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Spuds is what REALTORS call the Seller Property Disclosure Statement (SPDS). It is a multi-page document that sellers typically provide with information about the house and all its major systems (e.g. air conditioning, plumbing, roof, etc.).

In Arizona, sellers are required to disclose any material fact they are aware of regarding the property. The SPDS is a form created by the Arizona Association of REALTORS (AAR) to standardize the way sellers disclose material facts about the property.

The standard AAR Residential Purchase Contract has a provision requiring sellers to provide SPDS to buyers within 5 days of contract acceptance. Buyers have until the end of the inspection period or 5 days from receipt of the SPDS (whichever is later) to provide notice of any disapproved items disclosed in the SPDS.

Contrary to what many people think, the SPDS is not required by law. It is only a provision in the standard AAR Residential Purchase Contract. The law requires sellers to disclose material information. Sellers can do it in any other document they choose.

The other common myth about the SPDS is that once the seller provides it, he has no further obligation to disclose new material facts. That could not be farther from the truth. Seller’s obligation to disclose remains during the whole escrow period. If seller becomes aware of a material fact that was not originally disclosed, he has an obligation to disclose and give the buyer 5 days to review and provide notice of disapproved items. This is typically done through issuance of a revised SPDS.

Many sellers will not accept contracts that require them to provide a SPDS and they will ask buyers to remove the provision from the contract. Banks selling foreclosures will typically ask buyers to waive SPDS based on the claim that the bank has limited knowledge about the property. One important thing to remember is that even when SPDS is waived, the seller still has the obligation to disclose all material facts.

Your REALTOR should review the SPDS, its importance, and implications when sellers ask buyers to waive SPDS. Buyers should understand all the ramifications and make an informed decision whether they are willing to waive SPDS or not.

And before I close this article I would like to leave you with a thought. If you are a seller, I would strongly encourage you to prepare a SPDS when you put the property on the market. You can even make the document available for prospective buyers. It will show them that you are on top of your obligations and that if they decide to submit an offer you will not cause any delays to the process. Very few sellers do that and it usually has such a positive impact on potential buyers. If you do that when you list the property, once you accept an offer all you have to do is re-read the document and make sure that it is still valid and up-to-date. Ask your REALTOR to help you fill the SPDS as soon as possible.

Immobilienmakler Heidelberg

Makler Heidelberg

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There are several key members to any good real estate team. You often need an assessor, an attorney and sometimes even someone to stage and photograph your home. For a homeowner who’s considering selling their house, however, the listing agent is the most essential player.

In terms of residential real estate, the agent is the person who represents the homeowner. In some instances, an agent can also represent a home buyer as a dual agent. Most traditionally, though, it is the listing agent’s job to market the homeowner’s home. This is done by adding the property to the multiple listing service, also known more colloquially as MLS. The listing agent also represents the homeowner by presenting offers to them and essentially overseeing the entire real estate transaction from the first offer to the home’s closing date.

It is important to note the differences between a listing agent and a buyer’s agent. The buyer’s agent has responsibility for locating properties for a buyer to visit and consider during the purchasing process. This type of agent has loyalties only to the buyer. He or she is also paid by the buyer for services rendered.

An agent, on the other hand, is paid by the seller. This usually occurs after the sale of the home, since the listing agent will take a percentage of the money the seller receives after its sale. The actual percentage amount varies from state to state, averaging out around 3.5% of the total purchase price of the home. This amount is agreed upon by the seller and the agent in a contract. The contract is set for a specified time period. If the listing agent fails to find a buyer during that period and the seller opts not to renew the contract, the listing agent is owed no commission percentage.

Selling a home can be difficult process, but if you get the right help and directions you would end up being really pleased with the result. A listing agent is thus a good option to go with if you’re trying to sell your home and need some help with the ropes of the real estate market. While sometimes they can split their loyalties between a seller and a buyer, an agent’s primary responsibilities and duties are geared toward the home seller and obtaining the best opportunities to get a home sold quickly for the money it is worth.

Immobilienmakler Heidelberg

Makler Heidelberg

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1) How much of a Down Payment do I need to come up with?

In the recent past, people used to think 20% down was necessary to qualify for a home loan or to have a reasonable mortgage payment. For the most part, this is no longer the case. There are many types of mortgage programs that allow for low down payment options or no down payment in some cases. You also don’t have to be a first time home buyer to qualify for these programs either.

