Buying a Plano TX Home After a Foreclosure

Plano foreclosure listings offer potential homebuyers an opportunity to buy a home under market its value. With that said, keep in mind that not every foreclosure listings is a great deal. In many ways, these foreclosure listings aren't any different from any other type of listing. Buyers will find a wide vibration in these listings: some foreclosures are priced too high, some too low and some are priced about right.

If you are a first time homebuyer, you will get great benefit from retaining a professional Plano Realtor who has experience selling foreclosure listings. Hiring a buyer's agent without foreclosure experience is almost as dangerous as not retaining a buyer’s agent at all. You need an agent who will make your interests their priority.
Searching for a Foreclosure Buyer's Agent
In weak or falling markets, many buyers’ agents find the bulk of their sales in foreclosed home listings. If you can find an experience buyer's agent here are ways to find a Foreclosure agent:
Referrals From Friends, Coworkers or Family
Chances are someone you know has recently purchased a home. Ask for a referral to their agent, then call to inquire that agents experience with foreclosures.
Talk to Agents at Open Houses
Whether or not the host of an open house is the actual listing agent or another agent from the same office doesn't matter. Open houses give buyers a relaxed, non-threatening atmosphere to talk with other agents. You can ask the agents to describe for you a recent foreclosure transaction experience and find out how many of these types of transactions they typically close every year.
Search for Foreclosure Agents Online
Many foreclosure agents write blogs about their experiences. Review their blogs and websites to see how long they have been working with foreclosure transactions.
Sort MLS records by REO and Short Sale Agents
If you have a friend in the Plano real estate business, with access to the Plano MLS, have them run a search by limiting the returns to foreclosure listings only, and pull up the closed sales for the past six months in your preferred ZIP code or neighborhood. Look up the buyer's agent name on each of the sales, and then go to that agent's web site for more information. You can often find great value in a Plano foreclosure home just make sure your do all your due diligence and retain the services of a professional Plano Realtor.

Buying a Plano TX Home After a Foreclosure

Who or What is Fannie Mae?
Fannie Mae is the entity that holds great power in the conventional mortgage market. Fannie Mae is not a governmental agency as most think but is private corporation and is America's largest home mortgage buyer, Fannie Mae buys home mortgage loans in the secondary mortgage market. Because Fannie Mae ends up with these properties back if the mortgage borrowers default, Fannie Mae has a strong interest in setting forth stringent qualifications and guidelines to lessen the chances that a borrower will lose their home and go into foreclosure. Fannie Mae now addresses separate waiting periods depending on the type of foreclosure. If you have documented extenuating circumstances, this will have a direct bearing on the number of years you will have to wait to get a conventional loan for another home.
What is Documented Extenuating Circumstances?
Fannie Mae allows for extenuating circumstances like:
Death or sever Illness
Long Distance Job Transfer
Accident Resulting in Severe Injury
Generally, extenuating circumstances are things that happen that are beyond your control, which greatly affect your ability to continue making your mortgage payments.
With these types of documented extenuating circumstances, the waiting period is less than without them. Unfortunately, being unable to afford an increase in payment due to an interest rate increase on your adjustable rate mortgage is not considered a circumstance that is beyond your control.
Waiting Period to Buy After Foreclosure
Buying After a Foreclosure
The waiting period is 5 years up to 7 years.
Buying After a Foreclosure With Extenuating Circumstances
The waiting period is 3 years up to 7 years.
Buying After a Deed-in-Lieu of Foreclosure (signing the deed/title over to the lender)
The waiting period is 4 years up to 7 years.
Buying After a Deed-in-Lieu of Foreclosure With Extenuating Circumstances
The waiting period is 2 years up to 7 years.
Buying After a Short Sale
The current waiting period is 2 years, however, if a seller does not have a 60 day late pay, that seller may immediately buy another home. It's a great reason to stay current on your payments while the home is being sold as a short sale. The challenge here is that many Lenders will not agree to a Short Sale if you are not behind on your mortgage payments. If you have no extenuating circumstances, you will need to wait four years from the date of completion, meaning the date your deed-in-lieu of foreclosure was recorded. In addition to the waiting period, some loans require 10-20% down and a minimum FICO Credit score. The home you purchase must be your principal place of residence, not a rental nor a vacation home.
Plano Real Estate ownership has proven to be a benefit to most as the Plano real estate market remains strong and the City of Plano still ranks as the City with the highest income in the entire country. Weather your next home purchase be a greatly valued Plano Foreclosure home and a new luxury you should always have a professional Plano Realtor at your side who is looking after your best interest.

