The Montrose Gold Team Blog: Colorado

Sweet former Model Home - Available in Montrose's Bear Creek Subdivision

Photo Gallery





Landscaped Yard



Two Car Garage and Driveway



Hot Tub Included



Small Backyard w Patio



Vaulted Ceiling in Kitchen and Living Room



Kitchen and Entry



Kitchen with Bar



Includes Oven and Microwave



Pass through to Dining



Two Car Garage



Hot Water Heat



Nice Laundry Area to Garage



Master Bedroom



Master Suite



Master Bath



Master Throne



Bedroom 1



Bedroom 2



Bedroom 3



Main Bathroom



Nice Living Room Vaulted Ceilings



Living Room



Living Room



Fireplace



Living Room w Fireplace
Description
Motivated Seller! Do you, want to make an offer? Come take a look at this beautiful functional home full of extras and decide for yourself. It was a "model home" when this owner bought it so it is loaded. 4 bedrooms, 2 bathrooms, split floor plan, separate dining room. Even includes the hot-tub and a gas fireplace for those cozy evenings on a cold Colorado night. Prefer advanced notice for showings, so call today to schedule your personal tour. Don't miss out on this one.


Features
Bedrooms: 4
Bathrooms: 2
Parking Spaces: 2
Year Built: 2006
Subdivision: Bear Creek
Lot Size: 5447
Garage Size: 2 Car
School District: Montrose
Square Footage: 1801
Agent Name: Chris Ormsbee
Broker: Ninah Hunter
MLS #: 636067
Agent 2: Diane Haynes

Location
Powered by vFlyer.comvFlyer Id: 2998366

Chris Ormsbee Profile PicChris Ormsbee - Colorado Licensed Real Estate Broker/Realtor

Give me a Call - (970) 209-0252

Century 21 Action Realty - (970) 249-7777 - 1245 E Main St. Montrose, CO 81401

Check out the websites if you like:

www.SoldCORE.com   - Western Colorado Real Estate, Community, and Demographic Information and Links

www.MontroseGoldTeamBlog.com   - Information and Opinions about Real Estate, The Job of selling it, and the process of buying or selling a home or commerical property.  Especially in Montrose Colorado.

www.C21ActionRealty.com/cormsbee - Search Western Colorado & Montrose Homes & Properties Here!

www.C21ActionRealty.com - The Century 21 Action Realty Website (search properties or find other agents in my office.)

www.YourCOREAdvisor - Blog with other information about buying and selling Real Estate. 

0 commentsChris Ormsbee • February 05 2010 11:24AM

Proof of Funds - What will work?

What is Proof of Funds?

What Proof of Funds will actually work and which ones won't?

Just about every REO Home, Bank Owned Property, Foreclosed Home, Short Sale, etc. will require some proof of a Buyers ability to perform.

This blog post is as much of a set of questions as answers for your tips and suggestions on how to overcome this potential road block to a deal.

Before we get going.  I know what a basic proof of funds letter from a bank or credit union looks like.

But what if you don't have a bank?

  • What if you have CASH in a more pure or secretive sense? 
  • What about a retirement account?
  • What about foreign funds?

My Dilema:

I have a buyer we will call him Joe.

He is an older guy and he doesn't really like banks.  He works on more of a true cash basis (nothing illegal), Joe just doesn't have a bank account or keep any money in it.

Joe does own several properties, residential rentals and a couple pieces of commercial dirt with a few minor improvements on it.

Joe has lots of friends.  Lots of Joe's friends want his dirt.  Lots of Joe's friends want to lend him money and secure it with this dirt.  He explained to me that he would quit claim the dirt to his friend and not record it and then if he paid his friend would give it back, otherwise his friend would go file it.

I explained that this is kind of like going all in with a pair of 2s in your hand playing Texas Hold-em and that the proper way would be a NOTE and a Deed of Trust. 

Joe doesn't want to do that, he want to do it his way.  So I said fine, do it your way, just be aware you are risking your entire piece of dirt for potentially pennies on the dollar and based strictly on trust and a hand shake.

