submit your offer on line, watch your timelines and submit as soon as you can. Usually it's the highest offer that gets the bid, but sometimes it's the 1st acceptable offer. The sooner a buyer writes an offer the less likely they will be to get into multiple offers.

6. Give the seller time to respond. Three - Five days is preferable. They may respond sooner, but if they don't, and you do not give them enough time, your offer will expire. Once it expires in the system you have to start over and resubmit. They might accept another offer while your offer is in the system as expired.

7. The property is being sold "as-is." Do not ask for repairs or a repair allowance.

8. Keep in mind that anything you ask the seller to pay on the buyer's behalf reduces the seller's net proceeds. You can ask for the seller to pay for the buyer's closing cost when there is a mortgage involved, but sellers rarely pay prepaid items, such as insurance, taxes and mortgage escrow items.

9. Do not write any "weird stuff" into the offer. You cannot move in before you close. You cannot do repairs before you close. And the listing agent has no way to submit a two page (or even one page) explanation of why you are offering what you are offering.

10. Finally, if you do find yourself in a multiple offer situation and you are told to "make your best offer," then do just that. The property is worth what it is worth to you. If you would have gone $1000 higher, now is the time to do it. If you would have gone $10,000 higher, now is the time to do it. In our market over 25% of the sales are foreclosures, but less than 10% of the listings are foreclosures. There are a lot of multiple offers. The best deals almost always go into a multiple situation. The sooner, the higher and the more complete your offer is, the more likely you will win in a multiple.

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This Blog by: Julie Martin, CRB, e-PRO, Broker/Realtor, Port City Realty, Mobile, AL; 
877-880-8110 toll free
251-665-4665 my cell
julie@portcityrealty.com

You can search for properties from a LIVE MLS here. This search should have accurate information since it is fed directly from the Mobile MLS.

Click here to search a LIVE MLS link from the Baldwin County

These links are also on my websites:

PortCityRealty.com
PortCityCondos.com

• Buying a Freddie Mac Foreclosure – Part 3: Multiple Offers

Buying a Freddie Mac Foreclosure -  What makes an offer the better offer in a multiple situation?

A few days ago I posted an article called Buying a Freddie Mac Foreclosure. In it I discussed the procedure listings agents are required to follow when submitting offers.

Today, I received an offer on a property. With it was an email from the Realtor that wrote the offer. He was explaining that this particular buyer had recently been in several multiple offer situations. He was hoping that this offer was written quick enough and high enough to get it accepted.

Everyone understands that the price you offer on any listed property is very important. But what else is important?

As I explained in Buying A Freddie Mac Foreclosure, timing is very important. The sooner you can get an offer submitted, the better off you are.

What else? What can make your offer better than other offers in a multiple situation?

Give the seller time to respond. Three - Five days is preferable. They may respond sooner, but if they don't, and you do not give them enough time, your offer will expire. Once it expires in the system you have to start over and resubmit. They might accept another offer while your offer is in the system as expired. - This is the biggest single issue I see that causes a buyer to lose a property, other than price.

The property is being sold "as-is." Do not ask for repairs or a repair allowance.

Keep in mind that anything you ask the seller to pay on the buyer's behalf reduces the seller's net proceeds. You can ask for the seller to pay for the buyer's closing cost when there is a mortgage involved, but do not ask for the seller to pay for any prepaid items, such as insurance, taxes and mortgage escrow items.

Do not write any "weird stuff" into the offer. You cannot move in before you close. You cannot do repairs before you close. And the listing agent has no way to submit a two page (or even one page) explanation of why you are offering what you are offering.

Finally, make sure all of the required documents and information is submitted with the offer. I am going to do a Buying a 

Freddie Mac Foreclosure Part 3 to give you a list of items the listing agent needs in order to submit you bid. 

Buying a Freddie Mac Foreclosure - Part 1: 

Buying a Freddie Mac Foreclosure - Part 2:  Getting An Offer Submitted

  

This Blog by: Julie Martin, CRB, e-PRO, Broker/Realtor, Port City Realty, Mobile, AL; 
877-880-8110 toll free
251-665-4665 my cell
julie@portcityrealty.com

You can search for properties from a LIVE MLS here. This search should have accurate information since it is fed directly from the Mobile MLS.

Click here to search a LIVE MLS link from the Baldwin County

These links are also on my websites:
 PortCityRealty.com
PortCityCondos.com

• Buying a Freddie Mac Foreclosure – Part 2: Getting An Offer Submitted

·         What does the listing agent need in order to submit an offer?

A complete contract, with every issue in the contract addressed.

If you are getting a mortgage you need a pre-approval letter from a bank or mortgage company that states what type of loan you are getting and how much you will be financing.

If the offer is cash you will need to provide proof of funds (proof that the buyer has access to the funds to pay for the property).

Proof of earnest money.

