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Foreclosures in Frisco Texas
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Foreclosures in Frisco Texas offer homebuyers a chance to buy an new home for
much less then current market value. With the selection
of homes ranging from just under $100,000.00 to over $1,000,000.00; if you're
looking for a newer house at a great price, Frisco Texas has it. There are
thousands of foreclosed properties in the Dallas Fort Worth area and Frisco has
some of the most desirable properties in town.
Foreclosures are not new to the real estate market, nor is this current
predicament exclusive to Texas. In the past, the number of properties that went
back to banks through the foreclosure process flowed in at a slow and
controllable rate, that however has changed. Even in our strengthening economy
financial institutions are straining to ebb the flow of new foreclosures.
How Much Can I Save?
The Advantages of Buying Foreclosures in
Frisco Texas.
Not your
Fathers Foreclosure
When most people
think of a foreclosure they tend to imagine a fifty year old house that is run down,
in need of major repair just to make it livable, and is usually the ugliest
house on the block. Am I right? Well, I have to admit, some of those houses are
still out there, if that's what you're looking for, but with all the available
foreclosures on the market today, in most cases, finding a newer house that is move in ready, or close to it,
is very easy to accomplish. Most Foreclosures in Frisco do not require extensive
repair and they are far from ugly. If you are planning to buy a bank owned
property in Frisco, you may have some difficulty finding a fifteen year old
house that is in need of a major make over. There's a reason for that, the
majority of homes in this area weren’t even around fifteen years ago, so most of
the
available foreclosures in Frisco are newer homes in good to very good condition. The most common repair for these
properties might be some
interior paint and maybe a bit of carpet cleaning or replacement.
What’s going
on?
A decade ago almost all homeowner defaults
stemmed from a change in employment status that rendered financial difficulty for people and if
a new source of income could not be obtained quickly, some people lost their
homes. In today's market the lagging negative consequences of the now aging
sub-prime_lending
practices, a perpetual sluggish economy that nurtures a larger then normal
number of unemployed workers, and a correction of home values, all add to the
continual produced of a sizable number of foreclosures.
Over a period
of time, starting around 1999, banks began an upward spiral of “alternative
lending practices” to sell more homes and accommodate investors that were looking for a better return on their
money.
Prior
to that, to qualify for a home loan a
borrower had to have two years of non interrupted employment, a minimum of five
percent down-payment, good credit, and their income had to fall within a
formulated debt to income ratio. This was the formula
for a conforming loan, one that Fannie Mae and the secondary markets mandated in
order for these notes to be bundled and sold thus allowing the lenders to
generate more loans and cycle the process over and over again.
In the beginning, the risk was
relatively low and only a few people could take advantage of the new rules, but
as time went on more private investors wanted to get in on the action flooding
the market with money and the loan originators started cranking out loans with
higher yield and ,of course higher risk. The feeding frenzy had begun.
Each successive year brought on
new competitive programs and riskier loans, until there were virtually no
requirements to qualify for a loan. Now I’m not a loan officer, so I guess using
the phrase “Until You Walk In My Shoes” would apply, but, if a person came in
with a loan request and they had bad credit, no money for a down payment, no
money to cover the closing let alone the inspections, and on top of that, they
did not have a job, do you think the thought “Bad Investment “might come to the
forefront of a loan officers mind, but this is an example of just how
nonsensical the lending business had become.
Qualification was one aspect of
the lending game. Praying on people's wants and desires also played a role in
this national disaster. Lenders were allowing homebuyers to purchase homes that
they could not afford. By lending 100% of the purchase price and using a loan call an ARM (Adjustable Rate Mortgage)
too many people obtained loans with a very low initial first year payment
allowing them to buy a much more expensive house then they could otherwise
afford. Unfortunately, as the ARM adjusted, the monthly mortgage payment became
unaffordable and the owner was forced to abandon the home usually at the end of
a foreclosure. An adjustable rate mortgage is not a bad vehicle to use to
finance a home, it was the unusual way that lenders structured these loans that
made them so dangerous.
These homes have been making themselves know for a few
years now, via loans that had originated four to seven years back, and with some
of the worst financing abuse occurring well into 2006, there were more
foreclosures to come, many more, and at this point as job losses
continue, an easing in foreclosures looks unlikely to happen any time soon.
This is why you can buy a foreclosure in Frisco, and other
cities surrounding the Dallas Fort Worth area, that are newer homes, in great
shape, for much less then market value.
To sum it up, a person was allowed to obtain a loan for a
new house that they could only afford for one or two years, with no down payment
and no closing cost, and when the end came, they just walked away. Doesn’t that
sound like renting? Now, with the inevitable devaluation in the real estate
market, many people are walking away from homes that they can still afford, but
see no positive monetary future if they stay.
In 2007 a major turn around took place in the lending
world. With the onset of an escalating foreclosure rate in the subprime, Alt-A
and Jumbo markets, private investors have pulled their money out of the now, too
risky investment, leaving the loan originators nowhere to sell the notes. In
addition to that, hundreds of lenders that dealt specifically in the subprime
market have permanently closed their doors.
The mortgage market today has done a 180 degree, radical
reform, trying to right the wrong thus not exacerbating the problem further,
unfortunately the damage has been done and now it’s time to pay the piper. Just
how much that cost is going to be……..no one knows, but as with most bad events
there is a silver lining. For those who are in the market for a home, this is
one of the best times to buy, and acquiring a foreclosure can save the purchaser
thousands of dollars allowing for a smaller monthly payment or a much nicer home
for much less then market value.
Thinking about buying a Frisco foreclosures, or a bank
owned property in other city around the Dallas Fort Worth area? As a
REALTOR®
I can locate any
foreclosed property in any DFW area city, contact me at
one of the numbers listed below to discuss the possibilities. We can also submit
bids for
HUD homes that are available through
Department of
Housing and Urban
Development.
These homes can be viewed online at
HUDHOMESTORE
and can only be bid on through a licensed
real estate agent or broker.
Jay A Hendrick
William Davis Realty
8856
Coleman Blvd
Frisco,
Texas 75034
Cell: 214-336-7088
Voice/Fax: 972-248-5991
jay@foreclosuresfrisco.com
www.ForeclosuresFrisco.com
www.RealEstateDal.com
Member: NAR TAR CCAR ABR
SFR TAHS
Frisco
foreclosures offer a tremendous amount of value and we also service Allen,
McKinney, Prosper, Plano, Lewisville, The Colony, Sachse, Wylie, Murphy,
Richardson, Carrollton, Flower Mound, and many other areas around DFW.
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