Joe put an offer in on a Bank Repossession (REO property in Montrose Colorado) the other day and told me to write the offer up CASH close in 5 days or as soon as he gets proof of clear title.  No further inspection, appraisal, etc.  No bother countering, final and best offer.  (BTW I like this approach, of final and best offer, with people but it doesn't prove too effective with banks in my experiences.)

I told him I would write it up for closing in 10 days because no bank will move fast enough to close in 5.  I based every date my date table x days after MEC (Mutual Execution of Contract). 

We submitted an offer about 15% below the asking price and said the deal was CASH we would put $15,000 (his number not mine, they were only asking for $1,500) down as earnest money and we would put up the rest of the CASH to the Title companies trust account for proof of funds, prior to close.

The banks computer immediately kicked the offer back and said they need proof of funds within 24 hours or they will cancel the offer.

I called Joe and told him and he went on about how ridiculous it was and I said listen "if you want to play with banks you have to play their way."  I also explained the banks have been burned many times before and told someone had cash when they didn't and that is why they ask for it.

I suggested that he should just get the cash and put it into an account that he could have a bank or other financial institution issue a proof of funds letter...  The typical means. 

He said No.  If I pull that money out of my sources, then it will cost me a months interest.  Here is what we will do.  Joe is buying the home for his son Tom.  He said I will write the letter and "be the bank" for my son Tom. 

I said that sounds good, but they will likely just come back and ask you for proof of funds and we will be back here again.  I said, "But we will try it".  We typed up a letter that basically said he was the father of the buyer and going to provide the cash for the purchase and he was going to get this cash from his "private money lenders" and his various assets.  But to them and for this purchase it would be cash and we could produce said cash and place in the Title Companies Trust Account for verification within 24 hours of MEC.

Unfortunately we didn't get to see if it worked.  The bank (or their computer) countered back a mere $2,500 below the asking price after they just told the listing agent to take and advertise they were taking any reasonable offer.

What has been your experience of acceptable proof of funds?

Have you successfully used "private money" proof of funds letters?

Thanks for any tips or suggestions you might have.

Chris Ormsbee

(970) 209-0252

Montrose Gold Team

C21 Action Realty, 1245 E Main St. Montrose, CO 81401

www.c21actionrealty.com/cormsbee

www.soldcore.com

www.yourcoreadvisor.com/blog

 

Chris Ormsbee Profile PicChris Ormsbee - Colorado Licensed Real Estate Broker/Realtor

Give me a Call - (970) 209-0252

Century 21 Action Realty - (970) 249-7777 - 1245 E Main St. Montrose, CO 81401

Check out the websites if you like:

www.SoldCORE.com   - Western Colorado Real Estate, Community, and Demographic Information and Links

www.MontroseGoldTeamBlog.com   - Information and Opinions about Real Estate, The Job of selling it, and the process of buying or selling a home or commerical property.  Especially in Montrose Colorado.

www.C21ActionRealty.com/cormsbee - Search Western Colorado & Montrose Homes & Properties Here!

www.C21ActionRealty.com - The Century 21 Action Realty Website (search properties or find other agents in my office.)

www.YourCOREAdvisor - Blog with other information about buying and selling Real Estate. 

3 commentsChris Ormsbee • February 03 2010 01:55PM

What's a HUD Home?

What's HUD and What's a HUD Home?

What is HUD?


It might be a short texting acronym for How yoU Doing.

It is actually The Department of Housing and Urban Development.

HUD Logo

Check them out yourself here:  www.hud.gov
 
What exactly is a HUD Home?


HUD is a government agency.  The Department of Housing and Urban Development.  They back up FHA Loans and when these default, HUD can end up liquidating the assets on the open market or through other channels.  They also promote home ownership, so they can offer first time home buyers some good options through their various program.  In addition in these tough times they are heading up the government directives like "Making Home Affordable" program. 


