Marengo, IL

As a buyer you may be wondering if it is really worth your time to pursue a distressed property. Foreclosures and Short Sale Homes continue to be the hot topics these days. Purchasing one of these proerties can present multiple challenges that is not found when closing on a typical home.

Is it really worth your time?

I have had quite a few clients approach me about buying one of these homes. There is some information I put together below that you may find helpful as you consider whether or not this is right for you.

You will need a lot of patience as these can range from being a big time fixer upper to being in great condition. They can also receive multiple offers which drives up the price and take a long time to close. It's also quite possible that the lender can decide to sell it to another bidder which may take you out of the running.

Differences Between a Short Sale and a Foreclosure

In a Short Sale the sellers lender must agree to take less than, or 'short of', what the seller owes on the property. Even though the property is not owned by the lender, the seller does not have the final say on the price. The seller may accept and offer that you are very happy with and then months later you find out that the lender counters at a much higher price.

In a Foreclosure the lender already owns the property. The lender has foreclosed and the seller is long gone and out of the picture. The owner has already defaulted. This is also known as an REO (real estate owned) property.

Until your offer is accepted by the lender there is no contract. It is quite possible that the lender may accept another offer during the time you are waiting for an answer. The lender most likely will sell the home "As-Is" and not make any repairs. Most of these properties are already vacant but in some cases the current occupant may still be living there. The lender may be in the process of eviction.

SUMMARY

• Be sure to have any home you buy inspected by a licensed professional inspector. Even though the home may be sold in "As-Is" condition, you should know what repairs may be necessary so that you are informed of what to offer.
• Affiliate with a good attorney. He or she will be worth their weight in Gold.
• Be patient. This may take awhile.
• Be comfortable with a little uncertainty.
• Affiliate with a knowledgeable local real estate agent who is experienced with negotiations.

www.RealEstateDeals.weebly.com

Search Foreclosures Nationwide on the Above Website under the 'Foreclosures Nationwide' tab

As always, when you're ready to buy, sell or finance a home call me at the number below!

As a buyer you may be wondering if it is really worth your time to pursue a distressed property. Foreclosures and Short Sale Homes continue to be the hot topics these days. Purchasing one of these proerties can present multiple challenges that is not found when closing on a typical home.

Is it really worth your time? You will need a lot of patience as these can range from being a big time fixer upper to being in great condition. They can also receive multiple offers which drives up the price and take a long time to close. It's also quite possible that the lender can decide to sell it to another bidder which may take you out of the running.

Differences Between a Short Sale and a Foreclosure

In a Short Sale the sellers lender must agree to take less than, or 'short of', what the seller owes on the property. Even though the property is not owned by the lender, the seller does not have the final say on the price. The seller may accept and offer that you are very happy with and then months later you find out that the lender counters at a much higher price.

In a Foreclosure the lender already owns the property. The lender has foreclosed and the seller is long gone and out of the picture. The owner has already defaulted. This is also known as an REO (real estate owned) property.

Until your offer is accepted by the lender there is no contract. It is quite possible that the lender may accept another offer during the time you are waiting for an answer. The lender most likely will sell the home "As-Is" and not make any repairs. Most of these properties are already vacant but in some cases the current occupant may still be living there. The lender may be in the process of eviction.

SUMMARY

• Be sure to have any home you buy inspected by a licensed professional inspector. Even though the home may be sold in "As-Is" condition, you should know what repairs may be necessary so that you are informed of what to offer.
• Affiliate with a good attorney. He or she will be worth their weight in Gold.
• Be patient. This may take awhile.
• Be comfortable with a little uncertainty.
• Affiliate with a knowledgeable local real estate agent who is experienced with negotiations.

www.RealEstateDeals.weebly.com

Search Foreclosures Nationwide on the Above Website under the 'Foreclosures Nationwide' tab

I talk with people weekly about the incentives given by the government to encourage people to buy homes. So many are confused about the extension of the tax credit. They seem to have much mis-information.

Below is the current, and correct, information regarding the tax credit:

How much is the credit?

For 1st-time buyers the credit is equal to 10 percent of the cost of the home up to a maximum of $8,000 (or $4,000 for a married individual filing separately). For longterm homeowners, the credit is equal to 10 percent of the purchase price up to $6,500 (or $3,250 for a married individual filing separately). So keep this in mind as it is not a guaranteed $8,000.

I helped a client get his CASH offer accepted on a short sale property the other day that was $79,900. How much is his credit? $7,990. Your purchase has to be $80,000 or higher to get the maximum tax credit available.

Are there income limitations?

People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers.

What is the deadline for using the tax credit?

Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010.

Does the credit have to be repaid?

No, as long as the buyer stays in the home for at least three years. If the home is sold within three years of the date of purchase, the buyer is required to pay back the full amount of the credit, including any refund received.

Which properties are eligible?

Any single-family home (including condos, co-ops, townhouses) that will be used as a taxpayer's principal residence.

How do I claim the tax credit?

For qualifying purchases, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. The credit reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar. It is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed. The credit is claimed using IRS Form 5405.

There are 12 real estate listings (as of 04/03/09), in Deerpass, Marengo IL ranging in price from $115,900 to $364,437. Visit Marengo real estate site and view all real estate listings in Marengo, Illinois including residential and commercial real estate in Marengo, Illinois.

Marengo IL Real Estate