Colorado Springs foreclosures Posts

While the economy has created a ‘buyers’ real estate market with home values plummeting and Colorado Springs foreclosures soaring, who’s buying up the properties that are for sale? While first time home buyers are on the decline and previous buyers are being turned down because of tight credit conditions, Pink Realty agents are seeing that those with cash are the ones bringing the deals to the table. And today, it’s typically the investors that have the cash! Per Lawrence Yun, Chief Economist for the National Associate of Realtors (NAR), “Increases in all-cash transactions, the investor market share and distressed home sales all go hand-in-hand. With tight credit standards, it’s not surprising to see so much activity where cash is king and investors are taking advantage of conditions to purchase undervalued homes.”

On February 23, 2011, Jon Prior of the NAR summarized the housing sales for January 2011. All-cash sales increased to 32% of all sales in January, which was up from 29% in December 2010. Additionally, it was investors that grabbed more of the market share by accounting for 23% of all buyers in January, up from 20% in December 2010 and up 17% from one year ago.

While many investor home purchases will result in a traditional fix and flip sale, the current rental market and trends are also providing a great profit opportunity for investors. The demand for rentals in Colorado Springs is on the rise because more people are being turned down for home loans and more people are being displaced because of foreclosure or selling their home on a short sale. Colorado Springs has become a hot rental area because of the number of military personnel in the city, but also because the economy and housing market has caused so many homeowners to lose their homes to foreclosure or because they had to sell their home as a short sale. All these people are in need of housing and looking for rentals. This demand has resulted in less than 1% vacancy in Colorado Springs. Traditionally in Colorado Springs, the 3 bedroom home was always the highest in demand and considered the ‘sweet spot’ in the rental market. The 3 bedroom homes were always rented, never vacant and there were never enough of them to meet the demand for them. The larger homes that were for rent were not in demand and stayed vacant.
However, today the demand for 4 and 5 bedrooms homes is increasing. As more and more middle class families are displaced, the need for the larger rentals increases. These larger rentals also bring a nice price point to the balance sheet. The current rental rate for a 3 bedroom single family home is $1140 per month and the 4 and 5 bedrooms are $1374 and $1789 respectively.

Call Pink Realty today at 719-393-7465 (Pink) to talk to an agent and see what great deal is out there waiting for you!

There is no doubt the opportunity for investors to ‘snag the keepers’ is now.

While wholesaling and fix and flips bring fast and big profits, more investors are adding the right ‘keepers’ to their portfolio mix as rentals for additional long-term passive income. With the market trend shifting toward larger rentals, investors should also note that the larger homes with higher mortgages tend to get discounted more by the lenders when working a short sale. Many of these higher end homes are simply in need of paint and carpet. We have seen nice homes in the Stetson Hills area that needed as little as paint, carpet and linoleum flooring, but the homeowners couldn’t sell to a retail buyer because the buyers wanted a completely fixed home. Investors can buy homes for sale Colorado Springs for around $125K and get them turned into great rentals for about $10K. Cash flow on these short sales or bank owned properties would be very high.

If you call a Pink Realty agent, we would be happy to scour the market for you and find you a great property that will meet your needs.

Are you an investor who wants the upside of an investment property and today’s really cheap prices and huge cash flows but don’t want to at it alone?

The owners of Pink Realty are active, experienced investors and are always looking for partners on deals. Just give is a call at 719-393-7465 (Pink) and ask to talk to Russ or Monica about partnering on deals. We would be happy to talk to you. Just tell us what you want to bring to the table and we will see how we can work together.

• Do you qualify for the loan to buy the house? A common strategy investors are using now is to buy houses with cash, remodel the houses and then refinance the property with zero money out of pocket. We have investor friendly lenders ready to do these types of loans.

• Maybe you have a small amount of cash available and we can short a 2nd loan and bring the 1st mortgage current on a good property.

• Maybe you have a larger amount of cash available making 1% at the bank or in an IRA and you want to do something more productive with it but don’t know exactly how. We can find a really cheap house that we can buy, fix up, and rent.

A short sale is when a lender agrees to allow a mortgaged property to be sold for less than what is owed on the mortgage. While lenders don’t like their mortgages ‘shorted’, they do understand the benefits. Lenders know the loss incurred from a short sale is far less than the loss they will incur if they allow the property to go into foreclosure. Foreclosure is very expensive process for lenders as it not only incurs expensive legal fees, but also adds the expenses of maintenance, advertising and selling, insuring the home and paying property taxes. Lenders are not in the real estate business, they are in the business of making loans, so they know that selling a property as a short sale definitely has its financial advantages.