Can the listing agent submit your offer if you do not provide a pre-approval letter, proof of funds or proof of earnest money?
 
Yes. However, the listing agent is also required to put in the comment section of the offer "there is no pre-aproval letter," or whatever else is missing. You will not be able to get an offer accepted without the missing documentation and the missing documentation could keep you from winning the bid in a multiple situation.

Is there anything that can actually keep an offer from being submitted into the system?

Yes. There are questions in the system that are in required fields. Answers are required in order for the system to take the bid.  Information about the buyer that is required in order to submit the offer into the system. Is the buyer(s)
an owner occupant or investor?
a licensed real estate agent?
a Freddie Mac employee or servicer?
a former owner of the property or relative?
 
Without answers to these questions the system will not take the bid. The offer can be emailed to the listing agent's sales specialist, so that it is legally submitted, but it will not be considered until these questions are answered. In a multiple situation this missing information could keep you from winning the bid.

For more information about buying a Freddie Mac foreclosure

Buying A Freddie Mac Foreclosure - Part 1

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This Blog by: Julie Martin, CRB, e-PRO, Broker/Realtor, Port City Realty, Mobile, AL; 
877-880-8110 toll free
251-665-4665 my cell
julie@portcityrealty.com

You can search for properties from a LIVE MLS here. This search should have accurate information since it is fed directly from the Mobile MLS.

Click here to search a LIVE MLS link from the Baldwin County

These links are also on my websites:
 PortCityRealty.com
PortCityCondos.com

New Foreclosures in Mobile County

New Foreclosures in Mobile County 9/5/2011

229997 - 113 S DEARBORN ST, MOBILE, AL - $124,900
230096 - 2512 SALVIA CT, MOBILE, AL - $59,900
230083 - 2863 RALSTON RD, MOBILE, AL - $16,900
230091 - 2321 E LANTERN LN, MOBILE, AL - $25,000
230095 - 3310 GATESDEN DR, MOBILE, AL - $120,000
230230 - 7058 SANDY CREEK RD, MOBILE, AL - $42,000
229975 - 8919 DAWES CREEK DR, THEODORE, AL - $249,900
230100 - 11175 PIONEER RD, THEODORE, AL - $39,900
230106 - 3550 OLD HOWELLS FERRY RD, WILMER, AL - $164,900
230113 - 4158 LAFITTE RD, SARALAND, AL - $82,500

This Blog by: Julie Martin, CRB, e-PRO, Broker/Realtor, Port City Realty, Mobile, AL; 
877-880-8110 toll free
251-665-4665 my cell
julie@portcityrealty.com

You can search for properties from a LIVE MLS here. This search should have accurate information since it is fed directly from the Mobile MLS.

Click here to search a LIVE MLS link from the Baldwin County

These links are also on my websites:

PortCityRealty.com

PortCityCondos.com

How Can I Buy A House If I Cannot Get Insurance?

With good reason, there has been a lot of talk in our area lately about insurance. We definitely have a problem. I think it’s a problem that a lot of people are working on.

I received this in an email today “We are wondering how we will ever be able to buy something (financed) and get insurance on it without getting closed out by the bank when no one will insure us.” I realized there are people out there that think that they cannot buy in the absolutely fantastic market because of the insurance issues. So I thought I would post me reply, in hopes that it will encourage others who are thinking about buying, but discouraged because of the insurance issues.

My reply to the email:

 It's really not hopeless. I have learned lots of tricks in the past few years. Insurance is available. The first thing you need to do is talk to a lender and see what monthly note you will qualify for, that you also feel comfortable with. Once you know that I can tell you what range you can look in, taking insurance in mind. There are really many things that influence your payment and there are many things that affect the insurance.

The good thing is that rates are at an historical all time low.

Type of financing influences your monthly note.

FHA is the most common type of financing in our area - and you can get FHA around 4% right now.

USDA is available in certain areas. It's available mainly in rural areas but Theodore Highlands is in a USDA area, and parts of Tillman's Corner and Semmes are not, so we have to check the map for USDA. USDA usually saves you money monthly over FHA because there is no Mortgage Insurance Premium added to the note.

Conventional rates are low, but sometimes you need as much as 20% down.

Now for just a few things that affect the insurance portion of your note:

Location

Age of house

Age of updates

Size of house

Construction of house

Extras like alarm systems

Public vs Volunteer fire department

Type of Coverage

So a new or newer brick home south of I-10 is cheaper on the insurance than a 1970s wood frame house north of I-10.

