subject: Henderson Real Estate AZ Eliminates The Middle Man With 203K Loan [print this page] Henderson Real Estate AZ Eliminates The Middle Man With 203K Loan
In case you have missed it, we are in the midst of a housing crisis. Incongruous as it may seem, there are many folks who want to buy a house and there are lots of houses for sale. In normal times, this would mean lots of sales with the inevitable result that buyers, sellers and the real estate community would be happy. However, this is not the case.
The problem is the quality of the inventory available for sale. Most properties listed today are foreclosures, used, abused and in need of lots of Tender Loving Care. Some have been rehabed by investors and put on the market at a premium. Buyers grab up these cream puff properties, like sharks at a feeding frenzy. Every property gets four, five or more offers. One lucky bidder gets the property. The other frustrated buyers begin their search again looking and waiting for the next cream puff. There are not enough of these cream puff homes to go around. Buyers are frustrated and investors keep buying distressed properties, doing repairs, carpet and paint and selling the rehabed properties, at a premium, to buyers looking for the elusive cream puff.
Here at Henderson Real Estate AZ, we did a quick check of the ARMLS listings and noted that there are 6,018 lender owned (foreclosed) properties on the market today. Many of these foreclosed properties are in disrepair and will require time and money to rehabilitate and make them marketable. Obviously, there are not enough investors to handle this huge inventory so these properties will languish, blighting neighborhoods well into the future. All the while, frustrated buyers keep looking for the elusive cream puffs, like dogs chasing their tails. As gruesome as this situation appears, there is a relatively easy fix.
There is a solution, a very little discussed solution, The United States Government has a product called a 203K loan. The 203K loan program is not new. It has been round for a long time. The good news is, despite being around for a while, the 203K Loan Program was made for our times and our current situation. In a nut shell, buyers can buy one of these distressed, foreclosed, properties, at discount prices, and bundle the cost of repairs into their 203K loan. Buyers can buy the distressed property at a discount from the lender and make the repairs. They can pick their own colors, just like in a new build home purchase and make their own cream puff. In effect, buyers can cut out the middle man, the investor. In Maricopa County, buyers can buy a property valued at up to $346,250. (including repairs.) No more looking for cream puffs. No more middle man. Buyers can create their own cream puffs.
Buyers win. The neighborhood wins. The housing crisis is closer to turning around. Win! Win! Win!
Henderson Real Estate AZ and the 203k Loan. "Doing Our Part To Solve The Housing Crisis, One Family, One House, One Neighborhood At A Time!"
