Where are the New Braunfels foreclosures listed? That’s a question I’m frequently asked by San Antonio area home buyers. Having been in real estate for over a decade, I’ve made it through the days of subprime lending and the economic recession that followed. The aftermath of subprime lending was many foreclosures that became available when the 5-year ballon payments came due after buyers obtained loans in 2002-2005 and defaulted.
There are different kinds of foreclosures that are frequently listed on the MLS. The most common defaulted property is a HUD-owned home. This is a property in which the homeowner had an FHA mortgage they could no longer pay. When HUD-owned homes are listed, there is a short listing period open only to buyers who will occupy the property as their primary residence. A bid is submitted by the buyer’s real estate agent through an online portal along with a mortgage pre-qualification. After the initial listing period, usually lasting 10 days, bids are open to anyone. HUD will give preference to owner occupants and there may be incentives available for buyers obtaining an FHA loan to purchase the property. A real estate agent knowledgeable about the process can provide you with more information about what is required to make a bid on a particular property.
Another type of “foreclosure” that is listed on the MLS is one in which the homeowner defaulted on a VA loan. This is owned by the U.S. Secretary of Veteran’s Affairs. It’s important to note that when purchasing a VA foreclosure, there are added expenses that are commonly negotiated as a Seller’s expense on non-foreclosure transactions.
- The VA does not pay for the title policy, escrow fees, survey, or Homeowner’s Association transfer fees.
- No repairs are considered based upon a buyer’s inspection report.
- If utilities are off due to property condition, as they frequently are, Seller will not repair to facilitate inspections.
- Also, Seller may convey with a Quit Claim Deed if VA title approval is not obtained 5 days prior to closing.
The third type of foreclosure commonly listed on the MLS, is an REO or “real estate owned” property. With this type of foreclosure home, a mortgage was defaulted on and the lender now owns the property as the seller. The lender will order a BPO (Broker’s Price Opinion) and price the property to sell quickly for it’s condition based upon the BPO. These are normally priced below market and it’s important to consider if they are priced enough below market to account for the repairs needed and the use (primary residence, long -term investment, flip).
Since we are far removed from the days of irresponsible lending and the housing market has remained strong in Texas, a home buyer will notice there aren’t many foreclosures to choose from while in the market to purchase a home in New Braunfels or San Antonio. And, in many cases, a buyer can make a better deal with a seller who is motivated rather than purchasing a foreclosure. At any rate, an educated real estate agent who knows the process and the inventory well can help you navigate the waters and make a decision based on what’s best for your timeframe, budget and your lifestyle.
The Laurie Jarrett Group at Keller Williams Heritage is experienced in selling residential resales, foreclosures, HUD-owned homes, VA owned homes and new construction. Call us to discuss your home buying or selling needs and put our experience to work for you. 830-515-0728
San Antonio area and New Braunfels Foreclosures for Sale: