Buying A Foreclosed Home – Today’s THV 11 (CBS) Little Rock, Arkansas, USA

Buying A Foreclosed Home – Today’s THV 11 (CBS) Little Rock, Arkansas, USA
This home in west Little Rock has been foreclosed by the bank.

http://www.todaysthv.com/news/local/story.aspx?storyid=87952&catid=2

 

Posted By Reporter: Mike Duncan

 

A homebuyer can save 10,15, perhaps 20 percent by considering a foreclosed home. But there likely will be several added expenses before you call it home sweet home.

 

From the street they look no different than any other house for sale. But a closer inspection reveals a notice of foreclosure.

 

“There’s a lot of opportunity there to get a lot of equity moving into it,” Danny Holt is an executive broker at Crye-Leike Realty. He says they have more than a hundred foreclosed homes on the market in central Arkansas and the number is growing.

 

But homes often sit without maintenance for long periods. An additional $10,000 to $15,000 might be needed to fix the air conditioner, or remodel the kitchen and fix the little things.

 

Danny Holt says, “People can go ahead and get a loan that can get some of the get ready in the loan. In other words they can have some rehab work, remodel type work from a little to major work done, into their loan at the time of closing so that they don’t have to come out of pocket with a lot of cash.”

 

Some cities are forced to take care of outside maintenance on foreclosed homes. Some file liens on the properties to pay for the work.

 

So be aware your new dream home may have a lien to resolve before you take possession.

 

“It’s the best deal we’ve come across since we’ve been looking and we’ve been looking more than a year, “Moses White and his wife say in spite of some additional work, the 209 thousand dollar price tag on one home puts it at the top of their list.

 

White says, “It has exactly what we want. Probably, maybe say 80, 90k less than we were looking at in price range, especially on a four bedroom.”

 

In Arkansas, less than half of one percent of home loans are more than 90 days delinquent.

 

Folks in Shelby County, Tennessee are not so lucky. There almost 5 percent of all home loans are in danger of foreclosure, the highest rate in the Mississippi Valley area according to the Federal Reserve.