How to Finance a Foreclosed Home

buy a foreclosed home

 

Today we are going to look at how to finance for foreclosure homes. In the past few years the foreclosure market has seen a surge of new investors due in large part to the record number of foreclosures and the fall in house values. This has made foreclosure homes a great investment and has also invited some international investors to the market. For those who want to see how to finance for foreclosure homes there are a few steps you can take to get started.

When you look for a loan to finance for foreclosure homes the first thing you should do is compare a number of different loan banks, mortgages and investment opportunities. You should do this at your local bank, a mortgage broker, sometimes with a demo contractor,  and also with your local investment broker.

Everyone should be looking for the deal and the loan that they are most likely to be able to get. The most important examples are which type of mortgage you will receive and how much money would be the monthly interest payments. Are you planning on living in the home or just looking to make a profit on renting it out? These are the questions you should ask each bank and also your local investment broker, they should be able to help you with this.

Sometimes you may not be able to find the right bank or mortgage broker to help you with financing foreclosure homes. If this is the case you may need to look online or look for local investment broker who can help you. This is not important to look for a broker who does not have access to several different lenders, but you should look for the most competitive rates and the broker who is the most knowledgeable. When you look to compare the different services with details provided, deduct your estimates for interests and fees from the different loans to find the cheapest and most beneficial. At this point you should then write out all the details and work out the most affordable monthly loan payment in order to find the short term mortgage that you will be able to afford.

To make the transaction easily, the mortgage brokers normally charge small processing fees and interest rates tend to be higher when you are looking for a mortgage through a broker because most residential properties are purchased with a mortgage.

Be aware of all the loan offers available and also inquire about the fees and costs associated with that loan. Some fees can be hidden and so they should be when you are using a broker, so a search of the internet can help you find the most comprehensive information. This is important because if you take a loan or two on your current residence and write it off, your taxes may have deducted the interest payment from the income you had been able to claim on your tax in the past.

If you decide to purchase a non-residential property you may have to declare some of the profit earned, that is, report it as interest income or as ordinary income. In this case your home will probably be the subject of alimony. The divorce decrees and child support payments are taken into account and taxes have to be paid on that income.

When you try to finance for foreclosure homes always consider how things will affect tax payments. Bankruptcy is something you should never tackle, foreclosure homes are risks you would be taking to make you financial secure, if not, it is not a good idea

 

 

 

Tips on How to Prepare Your House for a Hurricane

prepare for a hurricane

 

Let’s face it: your home is one of the largest investments. If you live in a hurricane-prone area, you know how important it is to prepare for the worst. One tip for hurricane preparedness is keeping tabs on the warnings issued by the government. But there’s so much you can do than just staying informed – you should ensure all defenses are up to snuff. In this post, we’ll discuss tips on how to prepare your house for a hurricane.

Read on.

Determine your risk

Hurricanes can bring tornados, heavy winds, flooding, etc. Therefore, you should not just assume that you’ll be hit by a hurricane if you live at the coast – the effect can be felt many miles inland.

The number one way of hurricane preparedness is determining the likelihood of a storm.

According to the National Oceanic and Atmospheric Administration, you’re most likely to experience a hurricane if you live in Mississippi, Texas, Florida, or Louisiana. NOOA has tools to detect the danger zones and knows where the hurricane will occur.

Develop an execution plan

Another tip of hurricane preparedness is having an execution plan in place. You don’t want to scramble at the last minute when you see the hurricane heading your way. Experts recommend that you come up with an execution plan and inform the family members where you’ll be heading.

Understand your homeowner’s insurance

Imagine being hit by a hurricane, and you don’t have homeowners insurance. Standard home insurance covers flood and wind damage. So, if you’re in a hurricane-prone area you may want to buy additional coverage. In most cases, the insurance won’t take effect immediately, so you may want to understand the terms.

Inspect the roof

The roof is a vulnerable part of wind damage, so you should ensure it’s in pristine condition. But what exactly are looking for at the top of the roof? Check whether the shingles look brittle or loose – reseal if necessary.

