Kristy Stavrou: If you are fortunate enough to be a buyer right now in this market, congratulations, because you do have a lot of opportunities available to you. Dennis Bruce: Buyers can secure home today and they can do that in a climate where there is inventory to choose from, and where they have very little competition, and where they can have home inspections and they can potentially get some solid contributions to offset their settlement cost. They can do that today. Peter Kalian: Unfortunately, this perception that its very hard to get a loan right now in today's market. I can't stress enough. Lenders have plenty of money to lend. Well, you just have to be qualified for the transaction. Marco Umana: Banks do have money to lend. The main difference you are seeing right now in the industry is that we are going to a full documented loans. If you can present full documents and you have your pay stops, bank statements and what not, its not anymore difficult than before. Peter Kalian: If you are a first time home buyer or haven't owned a home in the past 3 years, there is an $8,000 tax credit thats part of this stimulus package.
Pamela Jones: This is really heating up the market right now, especially for entry-level housing. You may also want to take a look at a distressed property. You can get a great deal but you want to be very careful about the condition of the home. Kristy Stavrou: A short sale is a property that someone owes more on, than it is worth in the current market. So the bank would be taking the loss. Dennis Bruce: Short sales create a whole lot of stress for buyers. They are focused on their new home and moving forward their processing with the lender, often an appraisal is ordered, the kids are emotionally involved in moving, everybody is focused forward only to find out that more than 80% of the time, those short sales are not approved. Marco Umana: I will stay away from short sales, quite honestly. Unless, my real estate agent tells me that, that is a fully approved short sale by the bank. In other words, that the bank already agreed to the short sale. Kristy Stavrou: You are much better off going with a foreclosure, one that has already gone through the process of being taken over by the bank. Something to keep in mind when you are purchasing a foreclosure, nobody is going to fix anything, you are taking on all the responsibility of the house.
Dennis Bruce: With foreclosures, you buy a property that is as is, where is, where at, no warranties expressed, implied, written at all. So there is a whole lot of risk involved in foreclosures. In most cases, the foreclosures are very rough. Now, are they attractive potentially? Yes, they are. The big tip on a foreclosure is, be prepared for delays because they are backed up. Make sure that you buy an Owner's Title Policy. Kristy Stavrou: Someone may have had some work done on the property and didnt pay the workers, and so they have put a lean on your home, or the Home Owners Association fees haven't been paid in 2 years, that would transfer to you as the new buyer.
Peter Kalian: Total defects are much more common on foreclosed properties. So you definitely want that extra protection. Pamela Jones: Whether you are buying a resale home or a foreclosure, the market is terrific right now. I have never seen a better time to buy. To watch the other segments in this video series or for How To videos on almost any other topic, visit monkeysee.