My New Blog

I love this house, BUT.... it is a frequently made statement.  ... BUT it needs new carpet, BUT it has too much paneling for me, BUT these kitchen cabinets are horrible, BUT this tub looks like you should water cows with it not take a bath in it!  BUT, BUT, BUT. 

Well, there is a not-so-known loan program out there that will fix these BUTS.  It is known as a repair loan.  Now, there are a lot of banks and lenders out there to choose from, but this is a specialized loan program, and it makes sense to go with a lender who can offer AND IS EXPERIENCED with this loan program so you do not limit your options or run into unnecessary headaches.   This loan does take a little longer to complete, because there is more to it, but the extra equity you get makes it worth it!  Instead of the seller doing the work and picking up the extra bucks on value, YOU get to!   

And if you are going to consider purchasing a foreclosure, which typically needs work, you will want this loan program as an option in your financing arsenal.  With this in mind, it make sense to work with a Loan Officer AND Realtor® who know the ins and outs of this type loan so you can maximize your time and money.

Action Real Estate is a full service company.  We handle properties of all types, including REO's (foreclosures).  Since we have an REO Division all our agents are familiar with this loan program as well as the ins and outs of buying a foreclosure.  Foreclosures are different animals, and again, you want experience on your side.  So Get In Touch With Me or any one of our Excellent Action Agents, and we will be happy to help you with your real estate needs.

Sherri Elkins, Realtor
Action Real Estate
Birmingham, AL & Surrounding Areas
Office (205) 253-1900
Fax (205) 263-1955
Direct (205) 240-5522
www.SherriElkins.com

There are some excellent home financing options out there that many buyers do not know about, and every buyer wants the best financing possible.  One loan program which offers 100% financing with no mortgage insurance is a Rural Development Loan.  Now, stick with me, because you may be pleasantly surprised to find some of the areas that qualify are not "out in the sticks" so to speak.  In Birmingham, Alabama, areas that qualify for this loan include St. Clair and Shelby Counties. 

I recently helped a young first time home buyer purchase a townhome that qualified for this loan.  She got 100% financing, the seller paid almost all of her closing costs, and her payments were low since she had no mortgage insurance required.  Now, for an explanation of mortgage insurance.  Mortgage insurance, sometimes called PMI or MIP, is a required fee when the buyer does not put down 20%.  It makes the mortgage payment go up a little, so this rural development program keeps your payments lower, and requires less out of pocket, making it an excellent program for first time home buyers.  This loan does have income limits:  1-4 in household $73,600 and 5-8 in household $97,150.

If you need help with real estate, click to Get In Touch With Me or any one of our Excellent Action Agents, and we will be happy to help you.

Sherri Elkins, Realtor
Action Real Estate
Birmingham, AL & Surrounding Areas
Office (205) 253-1900
Fax (205) 263-1955
Direct (205) 240-5522
www.SherriElkins.com

Recently I helped a client who had experienced some unfortunate circumstances.  This particular buyer had worked with a For-Sale-By-Owner and purchased an Owner Financed Home.  The Buyer had put down $10,000 towards the purchase price, and was going to work on a few credit issues and then finance the home through a lender. 

The Seller got in financial trouble investing in real estate and got behind on this particular home, and the Buyer ended up getting evicted even though the Buyer had paid $10,000 up front. The Seller was foreclosed on, and the Buyer was forced to move.

Having had such a negative experience with a For-Sale-By-Owner, the Buyer contacted me to help him and his family get into a home.  We talked through his circumstances, and I encouraged him to go to a lender I work with.  This particular mortgage contact is really good to work with people to help them improve their credit scores.  I told my new client that no matter what the situation with his credit might be, we need to know, and we need to know what to do to get his scores better.  My mortgage contact worked with this buyer and was able to get him approved to buy a home.  My new client was thrilled.

So when we started looking, the house that had been foreclosed on was on the market.  This story does have a happy ending because my client was able to purchase that same home for approximately $25,000 less than he had originally agreed to pay for this house.  So he did, in a way, get his $10,000 investment back because he got the house at a much better price.

This is the kind of deal that makes me feel really good about helping families get into homes.  Here was a buyer who had gotten the short end of the stick, didn't believe he could get financed, and we were able to turn it around. 

The lessons here are:  1.  Try to get prequalified.  If you can't get financed now, you can get some real direction on exactly what you need to do so you can buy a home a little down the road.  2.  Work with a professional Realtor so you are represented in your real estate transactions.  3.  Even if you find a For-Sale-By-Owner home, you can save yourself some headaches by using a professional Realtor so someone who knows the business is looking out for you.  A home is the biggest investment most ever make, and as a buyer, your representation is paid for by the Seller -- so Get In Touch With Me or any one of our Excellent Action Agents, and we will be happy to help you with your real estate needs.

Sherri Elkins, Realtor
Action Real Estate
Birmingham, AL & Surrounding Areas
Office (205) 253-1900
Fax (205) 263-1955
Direct (205) 240-5522
www.SherriElkins.com

Foreclosures are a niche' market that has become more popular with all the foreclosures in the market right now.  If you are considering buying a foreclosure, you will want to work with an agent who is familiar with the process and also has experience negotiating these contracts.  By working with someone who knows how foreclosures work, you will increase your odds of writing an offer that will be appealing to the bank.

When banks price foreclosure properties, they have had several independent opinions on the property, location, market trends for the immediate area, and the condition of the home.  All this information is used to help them set the price.  Since those opinions are based on the condition, typically the list price will reflect the issues that are common to foreclosures.  Usually foreclosures fall into the "fixer upper" category.  Of course, there are special programs for those "fixer upper" properties, and there are lenders that specialize in loans for "fixer upper" foreclosure properties. 

With all this in mind, it is wise to work with a company and/or agent who knows this process.  All of Our Agents are fully trainined on foreclosure negotiations so you can work with anyone on the Action Team with confidence.

Betty Minor
Broker/Owner
Action Real Estate
Birmingham, Alabama & Surrounding Areas
Office (205) 263-1900
Fax (205) 263-1955
Cell (205) 222-4218