If the shingles are showing any signs of wear, a professional can charge $0.25 to $1 per square foot. Also, you should inspect the gable ends and watch for signs of wear. If you see damaged shingles or leaks, you may want to replace the roof. Other signs of damaged roof include:

  • Missing shingles
  • Damaged shingles
  • Bald spots
  • Leaks

Most experts recommend that you install metal roof straps as a way of hurricane preparedness. If you’re looking for a long-term upgrade, you may want to upgrade to an impact-resistant roof. They are designed to withstand wind and hail damage but may cost about 20% more than traditional shingles. This is what you need if you want to lower your homeowner insurance premiums.

Finally, you should pay attention to the gutters. If they look damaged or clogged, you should have the theme checked before a storm. If your roof is still under warranty, timely repairs will make the warranty valid.

Doors and windows

The average speed of a hurricane is around 150 mph, so spraying glass is a major concern for windows. If you don’t emphasize the safety of your doors and windows, your home will be susceptible to flying debris. One key aspect of hurricane preparedness is investing in impact-resistant glass windows. They can withstand the high impact of winds, and they look great. If the strong winds come to your home, you can focus on your family instead of installing plywood on the unprotected glass.

Unlike an earthquake or a tornado, weather forecasts can predict the impact and strength of a hurricane. And with this kind of information, hurricane preparedness can protect the windows from flying debris.

How to board up windows for hurricanes

During the hurricane season, the price of most supplies will skyrocket due to high demand. Some of the key supplies in your hurricane preparedness include:

  • Measuring tape
  • Drill, nails, and screws
  • Circular saw
  • Plywood

With this in mind, you should head to the store once the storm is predicted. After you gather the supplies, you should follow the following steps.

Measure the plywood – you should use 5/8-inch plywood and add additional four inches on the side. After you know how much wood you need, you should protect the windows from being blown out.

Drill the holes on the plywood – the holes should be of the same diameter as the nails you’ll be using. The holes should be two inches from the edge with 12-inch intervals around each panel.

Mark the wood

You should howl the plywood against the windows you’ll be boarding up. And this is where you place the mounting screws. This is something you can do any time of the year.

Secure the boards

Once you’re ready to board up your home, you can use the marked panels to cover your home. Screw carefully and ensure that the boards are tight. Other short-term window upgrades for hurricane preparedness include:

  • Any wind seepage inside your home can cause serious damage. You should think of windows as a point of vulnerability, and that’s why you should cross this off your list.
  • Inspect the window seals – the seals on the windows can damage in drier climates. You should inspect the caulk around the window panels. You can even hold the candle near a window to see if there are any signs of wind movement.
  • Shutter all the windows – the hurricane winds approach at a high speed, so you may want to keep the frames strong. The cost will depend on the material you want to choose – this can be somewhere between $ 70-300.
  • Install heavy-duty bolts– if the doors need additional reinforcement, you should buy a bolt kit at your local store. They are easy to install and will keep the bottoms of the doors secure. This is a good defense against severe storms in your home. If that happens, the winds will tear your home apart.

Yard, Deck, and patio

Another key aspect of hurricane preparedness is paying attention to the outside areas of the house – patio, deck, yard, etc.

Ensure the deck posts are secured

You should confirm the deck and porch posts are well secured. If they are not properly anchored, they can lift and damage the property. The cost to replace the deck will depend on the materials you use.

Bring ungrounded furniture inside

This is a key aspect of hurricane preparedness. Unless you don’t care about your expensive furniture, they are safe when you bring them inside. While that porch swing can withstand moderate weather, it can be blown away by the strong winds that come with a hurricane.

Trim the tree branches

Weather experts advise homeowners to trim the trees that are close to the house. You should focus on those close to the windows – it’s better you cut rather than take them from your living room. This is a must-do on your hurricane preparedness list.

Check for any signs of distress

You should go around the house and check for any signs of distress on the foundation.

Use sandbags for flooding

When a hurricane hits, flooding is inevitable. Thankfully, there are things you can do to reduce the impact of the damage – even a foot of water can reduce the damage. The surefire way to ensure that water doesn’t get in the house is using sandbags.

Depending on your jurisdiction, the local government can supply sandbags to homes before a hurricane strikes. The first place you should place the bag is on the front door. You can use duct tape to ensure it fits well. After that, put the next raw of bags over the gap such that the bricks overlap. This will give you some protection.

