The number of people experiencing their Dallas home entering foreclosure is steadily increasing. Also increasing, is the number of bargains just waiting for home buyers to make a move. In RealtyTrac’s April 2009 U.S. Foreclosure Market Report^TM they found that default notices, auction sale notices and bank repossessions were reported on 342,038 properties during the month of April alone. The increasing numbers have contributed to the thirty two percent increase since last year’s April 2008 report. The report also showed one in every three hundred and seventy four homes received a foreclosure filing in April. These statistics prove foreclosure to be a growing threat to home owners. On the other hand, the foreclosure situation is benefiting people looking to purchase real estate in this buyer’s market.

Buying Dallas Foreclosure At Auction

The amount of foreclosure properties on the market opens the door to opportunity for buyers. One way for buyers to take advantage of the opportunity to purchase a foreclosed Dallas home is through an auction. It is important for people, especially first timers, to become educated on how to buy a home at a foreclosure auction. The first place to start would be to look up general information about the process on the internet. Then, it might be a good idea to contact a real estate agent or real estate attorney for professional help and advising. Auctions can be organized in public places or held at local courthouses. It is best to avoid auctions held at courthouses because professional investors are common competitors and there is not much, if any, time to research the physical condition and financial background of the property being auctioned. Instead, find foreclosure auction notices in the local newspaper, online, or by contacting a city official for upcoming auction dates. It is important for buyers to research the property before deciding if they will bid on it. Prior to determining your bid gather some important information about to property such as, the estimated market value, outstanding loan balances, property liens, ownership history, title information, and calculate possible monthly expenses as the future homeowner. Once a little research is done on the property, enough knowledge will be available to determine the appropriate bid.  Thoroughly looking farther in to the property can maximize your chances of getting a good bargain.

Buying Dallas Foreclosure Options

 There are also other options for foreclosure buyers to consider. Today, most foreclosure properties have large or multiple mortgages. This takes away from the likelihood of getting a bargain at an auction because banks will ask for bids that are more than the actual value of the property. The first alternative is to buy the property before it goes to auction, which is called a pre-foreclosure. To do this check the city records to find foreclosure properties. Then, contact the owners by writing a letter of interest. Follow up with a phone call and hope they are willing to accept an offer. Another route is to wait to see if the property sells at the auction. If the property does not see it will be put on the market by the bank it is owned by. In this case you will be able to buy the house just like it was regular real estate. Another benefit to this option is the ability to conduct a home inspection and get a mortgage. Remember, when considering the purchase of a Dallas home through an auction make sure plenty of research is done to maximize the potential of getting a good deal. Getting the help of a Dallas Realtor will help insure you get the best deal.

If you or someone you know are falling behind on mortgage payments and are concerned that foreclosure is your only option, then contact me about your short sale option.

As a follow-up to our recent post, Housing Will Lead Us Out Of Downturn, I wanted to bring your attention to a theory of the National Association of Realtors. The NAR believes if all home buyers were to become eligible for a tax credit without a repayment feature, it could result in an additional 555,000 home sales, enough to meaningfully draw down excess housing inventory. Read what else the associaiton has to say:

An evaluation of options for a home buyer tax credit by NAR shows wide ranging implications and benefits. A full credit to all buyers means an additional 2.22 million households would meet the income requirements for purchasing a home, but only one in four of those households would actually make a purchase.

NAR estimates only 25 percent of newly eligible households would become homeowners, and does not capture the effect of increased trade-up buying activity. As such, these projections may understate the full impact of a home buyer tax credit.

Learn more about the first-time buyer tax credit and how it effects Dallas home buyers at TexasHomeCentral.com.

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January 2009 was a tough month for the economy. Massive layoffs from some of our largest corporations, an economy shrinking at a 3.8 percent rate, and the total number of mortgages in default rising to 9.96%, signs indicate the current recession will be longer and more severe than predicted.

Housing will help lead the country out of the downturn, Boston Federal Reserve Bank President Eric Rosengren told the Massachusetts Mortgage Bankers Association at its annual meeting. Rosengren said the housing market could stabilize this year, which he sees as a prerequisite for recovery.

“The recent reductions in mortgage rates, in part due to monetary policy actions, have enabled more borrowers than would otherwise have done so to purchase or refinance homes,” Rosengren said.

“Expansion of this effort and encouraging greater [Fannie Mae and Freddie Mac] participation, should encourage borrowers who have equity and reasonable credit scores to purchase or refinance homes,” he added.

Once the market stabilizes, mortgage securitization should be restructured to prevent future upheavals, Rosengren said.

Now is great time to buy a Dallas home! Interest ratres are at historic lows, Dallas home prices are the lowest in years and inventory is high, creating the perfect storm for buying Dallas real estate. You want to buy low and sell high, so buy now! Concerned about getting a mortgage? give us a call, we can help. there is plenty of money out there for qualified buyers. You jsut have to know where to go to get it.

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In response to the Federal Reserve’s cut in the federal funds rate to near zero, Freddie Mac reports that the 30-year fixed mortgage rate fell to 5.14 percent during the week ending Dec. 24–the lowest since the survey’s inception in 1971. Interest on 15-year fixed loans fell to 4.91.

What does this mean for Dallas home buyers? 2009 will be a great year to buy a home. With foreclosures continuing to rise in Texas, prices will continue to fall.

Home values are currently at 2003-2004 levels, coming down significantly from their high point of a few years ago. If you-or friends and family members you know-are contemplating seeking financing for a new home, now is the time to act.

With a first time home buyer tax credit of up to $7,500 and low or no money down programs available for many people today, now is a great time to buy a home.

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Buying a Dallas home is one of the biggest investments people make, and the process usually begins with choosing a real estate agent. 

According to the 2007 NAR Profile of Home Buyers and Sellers, 79 percent of recent buyers used a real estate professional, while only 7 percent bought the house directly from the owner.

When choosing an agent, 43 percent of all buyers relied on friends, relatives and neighbors for referrals; that percentage jumped to 54 percent among first-time buyers. 

Nearly eight of 10 first-time buyers said the most important benefit of a real estate agent was helping them understand the process. Agents also help buyers become more educated consumers – almost half of all buyers said their agent pointed out unnoticed features/faults with properties they were considering. 

The relationship between a Dallas home buyer and his or her buyer’s agent must be based on trust, mutual goals and understanding. The buyer entrusts the buyer’s agent with putting his or her interests first and foremost. Here are some things to consider when choosing a Dallas real estate agent, compliments of LendingTree.com.
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