Learn more about Making Home Affordable here:   http://www.makinghomeaffordable.gov/


According to their web site:


"HUD's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. To fulfill this mission, HUD will embrace high standards of ethics, management and accountability and forge new partnerships--particularly with faith-based and community organizations--that leverage resources and improve HUD's ability to be effective on the community level. "


So what does this mean to you?  

Well HUD works with FHA, The Federal Housing Authority, which is actually a part of HUD itself.  When someone defaults on their FHA guaranteed Loan or Mortgage, then the house can end up going back to HUD to liquidate if it hasn't been successfully sold previously by the bank or the home owner in a short sale.

FHA Logo

If a house is very upside down, it may be destined to go back to HUD's liquidation department, because FHA has minimums they are allowed to take in a Short Sale.  These minimums are based on the original purchase price, appraisal and loan amount.  So if a house was way over-priced a couple years ago or has really declined in value, no buyer will be willing to pay what FHA is required by law to take as a minimum amount.  Then the home goes back to HUD to liquidate, they have the leeway to go below these minimums and meet the markets price.


HUD uses MCB - Michaelson, Connor and Boul, for the State of Colorado and in Montrose  as a REO asset management and liquidation company.

MCB handles all liquidations for HUD in a region of the United States including Colorado.  http://www.mcbreo.com/st_comain.htm

According to their website, MCB covers the following states for HUD:

  • Arizona
  • Colorado
  • Michigan
  • Montana
  • Nevada
  • Utah
  • Wyoming

HUD hires one Real Estate agent for a very large multi-county region, they get a small amount of money for listing each of the properties in the MLS.   

For the Montrose Colorado area this agent is Marilyn Hammar.  Please don't call her.  She just puts the listings into the MLS for the Government.  She doesn't do photos, she doesn't inspect the properties, she doesn't have knowledge of them beyond what she is provided...   

Here is a link to a list of all the local listing Brokers for MCB REO in Colorado.  Use these names for your local agent to easily search (by agent) all the HUD homes in an area...


http://www.mcbreo.com/colorado/collb.htm


In cold regions and seasons, HUD will typically have the homes winterized and secured with a standard key that is the same for all HUD homes in an area.   This allows any agent to show the home (as long as they have a HUD key in their office). 


A Real Estate office and its Broker Owner (here at Century 21 Action Realty in Montrose Colorado, that is Ninah Hunter - www.c21actionrealty.com ) must be registered with the company responsible for liquidating HUD assets in your region in order to make offers on properties. 

Registration is not hard but does require some paperwork.  Once a company is registered any of the employed agents or brokers can submit HUD offers on behalf of their buyers.

Sometimes HUD properties will be featured in auctions, online or offline.  Here in Colorado MCB allows electronic bidding online.

Just like with Bank Owned properties don't expect HUD to fix a lot of things for you.  You are better off documenting the need and reducing your offer price and then taking care of these things yourself.

HUD/FHA do offer a "K" Loan (a smaller streamlined version of their 203K Rehabilitation Loan).  The "K" Loan allows a buyer to finance in and escrow the repair costs for the home.  The repairs must be cosmetic and not structural in nature and are limited to $35,000.

The FHA 203K Loan will handle structural repairs but it is a lot more paperwork. 

The "K" Loan is perfect for repainting, replacing carpet, tile or linoleum, etc.  

The 203K Loan grown up version can be used on a complete gut and remodel, an addition, etc. 

Both the "K" Loan and the 203K Loan lend based on the "after repaired appraised value", then the draws for repairs or improvements are handled like a construction loan.  Here is a link to the governments page about these loan programs.  Check them out if you are a buyer, a Realtor, or even an owner stuck with a property in need of a lot of rehabilitation.

http://www.hud.gov/offices/hsg/sfh/203k/203kmenu.cfm


So what are you waiting for go out and buy a HUD home today... Just kidding, but it sounded good. 
If you are in the market already for a house and you are looking for something that might need a little work, a HUD home is a great place to look...


But a Realtor is really the best place to start, because they will have HUD homes, REOs, short sales, desperate sellers (divorce, illness, death), retail secondary market, new construction, etc.   They allow you the best shot at looking at the whole market.  But it never hurts to look around a bit on your own.