Today, everyone knows the real estate market is depressed. The majority of Colorado Springs homes are distressed properties that are either advertised as a short sale or a foreclosed home. Property values across the country have fallen and lenders have tightened their credit requirements. The market has increased the competition between selling a home as a short sale and selling a home at a retail price. While this market causes distress for sellers, it creates prime opportunities for Pink Realty agents home buyers to find great discounted deals on properties for their clients.

The current Colorado Springs real estate market also allows home buyers to seriously scrutinize the price of retail homes. They aren’t willing to pay retail price for a home unless it is in perfect condition as there may be several other similar homes in the same neighborhood selling at a steeply discounted price. This increases the competition between the short sale and retail properties for sale, however many buyers want to shy away from short sale properties because of some negative stories they may have heard. We won’t sugarcoat the short sale process for you. It can take time and be frustrating, however, if you work with a Pink Realty agent who is experienced and knows and understands the short sale process, it helps. A real estate agent who has a good success record for getting deals done (and the Pink Realty team has closed hundreds of short sales) can make the short sale process appear seamless.

With that said, there are many advantages for buying a home as a short sale. If you are aware that the process can take longer than a retail sale, you can be prepared and plan ahead. Below are the 10 top advantages for purchasing a home as a short sale:

1. With so many distressed properties on the market, you have a huge inventory of homes in a wide variety of neighborhoods to choose from.

2. Unlike foreclosed or REO homes, you have the opportunity to talk to the seller of seller’s agent about short sale homes and to find out more information about the home. This allows you to determine what, if any, repairs may be required. In many cases, the repairs needed for a short sale property are far less than those needed for an REO property.

3. You can obtain a home for a substantial discount which saves you thousands of dollars and offers you great future equity.

4. Since the seller is trying to avoid foreclosure, they are cooperative and play an active role in the short sale process, which moves the process along faster.

5. Because the homeowners are involved, they generally see the process through to the end. As a result, they tend to keep the properties in better condition than a home that has been foreclosed on.

6. When you work with a Pink Realty agent that understands short sales and works with an experienced short sale negotiation team, the short sale process is streamlined and takes less time. Oftentimes, homebuyers work with a real estate agent that is experienced in the retail market, not the short sale market. If a homebuyer wants to put an offer on a short sale property, but is working with a real estate agent that is not familiar with short sales and the process, it can end up being a nightmare for the buyer.

7. Another way to minimize the time a short sale takes is to search for short sale properties secured by a FHA loan. The FHA pre-foreclosure sale program requires that the lender provide the minimum sales price and the minimum net they will allow. Therefore, you know what offer must be made and it shortens the short sale process tremendously as the ‘price haggling’ part of the process is eliminated.

8. Additionally, if you purchase the home as a qualifying FHA buyer, meaning you are receiving a FHA loan to buy the property, the short sale lender agrees to pay 1% of your closing costs saving you additional money.

9. If you are pre-qualified for a home loan from your lender or intend to purchase the property as a ‘cash’ deal, the short sale process also moves along faster.

10. Buying a short sale property also helps stabilize the market and improve the condition of the neighborhood you are buying in because it keeps one more property from being foreclosed. Foreclosed properties lower the value of neighboring homes more because they are vacant, less maintained and increase the risk of crime and vandalism to the vacant homes.

Pink Realty is known for its talented and experienced short sale agents. Our real estate agents know the Colorado Springs foreclosures and they know and understand the short sale process. Additionally, we work directly with an experienced short sale staff that has a known tract record for successfully negotiating short sale deals. If you are a home buyer in the market to purchase a home, contact Pink Realty at 719-393-7465 (Pink). Our agents will help you find the home you are looking for.

When it comes to purchasing homes, buying a foreclosure is one of the best ways to create equity. Many times, you will find foreclosed houses for sale listed as half of what they are actually worth. After purchasing one of these homes, you can rent them out to generate positive cash flow, or flip and sell to generate an immediate profit. Yes, foreclosures can be a great way to create equity (or just get a create deal on a home), but many of us do not know a lot about foreclosures. Let’s take a look at what foreclosures are and how you can go about finding a great deals of Colorado Springs Foreclosures.

