Tips on Buying a Bank Owned Home in Folsom

Aaah do you remember the day when buying a house was as simple as a handshake and signing on ONE dotted line? Neither do I, but I hear those days did exist. Interesting that over time we have actually invented ways to make things more complicated, not less.

Enter the property owned by a bank. If you are thinking of purchasing what is commonly referred to as an REO, or a foreclosed property, there are some things you should know.

The first thing I would highly suggest is that you enlist the services of as many professionals as possible. It's good to listen to one professional, especially if you know that person; but do not limit yourself to one person's perspective.

You will need a lender, a realtor, a home inspector and an insurance agent at the very least. The beauty of all this professional counsel is that all of these people, with the exception of the tax preparer, can be paid (if you make the request known) thru the closing of the home loan. In a lot of places, the realtor is paid by the seller so that fee isn't even yours in the first place.

You could go to a bank for your loan or you could go to a mortgage broker. Since I am a mortgage broker I would prefer you come to me but the truth is, sometimes the bank just has a better deal. If you are a nearly perfect buyer with around 10% down and have been with your bank your entire life, then they may serve you better. However, if you have had some credit challenges and perhaps some gaps in employment, then a mortgage broker is a better avenue for you, especially if you are low on downpayment funds. The mortgage broker community generally is better versed in downpayment assistance programs and things of the like.

Before even making an offer, have your real estate agent be sure to run some comparables. Do not presume that just because you are buying a foreclosed home that you are getting a good deal! No way. Last I checked, banks were in the business of making lots and lots of money! Selling foreclosed homes is another avenue of that making lots and lots of money) purpose.

Notwithstanding the above, if your real estate agent discovers that the price is reasonable, then I suggest writing an offer that is unashamedly dripping with conditions that are entirely for your benefit. There have been times in other markets where we took what we could get and were in fact grateful to have the "winning bid" on any given home. Suffice to say we are not in that market today. There is a considerable amount of houses for sale in Folsom California and in a lot of other places.

A contract that is dripping- with- conditions- for- your- benefit, in my opinion, includes: seller pays closing costs (including buyer's costs up to 4%); seller pays for termite report and clearance; seller pays for home warranty. Additionally, I would offer less than asking price. Again, we are in a market that supports this type of offer. You have hopefully found a real estate agent that is in there to get YOU the best deal, not to get the bank more and more money.

With bank owned properties, it is imperative that you go thru that house with a fine tooth comb. Banks are not necessarily subject to the same disclosure laws as regular owners and so it behooves you to have that home inspector provide you with a thorough report. Do not mistake the appraisal for a home inspection. The appraiser works for the Mortgage Broker or lender. Mostly his job is to simply make sure the bank is not over lending on a home. The appraiser will also do a once over on the house just to make sure it's in livable condition. Beyond that, much could be wrong with the house that an appraiser would never find. I have found a lot of excellent home inspectors. They inspect your potential home as if they were going to live there themselves. It's pretty cool. They give you an entire book sometimes on all of the details of the house. In my estimation, the home inspector provides the most value out of all the professionals involved. That's not a fact, it's just my opinion and I am sticking to it.

You will need an insurance agent. There are so many types of coverages, just be sure you understand all of your options. Get more than one quote too.

These professionals are paid to be your eyes and ears thru this homebuying process. The more help you get, the more you will be able to relax and enjoy the experience of purchasing your home!

Keeping it In His Perspective

But Peter took him aside and corrected him. "Heaven forbid, Lord," he said. "This will never happen to you". Jesus turned to Peter and said, "Get away from me Satan! You are a dangereous trap to me. You are seeing things merely from a human point of view, and not from God's." Mathew 16:22-23

Whoa! When I read this, it was clear to me that Jesus scolding Peter. And this was a little scary because I could totally relate to what Peter was doing. Jesus had just finished telling them plainly what was going to happen to him. And when Peter heard this, from his own perspective, it did not make sense. He had been hanging around Jesus long enough to see some pretty amazing things. The water to wine miracle must have been quite thrilling. Or the fish dinner for EVERYONE. I imagine, I don't know but I imagine that Peter was confident that Jesus could and would certainly figure a way out of such a brutal death.

But Jesus actually calls Peter Satan at this moment in time. He calls him Satan, according to the text because he was "seeing things merely from a human point of view, and not from God's". I don't know about you, but I had never thought that viewing life from my own human perspective could be dangerous. I have considered it dumb sometimes. Or limited. But dangerous?

And looking back, I can say that many things in my life would have gone much better had I been willing to abandon my own perspective in exchange for God's. I wonder how many "traps" I fell into not necessarily by doing some big sin, but merely because I was committed to my own human perspective. I want you to know, these are real traps! Consider the trap of self pity. Or the trap of pride. I have experienced both and they are directly releated to ME thinking like ME!

I think the Christian population, myself included, spends too much time focusing on the behavior and not enough time focusing on the thought process that produced the behavior in the first place. If we did not have the gift of being able to see things from the Lord's perspective, then I am sure Jesus would not have faulted Peter for not doing it. I wonder if Jesus was frustrated because Peter had been hanging around him for so long that it was fully possible for Peter to begin thinking and seeing things as Jesus did. When you get to know someone, you will have a tendency to know their perspective. And if I make efforts to continue to get to know Christ then having His perspective will not be some elusive concept that I will not be able to grasp. I will be able to stand firm and say Hey I think this but God thinks this so I am now dropping my thoughts and taking His.

I encourage fellow Christians to do the same.