Buying Foreclosure Homes Kansas City
By · CommentsBasic Foreclosure Terminology
By · CommentsWhen buying real estate that is under duress there are terms that you may not be familiar with. So here we go…
NOD - Notice of default.
Bank Owned – Owned by a bank.
REO – Real Estate Owned. Probably by a bank.
Foreclosure – Bank has taken home back from home owners through a legal process. The bank now owns the home and the home is most likely vacant.
Pre-foreclosure – The current owners are behind on their mortgage by one or more months and have or will receive a NOD. If there is significant equity in the house an investor can buy at a bargain and the distressed seller can get some money out of it to move on. If there is no equity the home owner and the bank are gonna lose out on this deal.
HUD Owned – The department of Housing and Urban Development now own the home and are trying to sell it. They don’t allow us to call them foreclosures.
203(k) – A FHA loan that allows you to purchase a house and to have the funds necessary to fix up the house to current standards.
EMD - Earnest Money Deposit. When buying bank owned homes you almost always need certified funds for your EMD.
Kansas City HUD Homes
By · CommentsI went out yesterday and breezed through about 10 Kansas City HUD owned homes. Most of them I just scratched off the list as needing too much work for the asking price. After all, if you improve a HUD home you still want to have equity left over after the purchase, closing costs and rehab. Otherwise, why not just buy a home already finished?
This HUD home for sale is ugly. Ugly from the outside, that is. The inside will need all new carpeting/flooring and a good paint job and several other minor repairs. It has a huge room in the back and the bones look to me to pretty solid. Doubtful there is any major structural damage here that you should be leery of. I’m not a structural engineer, but I didn’t see anything to worry about.
As you can see they are asking $38,000. You can probably shave that a bit. (Make the jump by clicking the link to see all the details.) Rents for 3 bedrooms in this neighborhood go about $775.00 to $825.00. My guess is you’ll be putting in about $10,000 after purchase to make rent ready.
I also saw a couple others I really liked. Feel free to contact me to get the list and/or details.
Chris Lengquist & Associates
Keller Williams Realty
Diamond Partners, Inc
Olathe, Kansas
913.322.7515
Inspecting a Foreclosure Home For Sale
By · CommentsInspecting a foreclosure home for sale is usually done for buyer knowledge only. Almost every contract I’ve ever been a party to regarding foreclosure homes says the same thing; You can inspect and you can cancel but the seller is not going to repair anything, replace anything or renegotiate anything.
Naturally, I was paraphrasing. But that’s about the gist of it. See, here in Kansas City we have our boiler plate contracts that get written up for the initial offer but after all the terms are agreed to the banks always have their own set of addendums to be signed. The addendums are very much written in the favor of the bank. But you sign or they sell to someone else.
I do recommend doing an inspection when you purchase a foreclosed home. It’s always nice to have an independent set of eyes. Especially if you plan on turning that bank foreclosure into your dream home. But if you are a rehabber who habitually buys these REO properties then you probably will forgo the inspections knowing full well that you will gut the place and then remodel.
So remember, you can inspect. And with a foreclosure home, like any home that has been for sale, it’s a good idea to get another opinion on the house. Just don’t expect to get any kind of renegotiation going on after the inspection. Unless it’s something really unusual.
Chris Lengquist & Associates
Keller Williams Realty
Diamond Partners, Inc
Olathe, KS
913.322.7515
Needs Rehab in Raytown – Owner Financing?
By · CommentsI have a lead on a Raytown home in dire need of rehab. The bones of the house are very, very solid. 3 bedroom home with 2 baths. Will need new carpeting, a new roof and interior painted everywhere. Also will have to fix the where vandals stole the copper. (Really? All that damage for what? $14.76 in copper? That crack must really be good stuff.)
Anyway, I know the owners will consider any offer and that includes owner financing…to some degree. They do want a small down payment and they do want enough to cover my real estate commissions for putting the deal together. But they are savvy and know that this is a rehab and they know what the neighborhood is worth. So they are not dreaming of riches.
Section 8 housing will pay approx $825/mo for a 3 bedroom.
To find out more about this rehab house in Raytown/KC just contact Chris.
Chris Lengquist & Associates
Keller Williams Realty
Diamond Partners, Inc
Olathe, KS 66062
913.322.7515
New, Better MLS Search Coming Soon
By · CommentsWe are updating some of our MLS Search options for Kansas City. Hope to have them up by the end of the weekend.
Till then…
Olathe Foreclosure Home For Sale – Arlington Park
By · CommentsThis Olathe foreclosure home for sale in the Arlington Park is really at a price point that should catch the attention of Olathe home buyers. The four bedroom home for sale is held by Fannie Mae and therefore should quality for HomePath Financing.
Just click the highlighted link to see this home and the entire neighborhood activity for the last 6 months.
Think about it for a moment. A four bedroom, 3 bath home for sale in Olathe, within the boundaries of the Olathe School District, for less than $165,000.
If you are a home buyer ready to purchase a house for sale then you will want to add this to your list. Close to schools and everything Olathe and Kansas City has to offer.
Foreclosure Homes For Sale
Chris Lengquist & Associates
Keller Williams Realty
Diamond Partners, Inc
Olathe, Kansas
913.322.7515
Merriam, Kansas Short Sale
By · Comments8.17.2010 – This short sale has been contracted as of this morning. When I put up values like this you know they won’t last long. This Merriam short sale sold through a cash offer.
This Merriam, Kansas short sale is priced at $50,000! Now, while I have not yet seen this property it’s hard for me to imagine a scenario where this couldn’t be win/win. The tax record has the value of this short sale in Merriam at $119,500. The solds for the last year range from $117,000 to $167,950. There are currently three other homes in this Merriam subdivision for sale starting at $114,900 and topping out at $169,950.
Short sales can be hidden treasures. Or a nightmare. You need to work with real estate agents experienced with short sales so that you can know ahead of time what you are getting yourself into. But based on those numbers there is definitely some equity to be mined here.
Short sales.
Chris Lengquist & Associates
Keller Williams Realty
Diamond Partners, Inc
Olathe, Kansas
913.322.7515
The information presented here was accurate as of 8.15.2010. Please check as to whether the property is still available when you call or contact us. This Merriam short sale listing is not the listing of Chris Lengquist. It is listed through Barb and Trice Homes.
NARI Article on FHA 203(k) Rehab Loans
By · Comments
Find embedded in this link NARI Article on FHA 203(k) Rehab Loans a pretty good article regarding the FHA 203(k) program. The article is geared towards letting remodeling contractors know that they should be looking for this kind of work. But if you are checking out the rehab loan offered by FHA it’s gonna be worth your time to read the article.
The NARI article even interviews a Kansas City banker so that gives the article some relevance to most of our readership. And while I have not worked with that bank (that I can remember) he makes some smart points.
Again, I want to stress how great the FHA 203(k) loan program is for those that want to buy a house and rehab it so that they can live in it. You will find “mined” equity at your disposal when you are done…if you’ve done your homework correctly. And let’s face it many, many home buyers don’t have the money to put the down payment in, add in closing costs and then have money for all the rehabs. So the 203K program is a great way to finance your repairs and updates.
New MLS Home Search Automated
By · CommentsHello. Please notice on the upper right hand side we have a new Foreclosure Homes Kansas feature: MLS Home Search that is automated. Well, not completely automated. This is the actual Kansas City area MLS search that we realtors use. I’m just posting it here for your use.
Enjoy.
