Everett, WA

HomeSeeker Center

By Don Sieb

There is definitely buying opportunities to find bargains at Foreclosure-Sheriff’s Sale in Everett, Snohomish County. Everyone has seen the late night infomercials about how easy it is to buy real estate at a REO auction and make a quick buck. Perhaps you attended one of the many Foreclosure seminars, sound good does in it?

The reality is that it is not as easy as they make it sound.

Where: Auctions for Snohomish County are held at on the steps in Front of North Entrance of the Snohomish County Courthouse (3000 Rockefeller Ave, Everett, WA.)

When: Auctions are held each Friday morning. Interested Buyers should plan to arrive early; auctions usually start at 10:00AM.

Learn Everything You Can So You Are Prepared Before An Auction Buyers Beware:

REO property may not be right for you. Many times people chasing REO or auction property end up with BIG problems. A few of the common mistakes are:

• Paying too much for a home at auction because you get into a biding war.

• Be aware of what you buy. At an auction, you are not going to have the time needed to research any other liens that may be recorded against the property. It is common to find most property being offered at an auction, actually have more owed against the home then it is actually worth.

• The other problem with auctions is that the Auctioneer will want you to have cash in hand if you have a winning bid on a property.

Foreclosures at Auction are not always the bargain you may think they will be. Do your research before making any offers. Few foreclosures actually end up as a successful sale. If the property does not sell, this is when it goes back to the bank and becomes a Bank Owned Property, REO (Real Estate Owned).

Tips for Buying Foreclosures at an Auction

Step 1: Search for Properties Available

The first step in the process is to search for properties that are available. Legal Notices are posted at Snohomish County Court House, and appear in newspapers such as the Herald in Snohomish County. The available properties are listed in the legal section of the newspaper (Notice of Trustee Sale). Legal Notices will describe property using a legal property description but usually includes a street address. HomeSeeker Center recommends searching for foreclosures at Foreclosure Lisitng.com http://www.foreclosurelistings.com/list/WA/SNOHOMISH/. Note: Using services such as Foreclosure Listing requires membership fees; however is an excellent resource to search for foreclosures. It might be a good idea to contact a Title Company or contact Home Seeker Center for assistance.

Step 2: Confirming the Auction Status, Location and Bidding Procedure

After a property is scheduled for auction, the owner has a chance (typically less than a month) to stop the auction by paying the amount owed to the foreclosing lender. It's also not uncommon for auctions to be postponed without a new date being published. Although cancellations and postponements are announced at the time and location of the originally scheduled auction, you can call the trustee to find out beforehand. Most auctions are at a public place in the same county where the property is located. In many states, all the auctions in each county are at the same location. The auction location is usually listed online or you can typically get the location from the trustee or the county clerk. If you call the county clerk, make sure you clarify that you are looking for the location of mortgage foreclosure auctions, not tax foreclosure auctions.

Step 3: Drive by the Property After you find a property online,

It's a good idea to drive by the property to get a better idea of the property's condition and the type of neighborhood. For some buyers and investors, driving by the property has also facilitated a casual meeting with the owner (you may be able to still work out a last-minute deal before the auction) or yielded a wealth of unexpected information from a talkative neighbor.

Step 4: Understand the Bidding Procedures

The bidding procedure varies from state to state, so you should become familiar with the procedure in your area before bidding at an auction. Consumers are encouraged to visit Snohomish County Auditors website to research property information. In Washington, bidders are required to bring the full amount they want to bid in the form of cash or cashier’s check to the auction. If you get a friendly representative when you call the trustee, you might be able to get information about how the bidding works in your area, but in most cases you’ll need to educate yourself. You could also contact a local real estate agent or attorney in your area. Of course, the best education will come from simply observing a local auction.