Check out my websites for properties, homes and information about the Montrose Colorado area.


www.SoldCORE.com


www.COrmsbee.c21actionrealty.com


www.MontroseGoldTeamBlog.com


Hope this helped you get a better understanding of what a HUD Home is and how you might go about looking at one.


If you want to buy or sell a home in Western Colorado, especially in Montrose and the surrounding areas, give me a call. 

My name is Chris Ormsbee and I can be reached on my Cell phone at (970) 209-0252.

Chris Ormsbee Profile PicChris Ormsbee - Colorado Licensed Real Estate Broker/Realtor

Give me a Call - (970) 209-0252

Century 21 Action Realty - (970) 249-7777 - 1245 E Main St. Montrose, CO 81401

Check out the websites if you like:

www.SoldCORE.com   - Western Colorado Real Estate, Community, and Demographic Information and Links

www.MontroseGoldTeamBlog.com   - Information and Opinions about Real Estate, The Job of selling it, and the process of buying or selling a home or commerical property.  Especially in Montrose Colorado.

www.C21ActionRealty.com/cormsbee - Search Western Colorado & Montrose Homes & Properties Here!

www.C21ActionRealty.com - The Century 21 Action Realty Website (search properties or find other agents in my office.)

www.YourCOREAdvisor - Blog with other information about buying and selling Real Estate. 

1 commentChris Ormsbee • February 01 2010 10:41AM

A Simultaneous Moan and Toast to Technology and Real Estate

Moan and Toast to Technology and Real Estate

Technology actually probably brings out these emotions in most people not just Realtors.

We are:

  • Excited about what it can do for us,
  • Scared of how hard it will be to implement and use,
  • and even More Scared about how hard it will be to integrate with our other technology tools and what it will cost us in time and money.

It seems that every week a new technology and platform or application comes out.  And most of them are very cool and innovative ideas, and their marketing is getting more creative as well.... Try a dumbed up version for FREE. 

It is a great sales pitch, (wish we could use it on homes), kind of the traditional "puppy dog close" where the pet store owner sends the small child home with a puppy and tells them if their parents say its not OK, they can bring it back....  But it doesn't work as eloquently as it always should... or we don't have time to play with it and it sits on our disk...  These marketers know this and are starting to let you use it free for 1-2 properties rather than unlimited for 30 days, but both options are out there.

Another "moan-able trait" of technology is the Internet itself.  It, "The Internet" or more specifically"The Web" and its "crawling" or "Surfing Tools" like IE, Firefox, Safari, Chrome, etc. are our windows into this virtual sea of information, "It" is a truly amazing and I believe life changing technology...   It has definitely changed and will continue to change the Real Estate Business.

(BTW - Its perplexing to me that we evolved from "crawling" to "surfing"...  I mean I get the connection of the original Internet interfaces and transfer rates were definitely "crawling" slow", but how come we didn't change the name of the "web" to the "wave"?  You know the "World Wide Wave" we all surf on!  Yet the analogies of getting stuck in a web and the interconnected fixed IP addresses and their links look like a web, yet we seem to surf it in waves and to some extent this is encouraged by search engines.  A popular site becomes more popular...)

Still "It", the Internet-Web-Wave, is full of a lot of garbage, very creative and persuasive sales people and marketers all trying to capture the eyeball and proverbial click.  

I mean what is "Google juice"?   I was throwing this term around the office today telling my partner Diane why she needs to blog on Active Rain and my partner complained it sounded like or reminded her of "bug juice" and grossed her out.   Yet when I showed her how she could leap frog like 15 agents with a couple blog posts, she was hooked and I was there teaching... (non-productive, non-money making time).

Basically, we all want eye balls, we all want clicks, we all want customers, this translates to we want a lot "Google Juice" cause we can toast to the "FREE Traffic"it will bring us.   Is it really FREE?  Probably not, you either need to invest the time, or pay someone to do it for you to get the "Google Juice" up.   As Google is the number one used search engine followed up by Yahoo and Bing.  That too, could change with time as all things do.