Tips For Buying a Dallas Foreclosure Home

There are lots of savvy Dallas homebuyers who want to hit the jackpot by buying a Dallas Foreclosure because they believe that many of these homes are under priced. When banks price their foreclosed and REOs (real estate owned) homes under the comparable home sales they often receive multiple offers. This means that you could be up against some strong competition for that Dallas home that you really want. Sometimes the bank will take the top two or three top offers and then ask theses selected buyers to resubmit, what is known as their "Highest and Best" final offer. Other times the bank simply accepts the best offer upfront. Here are a few tips to help you select the right price and terms so your offer will be Highest and Best:

1) Get the Property History

Ask your Dallas Realtor to find out the bank's purchase price, the amount the bank took the property back at. Typically, this amount can be obtained from the state tax rolls or a local title company. Compare that price to the price the bank has the home listed for and then look at the amount of loans that were once secured against the property. Somewhere between the original mortgage balance and the amount the bank took the property back will be the amount the bank will accept from a buyer.

2) Determine Comparable Sales

In most cases, the list price has little to do with the value of the home. The area market value carries the most weight. If you are up against competing offers, other buyers will offer more than list price.

•• Take a look at the last three months of comparable sales for that neighborhood to determine how much this home is worth. Only use those homes that most closely match the REO/Foreclosure home regarding square footage, number of bedrooms, baths, amenities and condition.

•• Also, look at pending sales. Ask your Dallas Realtor to call the listing agents for these pending sales to try to find out the accepted contract price. Some Realtors will share that information and others will not.

•• Look at the active listings as well. These listing are the competition for the REO/Foreclosure home you want to buy. Also, these homes are most likely the listings other buyers will use to formulate a price because they are the only homes those buyers actually tour.

3) Analyze Listing REO Sold Listings

Most REO agents work for only one bank, sometimes, two banks. Some of these listing agents are exclusive listing agents for the banks that own these REOs, and they do not list any other types of real estate. Since REO agents deal in high volume, they typically apply the same pricing principles to all their REO listings ie. price per sq. ft..

•• Ask your Realtor to look up the listing agent in the Dallas MLS.

•• Get your Realtor to run a search using that listing agent's name to find the last three to six months of that agent's listings.

•• Also, have your Realtor pull the sales and listing history of those properties to determine the listing price to sales price ratio. If many of those listings are selling for, say, 4% over list price, then you may need to offer 5% over list price, and vice versa.

4) Ask About Number of Offers

If there are no offers on the REO/Foreclosure home you are interested in, you can probably offer less than list price and still get your offer accepted. If there is more than just your offer in on the property, you will likely have to offer a price higher than the list price. Keep in mind that some of those offers might be all cash and banks like all cash offers. If you are obtaining financing, then you may need to increase the price on your offer to even be considered.

5) Submit Preapproval Letter

Just like with any other home purchase you want to submit a mortgage prequalification letter to the REO Bank along with your offer. Generally, it is an advantage to get pre-approved for mortgage financing through the bank that is selling the REO/Foreclosure home because banks don't trust other lender preapprovals but trust their own departments.

There are great values to be found in the Dallas real estate market for Dallas foreclosure homes. Make a list of your need, wants and desires like neighborhoods, style of home, beds and baths, special amenities, square footage, etc. Once you complete your list search Google to find the best Dallas Realtor to represent you and walk you through, step-by-step, the Dallas foreclosed home buying process.

DFW Home Foreclosure Opportunities

You have probably seen the infomercials that portray investing in foreclosed houses as a sure money making thing. Talking to people actually buying foreclosures they are saying that buying a foreclosed home to flip or rent out isn't an easy undertaking. As foreclosure inventory continues to rise it seem the purchase of a foreclosed home is timely but the typical deal comes with more problems than the average do it yourselfer can handle. With that said investing in a foreclosure can be rewarding if you're willing to do your homework.

Range of Discounts

How much of a discount you need to make a deal work depends on your goals for that property. The shorter the time you intend to hold a property the greater discount you will need. You should buy homes for 30% off market value if you plan to flip the property, and 10% if you intend to rent it out long term, it must cash flow though.

