Welcome to the LindaSecrist.com Blog

2011-06-29 10:44:12
Summer Deals on Salt Lake City Foreclosures

Summer Deals on Foreclosures 

Looking for a deal where the home seller pledges, in advance, to contribute potentially thousands of dollars to your closing costs? Check out the summer sale terms available from two of the largest and most motivated sellers of foreclosed homes in the country: Fannie Mae and Freddie Mac.

You may know the companies for their troubled mortgage businesses or the financial foibles that crashed them into the control of the federal conservators in 2008. But, the flip side of those problems is that they now have massive numbers of properties taken back through foreclosures. Fannie Mae had 153,549 of them at the end of the first quarter. Freddie Mac owned 65,174. That's nearly 220,000 houses for which they need to find new owners... quickly... or they'll rack up even bigger losses for taxpayers.

To move that bulging inventory, both companies have begun time-limited sales campaigns with significant incentives for new owner-occupant purchasers (NO investors allowed on these specials). Fannie and Freddie both are offering to pay up to 3.5 percent of the price of the house toward buyers' closing costs. Fannie's program covers properties on which contracts are accepted and close no later than October 31, 2011.  Freddie's sale requires contracts no later than July 31 and closings by September 30, 2011.

Fannie's program even offers mortgage money to help finance these purchases, sometimes with as little as a 3 percent down payment.  The company also has what it calls a 'renovation mortgage' option that provides additional mortgage amounts to cover fix-ups. Freddie does not offer special mortgage financing for buyers during the sale period but has other inducements including two year home warranties and 30 percent discounts on appliances.

There is a wide spectrum of foreclosed properties in the Salt Lake City real estate market, from luxury-end homes, low-budget condominiums, suburban homes and town homes.  The summer clearance sales are part of rapidly accelerating efforts by both compaines to get ahead of the tidal waves of foreclosures flowing into their portfolios in recent months. During the first quarter of this year, Fannie Mae acquired 53,549 properties alone.  However, during the same period, it managed to sell off 62,814 houses. A record number that produced a net outflow.

Freddie Mac also sold more foreclosures than it took in during the first quarter, acquiring 24,709 houses while selling 31,628. In some parts of the country, Freddie Mac's offerings are even stimulating multiple bids on houses, according to spokesman Brad German.  Both companies are targeting only buyers who plan to live in the homes, rather than non-occupant investors who want to flip or rent them out, as part of a larger neighborhood real estate stabilization effort.

The contribution of up to 3.5 percent of the sale price toward the buyers' closing costs can be substantial. On a $200,000 house, the buyers could receive $7,000 toward their closing expenses, which might well be the difference between their ability to afford to buy or not. Combine that with additonal incentives, such as favorable financing or warranties, and the total package can look extremely attractive to first time and moderate-income purchasers.

Are there downsides or restrictions for would-be-buyers on either HomePath or HomeSteps?  Yes. Top of the list: Keep in mind that these are foreclosed properties and some of them have been abused by previous owners/occupants. Fannie and Freddie both do repairs to bring houses up to what they believe are marketable standards but don't be surprised to find that they are not in pristine condition.

Second, though foreclosures do generally sell for less than non-distressed houses, you need to understand that both Fannie and Freddie are in the business of maximizing returns on assets for their federal creditors. Do not assume that the listing prices are deep discount giveaways. Be diligent in comparing prices and values before bidding and negotiating, just as you would with any other real-estate purchase.  This is where having a good Realtor on your side, looking out for your best interests, is key to a successful and beneficial transaction.

For more information on Fannie Mae or Freddie Mac owned properties, contact a member of Linda Secrist and Associates.  We can help you find deals in an area near you.  Salt Lake City real estate, Draper real estate, Sandy real estate, Holladay real estate, Murray real estate, South Jordan real estate, West Jordan real estate, Herriman real estate, Riverton real estate, Park City real estate, Alpine real estate, Bountiful real estate, Farmington real estate and more.