FHA Loans are one of the most popular types of mortgages applied for in today’s market, this is mainly because of low down payment options and the flexible qualifying requirements. Without down payment assistance, you just need a minimum of 3.5% down. A lot of people think FHA is strictly for first time home buyers, but that is not true. it’s a government-backed home loan, but they don’t require you to be a first time home buyer. FHA stands for Federal Housing Administration.

Conventional Loans have been gaining a lot of traction over the last few years and will soon replace the FHA loan program as the most popular loan product on the market. Conventional loans allow for a minimum down payment as low as 3% down and also allows for several creative ways to buy out the monthly PMI (Private Mortgage Insurance). This strategy helps reduce the monthly payments while increasing your buying power.

Minimum Down Payment requirements for each loan type below:

VA Loans – No Down Payment required

USDA Loans – No Down Payment required

FHA Loans – Minimum 3.5% Down Payment required

Conventional Loans – Minimum 3% Down Payment required

You can use gift funds for any of the programs listed above. Also, If you are a first time home buyer be sure to ask your loan consultant if you qualify for any down payment assistance program.

2) What Credit Score do I need to qualify for a Mortgage?

Aside from income verification, one of the biggest determining factors in qualifying for a mortgage is your credit score. The higher the credit score the better your chances will be in qualifying. When a mortgage company or bank checks your credit for a mortgage application they will pull what is known as a tri-merge. That is when a credit report is combined with data and individual scores from the 3 major credit bureaus. Equifax, Experian, and TransUnion. The middle of the 3 scores will be used to determine your qualifying score. Ideally, you want to have a middle credit score of 680 or above. In most cases, the higher your credit score is, the better your rate and terms will be as well.

There are minimum credit score requirements for every loan program, but to ensure you get qualified for the most competitive terms it is important that you do everything you can to learn how to increase and improve your credit.

Below are the minimum credit score requirements for each loan program:

VA Loans – 620 (some lenders may allow for as low as 580+)

USDA Loans – 620

FHA Loans – 580

Conventional – 620

3) What are the Income Requirements and Guidelines for a Mortgage?

Proving your ability to repay the loan is one of the most important requirements in the qualifying process. That is why showing sufficient and consistent income documentation is crucial when going through the pre-approval or qualification process. If you are a W2 employee and paid a salary then the verification process is fairly simple. However, can be more difficult for people that receive and/or rely on commissions, bonuses, overtime, etc. For borrowers that are self-employed and/or receive a 1099 it can be even more difficult and complex especially since you can have a lot more write-offs and deductions when you’re self-employed.

First and foremost you need a 2-year work history to even qualify using any income source. However, for full-time hourly or salaried employees that doesn’t mean you have to be at the same company or industry for 2 years. That used to be a requirement but not anymore unless the lender/bank has their own overlay. If you receive and want to use commission, bonus, overtime or other types of income then you have to show a minimum of a 2-year history and the bank/lender will use a 24 month average for qualifying purposes. Self-Employed borrowers are now able to qualify with 12-24 months bank statements for certain nontraditional (non-QM) loan programs.

Qualifying Income Sources:

* Full-Time W2 Income/Salary

* Income from Part-Time Jobs (must be at the job for a minimum of 1-2 years in some cases)

* Income from a second full or part-time job

* Overtime, Commissions, Bonuses (must average over 24 months)

* Seasonal (must prove 2-3 years consistency)

* Self-Employed Income

* Bank Statements (12-24 months)

* Permanent Disability

* Retirement/Pension

* Child Support/Alimony (Sufficient documentation required)

* Asset Depletion

What are the Required Documents Needed?

There are specific required documents needed that your loan consultant will request in order to process your loan approval. You should at least have the below list of documentation readily available and be ready to provide more depending on your particular situation.

* Complete Federal Personal and/or Corporate Tax Returns for the past 2 years (ALL SCHEDULES)

* W2’s for the past 2 years

* 1 Month worth of Pay Stubs

* Bank Statements (may need anywhere from 2-24 months)

* Retirement/Pension and/or Social Security Award Letters

* Disability Award Letter

* Divorce Decree

* Business License

* Asset Documentation

Immobilienmakler Heidelberg

Makler Heidelberg

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How do you stop renting and start owning? Well, there are a few options that military veterans and active duty personnel should explore, like the Cal Vet home loan program. The Cal Vet home loan program has helped countless California veterans attain the American Dream of home ownership. Cal Vet’s home loan program offers numerous advantages for borrowers, including below-market interest rates and low or no down payment. Now that eligibility requirements have been expanded, virtually every veteran who wants to buy a home in California qualifies for a Cal Vet home loan.