Step 5: If you Need Financing…Make Arrangements

Before the Auction Determining your bid amount is more important in states where bidders are required to bring the full amount in cash or cashier's check to the auction. You won't even be qualified to bid if you don't meet that requirement. If you don't have that type of cash lying around, you have a couple options. If you own a home, you might be able to take out a home equity line of credit, which is a cash loan. If you can't secure a cash loan, you may consider buying a pre-foreclosure or bank-owned property, which usually require only a regular mortgage loan secured by the property being purchased. HomeSeeker Center (HSC) is dedicated to providing resources to assist Buyers in making informed decisions. The Mortgage Resource Center is designed to help Buyers understand the financing options available today and to address questions you may have. For more Information please click on this link: Mortgage Resource Center

Step 6: Researching the Potential Bargain

You need to find out as much as you can about the estimated market value of the property, how much is owed on the property and if the owner has any other liens against the property. HomeSeeker Center provides a Market Watch Tool that should help you understand what’s happening to home prices within a certain zip code. Zillow.com is another resource that may be useful.

If there are outstanding liens on the property, the winning bidder at the auction may be responsible to satisfy these liens in some cases, so it's important to check for any liens and the priority of the liens before you bid at the auction. A real estate attorney or title company can check for liens, or you can check directly with county records. The priority of a lien is usually determined by the date it was placed on the property. So a first mortgage will usually have the first priority, and all other liens will be considered junior liens. In most states, the public auction clears out any junior liens, but there are exceptions such as tax liens, which typically will continue to be in effect after the auction. The opening bid at the auction is based on the total amount owed to the foreclosing lender and may include fees incurred because of the foreclosure proceedings. If no one bids above that amount, the foreclosing lender will take possession of the property. It's important to know this amount so you can determine if the auction represents a potential bargain purchase when the opening bid is compared to the property's market value.

Step 7: Determining Your Bid

Based on all the factors used to determine the potential bargain - and your financial capability - you'll need to determine how much you can and should bid at the auction. By setting a firm ceiling for your bid, you'll avoid getting caught up in the heady auction atmosphere and overbidding, which can result in little or no bargain for you. A reasonable purchase amount at auction is at least 20 percent below full market value, and much better deals are often possible. Other factors to consider are the rate of real estate appreciation in the area and the potential for increasing the property's value by making repairs and improvements.

Step 8: Bidding at the Auction

Call the trustee the day before or the day of the auction to check one last time if the auction has been canceled or postponed. If an auction is postponed, the trustee should provide the new auction date. Arrive at the auction location early and locate the auctioneer as quickly as possible. Bidding at an auction can be intimidating, especially if you've never done it before. Take as many cues from the other participants as you can, but don't let them dictate how much you bid. You may encounter investors who attend many auctions every month and who don't necessarily appreciate new competition.

Step 9: Taking Ownership

If you are the winning bidder, make sure you get the necessary documents from the auctioneer to verify that you are the winning bidder. Clarify with the auctioneer and a real estate attorney what further steps need to be made before you take ownership and possession of the property. In some states, ownership can be transferred immediately or within a few days. In other states, you may need to wait a month or more for the sale to be confirmed by a court. Some states have redemption periods for the owner, in which case the owner can buy the property back from you if they pay the full amount paid at the auction, plus applicable fees. You should avoid spending money on repairs or improvements during the redemption period. If the trustee does not evict the current owners, you may be responsible to do this. If eviction is necessary, you can contact a local real estate attorney or the county sheriff for the proper procedure.

ABOUT US HomeSeekerCenter.com (HSC) is a one stop resource that provides vital information about the Puget Sound Real Estate market. The company provides a stable platform for consumers to search for property that reflects the best values in the housing market today.

Successful real estate short sale in Everett was part due to my professional team that I have put together. If you're thinking of selling your home, or condo (short sale) to avoid foreclosure because you're behind on your mortgage payments, haven't paid your HOA Dues (Home Owner Assoc. Dues), or property taxes, give me a call so that I may assist you and help prevent foreclosure.

I have assembled a team of highly qualified professionals that focus and specialize in foreclosures, short sales, new construction and investment properties.

