Buying foreclosures that need, 203K will pay for it!

Yesterday we started talking about a 203K. Most experts are estimating that $473.4 billion in loans that will eventually need to be liquidated corresponds to approximately 1.75 million individual properties. This number represents almost 50% of the existing homes available for sale as of December 2009, and moreover, only accounts for expected defaults for mortgages outstanding in the private securitization market which makes up less than a third of the total securitization market and less than 5% of the total mortgage market. Foreclosures are "as is" properties. There are a lot of opportunities!

Now think of yourself as an asset manager of the bank and all the properties they have in inventory that you have never seen or don’t know what condition the property will be in due to theft, winterizing of the utilities, etc. Most of these asset managers are going to only accept a 203K borrower or a cash buyers because they have already lost money on the property. They want to get the maximum dollar and they want to make sure the deal will CLOSE. In comes a 203K – no certificate of occupancy is needed and the property is sold AS IS with just 3.5% down including the repairs.

What does the 203K loan program cover?
•Remodeling bathrooms or a kitchen
•Replacing a roof, gutters, and downspouts
•Adding a family room, bedrooms, or bathrooms
•Replacing flooring, tiling, or carpeting
•Completing a basement or attic conversion or adding a second story
•Expanding or building a garage or carport
•Renovating a deteriorating property, such as repairing a chimney, termite damage, or structural problems
•Upgrading plumbing, heating, air conditioning, or electrical wiring
•Eliminating health and safety hazards, such as removing lead-based paint or mold
•Installing a well or a septic system
•Adding a porch, deck, or patio
•Adding or repairing siding or repainting
•Installing energy efficient windows or doors
•Purchasing appliances like washer, dryer, microwave, stove

The list is endless – the only thing it doesn’t cover is putting in a hot tub in the back yard or a built in swimming pool..

Not sure you qualify for the 203K loan? Smart Property is partnered up with a lender that wrote the State of Illinois course for 203K and covers 7 states! Sohail and his lender are experts in 203K and want to help you take advantage of this unprecedented time in history to buy Call Sohail Salahuddin at 312-437-7799 or send your email questions to Sohail@smartpropertyusa.com.