Beware of Good News! Sandpoint Foreclosures Rise

Many Real Estate professionals are citing a rise in “pending sales” and “mortgage applications” as signs that the market may be on its way to recovery and predict the worst may be over for Sandpoint foreclosures.

Remember that pending sales are those where a buyer and seller have come to terms but it has not closed.

In our office we have had five of six home purchases fail at underwriting.   The lender was positive that everything was on track and in one case parties to the transaction were placing personal property in storage.   In the final days leading up to closing the underwriter came back to the table asking for a larger down or some other feature that was impossible for the Buyers.

Low interest rates and bargain prices have created a climate where more buyers are filling out applications but that does not necessarily translate into a loan.

There are two areas I am keeping an eye on for my investor clients in northern Idaho.

Renovation Potential and Development Potential.

Many buyers cannot look past the need for minor repairs and cosmetics long enough to determine if the roof, foundation, wiring, plumbing and other big ticket items are all up to date.  They could be overlooking a terrific value and an opportunity to create a stream of income or make a substantial gain.

Buyers may drive by a vacant lot in Sandpoint with an ancient trailer on it and press the gas pedal not realizing when they speed away that the zoning allows multiple units on that parcel.  Zoning may also allow other uses that the buyers have not considered but with some education and confidence could see an approved use for the property that makes financial sense.

Need help understanding the best value for your investment funds?  Ask Ray.

Tags: bargain, sandpoint foreclosures