Porter County Real Estate

Bargain Hunting Real Estate In Porter County Indiana

Do you know the difference between Foreclosure, REO and Short Sale? Bargain hunting prospectors seeking the diamonds-in-the-rough sometimes use these words interchangeably, so let’s review the basic terminology so we can be more precise when discussing any plans to invest in a Porter County Indiana distressed property. Pictured here are two Portage Indiana distressed homes which are priced below market value. Both are located in top quality neighborhoods. They seem like bargains on the surface. But without lengthy research on the property, and negotiation with the lender, will a buyer find out how much of a “bargain” she will actually be purchasing.

Foreclosure

Foreclosure is the process that occurs when a homeowner stops paying the mortgage and eventually surrenders the home to their lender. This process has several steps. It starts with overdue notices, kindly asking the borrower to catch up. There will be a series of workout people who will try to help get things back on track. Under the Federal HUD Home Affordable Foreclosure Alternative program they may reduce the interest rate or modify the mortgage.

If it all fails the lender will issue a default notice, and eventually a legal suit through county court and eventually an eviction from the property if the borrower has not already vacated. This is a lengthy process and you can imagine that the property is likely to be poorly maintained during this time period of “distress”. Sometimes owners or renters will strip the home of appliances and cause damage, as things turn from bad to worse.

Finally, the lender will salvage whatever residual value, by listing the home on the real estate market. In most cases these homes are sold in as-is condition without the disclosures and clean chain-of-title that a conventional seller will offer the buyer. The entire time period can often a run a year or more while the various steps in the process run their course.

Bank Owned or REO

Real Estate Owned is what happens at the end of the foreclosure process, and it is the worst outcome. The property ends up being vacant, neglected, often vandalized. Banks and lenders don’t really want to own and maintain empty dilapidated homes, but due to the recession they have many on their list of “assets”. The word asset being somewhat euphemistic since the house is probably worth only a fraction of what it once was,  by this point.

So now that lender, often being out of state, and having a list of many of these so-called assets, now goes through another process of selling these homes to bargain-hunters, rehab contractors, and handy homeowners who are willing to buy them and invest in turning them around. After trying to determine it’s salvage value, they will list it with a broker and hope for the best.

In short, REO properties are bank-owned.  And they likely are in need of some restoration and maintenance work, may to need fixtures or appliances.

Short Sale

The short sale is another type of work-out that can take place during the early phase of the foreclosure process, if the homeowner and the lender can’t work out a modification. This is about the only scenario where a Realtor can help out a trapped and struggling owner. Once the homeowner realizes they are in pre-foreclosure trouble they ask their lender permission to conduct a short sale. They write a letter explaining their hardship, such as loss of job, medical issue, or other reason. And th lender will provide a list of supporting documents and questions they will want answered. An experienced agent can assist through this process.

When accepted, the homeowner can then hire the Realtor to market and sell the home at a discounted price to a new buyer. The home, sold in good condition, maintains much of of it’s value. The bank recovers a decent portion of it’s equity. And most important, the home seller walks away from the deal with his credit intact.

There are several advantages for doing the short sale versus the full foreclosure.  Compared to a court ordered foreclosure, where all a defendant’s asset are liquidated to pay the mortgage debt, in the short sale . If the assets don’t completely pay off the debts & fees, the court will issue a “deficiency judgment” for the balance. This will leave the convicted debtor responsible for the remaining debt which will cloud their credit rating for for years thereafter.

By settling with the lender and selling the house to a new and more solvent buyer, the deficiency judgments are usually released making it a win-win for both lender and debtor. And since the homes are often still occupied until the end of the process, the buyer gets a better maintained property.

Buyer Beware

Bargain hunters must always be extra careful with their diligence when choosing a distressed home. Such factors as

• the home’s condition
• whether the home can be financed at all or will requires cash
• the selling bank’s  deal
• the chain of title

are some of the main considerations to closely examine. Like anything that seems too good to be true, buying a “scratched and dented” home is like anything else–you need to do your homework. It takes extra diligence on the part of the agent and the buyer to make sure that one of the many possible “gotcha’s” doesn’t sneak up on the unaware. If you need help navigating the short sale or foreclosure real estate market in Portage Indiana, or the other Porter County communities, allow me help you select that diamond-in-the-rough. Send me a text message with your question.

Porter County Real Estate

Trading Up Homes? Consider Listing Your Existing Home First

Households in Porter County Indiana are starting to understand that it is a great time to buy property.

Some are looking at all those foreclosures on the market and dream of getting a deal for pennies on the dollar. Others, more realistically, are looking at the current market conditions and see a great opportunity to trade up to a larger home, or a nicer location, than the one they live in now.

You’ve found your dream home in Porter County Indiana and at a terrific price. What’s next?

You must be prepared to answer three tough questions on your quest for your dream home.

1) Are you ready to endure the long road ahead for your dream home?

Did you know it takes around 6 months, on average, to sell a home in Portage Indiana? The numbers in Chesterton Indiana are similar. In Valparaiso Indiana it can take up to 9 months, depending on price range and the area. So from the first day you list, to the day of closing, it may be easily 6 (+) months to get you moved.

2) Can you afford two mortgage payments?