Buying Opportunities

Foreclosure Auctions: At a foreclosure auction, you buy the house "as is" and you might not be able to do more than look through the windows prior to the auction. There are no inspection periods for these types of properties. You could be bidding on a home that has been vandalized or that has severe deterred maintenance. Vacant homes may have water or mold damage. And the property may have legal challenges: liens, difficult-to-evict tenants or, in some states, a mandatory "redemption period" that gives the former owner time to try to get the home back.

REO: REO’s (Real Estate Owned) that lenders have bought back at auction, generally offer the easiest route for foreclosure purchases. With an REO, you won't become involved with a stressed homeowner facing foreclosure. Although an REO is likely to be sold "as is," you will have the right to an inspection, a title search and contingencies. Another advantage: You can finance the purchase with a conventional loan, assuming the home is habitable. However, the buyer of an REO is generally not likely to get as deep a discount as an investor in other kinds of foreclosures.

Due Diligence

It is a great time to by DFW real estate. It is a good idea to get a professional DFW Realtor on your side to represent your interest. Although they represent you the seller, in most cases, pays their commission, giving you more money to work with. Your DFW Realtor can help make sure you do not pay too much for your foreclosed property. They have access to the DFW MLS and can give you the sales prices of compare sales of similar properties. Some careful thought and a little faith and you will be on your way to owning a foreclosed home.

All About DFW Real Estate Listing Agreements

Most home sellers don’t know it but there is more than one choice when it comes to DFW real estate listing agreements. The best listing choice for you depends on your willingness and ability to handle some of the home selling duties and the real estate market conditions in your community.
Types of Listings
Open Listing
An open listing allows a home owner to sell their home themselves. It is a non-exclusive agreement. The owner may have an open listing with more than one real estate agent and only pay the agent who brings a willing and able buyer whose offer the owner(s) accepts. The difference is that an owner will probably pay only a selling agents commission, which is about half the amount of typical real estate fees. This is because the owner is not represented by a listing agent. In this case, the owner does not pay a agent to represent them, but they do pay the agent to represent the buyer. If the owner is able to find the buyer themselves then the owner will not owe a commission to anyone. Open listings are not popular with many DFW real estate agents as they are not guaranteed to be compensated for their efforts and expenses.
Exclusive Agency Listing
An exclusive agency listing has many similarities to an open listing arrangement. The most important difference is that the agent represents the owner. The owner still has the right to sell the property themselves and not pay a commission. The agent is free to cooperate with another agent, meaning the second agent could bring an able buyer whose offer the owner accepts. Typically, this agent will be paid a listing commission that is shared with the selling agent. In this case the owner pays both fees.
Exclusive Right-to-Sell Listing
An exclusive right-to-sell listing is the most common of the listing agreements. It gives the agent an exclusive right to earn a commission by representing the owner and finding a buyer, either directly or through another agent. The owner pays both the listing and selling agents’ commissions. The owner cannot sell the property themselves without paying a commission, unless an exception is noted in the listing agreement when it is executed.
Exception to the contract: Say, your next-door neighbor has expressed an interest in buying your house. Often a listing broker will give the seller a certain number of days to execute a contract with the neighbor without them owing a commission.
Other Things to Consider
• Length of Listing
The term of the listing agreement is negotiable. Common listing agreement are 90 days, six months to one year or more.
• Selling Commission
How much will you have pay in commissions to your DFW Realtor? When there is a lot of inventory on the DFW real estate market and few buyers, to generate traffic, you may want to consider paying the selling agent more than you would in a market where inventory is tight and a lot of buyers are going after fewer listings. For example, if the total commission is 6%, and the listing agentn wants to offer 2.5% to the selling office, you could insist on paying 3% instead. Make sure your Realtor put the commissions in the DFW MLS correctly.
• Cancellation of the Listing Agreement
Will your agent let you cancel your listing agreement? If the agent will agree to let you cancel at any time, then that agent is giving you a guarantee. In that instance, the duration of the listing agreement doesn't matter.
• Expiration of the Listing Agreement
If the listing agreement expires without an automatic renewal or if the parties decide to cancel the listing agreement, the listing agent may supply the owner with the list of names of prospective buyers the agent collected. If any of those buyers contact the owner within the time frame specified in the listing contract and they purchase the property, the owner would still owe a selling commission.