LINDA SECRIST - LINDA SECRIST & ASSOCIATES - EVERYTHING THEY TOUCH TURNS TO SOLD!

www.lindasecrist.com
www.newutahrealestate.com
www.saltlakehomedirectory.com

FOLLOW US ON FACEBOOK

Salt Lake City real estate, SLC real estate, Salt Lake City homes for sale, SLC homes for sale, SLC Realtor, Salt Lake City Realtor, Holladay luxury homes for sale, Holladay luxury estates, Holladay homes for sale, Holladay Realtor, Cottonwood luxury estates, Cottonwoods Realtor, Walker Lane, Cottonwood Lane, Sandy real estate, Sandy Realtor, Draper real estate, Draper Realtor, Sandy homes for sale, Draper homes for sale, Murray real estate, Murray homes for sale, Murray Realtor, South Jordan real estate, South Jordan homes for sale, South Jordan Realtor, West Jordan real estate, West Jordan homes for sale, West Jordan Realtor, Riverton real estate, Riverton homes for sale, Riverton Realtor, Herriman real estate, Herriman homes for sale, Herriman Realtor, Utah real estate, Utah homes for sale, Utah Realtor, Bountiful real estate, Bountiful homes for sale, Bountiful Realtor, Davis County real estate, Davis County Realtor, Park City real estate, Park City homes for sale, Park City luxury homes for sale, Park City luxury estates, Park City ski homes, Park City retreat homes, Park City Realtor, Alpine real estate, Alpine homes for sale, Alpine Realtor, Highland real estate, Highland homes for sale, Highland Realtor, Farmington real estate, Farmington homes for sale, Farmington Realtor

 
Blog Archive
2017-06-21 10:11:01
UTAH HOME TOURS- June 24 & June 27, 2017

2017-06-15 09:46:53
2 Super Saturday and 3 Twilight Tuesday Open Houses

2017-06-07 10:34:39
'Super Saturday' and 'Twilight Tuesday' Are Back!

2017-05-31 14:36:45
4 LUXURY HOME TOURS, Saturday June 3, 2017

2017-05-31 09:23:57
The Best & Worst Place to Start A Career

2017-05-24 10:22:55
2 New Luxury Open Houses- Saturday, May 27, 2017 12-3 PM

2017-05-18 11:39:05
5 LUXURY HOME TOURS, SATURDAY, MAY 20, 2017

2017-05-16 11:53:33
Utah Is The Best In State

2017-05-10 10:35:31
GRAND OPENING! 'The Villa's @ Dimple Dell'

2017-05-01 10:19:22
Utah hasn't forgotten the power of free enterprise

2017-04-27 10:55:28
3 Luxury Home Tours- Saturday, April 29, 1-3 PM

2017-04-24 09:32:18
Utah # 1 In Nation In Economic Outlook

2017-04-19 09:40:25
5 Luxury Open House Tours

2017-04-17 09:54:55
NEW CONSTRUCTION IN SALT LAKE

2017-04-12 16:40:16
3 LUXURY HOME TOURS, APRIL 15, 2017

2017-04-11 11:56:27
2 Fabulous Draper Open Houses, Saturday, April 15,

2017-03-31 13:25:33
Salt Lake City Tops List

2017-03-16 14:48:47
'TAKE A PEEK!' NEW IMMACULATE SANDY LISTING!

2017-03-01 10:53:05
New Listing- Luxury home in Draper, amazing views

2017-02-21 09:55:06
Salt Lake City In The News

2017-02-15 09:34:26
Salt Lake area one of US’ best places to live

2017-02-06 15:35:35
And 2017 IS OFF WITH A BANG!

2016-10-25 12:44:05
Fall Activities in Salt Lake City

2016-10-10 10:46:51
WHISPER RIDGE

2016-09-08 13:39:02
Silican Slopes vs. Silicon Valley

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.