HobNobMurfreesboro & Sugarbush Properties Illustrate How to Get a Great Deal on a Foreclosure

Murfreesboro, TN, August 09, 2009 --(PR.com)-- HobNobMurfreesboro has been working closely with Ray Burkhalter, owner of Sugarbush Properties, LLC who has almost two decades of real estate experience and together have laid out some important things to know about how to get a great deal on a foreclosure.

Everybody knows that there are some smoking hot deals on houses in the current Buyer’s market but not everyone knows how to find one. There are a few things you need to know about Tennessee foreclosures that can get you the deal of a lifetime.

Here are some ‘insider secrets’ to help you find the house you want for the price you want. Whether you are in Memphis, Knoxville, Chattanooga, or across the state these tips will get you started.

1. Hear about foreclosures on the news but not sure what exactly a foreclosure is?
A. Foreclosure is actually the legal process a lender follows to take ownership of a property that has been pledged as collateral for a loan. If the borrower stops making payments the lender gets the house and then sells it to regain the borrowed money. When the bank owns a property it is called Real Estate Owned (REO)

2. How to locate a property that is bank-owned (REO)?
A. Absolutely. When banks take possession of a foreclosed property they want to get rid of is as quickly as possible since they are in the lending business, not the real estate business. Most banks will list the properties they have for sale with a local real estate company. Expect the property to need some repairs since the last owners probably did not take time to make repairs and clean up before moving.

3. How to locate an REO property?
A. If you are planning to use a real estate agent to buy a house let them know you are interested in REO properties. They can do custom searches of available properties and filter out everything expect the REO homes. If you don’t have an agent already, call around to several brokers and ask if their primary business is REO property. You really want to deal with a specialist if possible. In the Murfreesboro, Tennessee area Carl Hill and Associates is a good contact to find REO’s.

4. What to do after locating a REO house?
A. First, don’t fall in love with any house if you are planning to get a really great deal. When your desire to own the house is greater than your ability to walk away and wait for a better deal you just lost money. Know what you are willing to pay and stick to your guns. Here’s the money saving tip of the day: banks often reduce their prices by $15,000 to $20,000 or more after a property has been on the market for 60 days. Have your agent pull a list of REO properties that have been on the market for say 50 days. Take a look at these and if you find one you like be ready to make your offer on day 61. If your offer does not get accepted check back when it gets close to 90 days since the bank will be ready to drop the price again. Be patient but aggressive and this step will get you a bargain.

5. Are the banks easy to deal with when purchasing a home from them?
A. In many cases the banks can be easier to deal with than a traditional seller. They have no emotional attachment to the property and just want to sell. Do be prepared for some extra paperwork and possibly a $2000 or more deposit requirement. Plan to be pre-qualified for loan or have proof of funds if you are a cash buyer. Most any bank contract will require this.

For more information call Ray Burkhalter at Sugarbush Investment Group, Inc. 615-494-5021.

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