Tag Archives: foreclosure

Legends of Parkview – Luxurious, New, Bank Owned…

Thursday, 30 July 2009 12:24

Written by Lane Bailey

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Back in February, 2008, I attended an event for agents at Legends at Parkview. At that time I was impressed with the quality of the homes offered in the community. I was also impressed with the philosophy of the builder, Sean Mayfield of Mayfield Homes. I also liked the style of the homes, and the layouts were quite nice.

The problem was that they launched the community just as the market was collapsing around them. And while they were strong at the time, it didn’t last…

This premiere community has slid into foreclosure. The remaining homes (there were 8, now there are 4 left) and the lots are all for sale by the bank. So, now is the opportunity to buy into a luxurious community at fire sale prices… bank-owned prices.

Three of the properties are built on a basement, all have 3 car garages. One is a 5 bedroom/4 bath, and the others have 4 bedrooms/3.5 baths.

The properties that are currently available are priced at:

The Waterford on a basement – $563,400 $489,900 5br/4ba
The Addison on a slab – $589,900 $439,900 4br/3.5ba
The Addison on a basement – $614,900 $479,900 4br/3.5ba
The Victoria on a basement – $735,000 $524,900 4br/3.5ba

As an aside, I really like the Addison. It has an exceptional garage. Aside from the spaces for 3 cars, there is about an 8′ wide area along one side that would be perfect for motorcycles and/or tools.

Obviously the prices are pretty well discounted for the remaining units in the Legends at Parkview. There aren’t that many opportunities to jump into this level of luxury in a bank-owned new home community. The foreclosures have really pushed the prices down here… They have sold 4 homes since June. These will sell before long… There were several buyers coming in to visit while I was there… on a Wednesday afternoon.

from Lane’s Active|Rain blog.

Get out of your mortgage for FREE?!?

Wednesday, 08 July 2009 18:32

Written by Lane Bailey

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: Image by Getty Images via Daylife

Probably not…

But that doesn’t mean that people aren’t trying it… and it doesn’t mean that people aren’t getting in trouble for it.

Here is the way it works (and it all sounds so legit…):

Mr. and Mrs. Consumer buy a house and get a mortgage from MonsterMegaMortgageCompany (MMMC).
MMMC sells their mortgage to Investor Pool #1.
Then it is bundled and sold to IP#2… and #3 and #4 over a span of a few years.
Mr. & Mrs. Consumer start having problems, and despite everything they are facing foreclosure.
To try to get help they contact a “Foreclosure Mitigation” Law Firm that fights the foreclosure by filing a “missing title” lawsuit.
The law firm (or other entity) charges an up-front fee (maybe $2000) and then monthly fees (maybe $1000 or $1500)… as well as a contingency fee upon settlement of either 50% of the reduction or 75% or 80% of the value if the mortgage were completely eliminated.
After stringing along Mr. & Mrs. Consumer for a few months or longer (collecting fees), they fail to actually prosecute the case.
Mr. & Mrs. Consumer lose their home…

According to a few of the sources I looked at, their are no recorded examples of any suit of this type EVER being resolved in the consumer’s favor.

The basis of the lawsuit is that if the mortgage holder can’t produce the documents from the mortgage, it will be set aside and the consumer will own their property free and clear. Sounds nice, huh?

Before getting sucked into something like this, here is a little more reading…

Source 1

Source 2

The State of California is going after one of the firms involved in this practice. I would expect that there are similar cases in other states.

Times are tough… scamsters know it, too

People being foreclosed on are all over the place. They are vulnerable to people that approach them to “help.” There are a variety of scams and plans that mostly just revolve around generating a profit for the “helper.”

Be careful! There is help for many home owners that are in trouble… but the easy sounding solutions often aren’t what they are cracked up to be. If it sounds too good to be true, it likely is…

I would love to lose my mortgage, too… but this isn’t the way…

Deals…

Tuesday, 23 June 2009 23:46

Written by Lane Bailey

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: Image by Phil Dragash via Flickr

There are some great deals out there… I’m working on a couple of them with buyer clients right now. And many of them are not hanging around for long.

Financing isn’t going to get cheaper, and in many cases, waiting for the price to drop further could be counter-productive if the cost of financing increases…

Just food for thought.