Cal Vet home loans are designed to save you money and protect your investment. If you buy a home in a designated target area (TA) with your Cal Vet home loan, you could qualify for even more benefits. Purchasing a home in a (TA) gives you greater flexibility because the first-time homebuyer requirement is waived and there are higher sales price limits in all areas and higher income limits in most areas.

The Definition of a (TA)

Areas that have been targeted by the Federal Government were identified in the Federal Census as areas where 70 percent of families have an income that is 80 percent or less than the statewide median income. Cities, counties, and other governmental agencies may have specific areas in their jurisdiction that are „targeted,“ but only census tracts identified by the Federal Government as „targeted“ are used for Cal Vet home loan purposes.

To encourage Cal Vet home loan recipients to buy homes in (TA’s), homebuyers are provided with certain incentives. Home loans provided through the Cal Vet program for the purchase of homes in targeted areas are funded from State Allocated Qualified Mortgage Bonds (QMB). QMBs are tax-exempt private activity bonds.

Benefits of Buying a Home in a (TA)

Approximately 33 of the 58 counties in California have targeted areas, but Los Angeles County has almost half of all the targeted areas in the state. Typically, QMB loans require you to be a first-time homebuyer, but that requirement isn’t enforced if you buy a home in a targeted area. The maximum allowable income limit is also higher in most targeted areas, giving borrowers expanded homeownership opportunities. The limit on the price you may pay for a home is also raised in order to provide buyers with a wider range of available properties.

The purchase price for homes in targeted arreas cannot exceed 110% of the average area purchase price for the statistical area or county where the property is located. The income limits that applicants must qualify for are issued annually by the US Department of Housing and Urban Development. For example, as of June 25, 2013, the income limit for one to two people who purchase a home in a targeted area in Los Angeles County is $101,160. Purchase price limits in targeted areas in Los Angeles County are $823,308 as of the aforementioned date.

QMB loans are only available for single-family residences, including condominiums, and mobile homes located on land that’s owned by the applicant. To determine if the home you’d like to purchase is in a targeted area and qualifies for a QMB loan, get in touch with the United States Department of Housing and Urban Development.

Immobilienmakler Heidelberg

Makler Heidelberg

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Buying properties in Florida takes more than just contacting the seller or their real estate agent. To get the most value for your money, it helps to know the many ways you can protect yourself as a buyer. To the first-time home buyer, one might get so excited going through the public listings and try to negotiate with the real estate agent or the seller himself. But without professional advice, there are many ways that additional costs can easily add up. These are costs that the new home buyer may not realize until the final transaction or closing.

First of all, it helps to know that there are different agent relationships in Florida. There are transaction brokers who are there to facilitate a transaction with neither loyalty to the seller nor the agent. Then there are those seller’s agents whose main role is to get the highest price for the seller as well as protect the seller’s interests and facilitate a fast sale. The third agent relationship is a buyer’s agent but working in a listing office. This clearly has a conflict of interest because they may have the buyer’s interest in mind but, since he/she is working in a listing office, said buyer’s agent is bound to protect the interests of the listing office as well.

These options do not really have the full buyer’s interests in mind. Yet, for a first-time home buyer, doing it on your own may present you with surprises like hidden costs in terms of repairs or closing costs passed on to the buyer. There are many other surprises that a new buyer may not realize, and your best bet is to have an agent whose interests are fully for the protection of you as the buyer. With having a buyer’s agent, you have peace of mind that you have a professional who knows the right questions to ask the seller or the seller’s agent, who knows how to negotiate, and lastly to determine the correct value for the buyer’s money.

For example, what is the current real estate market trend in the area? Are there repairs needed and what is the best way to negotiate about the repairs? When was the last time the roof was changed? Is there no past repair that still has a record of a violation?

These are just a few of the many other issues that can come up for first-time buyers. It helps to have a real estate professional, an agent whose sole motive is to protect the home buyer.

Immobilienmakler Heidelberg

Makler Heidelberg

Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
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Did you know that just a few improvements on your house could very well improve the value of your home And that first impressions can mean everything?

