Virginia Beach Foreclosure! Fact or Fiction?
Are there any Virginia Beach Foreclosure Bargains out there? – Fact or Fiction?
The most common “I want a killer deal” inquiry that I get are from those looking for foreclosure property in Virginia Beach – most are expecting to buy at 50 cents on the dollar.
Today too many folk are looking for the “killer deals” when buying a foreclosure. Most expect to find the properties in the 50 cents on the dollar range, and those are few and far between in today’s world.. dream on… however there are still some very good deals out there, but 50 cents on the dollar is not one of them. That is unless the property is totally junked out.
Actually it is a buyer’s market right now and sellers are willing to take some deep losses to get out from under a payment that they cannnot afford. However when we try to help a seller out, we still find that the average seller thinks the public and real estate agents in general are trying to steal his property. I have seen some sellers turn down a low ball offer, and walk the property all the way thru foreclosure, and get absolutley zero for the property and end up owing the bank thousands of dollars in debt. Our off that appeared to be a low ball offer, would have allowed the seller to walk away with a few bucks in his pocket and a totally clear credit report and zero debt owed to the bank. So it turns out our low offer could have been a god send to this seller if he could have looked at the deal with a clear head. I suppose a clear head is not one of the things that come when you are deep in foreclosure and on the verg of losing your beautiful home and along with that sometimes your entire family as the stress of foreclosure sometimes breaks up complete families.
So bottom line, maybe our offer was a low ball but far from trying to steal the property as it did allow the seller to walk away without debt. Some sellers are just hard headed and have convinced themselves that anyone not offering full market price is trying to rip them off and and based on those assumptions will go all the way to the foreclosure and end up deep in debt and at that point its just too late to help then in any way.
In regard to some of the properties that are plentiful in the Virginia Beach area, heading up the list is a ton of condo inventory around the entire Hampon Roads and an over abundance in the Virginia Beach Area.
Many of the condos that are in foreclosure are what we call kiddie condos. This is a property that mom and pop purchase a condo for Johnny to go to school here in the Virginia Beach area and Johnny adds a roommate or two to help with the expenses and the properties easily makes the mortgage payment until Johnny graduates.
Once Johnny is gone, the property remains vacant and at some point goes into foreclosure. And here we go again… over and over.
When prices stopped going up, the inventory grew rapidly and of course this drove the prices down to levels never before seen in the Virginia Beach area. Everyone was used to buying the property at any price and due to inflation they could sell it for a profit in as little as 2 years. Those days are gone, if you do not buy for a low price and keep the property for a minimum of 5 years you will probably end up with a loss overall.
Many folks try to rent the homes out, to make the mortgage payment but if you are an absentee landlord many times you have damaged property and expensive repairs each time a tenant moves out. The absentee landlord has much more expenses as they must either come into town frequently or hire someone to manage the property. Management fees average about 10% of the going rent and that makes the profit much less.
To find the very best deals in the Virginia Beach area, do not hesitate to contact Tom Chambers of Resh Realty Group, as he is an absolute genius in massaging the foreclosure market and can invariably come up with a “killer Deal” for your and your friends. Tom can be reached at 757-587-9856