Thursday, March 31, 2011

Albuquerque Real Estate - Foreclosure inspection thoughts

Now, before I start on this I want to make it clear that this information comes only from my experience. Your's may have been different but I think the information provide can be agreed upon.

When purchase an Albuquerque Foreclosure in our Albuquerque Real Estate market the term "as is" comes up again and again. If you are in the middle of a foreclosure deal and this has not come up, ask your Realtor right away because it should be crystal clear to a buyer. As a buyer, there should be no doubt in your mind as to what this means. Basically, it means the bank is selling with no warranties expressed or implied.

People ask me time and time again, "what will the bank fix on this property?" and the best answer is, nothing. That way there are no false hopes or expectations. Does this mean that when the offer is accepted you are locked into that property and have no recourse? Absolutely not! If the inspections come back with something bad and you are not comfortable moving forward, then you should be able to take your earnest money and find something else (unless you have made your earnest money non-refundable in the offer which could happen in multiple offer situations).

Now, some banks have been know to repair an item if it is required in order to obtain a mortgage loan. For example, if there is a roof leak in the home and the buyer is utilizing his or her VA eligibility, the bank may choose repair that item knowing now that it is a lender requirement. The bank should know then that if they do not fix the leak, they have just cut off buyers that qualify for a VA loan.

So, if you don't like the color of the cabinets, the bank won't paint them. Big ticket item may be considered if the mortgage could be in jeopardy. That's the bottom line...for now.

Thanks for reading!

by Tim Fish

Monday, March 28, 2011

Why its good to have a Realtor when buying Albuquerque Foreclosures - offers

I know, I know. Another foreclosure blog. Sorry. Its a hot topic right now and will be for a while.

It probably goes without saying, but buying an Albuquerque foreclosure, like any property, can be tricky. There are several things to be aware of. It's my opinion that having an experienced Realtor and mortgage professional can save a person quite a bit of money and agony.

One thing buyer's should ask is what would a reasonable offer be. I can't tell you how many people read a blog or article on the internet and think they can low ball the bank into selling a property. Here's something that everyone should remember - the bank is not stupid. They know what the market is and what properties are going for in certain areas. They get broker price opinions (or BPO's) from several Realtors to produce a competitive listing price. If they don't see the property moving within a certain time frame, they will reduce the price by a certain percentage.

So, what could a good offer be? Like I said, consult your Realtor (or me if you don't have one). And don't be surprised if the offer should be 5-8% less than the list - not 25-50%. If they were giving them away for that much off, we would all be in (more) trouble. Also, don't be afraid to ask for the seller to pay for a percentage of the purchase price toward closing costs if you are not in a multiple offer situation. A lot of the time the bank will consider it. And one more thing. If you really like it, chances are that someone else likes it as well. Make your move! Don't wait if you think its the one for you.

Bottom line - When buying Real Estate in Albuquerque, consult a pro. Like you would consult a doctor if you had sharp pains in your brain because without the right help when buying a home, you could very well feel that same brain pain.

by Tim Fish

Tuesday, March 22, 2011

Client benefits (Sandia Tram!)

One of the things that locals tend to forget about when living in a area long enough (in my case, all my life) is the unique, local features that the area can offer. One of Albuquerque's unique features are the Sandia Mountains and you can't mention them to someone moving in from out of town without talking about the Tram.

Our Sandia Tram has taken 9 million passengers to the top the Sandia's western, rugged face in its almost 44 years. Any one that has had the opportunity to travel a flight on the tram can vouch for the amazing scenery.

West, across the Rio Grande and volcano fields Mt. Taylor can be seen more than 100 miles away. To the west Redondo Peak stands tall in the Jemez Mountains rising up from the caldera known as the Valle Grande. And to the east lies the heavily wooded backside of the Sandias and views of the Sangre de Cristo Mountains and our capital, Santa Fe.

So, if you have bought any Albuquerque Real Estate from me (that includes Albuquerque foreclosures), I can provide you with FREE tram tickets so you can decide for yourself if the views are as good as I remember (No. I haven't been in a while. I'm local!). Or, if your nice and just ask, I can hook you up too. Just remember me if you know anyone buying or selling ABQ Real Estate!!

by Tim Fish

Thursday, March 10, 2011

FHA Insurance Premium Increase

I just wanted to let you know about the insurance premium increase for buyers buying Albuquerque Real Estate that are planning to use an FHA loan. As of April 18th the premiums will increase slightly but buyers should be aware. If, for example, a buyer was looking at a $175,000 loan amount, the payment will increase by about $36 per month.

However, this will help strengthen FHA which is important since some estimates show that they do carry 50% of the current loans generated today. Even though FHA is increasing this premium, their products are still some of the best out there are offer low down payments, even for those looking into Albuquerque Foreclosures. Rest assured that the FHA loan is still a viable option worth considering. just be clear on the guidelines including the condition of the home. you Realtor should be able to help with that.

If you have been considering buying, now may be a good time!

by Tim Fish

Tuesday, March 8, 2011

I found a REPO! How can I buy it and finance the repairs?

So, you've found a few Albuquerque Foreclosures homes that could be great deals but they could have a significant amount of repairs and upgrades needed before it will be a great home for you. You have the cash for the down payment but not enough extra to make the renovations! Prior to today I would have said that this would have been next to impossible to accomplish if you didn't have the extra funds.

Today I learned of a program that allows a purchaser to obtain a mortgage for Albuquerque real Estate and finance the repairs. The loan would be based on 80% of the improved appraised value!

That's correct! You may be able to buy an Albuquerque Foreclosure home and do the rehabilitation in one loan! There are a couple of requirements: it must be owner occupied, the loan cannot exceed 80% of the improved appraisal price, the loan cannot exceed (Catch this!!) $1,000,000, and the buyer must have sufficient income and credit to qualify.

If you wished you had the money to take advantage of some incredible bank REO properties this may be just what you have been looking for.

For more information please contact me at

by Tim Fish

Got Splinters?

Have you been riding the fence and have been qualified for an FHA loan to buy Albuquerque Real Estate or know someone who has, you may want to pay attention to what is going on in the up coming months in Washington regarding the housing and recovery act.

The current loan limit for an FHA loan is $270,000, which was a temporary increase to provide some activity in the market. It did help but it will probably drop to $200,000. Allow me to repeat that for you. THE LOAN LIMIT FOR FHA WILL MOST LIKELY DROP TO $200,000 IN NM. Congress will make this decision before the sunsets on September 30th. So, if you are looking for the low down payment and want to finance more, right now should be a good time to buy. Not trying to use any scare tactics here. Just want to inform.
Bottom line, if you are seriously considering a home purchase and have been qualified for an FHA loan, please contact your Realtor and/or mortgage professional to see what actions should be taken and if this effects you. They should be more than happy to help. If not, call me!

by Tim Fish