The number one thing that a possible new buyer recognizes often is the out side of one’s residence. Charm is in all probability the most important variable in selling your house. If a future customer views the exterior and doesn’t feel impressed, they probably will not even care how the inside looks. Therefore, make it appealing.

Landscaping is really a must. Continue to keep the grass mowed, cut the hedges/shrubs, and clear the walkway. If it is summer, shell out a little of dollars and plant some flowers. Flowers make absolutely everyone smile. Does the exterior require a fresh coat of paint? View your house as an outsider. Is there anything you don’t like about it? Start there. You may always take a walk within your neighborhood. See what shines about your neighbors properties and what separates theirs from yours. You can actually learn from them. Ask your buddies for their tips.

The inside is just as significant as the outside. Keep it clutter free. This is a must, even if you have to rent storage space till you sell. Continue to keep the curtains open. Make it as airy as feasible. Open your windows, and don’t forget to clean them! You quite possibly already know that paint is an economical way for you to help make your home appear its very best. Keep the colors easy and fundamental. Soft warm colors will transform a residence. When my mates complain and want new furnishings, I normally inform them to just paint the rooms. It’s like getting new furnishings. It brings life to a home, regardless of how the furnishings looks.

Do you know that the MLS listing service is considered the most dynamic tool for promoting your property? You can list via a Broker or a Discount Broker. When you list your home on the MLS, Your home is listed in your areas local MLS. Realtors scan the MLS several times every day to search for properties for their prospective clients. Your listing entails color photos and all the details about the home together with its amenities. Agents are just as encouraged to sell your home as any other property on the MLS. After your property is listed on the Multiple Listing Service, it quickly syndicates to Realtor.com, which happens to be the most used real-estate web-sites. The internet is tremendous. Your property will likely to be found by 1000’s.

Another effective tool is to make sure you have fantastic online pics of your house. Having quite a few great photos of the home on-line as possible could assist your showings, given that these days most of the people shop via the web just before picking out just what homes to go look at personally. Many times having no pics could get your listing skipped all together. People want to see pictures!

Did you know that another reliable tool is the Yard Sign? Displaying a FOR SALE sign is strongly encouraged for advertising your home. It indicates that you are truly serious about selling your home.

I hope you found this article beneficial. Thank you and good luck with your sale!

Immobilienmakler Heidelberg

Makler Heidelberg

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Searching for Florida condominiums for sale? Is your choice a luxury building on the beach, or at walking distance to the sand? Do you like to wake up in the morning to glance on the wonderful blue water of the Atlantic Ocean, through your floor-to-ceiling windows, while you are sipping on your orange juice and biting on your croissant?

Let’s explore the place. I’ll be your guide.

If your budget allows,you surely are a candidate to purchase an ocean front Sunny Isles Condo. On Collins Avenue, you will definitely find this ultra-luxury building, with endless amenities, tennis, racquetballs, pools, saunas, fitness centers, you name it.

Starting in Golden Beach, look South at the Ocean Condos. They are some of the most appreciated buildings, built gradually since 2000. Ocean One, Ocean Two, Ocean Three, and about half a mile South, Ocean 4, are the first to come to my mind. They are just wonderful buildings.

Right across the street, the Oceanview Condos and Ocean Reserve condo conversion present you with more affordable alternatives, albeit lacking the direct ocean views and being only refurbished buildings from the 70’s.

Continue your walk South, and if you would still like to consider more affordable condos in Sunny Isles, what about the Kind David Condos, a 2005 building, with good amenities and well appointed apartments, just across the street from the beach.

You could also consider the Porto Bellagio Condos, (2003) around 171st Street, also on the opposite side from the beach.

What about the Golden Bay condos (1999)? They are a good value.

The Sole Condos are also a good alternative, right on the beach.

Also on the sand, the Sands Point built in 1996 is a great option.

I wouldn’t discard the Ocean Point Condos (2000) right between 173rd and 174th Street and Collins. They are a good compromise on luxury and location.

Let us talk now about some of the best condos in Sunny Isles, although not the newest.

I refer to the Pinnacle Condos with its peculiar shape, a great architectural landmark in Sunny Isles Beach. Great luxury has not been spared, marbles, Italian kitchen cabinets and bathrooms vanities, wonderful views through its floor to ceiling windows.

It is a 1998 building, but one of my favorites.

The Millenium Condos, built just in 1999 have some wonderful units with a frontal ocean view. It is also a high end building.