Before we talk about how you can find a foreclosed house, let’s first discuss what a foreclosure actually is. A foreclosure occurs when an owner cannot make payments on their home. If payments become severely overdue, the property is seized and sold. Many times, when foreclosures are resold, they are resold much below their actual value, making them the perfect find for home buyers.

Typically, there are four stages to a foreclosure. If a home owner goes 60 days without making a loan payment, they will enter into the first stage of foreclosure known as the ‘notice to accelerate’. During this stage, the owner will receive a notice from their lender letting them know that their payments are past due and must be brought up to date. If the owner fails to respond to this notice they will enter into the second stage of foreclosure – the ‘demand letter’. This letter will be delivered to the owner by a lawyer, letting the owner know that the foreclosure process will begin if they do not soon bring their payments up to date.

If the owner still does not respond, the lender will receive a notice of default, letting them know that the lender has filed for a formal foreclosure from the court. Once again, the owner is given an additional 20 to 30 days respond. If there is still no response after the given time, a final notice of sale will be delivered, letting the owner know when they must move out and when the house will be auctioned off.

If you are looking for a great deal in the Colorado Springs area, you may want to consider looking at these foreclosed houses. Begin by asking your real estate agent about foreclosures in the area. If there are any available, your agent will take you around to look at each. It is generally recommended that, before you look at homes, you ensure that you have a secure financial backing. Foreclosed houses are hot sellers, so if you are interested in a home, there is no time to waste.

Once you find a home you are interested in, you can submit your bid. Generally, the lender who repossessed the home will create a starting bid of which you cannot bid lower. Once you have made your bid, it will be considered against other bidders. You will be noticed once a decision has been made.

If you win the bid for your home in Colorado Springs, your next move is to perform an inspection. Do not skip this step. While some foreclosed homes are in excellent condition, many need repairs. And when it comes to buying a home, it is best to know what to expect beforehand!

If you are looking for homes for sale in Colorado springs area, you may want to start by looking at foreclosures. Foreclosures can get you a great deal on your home and can also be a great way to earn equity. Speak to your realtor about foreclosed houses and see what homes are available in the Colorado Springs area.

Homeowners whose homes have been put up for foreclosure are unfortunate but investors are somewhat lucky to find these deals on the market. Even with a “run-down” property, an investor can flip it and make a decent amount of money on its resale. The process of colorado springs foreclosures is somewhat simpler than other areas of the country as there is no need for a court appearance by neither the lender nor the borrower.

How does a foreclosure work?

When a borrower has defaulted on a loan, the lending institution issues a notice to the borrower and trustee. The lender requires a 3-moth reinstatement period to give the borrower the chance to pay the debt. When this time period elapses, a trustee’s sale is publicized, typically in the form of an auction. All costs related to the foreclosure and the principal amount is deducted from the winning bid. The balance is then given to the borrower.

Why foreclosures are good news for investors

A foreclosure is a good opportunity for an investor to snag real estate. This is especially true about Colorado Springs foreclosures. Though the market has experienced a dip in prices, the housing values in Colorado Springs are at a steady rise ranging from 2% to 6%. In addition, defaulted banks are willing to sell foreclosures at lower than normal prices in order to recoup what they have lost. They aren’t interested in real estate, they are more interested with lending money to new buyers.

There is actually an even better situation for investors as it relates to foreclosures. There is the instance when a property is sold in pre-foreclosure which means less cost and time. The buyer has more power to negotiate as the seller is willing to forego equity on the property to evade the tarnish to their credit report.

What are the steps that a buyer should take?

As a buyer, you should do a lot of research to find the right property. If you are planning on using the property as a primary residence, then factors such as the school district, the crime rate, local amenities, long-term plans for the area and comparable properties in the area should all be considered. When a property is decided upon, the next step is to approach a bank to get pre-qualified for a loan.

During this time, it’s recommended that you avoid making huge purchases. Lenders use your debt-to-income ration to establish what you can afford. It will include monthly housing costs, car payments, credit cards, student loans, etc. Additional debt will negatively impact the amount the lender will finance.

The next step is to either contact the seller or go to the auction to submit an offer. The ideal price will take into account the fact that banks hardly want less than 90% of the loan balance. Also, you should get the property professionally inspected. It makes no sense getting a “money pit” that has a lot of shortcomings which will end up costing a lot of money to fix. Keep this in mind when negotiating a price.