Senior Vice President of Mortgage Servicing at Bank of America Home Loans.

Bob Hora provided insight into Bank of America’s evolving approach to managing their distressed mortgage portfolio, which includes plans to increase short sales by as much as 60 – 70% next year. To achieve this increase, Bank of America is improving their short sale process and implementing a number of new programs to help both homeowners and agents.
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In CDPE’s newest report, we detail the information covered in the broadcast, such as Bank of America’s new community outreach campaigns and homeowner transition guides. You’ll also learn how increases in manpower and improvements to Equator will effect you, the agent, and the homeowners you serve.

Political beliefs aside, Olick makes some astute observations regarding the bank’s preferences for short sales over foreclosures and the important role that Fannie Mae and Freddie Mac play in keeping the market liquid.

Given the major impact housing has on the overall U.S. economy, it’s vital that our political leaders have a thorough understanding of these issues.

The biggest mistake we see politicians make, however, is to claim they have a new plan or program to fix the housing crisis. The reality is, no such “magic bullet” exists. What’s needed is a series of rational financial decisions that will eventually return us to a rational housing market.

Little by little, the housing market is coming back. It’s not going to happen overnight, and it shouldn’t. While creating temporary relief, a return to the irrational housing boom of the past decade would only create future instability.

Educated and experienced real estate agents are playing a crucial role by getting homeowners out of houses they can’t afford, and qualified buyers into existing inventory in a responsible way. Savvy investors have already returned to the market and are helping to relieve over saturation and fill the increased need for rental units.

If we can change the misconception that housing is a risky investment, we will also see the return of primary home buyers, and a return to stability in the market.

My third buyer was looking for a property with acreage within 30 minutes of Knoxville. We were searching for homes and the home at 1402 Carpenters School Rd in Maryville came on the market. This home was a Fannie Mae REO which automatically means you are dealing with the government and plenty of paperwork. Fannie Mae normally has their homes in pretty good shape when they hit the market. They offer HomePath financing on their homes which means you can buy with as little as 3% down. Nice program that I haves used a few times for my buyers. They also run specials offering to cover closing cost from time to time.

This home was priced very well at $283,000 the previous owner paid $375,000 in 2008. The home is on 5 acres and was in pretty good shape. Once again because these type of properties are usually priced pretty aggressively more than one offer came in at a time. We got the multiply offer situation form signed it and submitted our highest and best offer. Fortunately this time we were the successful bidder. At the time of this post we are still waiting to close on this home in a few weeks.

I guess their are a few things you have to remember if you want to buy this type of home and be successful. First be patient many times if there are more than one offer on a home and you lose out many times the first offer doesn’t work out. Second get in touch with a good Realtor they can make a difference in helping you be successful in buying your home.

There really isn’t that much difference in the buying experience of a Knoxville Short Sale or Foreclosure. They both take time and patience…If I can help you in anyway with the purchase of “Your Deal” call me at 865-696-9002 or email me Rick@TheBigOrangePress.com

I recently sold a local banked owned home at 1504 Lakeshire in West Knoxville. This home was a foreclosure by a local lender that needed a great deal of work. But instead of putting the home on the market in terrible condition. The lender decided to put some money into the home and update it so it would compete successfully when they put it on the market.

They updated and replaced the carpeting, kitchen, and bathrooms. They did a really nice job in fixing this home. But what they really did was price it to sell by putting on the market for $130,000

The next thing you know there are 4 offers on the home. When this happens the lenders make you sign what is called a multiply offer form. They want you to know there is more than one offer to consider and want you highest and best offer. So I went back to my buyer and we wrote an offer for $135,000 and submitted to the bank. Well unfortunately we didn’t get the house because someone wrote an offer higher. We were disappointed and continued to look around but I styaed in tough with the other agent. Because there where inspections to be done and you never know what could happen.

Well about 10 days later I got a call out of the agent telling me the other buyers walked away. She was calling everyone to know it was back on the market. So i called my buyers and we submitted our $135,000 offer again. Well sure enough more than one offer came in again and we were back in a muliply offer situation.

My buyer didn’t fool around this time they wrote $140,000 offer got the home. We did our home inspections and found a few minor issues that the bank fixed. They make a great buy on a basement rancher in West Knoxville just for being by being patient.

If you are looking to find your “deal” let’s talk. I can help you call me at 865-696-9002 or email me Rick@TheBigorangePress.com

The first one was a short sale on a home located at 416 Country Run. I had previously listed and sold the home last June to another buyer. This home had a mortgage on it with BOA it was an FHA mortgage. FHA short sales are alittle more detailed than a normal short sale because they required paperwork than others. We had originally written an offer for $140,000 and after a bunch of back and negotiator with BOA we ended up at $149,000. At this price this is still a very good buy for this home even though it needed some work. We went back to the original buyer and gave them a counter of $149,000 and after much thought they decided to pass on it.

We had a list of people interested in the home so we put it back on the market again. Started making calls to people and telling them it was available again. After a few days we had 3 offers on the home. One of the original buyers who had interest in the home ended up buying it. he had called me every couple of weeks just to check in and see if anything had happened yet. As I tell many people just hang in there because many times the second buyer will end up buying one of these homes just by having patience.

This was a successful outcome for my buyer because he was patient and hung in there through out the 4 month process. You will find if you are wanting to buy a distressed property most of the time have patience will work out for you in getting a deal. If I can help you find a home give me a call at 865-696-9002 or email me Rick@TheBigOrangePress.com

What does “as is” mean? Buying a home “as is” means that you are purchasing that home in its current condition. There are no warranties given, it is sold in its current condition without any guarantees.

Should you be worried about buying a home “as is”? Not necessarily. The “as is” condition does not necessarily mean there is anything wrong with the properly. It just means the buyer should not expect repairs to be made. However, all buyers should have a trained home inspector examine the property so they have a better idea of what they are getting into.

Am I losing all my rights by buying a home “as is”? Absolutely not. The contract is subject to an inspection period. If something is found during the inspection which the buyer doesn’t like, they have the right to back out of the contract and still get their earnest money back.

What is the difference between a buying a short sale versus buying a foreclosure in Knoxville? A short sale is a house that worth less than the mortgage, and the seller’s lender accepts less than what is owed on the mortgage.  A majority of the time with a short sale, the seller is behind on their mortgage and most likely is not maintaining their home because they don’t have the money to do so.

A foreclosure is a bank owned property that has already been foreclosed upon by the lender. With a short sale repairs can’t be made because the seller cannot afford to and with a foreclosure they may be able to be negotiated into the contract and the bank may or may not agree to them.

What should you know about buying a house “as is”? You should make sure you know you rights and the contract very well. Make sure you know at what point you can back out of the contract if there is some kind of issue.  You should also make sure you know the defects of the property and how much it will cost to fix them once you move in. By knowing these things, you will be able to make a more informed decision.

There are not shortage of great real estate deals in the current Knoxville market. If you have questions about buying a short sale or foreclosure in Knoxville, please do not hesitate to contact my by phone at 865-696-9002, shoot me an email, or leave a comment on this post.

You want to setup on the site very specific searches for what you are seeking in a home. It may take several saved searches to cover every angle of the type of home you want so you don’t miss anything. If you need help with it ask your agent they should be able to do it for you on their site.

We did a great deal of research in picking our home search part of TheBigOrangePress our buyers always have the most updated homes in their inbox. We are able to communicate with our buyers on the site and they can with us. That way when that really “hot” one hits we are their first to take advantage of the opportunity. We take great pride in being technically advanced to better help our clients.

Once you find a few homes get out there and take a look at the homes. Take your time and do your homework. If you find one you like ask your agent for what others have sold for in the area. Base your offer on what is happening in the neighborhood. Take into mind the things that may need to be done to the home and consider it in the offer. Ask your agent for their advice in putting together the offer that they think can be accepted at the same time getting you the best deal possible. One tactic we do with our buyers that helps them out if the home needs work is asking for the seller to pay your closing costs. That way if the home needs some work you have some cash left over to do the work.

Lesson 101 to remember when buying a home in today’s market. Be prepared to walk away if you can’t get the price and terms that work for you. It is a buyers market and if you can’t buy the house at a price and terms that work for you just walk away. Something else will show up on the market just be patient.

If you have an agent who is helping you out that is great. If you would like to use our site to search for your home feel free. If I can help you find your new home call me at 865-696-9002 or email me Rick@TheBigOrangePress.com and let’s talk about it.

Today, I’m doing the first of 3 posts on how to help you determine, find and close your “deal.”

