Brett Tousley | Tacoma WA Real Estate | (253) 820-2745

Foreclosure homes

Hello Puyallup foreclosure Buyers!

Thanks for reading part 2 of my foreclosure series!

We've already covered the pre foreclosure opportunity- short sales.

Purchasing a short sale in Puyallup is certainly one way for buyers to take advantage of the current low rates and high inventory. Another opportunity you may consider is the bank owned or Reo home.

Bank owned homes or reo (real estate owned) are simply homes that have already gone through the short sale or deed in lieu process and are now owned by the bank. They present a unique opportunity to buy quickly at less than retail prices.

Good quality bank owned homes are a little more difficult to find in the Puyallup real estate market than short sales but do exist in many neighborhoods. Most often these homes will need new paint and carpet to shine again, but every once in a while I am surprised to find an reo in pristine condition.

On the other hand if you plan on viewing bank owned homes with me, I suggest you wear comfortable clothing and shoes you won't mind burning if necessary. :-) Some of them can be flat out horrible to be in.

Why consider a bank owned Puyallup foreclosure?

1. They offer as good or better discount than short sales- With either, you will likely save thousands of dollars vs buying retail.

2. Most can close in 30 days or less- remember most short sales close in 2-6 months if ever.

3. Banks that hold reo's have become very flexible-don't believe the "as is" comments you see.

4. Far less "drama" than short sales- Banks don't play games with reo's they price them to move quickly!

Like most foreclosures, bank owned/Reo homes also have some pitfalls.

1. Most require at least a minor amount of work- this may vary from a good cleaning to structural repairs.

2. Lack of disclosures- As the bank has never lived in the home, they are unaware of any problems with the home. Leaky roofs, faulty plumbing, pest problems etc may not be disclosed. It's important that you hire a good quality home inspector for any home purchase, it's absolutely crucial you do so when buying an reo.

3. Bank addendum's tend to be very one sided. The bank will almost assuredly counter your offer with their own bank addendum. This addendum is designed to protect the bank and often limits your rights. It's always a good idea to run this addendum past a real estate attorney to completely understand the limits.

4. Many banks will impose fines if you are late to close upon the property in excess of $150.00 a day. Make sure you are fully pre approved before you start to look at homes. If your lender is slow to close, you could either lose the house or pay a significant fine.

There are pros and cons to buying a Puyallup foreclosure. By educating yourself about the process and being realistic about the situation you can greatly increase your chances of buying a foreclosure at a great value.

Give me a call if you'd like some help- 253-820-2745

Hello Puyallup foreclosure Buyers!

Welcome to my blog, Thank you for the visit!

I've been swamped with calls lately from potential Puyallup foreclosure buyers that have been misinformed at best.

I've written this post specifically for buyers interested in purchasing a Puyallup foreclosure or pre foreclosure. This post will cover something that you may not want to know, but it's information you absolutely need to know.

Do you know the difference between a true foreclosure and a pre-foreclosure?

Before you answer, please read on.

Rather than focus on the Puyallup Foreclosure term, you really need to acquaint yourselves with the correct terms used by real estate professionals.

Let's tackle the Short Sale- This is the pre-foreclosure opportunity that many co workers in your lunch room may have been telling you about. Often times these homes are priced ridiculously low in an attempt to draw an offer, ANY OFFER, so that the agent representing the seller can begin the short sale process with the seller's bank.

You'll find a lot of them in the Puyallup Real Estate Market. Areas such as Sunrise and Silvercreek are lousy with them right now. For those of you that may buy 3-5 homes in your lifetime they may look like a fantastic deal and sometimes they actually are. The odds are decidedly against you.

Unfortunately, most often they present a bait and switch opportunity that you may not be able to capitalize on. The agent representing the seller needs an offer to present to the bank, if you approach the seller's agent with an offer you run the risk of being used as a pawn for the seller's benefit.

What's the downside of writing an offer that will never be accepted by the bank?.....TIME.

Did you know that it may be several weeks before you hear back from the bank on your offer?

Did you know that there is absolutely no guarantee that the bank will actually accept the offer, even if it is full price?

Did you know that many Short Sales take 2-6 months to actually close?