Le Meridien Condo Hotel, also known as M-Resorts, is a beautiful place, no doubt, if you like this modality.

Trump has built a few places in Sunny Isles. Let’s look at the Trump Palace Condos. Just completed, Trump luxury at its best.

Next to it, is the Trump Sonesta is a condo hotel with very upscale amenities.

La Perla Condos at 166th Street is on the sand. A 2006 building, some of the condos have good water views.

The Sayan Condos have just been delivered in 2007. At the 163rd. Street, they are a good value for your money if you are looking to walk on the beach without crossing the street.

Let me mention Oceania series of building. Located in the south end of Sunny Isles, the first three Oceanias, Oceania 1, Oceania 2 and Oceania 3, are located on the beach.

Oceania 4 and 5 are on the Oceania Island, across from Collins and the Beach.

They were built in the early 90’s. They could be a good midway between the most expensive Sunny Isles Beach condos and the budget condos built in the 70’s.

Talking of these older buildings, we have the Arlen House Condos on Bayview Drive, a couple of minutes walk from the ocean. Then I would like to mention the Winston Towers, a series of large structures on 174th Street, some of them with great views on the Intracoastal, docks and marina make it a good value if you can’t afford the newer condos.

They are conveniently priced and a good option for somebody who doesn’t mind walking 5 minutes to the Beach.

The Plaza of the Americas is another complex in the same kind.

You can also consider the Poinciana Island townhomes, across the street from the water. They have small 25 foot docks and you can have your own boat in your backyard.

And the Marina Bay Condos, a 12 floors structure, built not later than 2002 is also an intermediate solution.

By the way, I was just forgetting one of the most beautiful (and expensive) places in Sunny Isles. The famous Acqualina, a landmark. The Acqualina condos are some of the most expensive properties in Sunny Isles and the outside of the building is surely a statement.

Did I forget something? Of course, there are a few new developments, the Solis, a top-luxury place, the Jade Ocean, the St. Tropez on 163 Street, across the street from the water, and so many more are either on the drawing board or being completed.

Check my website: http://www.condo-southflorida.com and take a look.

I didn’t cover everything. But perhaps I gave you a good idea. Good luck in your search of a condo on the beach at Sunny Isles.

Immobilienmakler Heidelberg

Makler Heidelberg

Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
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One of the many benefits you will find when you choose condos for sale over other properties is that you don’t have to worry about any exterior maintenance. When buying family home, you need to keep a budget aside for those unexpected external emergencies, such as a damaged roof, a tree that falls down in your garden or even your exterior walls being damaged. When buying a condo, because it is a complex, the Homeowners Association will be responsible for handling all exterior work, so you can enjoy your home now and in the future with complete confidence.

Another major benefit to condos for sale is security. These days you want to keep your home and your family safe and secure. Having added security is a major benefit to provide you with complete peace of mind, which provides you with the convenience of a lock up and go property. You can lock your front door and head off for a week or two knowing that everything will remain safe indoors and you don’t have to worry that someone may try break in while you are away.

Of course condominiums come with the added benefit of a host of amenities and facilities. The majority of these complexes will offer you the convenience of a lock up and go property with a communal swimming pool and maybe even a fitness center, depending on the complex. Some will come with laundry. With these added amenities you can enjoy all the conveniences of a home while having your own space which is modern, luxurious and finished to the highest quality.

Condos for sale are in the affordable price range. They are more expensive than an apartment, but they are usually on a par with a single family home, depending on where you buy and the area. Of course location is essential and if you are looking for luxury and convenience in a prestigious area, then you will find that condos for sale work out cheaper than the homes in the surrounding area. This helps you get your foot onto the property ladder in an exclusive area, offering you a good return on your investment in the long run.

Outside spaces will be cleaned for you, the pool will be maintained and the equipment in the fitness center will be up and operational at all times. If the building has an elevator, that will be regularly serviced. These are all things you don’t need to worry about, you can furnish your condo, move in and start enjoying condo life without delay.

Of course when there are benefits, there are always a few disadvantages and the same applies to all condos for sale. This is why if you are looking for property to purchase and you are considering a condominium, you may want to weigh up the pros and cons of all the property options within your budget to identify if this is the right choice for you moving forward.

One of the disadvantages to buying a condo for sale is that you have strict rules to abide by. The Homeowners Association will put rules in place that all the units must follow. The reason for this is to make living in the complex more enjoyable for everyone.

