Bank owned offers

So you've decided to enter the 2011 market and are considering buying a bank owned property. You've heard there are 6 on every block and that the bank will thank you for taking it off their hands. Sounds great, right? Not so fast. Here are some tips to help you navigate purchasing a bank owned property.

• Write your best offer. Banks are not in the business of giving away properties. Bank properties are typically priced aggressively and in our market are selling very quickly.
• Read through the fine print. Many REO companies are requiring buyers to use the Banks pre-filled purchase agreements. Often times there are additional fees buyers need to pay.
  
• Find out about delinquent taxes, delinquent water bills, and anything else that may come back to haunt you.
• A deal is not a deal... until it is signed by the seller. Verbal offers back and forth mean nothing to banks. They are looking for highest and best.
  
• Have an inspection. Often times we find mold, frozen / leaking pipes and clogged sewer lines among other issues.
• Talk to the neighbors if possible. See if you can get the phone number for the previous homeowner.
  
• Hire the best lender. Banks have penalties for not closing on time. Typically between $50-$100 per day.
  
• Do your final walk through.
• Earnest money is non-refundable. Don't expect to get it back after the inspection contingency is removed.
  
• Expect delays on the sellers side. Give yourself some time after closing. Most banks will take up to 3 days to review the final settlement statement, which means you can't move in.
• Buy a home warranty! There will be issues. Keep in mind most bank owned properties have been vacant for years, not months.

Good luck. Please don't hesitate to call or email me for more information. I'd love the opportunity to work with you. Naturally, I do all of this for my clients.

Thank you,
Craig

Progress is being made

Great article released from the Minneapolis association of Realtors on the current housing market and where we are headed. http://mplsrealtor.com/downloads/inside/press-releases/news_2010-02.pdf

Prevent Foreclosure Now!

There is an epidemic going on in this country and it concerns me a great deal. The epidemic is

called “Foreclosure” and it is happening all around us. It is fairly silent problem. The people

who need help aren’t asking for it. They are too embarrassed to talk about it so they don’t get

the help they desperately need. We are seeing people literally leave their homes in the middle

of the night so the neighbors don’t see what is going on. I need your help.

At Edina Realty we are becoming highly skilled working with banks to keep homeowner’s in their

homes or working out “short sales” so the damage to their credit is significantly less than a

foreclosure.

I am asking you to become interested in the lives of those around you. I don’t want you to

become someone who prys into the personal lives of people who don’t want you involved.

However, it’s typically not hard to recognize when someone is having trouble financially. When

you see that, be interested enough in helping them to have the courage to ask if they are in

trouble. Let them know there is help out there. The biggest problem to this epidemic is people

think they are alone. Let them know that there are 4.68 million homes that are projected to sell

this year. At the same time, there are 5.5 million homes that have mortgages that are in default.

This isn’t a small problem. It is an epidemic.

Did you know that someone who has gone through a foreclosure won’t be able to get another

mortgage for 5-7 years? Did you know that many employers will not hire people who have a

foreclosure that shows up on their credit report? Did you know that a foreclosure can damage

your credit score by 250-300 points and that will make it more difficult and more expensive to

borrow money through any source?

There are options other than foreclosure. In 2009/10 the banks are realizing that it’s better for

them to work with homeowner’s rather than work against them. If things are handled properly,

it’s possible to get the banks to take a significant loss and have only minor damage to your

credit. The main thing is to make sure they work with people who know what they are doing.

Please care enough about your friends, relatives and neighbors to encourage them to ask for

help if they need it. I am here to help. Please have them call me. I promise I will treat them

with respect. I will let them know they are not alone and I will fight to help them. They just need

to know they are not alone and I will fight to help them. They just need to know how important it

is to contact me early in their troubled times. Many times I am talking to people who are too far

along. At some point, it is actually cheaper for the bank to just foreclose. No one wants that

(not even the banks).

Announcing my move to Edina Realty.

I am please to announce my affiliation with Edina Realty. My email address is craig@craigkanis.com and my phone numbers are as follows - c: 612-518-6221 and office: 952-898-1224.

Please drop a note or stop in. The location is Hwy 50 and 35 in Lakeville.

Thank you, Craig

Rates are down

30 year conventional rates are down to 4.75% today.

Pending sales up, home prices down.

Pending sales are up and home prices are down in the Twin Cities metro area, according to the latest numbers from the St. Paul Area Association of Realtors.

The association said Wednesday there were 5,174 pending sales in the 13-county area last month, a nearly 16 percent increase from the 4,462 pending sales reported in July 2008.

The number of closed home sales is also up for the year to date, to 24,533, 13 percent higher than the same period a year ago.

Prices, though, remain sharply lower than a year ago. The median sales price of a Twin Cities home in July, at $171,000, was down from $173,500 the previous month and nearly 18 percent lower than a year ago.

The numbers represent a continuing trend as more people take advantage of deals resulting from lender-mediated foreclosures and short sales — which both dampen prices and drive up the number of sales. Government efforts to stimulate the economy ­— from low interest rates to an $8,000 federal tax credit for first-time home buyers — are also helping boost sales.

Median Prices increase!

This is an excerpt from the Minneapolis board of realtors.

Prices creep up as traditional sales grow
Minneapolis, Minnesota (July 10, 2009) – After increasing by $12,000 from April to May, the median sales price in
the Twin Cities housing market jumped another $8,500 in June as traditional homes—those excluding foreclosures
and short sales—again increased their market share, according to the Minneapolis Area Association of
REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.

View the rest of the article.