The Brian Petrelli Team Blog

We’re starting to see more and more banks wake up to the fact that Short Sales are much better financially for the bank than allowing a home to go to foreclosure. Our teams has seen first hand evidence of this on Denver Short sales, but it looks like some national statistics and research are finally being released that will bolster this point.

DSNews.com has an article detailing research done by McGeough Lamacchia Realty that documents this:

On average a home sold through short sale brings a 24 percent greater return than a foreclosed property, according to recent findings from McGeough Lamacchia Realty.

“This means the banks are losing an average of $43,000 for every foreclosure sale compared to what they would have made in a short sale,” said a blog post on the company’s website.

The firm reviewed prices for short sale and foreclosure sale properties in 2010 and 2011 in Boston, Phoenix, Tuscon, Southern California, and Southwest Florida.

Yes, you read that correctly: the banks are losing on average $43,000 for each foreclosure compared to a Short Sale. The obvious question then becomes, “Why don’t banks work harder at making a short sale transaction successful?”

As a REALTOR, all things being equal, I’d much rather go through the process of helping a buyer with Denver foreclosures rather than Denver Short Sales. The transaction is quicker, cleaner and has a much higher probability of actually closing for my client. 

Hopefully reports like this one will have some sway and we’ll see a whole lot more common sense from lenders.

Yeah, right.

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What a busy weekend! Our team was out showing several Denver HUD homes, including a few brand new Castle Rock Foreclosures that just hit the market. One of these foreclosures is a brand new listing just released by HUD that’s priced incredibly well and qualifies for the HUD $100 down program.

 This new listing is one of several Castle Rock Townhomes priced under $100,000. The home has over 1,200 square feet, 2 beds, 2 baths and a garage. In addition to the two stories above ground, this home also has a 595 square foot, unfinished basement. 

At this price, we expect this home to move quickly, so if you are interested, give our team a call at 303-726-1874.

HUD Owned Home 288 s oman rd castle rock 80104 $86,000.00

Beds: 2      Fin Sq Ft: 1225 Baths: 2     Year: 1994 # of Photos Avail: 5 V-tour Available:  Yes MLS #: 1069609 Listing Office: re/max professionals

Broker Remarks:  this property may be eligible for the fha $100 down payment program. ask your agent for details. this townhome is locate… more… Disclosures

 As we mentioned, this is one of just two Castle Rock townhomes that qualifies for the HUD $100 down program. This program is available to owner occupants buying Denver HUD homes as owner occupants using an FHA mortgage. Give us a call for more details:303-726-1874.

Our team can help you with all of the available Castle Rock foreclosures and Castle Rock homes for sale. Several of our team members live in Castle Rock and Douglas county and our knowledge of the area can help ensure you find the right home at the best possible price!

With the incredibly low interest rates and the limited time HUD $100 down payment program, we have several clients looking at Denver HUD homes right now.

As we’ve stated recently on this blog, the inventory for these homes is lower than normal, and if you are interested in buying one of these, or any available Denver foreclosures, you need to be ready to move quick and make strong bids. Several of our clients have lost out recently on Denver HUD homes because they came in with too low of an offer or they waited to long to make their offer.

Our team can help you with the entire HUD process and can educate you on the requirements for the HUD $100 Down payment program as well. Just give us a call at 303-726-1874 and we can get you started.

Here are a couple of the best Denver HUD homes available. If you’d like to see any of these, or more, call our team today at 303-726-1874 – Tomorrow may be too late.

HUD Owned Home 14557 e 45th ave denver 80239 $83,500.00

Beds: 3      Fin Sq Ft: 1269 Baths: 2     Year: 1982 Acres: # of Photos Avail: 5 V-tour Available:  No MLS #: 1065891 Listing Office: high mark realty

Broker Remarks:  quaint ranch-style residence with 3 bedrooms and 2 bath. well kept and clean. 2-car attached garage. firplace in living … more… Disclosures

710 stuart st denver 80204 $140,000.00

Beds: 2      Fin Sq Ft: 1492 Baths: 2     Year: 1910 Acres: # of Photos Avail: 5 V-tour Available:  Yes MLS #: 1056283 Listing Office: re/max professionals

Broker Remarks:  property may be eligible for fha $100 dollar down payment program! hud home sold `as is`-electronic bid only fha case #0… more… Disclosures

Now is certainly a great time to consider Denver Investment properties. The latest market data is showing a continued decline in vacancies and the rental rates remain on their upward trend.