Secure patio furnishings

The peak speed of the wind that accompanies a hurricane at Coastal Florida is 142mph. While tying the objects on your patio may be a good idea, strong winds can easily rip the items away. And that’s why you should secure them as part of hurricane preparedness. Here is a checklist of the items you should secure:

  • Potted plants
  • Grills and propane tanks
  • Garden hoses
  • Pool equipment

Secure the fences and railing

If you want to secure your backyard, you should examine the railings. The loose railings, spindles, and boards should be secured by fasters. Avoid using rails as they may not withstand the strong winds. Instead, use strong screws designed for outdoor use.

Swimming pool precautions

There are many things you can do to protect your pool from the effects of a hurricane. While most people recommend that you drain the pool, this should not be the case. When you keep it full, you can protect the deck against falling debris. The smart approach for hurricane preparedness is draining the pool 1-2 feet when you prepare for a hurricane.

Manage electricity

Staying safe is a priority in hurricane preparedness.

Learn where and how to turn off electricity

If you expect some flooding, you should unplug electrical devices and monitor the situation. Generally, the emergency officials will alert you when to turn off the circuit.

Use surge protectors

The surge protectors will keep valuable equipment in your home at bay. This can include gaming systems, TVs, refrigerators, etc. And depending on where you are in the path of a storm, electrical surges can be a challenge.

Use generators properly

If you have a home generator, check the fuel capacity. This is something you should focus on as part of hurricane preparedness, especially if you’ll use the generator during a power outage. If used improperly, you may be at a high risk of carbon monoxide poisoning or electrocution.

Create a backup power if you have medical equipment that uses electricity. This is something you must have in your hurricane preparedness checklist.

Another area you should focus on in your hurricane preparedness is disconnecting everything. To avoid electrocution you should disconnect:

  • Propane tanks
  • Electrical systems with built-in grills
  • Speakers wired to the inside stereo unit
  • Decorate light decks
  • Outdoor lamps and lanterns

Garage

Your garage door is susceptible to the effects of a hurricane than any other part of the property. Because these doors have huge openings, they can be vulnerable to violent storms. If you’re not careful, these winds can rip off roofs or cause serious structural damage. To avoid the worst-case situation, there are things you can do in your hurricane preparedness checklist.

Does your garage meet the hurricane-force wind regulations? In certain areas, your garage should withstand over 100 miles per hour.

There are things you can do as part of hurricane preparedness to ensure that the garage door is well-maintained.

Use retrofit kits

Retrofit kits are designed to withstand the strong force of hurricane winds. The kits cost more and may require that you upgrade the parts of the system. You may need a supplier to evaluate the existing door equipment.

Brace

Whether you choose a DIY method or engage a professional, a brace can stabilize the door against the strong forces of a hurricane. You’ll have to remove these add-on systems to ensure the garage door operates normally.

Prepare the basement

Before the hurricane season kicks in, you should protect the basement to ensure it doesn’t pose threat to the rest of the house. Basic tips for hurricane preparedness in your basement include:

Anchor unsafe objects – these include grills and propane tanks

Store the valuables in waterproof containers and ensure they can be identified during an evacuation.

Get a sump pump – A properly waterproofed basement has a sump pump. At its most basic level, this is a way of removing water from home. If it’s clogged or unable to remove water fast enough, the motor can burn out, or the unit may stop working altogether.

Talk to neighbors

After a hurricane disaster, most people rely on neighbors. Even if you’re busy with the preparation, you should ask them about the evacuation plan before the storm hits. And you never know, your house may start flooding, and the only option you have is to runs to theirs.

Hurricane preparedness: personal safety guidance

Whether you plan to evacuate or ride the storm out, you should put together a survival kit. It should include things like:

  • Battery-powered lanterns
  • Phone chargers
  • Flashlights
  • Medicine
  • First-aid kit
  • Non-perishable items

If you have to ride the storm, you should look for a safe place like the basement.

Wrapping it up

If your property is located in a hurricane-prone area, you should follow the above tips to the latter. Without adequate hurricane preparedness, your home may be vulnerable to the destructive forces of nature. But there’s no reason to the caught unprepared. It takes a little research and investment to protect your home, loved ones, pets, and birds on sale.

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The post The Pros and Cons of Buying a House with a Septic Tank appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.