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Bay Area Real Estate | Free MLS. Coming to CA and like to know Things to do in California.

I scored 10 out of 11.

And I disagree with their answer on the one I missed.




T/F 1. As a general rule, foreclosed homes sell for less than their market value.

Answer (in part): .....In states where home prices have risen the most, foreclosed properties sell within 5 percent of their full market value.....


They put in a specific disclaimer case of "In states where home prices have risen the most" as a rational for justifying all other market conditions.


And even if you accept that specific market condition, as a given for all markets:

You have 100% market value.
And you have 95% of market value.

Is 95% less than 100%?



So, score me an 11.




Still, fun to take the quiz.

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Jennifer Karlen & Jon Karlen
Kentucky Horse Farms - Louisville Kentucky Real Estate - Lexington Kentucky Real Estate
Serving the Louisville KY metropolitan area including Jefferson County - Prospect Shelby County - Shelbyville Oldham County - Goshen, La Grange and the Lexington KY metropolitan area including Fayette County - Lexington Woodford County - Versailles Scott County - Georgetown Jessamine County - Nicholasville

info was from 2006, so i bet the data were from 2005 ...

in todays foreclosed home market everything is on discount sale
at least the auctions i go to

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Bay Area Real Estate | Free MLS. Coming to CA and like to know Things to do in California.

I missed one as well - I didn't realize that there are stil states where the owner can reclaim their property by paying off the debt. Still - 10 out of 11 ain't bad!

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Jason Crouch, Broker
Austin Texas Homes, LLC
512-796-7653 (cell)
Austin Real Estate
Austin Texas Real Estate
Austin Homes

Kentucky = one of those states.

So that was an easy one for me.

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Jennifer Karlen & Jon Karlen
Kentucky Horse Farms - Louisville Kentucky Real Estate - Lexington Kentucky Real Estate
Serving the Louisville KY metropolitan area including Jefferson County - Prospect Shelby County - Shelbyville Oldham County - Goshen, La Grange and the Lexington KY metropolitan area including Fayette County - Lexington Woodford County - Versailles Scott County - Georgetown Jessamine County - Nicholasville

How does that work for the new buyer? They are just ousted from the property?

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Jason Crouch, Broker
Austin Texas Homes, LLC
512-796-7653 (cell)
Austin Real Estate
Austin Texas Real Estate
Austin Homes

It can get complicated pretty quickly.


In its most basic form:

If the property sells for less than 2/3 of its appraised value, then the person has the right to redeem the property from the buyer by paying the sale price plus interest.
The redemption lasts 1 year from the foreclosure date of sale.


So, as an example, you buy a property at a foreclosure auction and get a really good deal on it at 50% of appraised value. You spend $20,000 on a new kitchen. $5,000 for new hardwood floors. $2,000 for plumbing work. ETC. ETC.

If the person redeems the property 11 months later, you ONLY get the Sale Price + Interest.
No credit for the new kitchen.
Diddly for the hardwood floors.
Zippo for the plumbing work.
etc

Sale Price + Interest, and thats it.

Well, I suppose you may get a "thank you" from the guy getting the property back for you fixing it up for him.



Thats essentially it at the most basic level.


There are situations where a buyer can have a 2 year redemption period (or possibly more).


So, if you are doing foreclosure auctions here - you better have the financial resources to purchase the property, and essentially sit on it until the term of the right of redemption expires.

The "buy, fix it up, and put it back on the market in 2 months" for a quick flip that you see on the TV shows, doesn't work here.

[And you would not believe the number of persons that are ignorant of this law in our market.]



Kentucky has lots of wierd, old school laws like that.

We have a lot of "dry" counties in Kentucky. [dry = no alcohol]

I live in a hybrid county of "moist". But we also have counties that are "wet", and "limited". And combinations like "moist and limited", "winery and limited", etc.


We essentially like to make things as complicated as we possibly can.



Currently, we spend our time debating the tough legal question of:
"If you divorce your wife, is she still your sister?"


Though, I don't see an answer coming for that anytime soon.

__________________
Jennifer Karlen & Jon Karlen
Kentucky Horse Farms - Louisville Kentucky Real Estate - Lexington Kentucky Real Estate
Serving the Louisville KY metropolitan area including Jefferson County - Prospect Shelby County - Shelbyville Oldham County - Goshen, La Grange and the Lexington KY metropolitan area including Fayette County - Lexington Woodford County - Versailles Scott County - Georgetown Jessamine County - Nicholasville

i got 7 out of 11.... i marked all false .. hahahah

8 out of 11

Malok - That is difficult to keep track of, huh? Note to self: Don't buy foreclosures in Kentucky.

I have a lender friend who used to do loans in Kentucky, and he has told me some stories about the way things are done there vs. Texas. Very different for some things!

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Jason Crouch, Broker
Austin Texas Homes, LLC
512-796-7653 (cell)
Austin Real Estate
Austin Texas Real Estate
Austin Homes