Much of this has to do with the higher than normal rate of Denver HUD homes and foreclosures over the past 4 years (although those numbers have recovered drastically in the last 6 months). When someone has a foreclosure on their credit, purchasing a new home is usually not an option for 3 years. This forces the previous homeowner into the rental pool. This simply increase in demand for rentals creates the pressure on the supply of rental homes and the resulting increase in those rents.

However, all of this creates a perfect opportunity for those with the desire, and ability, to purchase Denver investment properties. While the market for fix and flip Denver homes has become much tighter and the profit margins slimmer, investors willing to buy “fix and hold” homes are having great success.

Buying Denver foreclosures at discounted prices and then fixing these homes up for renters, can be a highly profitable business – especially with the increasing rental rates we’re seeing. If you would like to talk more about this or learn more about Denver HUD homes and foreclosures, give our team a call at 303-726-1844.

From today’s Denver Post:

There is an interesting bill in the Senate that could dramatically affect Denver Short Sales. It appears 3 Senators in D.C. have proposed a law that would require a response from a lender within 75 days of the lender receiving a Short Sale request.

From DSNews.com:

The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer.

The lender’s response to the buyer must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached. The servicer

By now, it’s almost common knowledge how long and drawn out a short sale can take. We’ve seen buyers and sellers wait on a bank for over 9 months, only to find out that the bank isn’t going to accept (and never intended to accept) the short sale offer.

In an ideal word, a shot sale would save not only the Seller and lender from a foreclosure, but would spare the neighborhood from the downward price pressure caused by a nearby foreclosure. Of course, we don’t live in an ideal world, and both the banks and the Sellers themselves, can be guilty of “gaming the system” to draw out the process for as long as possible.

While I would love to see the process for Denver short sales speed up, it seems to me that any legislation requiring a fast response from lenders will have to have a balanced approach requiring Sellers to supply their complete financial information in a timely manner.

Our team has listed many, many Denver short sales in the past, and besides the banks, the biggest obstacle we face, is Sellers who are not willing to fill out the required paperwork for the lenders. As agents, we can’t list the home without it. The banks can’t start a short sale negotiation without it. And absolutely no Buyer can purchase the home without it.

I applaud any action that can help reduce the number of Denver foreclosures, but without addressing all of the issues that slow down a short sale approval, all this law will create is more bureaucracy.

Yes, the banks deserve much of the blame in this, but everyone seems to forget that in every single short sale or foreclosure, the property owner signed an agreement with the bank promising to pay for the property. That agreement has consequences, and one of those consequences is that the bank can foreclose and they do not have to accept a short sale.

Give banks an incentive to approve short sales, and you’ll see a dramatic reduction in approval time. Make the process more difficult for banks, and you’ll see a decrease in short sale approvals and an increase in foreclosures.

If you would like to talk to our team more about Denver short sales of Denver foreclosures, give us a call at 303-726-1874.

In one of our posts last week, we mentioned Bryon Self and his over 15 years of experience helping people find rent to own homes in Denver. What we failed to mention was his area expertise and knowledge for Castle Rock and Castle Pines homes.

Bryon and his family live in the area, and his knowledge of the entire Castle Pine homes neighborhood is second to none. If you are considering moving to the area, or would like more information about the schools, parks or nearby activities, just give him a call at 303-990-9320. You can also read more about him and the area at his Castle Pines Homes blog.

Castle Pines Homes Statistics:

Based on information from Metrolist®, Inc. for the active liststings in Castle Pines as of 2-11-12. Note: This representation is based in whole or in part on content supplied by Metrolist®, Inc. Metrolist®, Inc. does not guarantee nor is it in any way responsible for its accuracy. Content maintained by Metrolist®, Inc. may not reflect all real estate activity in the market. 

Some more good news on Colorado Foreclosures came out yesterday. The number of foreclosure filings for January 2012 represented the lowest January numbers in 5 years.

This decrease in Colorado foreclosures is part of the reason we’re seeing such a decrease in housing inventory on the market. Both standard bank foreclosures as well as Denver HUD homes have been down significantly over the past 6 months. This lack of foreclosure inventory has been compounded by the lower number of standard resale homes being listed to create a severely low inventory of available homes.

We’re seieng the homes we do list go under contrract quickly and we have several buyer’s who simply can’t find availale homes in their market.

From The Denver Business Journal:

Colorado’s urban counties’ foreclosure filings and sales were both down in January from a year earlier, hitting their lowest January totals in five years, according to a report Thursday from the Colorado Division of Housing.

New foreclosure filings in the state’s metropolitan counties fell year-over-year in January, dropping 28.2 percent to 1,939 filings from 2,699 in January 2011.

