Buying a Wasatch Front Foreclosure
Are you thinking about purchasing a home in the Salt Lake area? Unless you have been living under a rock for the last few years, I am sure the word “foreclosure” has probably popped into your mind. Are they a good deal? What are the traps? How much of a discount are they sold at? These are all questions that we can answer.
Is Buying a Foreclosure Right for Me?
Just because everyone says you should buy a foreclosure or HUD property in the Salt Lake area does not mean that you should. We are going to discuss the key items to take into consideration when buying a Salt Lake foreclosure to help you understand if it is a viable option. Not all foreclosures have the stigma of needing many repairs. There are still quite a few foreclosed homes in reasonable condition. Some banks will even update their foreclosed homes with new carpet, paint, fixtures, cabinets, wiring, etc.
Some Foreclosures are in Need of Repairs
A majority of foreclosed homes that are in need of repair or updating. If you plan on purchasing a distressed property in need of repair, you need to be prepared to deal with a variety of issues that you may not have considered. If you are an extremely handy person that has construction experience and the confidence to take on construction projects, you may be up against one roadblock: loan restrictions. If you are looking at financing this property with a smaller down payment you will need to utilize a loan program that allows for construction repairs. Banks have strict rules and guidelines if they are going to allow money for property repairs. Some of these guidelines take the ability to fully facilitate and get the sweat equity you gain from doing work yourself. If you fall into this category, you will need to contact a mortgage consultant who has experience dealing with the FHA (203K) program.
Get Money For Repairs
The FHA (203K) rehab loan was designed to help you have more choices when buying a home. Rather than having to obtain a separate loan to finance the cost of repairs (or walking away from a home you love because you don’t have the cash for home improvements), the Streamline 203K rehabilitation loan allows you to finance these costs — up to $35,000 — within your FHA mortgage or refinance itself.
If you do not have construction experience, don’t worry because the FHA 203K program was specifically designed to allow you to hire contractors or venders (like Lowes or Home Depot) to do the work. You need to make sure that you have a knowledgeable real estate agent that has experience working with contractors who can prepare accurate bids on short notice. You need to have an accurate idea on the cost of necessary repairs, or you may be setting yourself up for overpaying on a property. Foreclosures are typically priced pretty fairly, but if you do not have the full picture on the true costs you can find yourself in a difficult position. An effective real estate agent will help you avoid these traps and complicated situations.
Hire the Best Utah Real Estate Agent
We will be offering more educational tools that will show you the best places to find foreclosures online and more information about the foreclosure process. We believe in educating our clients, negotiating a sales price that makes you happy, and helping you get through the process. We have a strong background in representing buyers on the purchase of Utah foreclosed homes. If you would like to setup a no obligation meeting to discuss purchasing a Wasatch Front (Salt Lake, Utah, Davis or Weber County) foreclosure or HUD property, contact Brandon (801) 999-8084.