Then, like with car insurance, type of coverage and deductible make a big difference. I'm practically self insured. I have a $5000 deductible and I am insured for 80% of replacement cost coverage. They allow me to do that because I owe less than 50% of what the insurance company says is my replacement cost coverage. So basically if I have a claim they will determine what it will cost to replace it, then they will deduct $5000 and give me 80% of what's left. On a $10,000 claim I would get $3000. But, I'm in a 50s house south of I-10 in a flood zone.  With the exception of the flood claim after Katrina I've never made any claims from any storms, so I don't see any reason to pay higher premiums for the privilege of maybe one day making a claim. Also on something they say will take me $10000 to replace I can actually probably do it for $5000 or less, so if they give me $3000 I'm not really out that much.  My main issue with the insurance companies is what they say it cost to replace in our area, but that's a whole other soapbox, so I won’t get into that here.

So that's a long way of saying, actually despite the insurance issues now is really one of the best times in recent decades to be in a position to buy property without having to sell property. Here the lender link from my website:

Lenders, Insurance and More 

Talk to anyone of these lenders. It's the best starting spot so you can get a good idea of what you can realistically do.

This Blog by: Julie Martin, CRB, e-PRO, Broker/Realtor, Port City Realty, Mobile, AL; 
877-880-8110 toll free
251-665-4665 my cell
julie@portcityrealty.com

You can search for properties from a LIVE MLS here. This search should have accurate information since it is fed directly from the Mobile MLS.

Click here to search a LIVE MLS link from the Baldwin County

These links are also on my websites:
PortCityRealty.com
PortCityCondos.com

Buying A Freddie Mac Foreclosure – Part 1

I received the following email about a new listing. It is a Freddie Mac/HomesSteps foreclosure in Gulf Shores. I thought probably more than one personal would like to know how this works, so I am going to post the email and the answer, with details on How It Works. First the question:

"is 89900 the asking price on this house or is it one of these house where if i give you the full amount someone else can offer higher and they can get it. or if i gave you 89900 to you it would be mine .it would be cash money .i live about 5 hours away and i would hate to drive down there and then be told that if someone offers more ,,then they can buy it ,that has done happen to me two times."

This is how it works:

Properties are listed on the MLS at a List Price. That is the price the seller is trying to sell the property for. Sellers would like to net as much as they can on the sale of the property. If someone comes along and offers them more than they are asking for, yes, they will usually take it. This usually happens if there are multiple offers on the property or the buyer is concerned that there are going to be mulitple offers on the property. But there is more to it than that.

In this case, it is a Freddie Mac foreclosure, so I am going to explain how it works with a Freddie Mac/HomeSteps foreclosure. The precedure can vary with different sellers, and of course Freddie Mac/HomeSteps can change their procedures at any time.

1. Freddie Mac/HomeSteps lists a property with a Realtor, who puts the property on the MLS.

2. The 1st 15 days that the property is listed on the MLS it is available for sell to Owner Occupants only. Owner Occupants are buyers who are going to move into the property and live there. This is called the First Look period.

3. Investors and people buying second homes are eligible to have their offers accepted on the 16th day.

4. When an offer is written it is entered into the HomeSteps system by the listing agent as soon as they are able, but within 24 hours.

5. Once an offer is entered into the system, if any other offers are received then they are entered into the system as additional offers.

6. Freddie Mac/Homesteps may accept the offer that is in the system or they may counter the offer.

7. If Freddie Mac/Homesteps accepts the offer in the system then any other offer that comes in will be negotiated as a backup offer only.

8. If Freddie Mac/Homesteps counters the offer then they will give the buyer a certain amount of time to accept the counter or counter the offer.

9. If buyer accepts the counter then any other offer that comes in will be negotiated as a back up offer only.

10. If the buyer counters the counter and other offers have been received, then a mulitiple offer situation exists.

11. In a mulitple offer situation all parties are informed in writing that they are in a mulitple offer situation. They will be given written notice that they can withdraw their offer, leave their offer the same or change their offer in writing. They are given a deadline to do this.

12. When the deadline arrives all offers are entered into the system and Freddie Mac/HomeSteps chooses which offer they are going to accept or counter.

At any time, in the state of Alabama, until you have a fully ratified contract (signed by all parties) anything can happen. However, this is the instructions listings agents are given to handle offers on Freddie Mac/Homesteps properties.

The property stays on the market until there is an accepted contract.  Buyers can make offers even after there is an accepted offer, however they are only considered as backup offers.

This is the system, without regard to negotiating strategies being discussed. That would be an entire other article that I will work on later, but I would like to make one important statement.

The sooner a buyer writes an offer the more likely they will be to not get into multiple offers.

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This Blog by: Julie Martin, CRB, e-PRO, Broker/Realtor, Port City Realty, Mobile, AL; 
877-880-8110 toll free
251-665-4665 my cell
julie@portcityrealty.com

You can search for properties from a LIVE MLS here. This search should have accurate information since it is fed directly from the Mobile MLS.

Click here to search a LIVE MLS link from the Baldwin County

These links are also on my websites:
 PortCityRealty.com
PortCityCondos.com