Is the Foreclosure Mania over yet?

 Finally, after 12 months of foreclosure hell, I think I can finally say the foreclosure mania is over.  Finally, I can crawl out of my dark foreclosure hole and see that buyers are understanding that foreclosures are few and far between these days, perhaps reality has set in that the housing market is recovering?

 

There are a handful of loft foreclosures out there and yes, every once in awhile a really great foreclosure will pop up on the market, but at this point if you want a foreclosure be prepared to release the inner demon from within, because getting a good foreclosures these days is as cutthroat as it gets when you are trying pick up a loft or condo foreclosure.   Intown Loft and Condo foreclosures are slim pickings these days and if there is truly a decent  foreclosure that doesn’t have monthly HOA fees of $700 per month or not in a horrible nasty area than you have to deal with all the other folks out there that want that foreclosed loft or condo just as bad as you do.  What does that mean?  It means you WILL pay over the listing price for it because there are plenty of other buyers and investors out there writing up their offers for it.  Banks have been pretty savvy lately, they are starting to put the listing price as a “starting point” which typically attracts multiple offers therefore the final selling price is a good amount over the listing price.  If you find a “good” foreclosure, be prepared to put a offer in instantly, even before you see it, because by the time you look at it, think about it for a day, and contact the lender to see if you can afford it, it will be gone.  But, foreclosures are a thing of the past, I think anyway…so what else is out there that would be a “great” deal?  Well, there are plenty of short sales.  Those are fun…if you like to wait 8 months for an answer from the bank regarding your offer that is.   I loathe short sales…which I think I can speak for most Real Estate agents out there on that point.   If you don’t know what a short sale is, it’s basically a seller selling  their place for less than what is owed on their mortgage.  First, you negotiate with the seller, which the seller will pretty much agree to any price and then the offer gets shipped over to the bank for their approval.  If I had a sound effect machine, you would hear tires screeching to a halt at this point.  Banks are notorious for not responding to a short sale offer for months, even sometimes a whole year.  On average, I would say it will take 6 months for a bank to respond.  Every once in awhile I come across a listing that the seller has already received approval from the bank to do a short sale, if that’s the case than most of the time you can close on it within 45 days from the binding agreement date.

 

Just say NO to foreclosures and short sales!  I think I will make that my new slogan.  I am sure I will hear from other people that think there is going to be another wave of foreclosures coming soon…I don’t think so..I believe the market bottomed out a couple of months ago and is starting to recover.  Plus, I have proof!  Here’s my proof…that little billboard on I85 from metrobrokers that reports how many homes are on the market currently, well, if you paid attention to it, about 9 months ago at one point that billboard read 109,000 homes for sale in metro Atlanta.  Today, it reads 75,000.   What does that mean..inventory is down.  Way down..Things are selling and sellers are yanking their places off the market and waiting this foreclosure mania out.  When inventory is down like that, than at some point builders will start building again and sellers will sell again because there isn’t enough inventory for supply and demand.

 

I would say that most of the lofts and condos that are currently on the market are pretty darn good deals.  If they are not a short sale or a foreclosure than it is usually a very motivated seller.  Don’t rule out normal resales because most of the time those are the ones that are the diamonds in the rough, mainly because those are lofts owned by Motivated Sellers, which means you can get a good chunk of money off that listing price and close on it within 30 days!  Off the top of my head I can pinpoint several lofts that are worth picking up…First is over at Mwest lofts.  The second phase, which is still owned through the developer, dropped their prices significantly over the last month.  Mwest has always been popular because of the private garages and private fenced in yards.  So right now is a great opportunity to pick one of those up. Pricing ranges from $189k to $350k.   Most noteworthy are lofts that are priced over $400k..there is one at Copenhill Lofts, which is on the market for $595k..incredible loft and in a good market probably worth over 700k.  Glen Iris Lofts has one for $495k, another really cool loft and a great deal.   If you are looking for a 2 bedroom / 2 bath for the low 200′s, I would suggest Milltown Lofts in Cabbagetown, there is one left through the developer that is priced at $220k, originally those were selling in the $270′s!!

 

So, there are great deals out there even when it is not a foreclosure or short sale.  It’s pretty easy for me to pick out the ones that are good deals since I have been selling lofts for awhile now, so if you need assistance with your loft search, feel free to contact me.  In the meantime, I will be busy taking down my webpage for foreclosures and replacing it with Motivated Seller lofts!  Nesa Kleinheksel – 9 Mile Trolley Realty – The Loft Stop