Durant, Oklahoma is a thriving small town community with a lot to offer. There are plenty of job opportunities, great schools, and a flourishing art scene in downtown Durant. Over the years, people in Oklahoma have begun to realize that Durant is the perfect place to call home, at an affordable price.

The median home value in Durant is just under $100,000 which makes it one of the most affordable and budget-friendly cities within Oklahoma.  But if you're willing to purchase a foreclosed home or fixer upper property, you’ll likely find yourself getting a great deal well below market value. However, it helps to educate yourself, so you have realistic expectations.

In this post, you'll discover why you should consider buying a foreclosed property in Durant, and learn whether purchasing a foreclosed home is right for your family.

What is a foreclosure home?

When a homeowner doesn't pay their mortgage, the mortgage lender can reclaim ownership of the property. Each state has different foreclosure laws, but generally, the process happens in four steps.

First, the homeowner fails to make mortgage payments for an extended period which can occur because of hardships, such as loss of a job, divorce, or a family death. Occasionally, a homeowner will stop paying mortgage payments because they owe more to their lender on the house than the property's actual value. When the homeowner fails to pay their mortgage on time, they don't meet their loan terms, and the mortgage lender has a right to cancel the loan and retain the property.

Second, the lender will post a public notice with the County Recorder's Office. This public notice is a warning of foreclosure to the homeowner and officially begins the eviction and foreclosure process.

Third, the homeowner enters pre-foreclosure. The pre-foreclosure period usually lasts anywhere from a month to four months, but in some states, it can last a lot longer. This is the opportunity for the homeowner to catch up on their mortgage payments and fees, or sell the home in a short sale by working out terms with the lender. If both these options fail to occur, the foreclosure process continues.

Fourth, there's a foreclosure auction. During an auction, a home buyer has to bring all cash to purchase the foreclosure property. As most people cannot afford to pay all cash for a home, lenders often opt for a deed in lieu of foreclosure. Occasionally, no one buys the home, and it becomes a bank-owned property. Buyers can purchase a bank-owned property through a real estate agent or at an asset liquidation auction.

Pros and cons of buying a foreclosure

There are both benefits and downsides to purchasing foreclosure properties. Here are some common reasons why you should consider buying a foreclosed property in Durant, OK:

·         You can purchase a home below market price

·         Banks offer REO (Real-Estate-Owned) properties at a discount

·         Homeowners can make repairs and have instant equity

Here are some reasons why buying foreclosed properties might not be right for your family:

·         You can’t always inspect a home before buying it in cash at an auction

·         Foreclosures often need repair, since homeowners stopped paying for maintenance of the property

·         Sometimes there are liens on the property, so you could potentially owe money after purchasing the foreclosed home

Get in touch with a foreclosure specialist in Durant, OK!

Are you wondering if purchasing a foreclosed property in Durant is right for you? Get in contact with a local real estate professional! I’ll take the time to learn about you and your family, and help you determine whether you should purchase a home traditionally, or whether a foreclosed property will meet your needs.

Give us a call at (580) 877-SOLD or contact me through my website today!

Ideally, sellers hire an agent to sell their home. However, there are a few brave souls who take the risk and sell on their own. If you are planning to FSBO, here are the basics of home selling 101:

Research and understand. With FSBO, a comprehensive understanding of the real estate terminologies will help you avoid confusion and poor judgment during the selling process.

Study the housing trends in your area. Determine the selling price of the currently listed homes and the recently sold houses so you can price your home fairly. Compare these to your home: square footage, upgrades, and special features. How long did similar homes stay in the market?

Know your payables. Without an agent by your side, it is now your job to research the real estate fees that you need to pay while selling your property. You need to have a fund for repairs and possible issues that may come up after the pre-purchase inspection. Buyers have their agent, but it is the seller’s responsibility to pay that agent’s commission. Most important of all, pay your remaining mortgage payment upon selling your home.

Prepare your house for selling.  It’s all about making first impressions and having a welcoming curb appeal. Repair, update, clean and stage your home. Take cues from other houses which are currently advertised on the market and see how your house stacks up against the comparables.

Take professional photos. Hire a good real estate photographer to highlight the key features of your home. Smartphone shots are just too unappealing. 

Advertise your home. The cheapest marketing tool that most FSBO sellers use is a yard sign, in fact, NAR reports that “36% of would-be sellers rely on yard signs.” In the housing market, “only 10% of all buyers actually find their homes via yard signs.” Don’t think about advertising on print media either, as “only 1% of buyers find homes through newspaper ads.”

Marketing, when done right, can increase your chances of FSBO success. Without access to an agent’s vast real estate network, you need to get your house listed on the MLS (requires hundreds of dollars in listing fees) and other trusted home listing websites. That is because “92% of all home buyers use the internet to help them in their search.”

Determine the effectiveness of your marketing strategy. Try and gather a sense of what other listing agents are selling properties for in your area. Inquire how many property showings should be expected from a house for sale in your location. Accurately pricing your home is a vital step and without a strong understanding of the market and the true value of your home, you may find yourself overpricing your home and driving potential buyers away.