To see our results email me or call me...

We work in the Greater Seattle / Eastside area and also in Snohomish County.

Freddy M. Delgadillo / Realtor

425-941-8688 (Direct) / 425-642-8273 (Fax)

www.FreddysHomes.com

freddy@freddyshomes.com

Referrals and testimonials are available (just ask)

Price: $250,000 (full offer) close and all parties were very happy- sellers, buyers and bank.

HomeSeeker Center

By; Don Sieb

To successfully purchasing a Bank Owned Properties (REO) requires more attention to timeline than many traditional resale purchases. Banks love to move fast. The offers that are received to the bank must be willing and able to close in a very short amount of time.

Bank Owned Properties (REO), normally require the buyer to be able to close final escrow within 10 to 15 days of the offer being accepted. In fact, for the offer to even be considered, the buyer must be Pre-Approved by a lender before an offer is extended.

Pre-Approved is different than PreQualified. Pre-Approval means that all the buyer’s documentation, credit reports and assets have been verified by the lender with underwriter approval showing that the buyer will receive a loan subject to an appraisal of a chosen property.

When an offer is accepted, often the Bank will stipulate that the closing must take place within a very short amount of time, often as little as 10 to 15 days, and that their will be a per diem penalty for closing late.

Why is that important? Because the lender still has to receive an acceptable appraisal and clean title to the property to proceed to closing. With recent changes to appraisal processes not all lenders can promise a fast appraisal.

HomeSeeker Center specializes in Distressed Property sales and offers many resource to help buyers and sellers Be In the Know.

On the usual network or cable network shows the Wall Street pundits continue to push the idea that things are getting better regurgitating numbers meanwhile the day traders continue on making money. On Main Street the middle class continues to get beat up and fleeced. One year later after the bail out of AIG we learn that 93 of the 180 billion was passed on to Goldman Sachs and Deutsche Bank (and others) with no possibility of seeing any of it again let alone on how it was spent other than some bonuses.

Meanwhile on the real estate front while home sales are occurring the big story continues to be the lack of acknowledgement by our government that big banks, the secondary market, wall street and others continue to hold the real estate market hostage.

Many foreclosed homes are listed in "unfinanceable" condition marketed 'as is' even though those same banks will not finance the buyer of the 'as is' home because of its condition. The solution to this of course is the FHA 203k loan however you may not be able to get the appraised value needed to meet HUD guidelines. This is not uncommon because banks refuse to sell the homes at a price to accommodate that solution.

Many foreclosed homes are either managed by ill equipped servicing companies or banks. Realtors that list these properties on behalf of these entities are often held hostage because when an offer comes in they send the offer into the banking abyss and it could be months before a response to the offer comes back....if it comes back at all.

We need a floor in the real estate market and the above activity prevents us from getting a floor on prices in fact it facilitates the spiral effect we see today.

Reform was needed in the lending world however the new re-disclosure act is laughable for the most part and frankly more cumbersome and in fact can hurt the consumer.

The appraisal reform is ridiculous on so many levels. We are the only industry that cannot talk to our vendor (the appraiser in advance) while performing the loan request on behalf of our client. That conversation could save the consumer money and time because we would be able to pick a competent appraiser that understands the market they live in vs. the appraiser (we know nothing about) we get driving 60 miles to do the appraisal.

Lenders underwrite the appraisal to confirm proper standards are used plus the appraisal is run through some BS system to make sure the value is really really there so why we are prevented from having conversations and picking a competent appraiser vs. the amateurs we have been subjected to in this new world is baffling to me.

The same banks make money off the consumer on this set up. In fact it is a new fee in addition to the other fees already charged so remember any time any regulation comes down it usually means more money out of the pocket of the consumer right into the pocket of the banks. The bank lobby lives on and strong! So of course the banks had no problem with this.