Selling a Plano Home With Pets

Everybody loves pets, right? Well, most people do except a homebuyer who is looking to buy your Plano house for sale. Home sellers who adore their pets have a hard time seeing the negativity others may harbor against pets. You may not be happy with this but if you want to get the most money for your house, you should pay attention to how much money you may lose with a dog, cat or other pet in your home while you are trying to sell it.

Why Some Home Buyers May Not Like Your Pet?
• Pets make some people uncomfortable and nervous.
• Fear. Both real and imagined.
• Inexperience. Pets are unpredictable.
• Your pets aren't their pets. They imagine that yours may bite or jump on them.
Pet Solutions
The best thing to do to ensure that you get top dollar for your home is to relocate all of your pets while your home is on the market. Putting them in the back yard, in the garage or in another room that you keep locked is not enough. Remove them from the house.
• Let a friend or relative care for them.
• Board them at a kennel.
Overcoming Negatives Associated with Your Pets
If you, for whatever reason, can’t remove your pets from the house, then you can at least minimize their negative impact on the marketing of your home:
• Litter Boxes: Keep them out of sight and keep them clean and fresh. Nothing turns off buyers faster than the smell of cat waste.
• Carpet & Floor Pet Stains: Hire a professional to remove any stains in the flooring. Buyers will spot them immediately. If the stains can't be removed, then replace it.
• Pet Odors and Smells:
1. Cat urine is the worst.
2. Do not use air fresheners. All that does is add another smell to your home.
Remove All Signs of a Pet
In some areas, you may be required to disclose that pets have lived in your home, but you don't need to advertise that pets live at your house. Removing all signs that you have a pet is the best practice. As you know, it's those first impressions that are the most important.
• Remove photos of pets from refrigerator, walls and table tops
• Seal up doggy doors
• Put away food and water bowls when not in use
• Vacuum every day
• Pick up your pets toys
• Put away all cages, carriers, etc.
Showing Your Plano Home
Put your pets into a carrier and attach a warning note informing buyers not to bother them. The last thing you want is somebody sticking their hand inside the carrier and getting bit or scratched. You can't predict how your pet will react when locked up and provoked by a stranger. Even though the Plano real estate market remains strong, you need every marking advantage available to you. Many potential buyers will look at a few Plano foreclosures prior to viewing your home and a clean smelling home will catch their attention as soon as they walk through your doorway. It is always best to retain the services of a professional Plano Realtor to show you the best way to market your home to get the highest possible price in the shortest amount of time.

Plano Real Estate Disclosures

p>By law, Plano real estate agents cannot fill out a property disclosure form for a seller unless that agent is the seller or a direct party to the transaction. Unfortunately, that doesn't stop some uninformed agents from filling out these property disclosures on behalf of their seller clients and in doing so, opening themselves up for lawsuits and penalties from the State Real Estate Commission.

Federal DisclosuresEach State has its own laws regarding property disclosures, so the forms will vary depending on where you live. A federal disclosure such as the Lead Based Paint Disclosure is required for all transactions for houses built prior to 1978. This disclosure gives the buyer 10-days to conduct inspections for lead-based paint, unless that time period contingency is waived in writing.

Material FactsA material fact is anything that may affect a buyer's decision to purchase a property affect the price and terms the buyer may offer. If you have knowledge about a defect in the property, it must be disclosed, period.

External DisclosuresSome states require disclosures about items that affect or could affect the property such as:

•• Earthquakes
•• Natural Hazards
•• Zoning Changes
•• Flood Zones
•• Death
•• Crime
•• Fire Hazards
•• Noise Pollution
•• Ground Pollution

Due to the large number of lawsuits, most local Association of Realtors, publish a number of disclosure forms to help protect home buyers.

Foundation ProblemsThis is a huge issue in many areas of the country because of problems surrounding wet basements and defective slabs.

What About Rumors?Generally, when selling Plano real estate, if you have knowledge of a defect or material fact, then you must disclose it. If a neighbor repeats a rumor, and you have not verified or disproved it, you may want to consider telling the buyer about the rumor. The best thing to do is to always follow the "Golden Rule". If you would like to know something as a Plano home buyer, then your buyer probably will want to know as well. Generally, home buyers aren't upset by negative information. They get upset and call a lawyer when they feel they have been deceived or lied to. If you are utilizing the services of a Plano Realtor make sure that they disclose everything about your property to any and all potential buyers. They may even disclose some of these things in the Plano MLS so that there is written evidence of such.