There is no guarantee that our historically low interest rates will last that long. What may seem like a great deal to you at 5% may not be such a deal at 6%. Ask your lender about pricing for a 60-90 day lock, it isn't pretty.

Don't let yourself become a victim of the short sale fairy tale! There are great deals to be had out there right now, but not all short sales are worth your time and energy. Hire an experienced buyers agent that knows the ins and outs of the short sale process. An experienced buyers agent will have tactics that will increase your chances of actually closing and moving into your new Puyallup Foreclosure Home.

To read more about successfully purchasing a foreclosure in Puyallup stay tuned for my next blog entry. It's not a sales pitch, it's the truth and will save you both time and money.

Here's a shot out my office window today! We've had beautiful season changes here in Pierce County this year. The Fall colors were spectacular and it looks like this Winter will be even better.

This is a shot down my road today. It's compact snow and ice the whole way out of the neighborhood. Except for the occasional kid on a quad, it's been real quiet around the house the past few days.

Here's my favorite pic of the snow so far. That snow man is about 6 1/2 feet tall and I nearly busted my back lifting the body section into place. :-) My little helper is pictured here, it was his idea to construct a hat out of snow. Turned out pretty darn good!

We are currently bracing for a large storm to blow in this afternoon, it's just started to snow again. I've heard reports that we'll receive another 5-10 inches of snow in Puyallup along with high winds. Time to break out the flashlights, along with the natural beauty of living here in the NorthWest comes one reality of life. When the wind blows, we'll lose power for sure.

Looks like I'll be taking the 4x4 pickup to my buyer's inspection in Federal Way tomorrow!

North Tacoma has some of the most beautiful tree lined streets in our region. Shot these pics of North Union very quickly while setting out my open house signs a while back. Was holding an open on 21st and Union and enjoyed the scenery and my visitors very much.

People actually walk around their neighborhoods in the North End of Tacoma, something of a rarity in other parts of the region. No need to drive somewhere to walk if you live North of 6Th Ave, just stroll out your door and enjoy the beauty that is all around you.

Wish I had taken more time to shoot higher quality pics, because these trees are now bare for the winter. Natures beauty is often fleeting, which is why I love it.

Pierce County First Time Home Buyers eligible for $7,500.00 Tax Credit!

 DID YOU KNOW?

•·      Interest rates are near all time lows?

•·      Housing inventory is up?

•·      Prices are down?

•·      Zero and low down payment options are still available?

•·      The Federal Government will give you a $7,500. tax credit?

Who qualifies?

•·      You'll need to be a first time home buyer or not have had an interest in real property over the past 3 years.

•·      Purchase your new home before July 1^st 2009.

•·      Earn less than $150,000.00 per year for a couple filing jointly or less than $75,000.00 for a single buyer.

•·      The credit is 10% of the purchase price of your home, up to a maximum of $7,500.00.

A complete list of eligibility requirements can be found here.

What's the catch?

•·      The tax credit is delivered to you in the form of an interest free loan which must be repaid over a 15 year period.

•·      Payments are 1/15^th of the credit and are paid yearly starting the second year after the credit is issued. 

Read here or consult your tax advisor for additional restrictions.

This new program opens up a new market that many first time buyers normally don't have access to.

Bank Owned, Foreclosure, and Pre Foreclosure properties. 

While these types of properties are often available at a nice discount, most often they need some work.  Many first time buyers are a bit short on cash after purchasing their new home and lack the funds to make major improvements needed.

 The First Time Home Buyer Tax Credit may solve these issues for you.  We've seen a big spike in first time home buyer activity in the bank owned market lately.  The promise of the first time buyer tax credit has many buyers out looking at bank owned and pre foreclosure homes with more confidence than ever.  They are picking up very nice deals.

 •·      What will you do with $7,500.00?

•·      Will you upgrade the carpet and appliances in your new home?

•·      Replace those old windows?

•·      Landscape the yard?

•·      Remodel?

•·      Save it as a reserve?

Interested in becoming a first time home buyer?  Contact us today at 253-820-2745 to learn more about this program and how we can help you take advantage of the record number of foreclosures currently available in Pierce County.  Visit our Pierce County Real Estate website to view all homes listed by any broker including bank owned and pre foreclosure homes.