Another aspect of this appraisal issue is that appraisers traditionally compare home sales within a reasonable distance from the home they are appraising. In the past a foreclosed home would be considered a hardship case and not used as a comparable because it would not reflect the market. How does that apply today? Ask an appraiser or ask a Realtor about the challenges of valuation. My point is we need experienced appraisers and we are expected to navigate blindly and that is wrong and makes no sense.

NO the real estate market is not improving it is just limping along.Bernanke announced yesterday that ‘technically' we are in a recovery. Well I'm here to tell you technically the government is inept and the real estate market is still in shambles with more foreclosures coming however there are simple COST NEUTRAL tools to bring it back.

Bring back the down payment assistance program for FHA HUD loans.
(I would bet those that put down 20 or 30% down three years ago and since lost their job wish they still had the money in the bank. My point is from the beginning of time the person with the gold measures the ability of their applicant to repay the loan. Down payment is part of that only when someone is buying more than they could normally afford.) The down payment is used to keep the payment affordable and has nothing to do with the applicant's ability to repay the loan. Job loss and a declining market make the down payment irrelevant in most instances.

Force banks/servicers/investors to respond to offers and negotiate in good faith realistically so purchases can conclude within 60 days from time of offer.

If there are deficiencies in the collateral (House) preventing financing the bank/servicer should be required to fix prior to close at their expense.

Force banks/servicers/investors that hold 1^st & 2^nd lien position notes to negotiate and come up with a formula so that someone leaves the table with something and the current owner can move on with their lives relatively unscathed. The purchase should conclude within sixty days from time of offer.

Eliminate the HVCC appraisal process and give us back our ability to pick our own appraisers. The appraisers are licensed bonded and held to standard and practices. Lender underwriting community is there to make sure the appraiser is held to that plus the lender has another system to review the work after underwriting so the notion an appraiser is pressured to create a value is just nonsense and certainly not the force behind the calamity we face to day. I didn't hear a peep about appraisers but I heard plenty about the rating companies!

Eliminate CREDIT SCORING ..... Banks (and insurance companies) are making a bundle using this as a method to increase rates and costs. It is discriminatory by its very nature and its only purpose is for lenders and insurance companies to jack rates regardless of the circumstance behind the score. It eliminates our ability to use the tried and true tool and that is real risk analysis (the ability to determine a borrowers ability to pay back the loan).

Life happens on life terms or you may pay your bills on time but the magic box says we don't like the way you manage yourself even though you have never had problems in the past. You are not good enough so your score goes down and the cost for you goes up. If the credit scoring system is so good why are we in this financial calamity today? You can't blame sub-prime. Prime loans are defaulting too and the main reason is loss of job.

Good old-fashioned underwriting or risk analysis is better than any regulation. That's how we did it many years ago and many people (even with distressed credit) obtained loans because it made sense and they carried on successfully.

Write your representatives if you want to get out of this mess.

I wish us all well.

For the past eighteen months my blogs will touch on this very topic. Dylan Ratigan - his program "Morning Meeting" on MSNBC had guests on today specifically addressing the bricks preventing us from real recovery.

I recommend you click below and read what is really going on. He knows the issue and clearly understands the landscape better than most.

http://www.huffingtonpost.com/dylan-ratigan/americans-have-been-taken_b_285225.html

I recommend you click on to his site and click the video featuring Elizabeth Warren. Another voice for mainstreet America.

http://www.msnbc.msn.com/id/31510813/

You will continue to hear that we are turning the corner. What you don't hear is the banks continue to have a stranglehold on us as do the insurance companies (the one and two top spending and most powerful lobbyist) so therefore our representation caves to their whims. The proof is the results we "sit" in today.

Brick by brick our government with the guidance of the lobbyist is allowing the tear down of the middle class and for those that don't get it here it is....without a healthy middle class we as a nation go down and anarchy will take over. Do we want to be the New Republic of Wall Street or the United States of America.... if it is the latter you better pick up the phone, you better Google and email your representative. Clearly sitting on your hands, clicking your heels, crossing your fingers has not worked!

I wish us all well.