One of the big questions today is what do you do with the "Proverbial Click"? Hopefully at a minimum you capture a name and email, or at least try to, for further contact, but for Real Estate its even better if you can capture a phone number and give them a call back as soon as possible.   Balancing the free info, desired free info (behind door number one - if you give us your first name and email) and the irritation and often accompanying fear we all can get from being asked to register for a million things.  

Know this though, on these mailing lists... most of these sign-up auto-responder lists are all Can-Spam compliant, so on any message they send you, you can un-subscribe, so don't be too afraid to try a few out.

So while Technology promises much Greatness, Realtor Leads and Resulting Riches.... most of us, me included, don't have all the pieces tied together in an optimal way, so we get new inefficiencies where the technology took away old inefficiencies, it introduces new ones...

I guess my best advice is plan out a path to your strategy of finding leads on the Internet and converting print ads to leads on the Internet, hopefully so they come "to you" rather than the floor agent, then stick with it for at least 6 months evaluating if it is working.   Don't fall for jumping for every new technology and gadget that comes out, unless you are sure it fills a need in your plan.

FREE trial - is free in the sense that you get to try it out or continue to use a dumbed up small version of the product and if you only have one or two listings and nothing better to do, go for it... But if you are a full time agent with at least 10 listings then I would suggest that you closely analyze it and the alternative solutions before you jump to try it. 

Don't forget about all the time you spend... playing with the new technology... takes away from time you could be finding clients, closing deals or even fishing.   If you like playing with it, like I do, more power to ya, but its like an addictive substance, you need to ration its consumption of your truly productive and income producing time...

Good luck and may you have more Toasts than Moans with your next dose of Technology.

BTW - It also helps to go with proven "Google juiced" techniques... like Active Rain.   I highly recommend it if for no other reason than to extract the "juice" but hopefully also extract useful tips, ideas and thoughts, to keep your own creative juices flowing...  But like everything... We even need to ration our use of Active Rain with our productive time. 

Chris Ormsbee

Century 21 Action Realty

Montrose Gold Team

1245 E Main St. Montrose, CO 81401

(970) 209-0252

www.MontroseGoldTeam.com

www.MontroseGoldTeamBlog.com

www.C21ActionRealty.com/cormsbee

 

Chris Ormsbee Profile PicChris Ormsbee - Colorado Licensed Real Estate Broker/Realtor

Give me a Call - (970) 209-0252

Century 21 Action Realty - (970) 249-7777 - 1245 E Main St. Montrose, CO 81401

Check out the websites if you like:

www.SoldCORE.com   - Western Colorado Real Estate, Community, and Demographic Information and Links

www.MontroseGoldTeamBlog.com   - Information and Opinions about Real Estate, The Job of selling it, and the process of buying or selling a home or commerical property.  Especially in Montrose Colorado.

www.C21ActionRealty.com/cormsbee - Search Western Colorado & Montrose Homes & Properties Here!

www.C21ActionRealty.com - The Century 21 Action Realty Website (search properties or find other agents in my office.)

www.YourCOREAdvisor - Blog with other information about buying and selling Real Estate. 

0 commentsChris Ormsbee • January 22 2010 02:21AM

FHA Change on the Horizon.

Are there FHA Changes on the Horizon?

Sounds like changes to FHA are inevitable and probably good, but also probably somewhat painful for Realtors.

Here is an excerpt of an email I got from a local Mortgage Banker.  Chris Reichman.  You know hes a good guy cause his first name is Chris.  Just kidding but he really is a good guy.

Chris' message:

Hello all.  As many of you might be aware the Federal Housing Authority (FHA) loan program has been under a great deal of scrutiny from congress lately due to losses sustained over the past few years.  The congressionally mandated 2% insurance reserve that the agency is required to keep on hand has dwindled to around .53%.  We have been watching closely as the FHA interacts with congress to develop certain reforms to the current FHA loan package.  This is impactful for us since the FHA loan program is heavily utilized, particularly for first time / younger home buyers.   Although the official announcement has not come out yet, we have learned of some of the expected changes that will be taking effect this year.  Definitely nothing too alarming here...just want to keep you all in the loop.  Some of the highlights to watch for are listed below.  Please feel free to call me if you have any questions at all.  Thank you.    