Most people need the equity from House A in order to put down payment on House B. And unless you have lots of cash and above average income, you probably cannot afford mortgage payments from two homes at once. Consequently, if you are like most people you really need to sell first, then buy second.

3) How long will the seller of your dream home wait around while you put your house in order?

One technique Realtor’s use to extend deadlines is the Contingent on Sale rider. In other words, the contract to purchase the new home is conditional on selling the old one. Sounds great, but it puts everybody in a bind. You have agreed to buy a house but you can’t afford to finalize the process until you sell yours first. That’s a bind. You are asking the home seller to take their home off-the-market, then wait around while you sell. That seller is now in a bind too. Is it fair to the seller to have to wait several months due to your procrastination?

If the home seller is like most, they will only let you slide for 30 – 60 days. After that, the home sell will want the chance to sell to a different, more serious home buyer; serious, meaning someone else who is more prepared to CLOSE THE DEAL than you. Now, if you are committed to moving forward, you are forced to accomplish in one month, what it normally takes 6-9 months to complete, which means, forcing you to offer your home at a deep discount price simply to meet the deadline. That is a money losing bind.

What’s the bottom line to trading up homes when you have found your dream home?

Although it is possible to find your dream house first, then sell your existing home, the law of probability says otherwise. On the other hand with proper planning you will be rewarded with less stress, and significant cost saving, by offering your existing home for sale prior to searching for your dream home.

If you’re ready to trade up to your dream home in Porter County Indiana, let’s get your home listed today!

Porter County Real Estate

Favorite Restaurants in Porter County for Breakfast

When you just have to get some tasty flapjacks, waffles, or that special omelet creation, where do you go in Porter County Indiana for breakfast?

Share your appreciation for the early-rising staff of these Porter County Indiana cafes, coffee shops and restaurants for their dedication to the breakfast and brunch clientele.

Favorite Restaurants in Chesterton Indiana for Breakfast:

• Northside Diner, 100 N Calumet Rd
• Peggy Sue’s Diner, 117 S Calumet Rd
• Red Cup Cafe & Deli, 115 Broadway
• Round the Clock, 1607 S Calumet Rd
• Third Coast Spice Cafe, 761 Indian Boundary Rd

Favorite Restaurants in Portage Indiana for Breakfast:

• Denny’s Restuarant, 6171 Melton Rd
• Egg on Your Face, 6295 Ameriplex Dr
• Pantheon Restaurant, 5900 US Hwy 6
• Rosewood Family Restaurant, 2606 Portage Mall
• Tate’s Place, 3051 Willowcreek Rd

Favorite Restaurants in Valparaiso Indiana for Breakfast:

• Blackbird Cafe, 114 Lincolnway
• Bob Evans Restaurant, 2201 E Morthland Dr
• Broadway Cafe, 1805 Morthland Dr
• Cornucopia Coffee, 210 E Lincolnway
• Main Street Cafe, 657 Washington St
• Rosewood Family Restaurant, 367 W US Hwy 6
• Round the Clock, 217 Lincolnway
• Suzies Cafe, 1050 Southpoint Cir
• Uptown Coffee, Tea and Soda, 1400 Lincolnway

To these sunrise superstars, we salute you, one and all! And of course, YOU are invited to share any hidden gems that were overlooked from our Favorite Restaurants in Porter County for Breakfast.

 

Porter County Real Estate

Porter County Indiana – Home to 54 Nature Trails And More

Get ready to trek the wilds of Porter County Indiana. Finally in one location, there is a booklet of all the best nature trails and points of interest for the amateur nature lover in your family. And with 54 nature trails to choose from, you can visit one a week for an entire year before visiting the same place twice.

In case you missed it Chesterton Indiana’s old Porter County Convention Recreation and Tourism Bureau has been renamed and re-branded. The new name is now Indiana Dunes Tourism, reflecting the emphasis on the lakeshore, the State and National Parks, and a new appreciation for the unique biodiversity, bird migration, nature habitats, and Lake Michigan. Eco-tourism comes to Northwest Indiana.

Indiana Dunes Tourism even hired noted nature photographer Ted Eubanks to assist them in producing some high quality campaigns and support materials. And one of the results is a 44 page booklet called “Beyond The Beach: Discovery Trail Guide” where you can locate and plan your weekend excursions across the rural vistas of Porter County Indiana.

The free booklet is organized into three topographical categories: Dunes, for the lakefront and oak forests; Moraine, referring to the highlands around Valparaiso Indiana where the ancient glaciers came to rest; and finally the Kankakee Region for the rich agricultural and wetlands in the Southern portion of the county around the Kankakee and Yellow river basins.

There are activities for bicyclists, bird-watchers, kayakers, hikers, railroad and history buff’s, just to name a few. If you don’t make it to every physical location in Porter County the booklet also offers plenty of tantalizing photos to bring you back again. You can obtain a free copy of  “Beyond The Beach: Discovery Trail Guide” at the Dorothy Buell Memorial Visitor Center in Chesterton Indiana. There is an extensive collection of tourism brochures from across the region, as well as a gift shop and bookstore with an assortment of memorabilia and nature guides.

Come enjoy one of 54 nature trails throughout Porter County Indiana and learn why so many nature lovers have come to call Porter County Indiana home. When Mother Nature calls you to come home to Porter County Indiana, call upon me to help you unearth your dream home in Porter County Indiana.