Determining your “Knoxville Real Estate Deal” …I think if you spend sometime determining what is important to you it will make your search simple and much more enjoyable. All you need is a pad of paper and I will share with you the questions I use to help my buyers determine what is important to them in finding their “deal.” Remember this is personal decision it is a big financial decision and monetary commitment on your part so take sometime in doing some pre-planning and you will have a successful out come.

Here are a few questions…..

What do you want? Determine the type of housing you want to buy. Do you want a single family? How about a Condo or a PUD?

What does the home have to have? How many bedrooms and bathrooms? Do you need a garage? 1 or 2 car? Basement? Master on the main? How big 1500, or 2500 sq ft ? Just give some thought on what your wants desires and needs are in a home.

How much work do you want to do? Foreclosure or short sale? Some need alot of work…New Kitchens, roof , plumbing etc. Do you want to do that much? Can you handle some decorating? Paint and Carpet…Homes are an expensive investment determine a budget and how much your budget can handle.

Where do you want it to be located? Do you need to be within a certain driving distance to work? Want to be in the country with no neighbors? Want a neighborhood with a pool? Location is an important factor when determining were to buy a home decide were you want to live. That way you can fine tune your home search to just the areas that are important to you.

Get Approved For A Loan? Find a loan officer you are comfortable with and setup a time to discuss your financing options. There are many choices out there and a good loan officer can help you determine the best program for you. Need help finding someone? Ask friends and family for recommendations. I personally would suggest Daren Poppen at Mortgage Investors Group apply on line or call him at 865-936-3965 or email him Daren.Poppen@MigOnline.com

Find A Realtor… This is important to find someone you are comfortable working with in finding a home. Ask friends and family members for a referral for someone. Setup an interview to meet them make sure they have the time and patience to help you. One crucial area is taking your time to become educated with the market so you make the right purchase for you. There is an old saying you will know it when you see it. I find this all the time it doesn’t matter if it is your 1st..2nd or 10th home people always know it is the right home when they walk into it. It will feel right to you.

Above is what we do with our buyers in a strategy session as we call it. If you need help finding a home and would like to setup a strategy session, call me at 865-696-9002 or email me Rick@TheBigOrangePress.com

Happy House Hunting!

1 BE PATIENT…Knoxville Short Sales should really be called “Long Sales” because they are anything but a short process. You have to remember you are asking the lender to accepted less than what is owed on the home. This can be a long and drawn out process especially if there is more than one mortgage on the property. So it takes time and a great deal of expertise on the agents part to get a short sale accepted. The process can sometime take 5- 7 months to get it done and for the most part nothing happens for months. But if you are patient and hang in there the opportunity to buy a home at a HUGE discount are a strong possibility.

2. GET APPROVED FOR A LOAN… Get with a lender up front and don’t just get pre-approved but a full blown approval. Get all the a paperwork out of the way so when the short sale is approved you can close quickly. For the most part a short sale is like watching paint dry on the wall. You sit around waiting for what seems like forever than all of a sudden the bank approves the short sale and want you to close in 30 days or less. That is why it is so important to get you financing taken care of up front.

3. GET THE APPRAISAL DONE UP FRONT… You are thinking why would I want to spend the money on an appraisal when I don’t know if the lender will accept my offer? Here is why you should do it. The lender is going to order a Brokers Price Opinion on the home. Which means they are going to ask a Realtor to go out and tell them what they think the house is worth and pay them $50 to do it. I have had these BPO come back higher than the offer I have on the home sometimes. If I have a full blown lenders appraisal already on the home it increases out odds of getting our offer accepted because it is hard for the lender to argue with an appraisal.

4. GET THE INSPECTION DONE UPFRONT…When you buy a short sale you have to understand the seller and lender aren’t going to make any repairs. You are buying the house “as-is” so if there are problems with the home you should know it upfront. That way you don’t spend months waiting for an answer only to find out the house has inspection issues you don’t like. You could end up missing another opportunity if you don’t do it up front.

5. GET AN EXPERIENCED AGENT….Find an agent who has experience in dealing with short sales and can help and guide you through the process. Check out the site the site CDPE.com Certified Distressed Property Experts. The agent with this designation are trained in handing short sales and can guide you through the process.

If you have interest in buying a short sale in Knoxville give me a call and let’s talk. I have an experienced team in place and we have help many first time buyers make tremendous buys on some homes over the last couple of years. We understand the process and work with you to get the deal done.

Call me at 865-696-9002 or Rick@TheBigOrangePress.com

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