Foreclosure auction sales were down 23.3 percent in January from a year earlier, dropping to 1,150 from 1,499.

There is talk that some banks were waiting for the recent settlement with the government on mortgage fraud before releasing new foreclosure listings, so we’ll see how that plays out in the coming months. But so far, we haven’t seen many more Colorado foreclosures being released.

If you would like more information for your specific area, give our team a call at 303-726-1874.

Colorado Foreclosure and HUD House Searches:
Aurora Foreclosures and HUD Homes, Arvada Foreclosures and HUD Homes, Brighton Foreclosures and HUD Homes, Broomfield Foreclosures and HUD Homes, Castle Rock Foreclosures and HUD Homes, Centennial Foreclosures and HUD Homes, Commerce City Foreclosures and HUD Homes, Denver Foreclosures and HUD Homes, Englewood Foreclosures and HUD Homes, Golden Foreclosures and HUD Homes, Highlands Ranch Foreclosures and HUD Homes, Lakewood Foreclosures and HUD Homes, Littleton Foreclosures and HUD Homes, Northglenn Foreclosures and HUD Homes, Parker Foreclosures and HUD Homes, Thornton Foreclosures and HUD Homes, Westminster Foreclosures and HUD Homes

Our team is very active in the Highlands ranch area, and we always have several clients looking for Highlands Ranch Homes for sale. We constantly keep our eyes open for Highlands Ranch foreclosures

This morning, HUD realesaed a new listing in the south west Highlands Ranch homes area. This 3 bedroom home has over 2,000 finished square feet and is in great shape for a HUD home. A home like this will sell very quickly, so if you are interested in seeing it, give our team a call at 303-726-1874.

Highlands Ranch Homes for Sale:

HUD Owned Home 9651 autumnwood pl highlands ranch 80129 $223,000.00

Beds: 3      Fin Sq Ft: 2080 Baths: 4     Year: 1997 Acres: # of Photos Avail: 5 V-tour Available:  Yes MLS #: 1066792 Listing Office: aspen real estate

Broker Remarks:  this property may be eligible for the fha $100 down payment program. ask your agent for details. beautiful updated two s… more… Disclosures

Keep in mind, this home, like all Denver HUD Homes, is eligible for the HUD $100 Down Payment program currently being offered. This is a great incentive that HUD is allowing on FHA loans for owner occupants and can help you free up the traditional 3.5% usually required as a down payment. Give us a call at 303-726-1874 for more information.

If you would like to get more details or information on Highlands Ranch homes, Highlands Ranch foreclosures or Highlands Ranch short sales, give our team of experts a call at 303-726-1874. Our main office is located in Highlands ranch and we are experts on the area.

The high number of Denver foreclosures and short sales have taken their toll on many people’s credit scores. However, many of these past homeowners have a strong desire to rebuild their credit and get back on the road to home ownership. Because of this strong demand for rebuilding and repairing credit while working towards owning a home, our team receives dozen’s of calls and emails each month with buyers looking for Rent to Own Homes in Denver.

While the number of available rent to own homes in Denver is small, the numbers are increasing. Landlords aren’t stpid. They know that nothing makes for a better tenant that a tenant who wants to eventual own the home they are renting. They take care of the home like it’s their own and they make their payments on time.

One of the newer members of our team, Bryon Self, has been working with buyers looking at rent to own homes in Denver for over 15 years. His unique knowledge of mortgages and the rent to own challenges makes him the expert on this subject. If you’d like to learn more about potential rent to own homes or talk to Bryon in detail, you can reach him at 720-432-4RENT.

Remember, you don’t need perfect credit to rent to own. Bryon can walk you through the process and he will take the time to learn about your needs. Call him today.

 We will be closing tomorrow on a home in Tthe Meadows Castle Rock (3116 W Indian Summer Ln). We actually received an offer and had this listing under contract in 3 days.

We have several buyers looking in the Castle Rock area and have some past clients in the area that are considering putting their homes up for sale. We wanted to give all of you access to the latest market statistics for the neighborhood so you had all of the information you needed. 

This is a snapshot of the sold homes in The Meadows over the past 3 months. If you would like a more detailed analysis of all of the Castle Rock homes for sale or a market analysis of your specific home, feel free to give us a call at 303-817-0209.

The Meadows Castle Rock Homes for Sale

Sold Homes  

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While there are several Castle Rock foreclosures and Castle Rock short sales on the market, the overall conditions are strong in the area. The home we listed and put under contract in 3 days was a standard resale home and NOT a foreclosure or short sale. Give us a call and find out more.