Foreclosure, Foreclosure, Foreclosure

Well, I know this is the Northern Virginia Real Estate Blog and most of my recent posts have been centered on VA REO Foreclosures ... primarily because REO properties are the hot topic both in the news and with Buyer's and Seller's too.

For Buyer's REO is a hot topic because the foreclosure properties are typically very good purchase deals and the aggressively priced foreclosure listings have been bringing down the values of owner occupied homes. That loss of value and market competition is a hot "negative" topic for Seller's. As the property values have declined I have observed many Seller's that have held out hope for Top-Dollar only to watch the Days On Market pile up as they have maintained a List Price that is above an ever lowering bar of fair market value. In this market if you "HAVE TO SELL" then the best strategy is to get your home priced where you are the next home to sell or at least in every prospective Buyer's TOP 5. Don't be penny-wise and pound foolish ... get your home priced to sell. This market is about price, price and price.

As far as the News and Media are concerned, happy endings and feel-good stories don't sell many newspapers or generate much TV ad revenue. The Foreclosure Market makes for good news even if it does not tell the whole story or even part of the story. I have not been seeing many foreclosures in Great Falls, McLean, Vienna, Oakton or Fairfax Station. I can just about count them on my own hands. Granted we do have some locations that are getting severely beat down by high foreclosure rates. Sterling and Sterling Park, downtown Herndon, Manassas, Manassas Park and Woodbridge have flooded markets with foreclosures and the loss of property value has been acute.

Tomorrow I will finish off 2007 with just some general real estate information and hopefully something up beat too.

JT

Search the Northern VA MLS

Non-Traditional Foreclosure Contracts & Bank Addendums

There is no such thing as "standard operating procedure" when it come to Foreclosure Contracts. Every Asset Management Company and every Bank has their own unique policies and procedures ... and the Foreclosure Sales Contract is likely going to be their way or the highway.

It is typical here in Northern VA that the initial purchase offer is submitted using the standard local contract and after conditional (oral) acceptance by the Bank that a REO Addendum will follow. The Bank's Counter Addendum will supersede the terms in the local contract and while a majority of the Counter Addendum is consistent with the local contract ... there are some critical differences. The Bank may be selling properties in all 50 states and they want a contract document that they fully understand and are 100% comfortable with the terms and conditions. It is not uncommon for the Bank to demand that there be NO/ZERO changes or alterations to the Bank Addendum ... regardless of how minor or insignificant.

Realty Times Article: Watch Out For Nontraditional Foreclosure Contracts
"Your best offense is a real estate professional that has navigated
such waters and can help you miss any pitfalls along the way."
Realty Times, M. Anthony Carr - January 2007

Having a Buyer Agent that is familiar with both the sale and purchase of REO/Foreclosure properties can be an important factor in a successful foreclosure transaction.

John Thompson
Samson Realty

VA REO Listing Agent - VA Foreclosure Buyers Agent