Hunting for Foreclosures
I looked at one yesterday, nice home-raised panel oak cabinets, large yard, quiet neighborhood and $20,000 under-priced.

This is SO common in the current marketplace. Investors are foreclosing and as fast as they can foreclose, they are dumping the homes on the market as "bank-owned foreclosures" and often pricing them $10-20K below where the appraisals or Broker Price Opinions (BPO) place the value.

This is causing bidding wars and multiple offers on foreclosure homes, sometimes 10-15 offers with sell prices often $15-20K above asking price within the first week on the market. Looks like the tactic is working.

A few things to be aware of with these homes:
1) The bank won't promise you the appliances, even if they are in the home when you place your offer
2) The bank will deliver a "limited warranty deed" warranting a clean title only for the time since they foreclosed
3) Look for damage that you will need to repair once you close. The home I looked at had holes in the vinyl siding, likely from hail damage.

Be prepared to make an offer quickly and think reasonably about what the true market value of the home is when you make your offer as you will likely be competing with other buyers.
Happy hunting!

1st Time Homebuyer Credit

The $8K credit the federal government enacted this year for first time homebuyers has had a significant impact on home sales for the year.
Even with inventory levels dwindling (20% fewer homes for sale than a year ago), the # of home sales are up 20%.
There are rumors that the government will extend the credit but I have heard nothing official to back-up this rumor. So, as of now, the credit will expire on 11/30.
For those of you wanting to use the credit, you'll need to close on your home by 11/30 which means you'll need to have a purchase agreement signed by 10/23 if at all possible.
Time is ticking, happy house-hunting!

Problems with Drywall

Over the past few months, problems with drywall (a.k.a. gypsum board, wall board, Sheetrock, plaster board) imported from China have surfaced in the media.

Some of the problems:
- metals rusting or tarnishing
- appliances such as air conditioners failing
- corroding electrical wiring
- unpleasant smells (rotten eggs or sulphur)
- skin rashes, nausea and headaches

The problems stem from a shortage of drywall during the housing boom in and around 2005 that led to builders importing drywall from China which happened to inadvertently contain impurities such as sulphur.
Many of the big nationwide builders are involved but the problems so far seem to be isolated to the SE United States-largely Florida and Louisiana.
The builders are also largely standing behind the repairs which are expected to cost up to around $100K per home.