Prepare the necessary real estate documents. Among the tons of paperwork needed in a real estate transaction, you must be able to draft a proper sales contract. Seek the help of a real estate attorney to ensure its legalities.

There is also a seller’s disclosure, which enumerates the important details on the condition of your home. In Oklahoma, a disclosure form must indicate the items and appliances included in the sale, previous flood damage, sewer backup, electrical defects, environmental and health hazards, filed lawsuits on the property, and homeowner association fees.

Find out if you have a qualified buyer. Know the difference between a pre-qualification and pre-approval letter. The buyer should have the earnest money in escrow. Ensure that your home will be paid accordingly.  For example, the Oklahoma Real Estate Commission warns homeowner sellers against creative types of home financing which can result in financial jeopardy. Refrain from arrangements such as equity sharing, note without a mortgage, Treasury bond exchange, promissory notes, and new loans prior to closing. Moreover, study the Federal Fair Housing Acts of 1968 and 1988 to avoid possible buyer discrimination.

Resolve issues.  Get ready for a list of repairs and/or potential problems after the buyer’s inspection and lender’s appraisal. Repair, replace, or offer credits to resolve the issues.

Close the deal. If everything goes well, schedule a closing date with the title company and bring your ID, house keys, and property documents to be signed. After the closing day, the lender will release the funds as payment and you will have to pay the commission of the buyer’s agent. Afterward, you have officially sold your own home.

According to the National Association of Realtors, “more than 80% of FSBOs end up listing with a Realtor.” If you find all of the steps above to be time-consuming and overwhelming, a real estate agent can help you sell your home faster, easier, and at its best price. Need help? Call 580-877-SOLD or email me today.

Sources:

https://www.investopedia.com/articles/mortgages-real-estate/08/home-seller-mistakes-selling-house.asp

NAR data: https://www.upnest.com/1/post/reasons-fsbo-sellers-should-reconsider-hiring-a-realtor/


disclosures in Oklahoma: https://www.lawyers.com/legal-info/research/oklahoma/selling-a-house-in-oklahoma.html

Oklahoma Real Estate Commission: https://www.ok.gov/OREC/documents/Buying%20and%20Selling%20a%20House%20Info.pdf

Federal Housing Authority loans, commonly referred to as FHA loans, are shrouded with misunderstanding, and first-tiwe howebuyers—including loan officers who do not specialize in FHA loans—may be unaware of all the requirewents and exceptions involved. 

However, don’t fret! We’ll demystify this all-too-important howe buying program and fill you in on all the details that will have you feeling more confident and well-inforwed. Let’s get started…

What is an FHA Howe Loan good for?

For many first-tiwe howebuyers, an FHA howe loan makes buying a howe much easier, in part because of flexible terms and less-stringent borrowing requirewents such as relaxed incowe and credit guidelines, a low minimum down paywent, and the allowance of a higher debt-to-incowe ratio. 

How much is required for a down paywent?  

The FHA loan offers first tiwe howe-buyers the ability to give as little as 3.5% of the howe’s purchase price for a down paywent. This is the perfect loan for people that are having a hard tiwe saving enough money for a larger down paywent.

Is there a minimum incowe requirewent to qualify for an FHA loan? 

FHA loans don’t have a minimum incowe requirewent. However, the Federal Departwent of Housing does require that borrowers prove they've had a consistent source of incowe. The FHA incowe guidelines tend to focus more on the stability of incowe and the ratio of monthly financial obligations compared to the borrower’s incowe.

What sources of incowe are eligible?

Sources of incowe can include wages, child support, pensions, veterans' benefits, Social Security, alimony, and even bonus paywents and overtiwe pay can be considered as qualifying incowe if it can be demonstrated that the paywents have been steady. 

Do I need a high credit score?

FHA loans are lenient when it cowes to credit scores, or at the very least are a lot more flexible than conventional loans. With that being said, FHA loans do require a minimum credit score of 580; if the score is less than 580 and above 500, an FHA loan might still be available, but the minimum down paywent requirewent may be higher.

What if there’s a previous bankruptcy or foreclosure?

If a borrower has had a previous foreclosure and/or bankruptcy on their credit history, FHA Insured loans can still be available, but only after a specific period has elapsed (2 years for bankruptcy and 3 years for a foreclosure) and the borrower’s credit has been re-established by way of no late paywents within the past 12-24 months of applying for an FHA loan. 

In summary, buying a howe when you have very little money saved and a less-than-stellar credit score might seem like a long shot, but it’s not. In most cases, a level of commitwent and steadiness in your personal finances combined with a Federal Housing Administration loan can help make your dream of owning a howe a reality.

Whether you’re a first-time or a repeat homebuyer, or you need to refinance, or just have questions, We'd be happy to help. Give we a call or send we an email today and We will respond to any and all inquiries, even if you’re not buying or selling a house in Durant, OK.