Can a $29,000 Home be overpriced?

Thursday, 04 June 2009 23:44

Written by Lane Bailey

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: Image by lane.bailey via Flickr

I wandered out to look at some investment properties this afternoon… One of the properties was priced at $29,000… in a neighborhood of $100,000+ homes. In fact, this very home had sold for over $110,000 in the last couple of years.

Could it be overpriced at $29,000?

Yep.

The funny thing is that the wholesaler says it needs like $12,000 in repairs… Maybe if you pick up all of your materials from the curb after they are tossed out of nice homes… I would put the budget at closer to $40,000. and that is assuming that the mechanicals and structure are ok, and that isn’t a safe assumption.

Here is a list:

Gutters
Roof repairs
Front door and casing
Enough of the siding to make it worth replacing all of it
Ditto for the windows
All of the flooring. That which is still there is nasty
And every wall and ceiling needs paint
Rebuild the rear deck
About 20 sheets of drywall
All of the appliances
EVERYTHING in the kitchen… like the cabinets and counters
Landscaping
Un-convert the garage from its bonus room conversion

I would peg the property at a value more in line with $15,000. An investor will need to realize a healthy profit AND have enough room for hidden defects.

Mold abatement
HVAC replacement
Structural repairs
Foundation repairs

I’m not saying that those are probabilities… just that they are possible.

An end-use buyer would face similar issues, AND they will need to be able to finance it without FHA support, since it probably wouldn’t qualify. It also would have trouble with many renovation programs… so cash might be in order for renovations.

But for the right buyer it could be a great deal.

I did run across another property that looks like a much better deal…

Looking for a real estate deal?

Wednesday, 06 May 2009 15:32

Written by Lane Bailey

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Of course you are… everyone is. Maybe not everyone, but there are a lot of people that are looking for good deals in real estate in Gwinnett County, GA, during a buyer’s market… which is basically what we are in right now.

While looking for something semi-related, I ran across some interesting and possibly good deals out there for the right buyer. These are basically unfinished, brand-new homes. The builder apparently didn’t make it, and the bank has these things on their hands.

The ones I concentrated on are all finished on the exterior… except for landscaping and final doors… and a couple need replacement windows. Possibly some other exterior repair on some as well…

The interiors are a different matter. At the very least all of them need flooring, cabinetry, paint, fixtures and appliances. Some also need HVAC, electrical and plumbing finish work and drywall repair. In each case, I would expect to see $75k or so to get these done and ready to live in.

Since the builder is no longer viable, I would assume that these are without any sort of warranty. And just to be clear, these are NOT move-in ready. In fact, as a very inexperienced construction estimator, I would guess that it would take 60 days to get into one of these after getting the work started.

On the flip side, the prices for some of the larger homes are around $250k. Keep in mind that the ARV (After Renovation Value) of the homes should be in the $400k to $500k range. So, one could expect that in a couple of years their $350k investment ($250k house + $75k renovation + $25k in stuff that always comes up) could yield $50k or more in profit.

That isn’t to say there aren’t challenges… the subdivision is not very built out and I don’t think the amenities are in. The HOA doesn’t exist.

Another interesting point… all of the homes I went in had very tall garages. With the right changes to the garage doors, I think that lifts could be installed in at least one spot of each garage. One of the plans also had an unfinished bonus room over the garage… Interesting!

And my buddy Ken Cook at Novation is working up some special financing plans for these properties.
I noticed that several of the homes had gone under contract in the last few days…. don’t wait too long.

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Tag Archives: foreclosure

Legends of Parkview – Luxurious, New, Bank Owned…

Get out of your mortgage for FREE?!?

Times are tough… scamsters know it, too

Deals…

Can a $29,000 Home be overpriced?

Could it be overpriced at $29,000?

Looking for a real estate deal?

Browse Listings

Custom Listings

What's YOUR Home Worth?

Follow Me on Pinterest

Tag Archives: foreclosure

Legends of Parkview – Luxurious, New, Bank Owned…

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Get out of your mortgage for FREE?!?

Times are tough… scamsters know it, too

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Deals…

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Can a $29,000 Home be overpriced?

Could it be overpriced at $29,000?

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Looking for a real estate deal?

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