The second disadvantage is that you will have to pay Homeowners Association fees, which are in place to pay for all the exterior and daily maintenance of the complex, so your condo is always somewhere enjoyable to live now and in the future.

Immobilienmakler Heidelberg

Makler Heidelberg

Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
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You’ve decided that the house you are presently occupying no longer suits the needs of you and your family and, after careful deliberation, have opted to put it up for sale, the proceeds of which you will use to purchase a new unit. Since you’re now ready to sell, you must know how you can properly market the house in order to attract the attention of as much potential buyers as possible.

The cheapest and easiest way you can announce to all and sundry that you are selling your house is to put a big „FOR SALE“ sign in front of the property. Unfortunately, you are only likely to attract the attention of your neighbours or travellers who are simply passing through the area. Another relatively cost-effective way of marketing your property is by placing attractive posters on community bulletin boards (in church, the supermarket), where foot traffic is high.

If you want to reach a wider market, you can place an advertisement in the classified ads. Placing an ad is not very expensive but you may have to limit the number of words or characters. If you plan to place an ad in the classifieds, make sure that you are familiar with the real estate lingo and abbreviations, and it is advised that you put several short ads over an extended period of time rather than place one long advertisement once. An alternative is to place an advertisement in real estate related publications and magazines.

To reach a bigger market, you can place an advertisement on the internet. Being visible on the World Wide Web is no longer as costly as it was before. If you do your homework well, you would be able to find sites that offer very competitive rates and prices. Compare services first so you can get the most out of your money.

In addition to these marketing strategies, it also helps if you prepare brochures or flyers showing a photo of your property and listing down main points of interest (of the house and the community / neighbourhood). What’s good about brochures is that they are very handy. You can place a brochure holder in front of your home (by your For Sale sign or beside your mailbox), you can bring several copies with you to the office and distribute it to your colleagues, you can even ask your friends and relatives to help out by handing over a stack and requesting them to give it out to their friends. These brochures will also come in handy when you host open house events. Potential home buyers can just grab a copy and compare your home’s features with the other properties they are contemplating on buying.

There are several other ways by which you can effectively, cost efficiently and creatively market your home. You just have to think out of the box. Make sure, however, that your marketing activities will not bother or annoy other people.

Immobilienmakler Heidelberg

Makler Heidelberg

Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
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As banks are foreclosing hundreds of thousands of properties across the country, the question keeps arising, „Can banks make profits on foreclosed properties?“ The simple answer is yes, but it does take some special circumstances for it to happen. If the homeowner is aware of how to protect his equity, he may get paid even if he loses his home to the bank.

If the lender talks the homeowner into giving up his property in exchange for a deed in lieu of foreclosure, the bank can make a profit on the sale and not have the added cost of the foreclosure. It is generally accepted in the banking industry that a foreclosure costs an average of over $40,000. These costs include loss of interest, loss of additional lending power, increased Federal Reserve requirements, costs of the sale, maintenance of the property and commissions to a selling agent.

The key to whether the bank can make money is dependent on the property having equity. Probably 20% to 35% of the time when a foreclosure takes place, there is equity in the property and there are no second or junior liens in place. Many homeowners simply walk away from their homes believing they don’t have equity or can’t sell their home while it is in foreclosure.

If the bank takes the property to the foreclosure auction and extinguishes junior liens, they will be creating equity in a matter of minutes. However, if the property has junior liens, the lender will not accept a deed in lieu of foreclosure because the junior liens will stay attached to the property. So be careful, if a bank offers a homeowner a deed in lieu of foreclosure, there may be equity in the property.

Once the property goes to auction and is purchased by the bank, the property’s deed transfers to the bank after a redemption period. At this time the bank can sell the property for whatever price they can get. If a profit exists, the bank is entitled to it.

In summary, once the bank foreclosures on a property it is entitled to make a profit. Prior to their ownership, they cannot sell the property, only the deed holder (homeowner) can sell it. This happens in short sales all the time as the bank has to agree to the sale price but the homeowner must sign the deed transfer. In these cases, the bank takes a substantial discount on their mortgage to get the property sold and off their books. If the bank is out bid at the auction, which is anything close to their final judgment amount, they get their money owed but lose out on any additional profit.

Immobilienmakler Heidelberg

Makler Heidelberg

Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
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