So the $8,000 first-time home buyer tax credit came ro an end on April 30, 2010. Lots ofhome buyers got to take advantage of it, and for many others, the timing wasn'r right - or theydidn't find just the right home within that time frame. If you're among rhem, here's the goodnews: it's still a great time to buy. In fact, as one door closed, several orhers, along with manywindows, opened.

The opportunity for a great deal in today's real estate market is showing up in new ways, namely,short sales, foreclosures and bank-owned properties - collectively known as "distressed properties."

But even so, why would anyone seek out a

Two reasons:

Here is the main thingmortgage financing onperfectly fine shape.

you need to know aboutthe home, not the home

distressed prcperties: the term refers ro rheitself. Distressed properties may well be in

distressed property?

Price:

Price is the Lriggest motivating factor. Short sales and bank-ownedprope rties sell for an average of 20 percent below market value,and sometimes much more.

Choice :

A recent K\f survey revealed that 45 pe rcent of all homes soldin the United States are currently "distressed properties,"and an estimated 300,000 foreclosures are entering themarket each month. Distressed properties have entered themainstream ol real estate transactions.

Bank-owned properties and underv/atermortgages represent a drag on the realestate market.

Every time one is purchased, the marketmoves that much closer to recovery.

,']f-ri l 'l

' ofren, distressed properties are in excellent condition and invery desirable locations. Homeowners in every price bracket ar€affecred by the economy.

Bidding uars happen in some markers, but they main-lyoccur in the most distressed ones. As in any marker, the mostcompetitive offers are mosr likely to win.

The key to streamlining the loan ltroce.rs and avoiding surprisesis to work with an experienced real esrare agent and a lenderwho regularly handles distressed properry transactions.

The ilmeline for short sale transactions is tightening and REotransactions tend to occur within a faster time frame than thetraditional home-buying process.

FHA loans are

popular with first*

time buyers of

distressed properties

and represent 55

percent of all first-' Foreclosures are happening in record numbers and, seilers areuery motiuated.

Distressed properties fall into two broad categories:

1. Foreclosures or REOs (real estate owned), whichhave become the property of the bank due to thehomeowner failing to pay the mortgage for severalconsecutive months.

2. Sho.rt sales or'fure-foreclosures,"where agents negotiatewith banks ro accepr a sales price and loan payofF thatis less than the morrgage amount. Short sales occur ininstances where home sellers are "underwater', on theirmorrgage, which means that the amount of their currenrmortgage exceeds the market value of the home.

trme rnortgages,

','(-1 r..l l). i: U l:-) f iO GOCf r-alA l.J l-c lAY.5 1\.1A3.{a-i-

.ta

Lrf:!i

Distressed properties account for 45 percent ofnational average. California, Nevada, Arizona, IMichigan,United States in distressed property sales.

total home sales when viewed as aVirginia, Georgia and Fiorida lead the

WA

OR

MORETHAN 50%

MT

rtfr*rNH

MA

4t-50%

RI

NJ

DE

MD

....,1..1:.,

NORESPONDENTS

r0% oRLESS

3140% 7l-30% I J-20%

The surge in distressedhas boosted affordability. Inuptick in home sales among

properties entering the market2AA9, there was a significantfirst*time buyers.

Iii 2009:

47 percent of all REO purchasers and 52 percent of all shortsale purchasers were between 18 and 35 years old.

Married coupleSingle malcSingle female

Married couples account For more than 50 percentpurchases, but be iow-market bargains are open ingopportunities to an increasing percentage of single

53oia 574/o1-n/ 1 1n/r/"/o tt"/o13o/a l5a/o

of distressed propertyhome ownershipmen and women.

Almost all distressedproperty buyers - 97percent - are looking fora good deal. And there are

no shortage of deals to be

found!

\While the averagedistressed property soldfor 2A percent belowcurrent market value, thediscounted purchase priceon short sales and REOstends to range between 10

and 40 percent.

40 percent of surveyrespondents indicatedthat the desire to "stoppaying re nt" was a

prime motivatol in theproperty home purchase.Regardless of themarket, a home is a solidinvestment. Distressedproperties have simplylowered the financialbarriers to entry.

The details involvedwith short sales andforeclosures are uniquecalls for specializedexpertise. Find an

agent committed toguiding you through theprocess, sefting realisticexpectations, and !

streamlining your pathto homeownership.