How to Buy Foreclosed Homes in Nutley, Belleville & Clifton NJ

How To Buy Foreclosed Homes in Nutley, Belleville & Clifton NJ

Buying Bank Owned HomesOverview
Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments and the lender files a public default notice. The foreclosure process can end one of four ways:
    1.    The borrower/owner pays off the default amount to reinstate the loan during a grace period known as pre-foreclosure.
    2.    The borrower/owner sells the property to a third party during pre-foreclosure, allowing the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.
    3.    A third party buys the property at a public auction at the end of the pre-foreclosure period.
    4.    The lender takes ownership of the property, usually with the intent to re-sell. The lender can take ownership through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction.

STEP 1. Find a Property
Buying a home in foreclosure can begin with you searching online using such sites as RealtyTrac, Trulia.com, Zillow.com, NJMLS.com, or GSMLS.com and decide where you want to search for property. Many of these sites allow you to search by county, city or zip code. We recommend starting with a broader search (like county or city) and narrowing the search later if necessary.

STEP 2. Get Financing
Obtaining financing not only gives you an estimate of what you can afford, it also enables you to move quickly once you locate a property that interests you. When you approach are ready to present an offer on a foreclosure, secured financing will demonstrate that you are a serious buyer and are ready to buy quickly.

STEP 3. Contact an Agent
If you’re a first-time homebuyer and you’ve never purchased a home, let alone a foreclosure property, it is beneficial to contact a local real estate agent who can guide you through the process of buying a foreclosure. If you work with an agent, make sure they know your priorities. Ask any potential agents if they have experience with foreclosures. Especially for first-time buyers, a good agent can be a comforting and helpful resource.


STEP 4. Make an Offer
If you have never purchased a foreclosure property before, we recommend that you have a real estate agent help you prepare and make an offer. To get an estimate of the potential bargain for any property, your agent will need to find out the estimated market value of the property, how much is owed on the property and if the owner has any other loans or liens encumbering the property. Based on your agent’s research of the potential bargain, you can make an offer. Usually the offer amount is somewhere below the market value but above the total outstanding liens and estimated repair costs. If the property is a pre-foreclosure or bank owned, you could prepare an offer similar to a typical purchase offer, contingent on a full inspection and title search.

For Sale in Belleville, NJ Totally Renovated

3 Bedroom 1.5 Bath Totally Renovated  For Sale in Belleville NJ

Pending Home Sales Continue Recovery, Gradual Improvement Seen in 2011

Washington, DC, December 30, 2010

Pending home sales rose again in November, with the broad trend over the past five months indicating a gradual recovery into 2011, according to the National Association of REALTORS®.

The Pending Home Sales Index,* a forward-looking indicator, rose 3.5 percent to 92.2 based on contracts signed in November from a downwardly revised 89.1 in October. The index is 5.0 percent below a reading of 97.0 in November 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said historically high housing affordability is boosting sales activity. “In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” he said. “But further gains are needed to reach normal levels of sales activity.”

The PHSI in the Northeast increased 1.8 percent to 72.6 in November but is 6.2 percent below November 2009. In the Midwest the index declined 4.2 percent in November to 78.3 and is 7.7 percent below a year ago. Pending home sales in the South slipped 1.8 percent to an index of 91.4 and are 7.2 percent below November 2009. In the West the index jumped 18.2 percent to 123.3 and is 0.4 percent above a year ago.

“If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume,” Yun said. “Credit remains tight, but if lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy.”

The 30-year fixed-rate mortgage is forecast to rise gradually to 5.3 percent around the end of 2011; at the same time, unemployment should drop to 9.2 percent.

For perspective, Yun said that the U.S. has added 27 million people over the past 10 years. “However, the number of jobs is roughly the same as it was in 2000 when existing-home sales totaled 5.2 million, which appears to be a sustainable figure given the current level of employment,” he explained.

“All the indicator trends are pointing to a gradual housing recovery,” Yun said. “Home price prospects will vary depending largely upon local job market conditions. The national median home price, however, is expected to remain stable even with a continuing flow of distressed properties coming onto the market, as long as there is a steady demand of financially healthy home buyers.”

Existing-home sales are projected to rise about 8 percent to 5.2 million in 2011 from 4.8 million in 2010, with an additional gain of 4 percent in 2012. The median existing-home price could rise 0.6 percent to $173,700 in 2011 from $172,700 in 2010, which was essentially unchanged from 2009.

“As we gradually work off the excess housing inventory, supply levels will eventually come more in-line with historic averages, and could allow home prices to rise modestly in the range of 2 to 3 percent in 2012,” Yun said.

New-home sales are estimated to rise 24 percent to 392,000 in 2011, but would remain well below historic averages, while housing starts are forecast to rise 21 percent to 716,000.

Yun sees Gross Domestic Product growing 2.5 percent in 2011, and the Consumer Price Index rising 2.3 percent.

The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

NOTE: The next Pending Home Sales Index will be released January 27, and existing-home sales for December will be reported January 20; release times are 10:00 a.m. EST.

REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS®. All REALTORS® are members of NAR.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.

Cambridge Heights Nutley -BANK OWNED Asking $294k!

Cambridge Heights Nutley-Bank Owned Townhome -$294k!

call me if you would like to see this unit 973-846-0065

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What Every First Time Home Buyer Should Know

First Time Home Buyers

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Tell Me Why Do You Want A Short Sale?

Short Sales-Are They Really A Deal?

The answer usually is “I want a great deal” Well sometimes you can get a great deal on a short sale and most of the time you can’t. And the reason that I say that is I have sold short sales I would say about a dozen times, well almost a dozen times, 9 out of every 10 short sales fail to close. Why? most of the time the banks just take there sweet time getting back to the buyer by that time the buyer has moved on or found another deal that is not a short sale, yes a regular deal without all the headaches. You have to understand the system the banks are under staffed to handle the problem. My advice would be if your going to go after a short sale put your offer in but keep looking. You can find a ton of great deals out there. Start here by searching for your new home in Nutley!

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Buying A Foreclosed Home

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What Is A Short Sale?

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Homes For Sale in Nutley NJ

Matthew DeFede

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