  • The upfront mortgage insurance premium will be raised from 1.75% of the loan amount to 2.25% (this can be rolled into the loan) sometime this Spring.
  • FHA has asked Congress for the authority to raise the monthly mortgage insurance premium.  This is only a request posed to Congress at this point, so no timeframe on when/if this will end up happening.
  • Maximum seller contributions have been lowered from 6% to 3%; expected to take effect early summer

The good news...the general down payment (at least for the time being) will remain 3.5%.  It had been proposed to raise the minimum down payment to 5%.  As of now that is not going to happen.

 

Chris Reichmann

Mortgage Banker

Republic Mortgage

909 South Townsend Avenue, Suite A

Montrose, CO 81401

Office: (970) 249-1615

Fax: (970) 240-7931

Mobile: (970) 417-7677

Thanks Chris for the email and the info.

 

Hope this helps you keep on top of the change...

Chris Ormsbee

www.SoldCORE.com

www.C21ActionRealty.com/cormsbee

www.MontroseGoldTeamBlog.com

 

Chris Ormsbee Profile PicChris Ormsbee - Colorado Licensed Real Estate Broker/Realtor

Give me a Call - (970) 209-0252

Century 21 Action Realty - (970) 249-7777 - 1245 E Main St. Montrose, CO 81401

Check out the websites if you like:

www.SoldCORE.com   - Western Colorado Real Estate, Community, and Demographic Information and Links

www.MontroseGoldTeamBlog.com   - Information and Opinions about Real Estate, The Job of selling it, and the process of buying or selling a home or commerical property.  Especially in Montrose Colorado.

www.C21ActionRealty.com/cormsbee - Search Western Colorado & Montrose Homes & Properties Here!

www.C21ActionRealty.com - The Century 21 Action Realty Website (search properties or find other agents in my office.)

www.YourCOREAdvisor - Blog with other information about buying and selling Real Estate. 

2 commentsChris Ormsbee • January 20 2010 10:12PM

Is Walking Away from Your Mortgage Morally Wrong?

Is Walking away from your Mortgage Morally Wrong?

It depends.

I just saw a great article and video on Yahoo Finance.

http://finance.yahoo.com/tech-ticker/walking-away-from-your-mortgage-is-morally-wrong-and-financially-stupid-says-mcardle-407319.html?tickers=xhb,len,kbh,ms,bac,wfc,c&sec=topStories&pos=9&asset=&ccode

Megan McArdle puts it very nicely how and why she feels it is very wrong for people to just walk away unless they are in circumstances that provide them no other option.

She points out how "flippant disregard for promise to pay" will change the face of lending as we know it.

Check it out and you decide.

In my personal path, I have only run into people that have lost their home or decided to let it go, because they have no other option.  Megan McArdle - agrees that these people that have no other choice should immediately contact their bank about a short sale and help the bank sell the home and minimize the losses.

Chris Ormsbee

www.SoldCORE.com

www.MontroseGoldTeamBlog.com

www.C21ActionRealty.com/cormsbee

 

 

Chris Ormsbee Profile PicChris Ormsbee - Colorado Licensed Real Estate Broker/Realtor

Give me a Call - (970) 209-0252

Century 21 Action Realty - (970) 249-7777 - 1245 E Main St. Montrose, CO 81401

Check out the websites if you like:

www.SoldCORE.com   - Western Colorado Real Estate, Community, and Demographic Information and Links

www.MontroseGoldTeamBlog.com   - Information and Opinions about Real Estate, The Job of selling it, and the process of buying or selling a home or commerical property.  Especially in Montrose Colorado.

www.C21ActionRealty.com/cormsbee - Search Western Colorado & Montrose Homes & Properties Here!

www.C21ActionRealty.com - The Century 21 Action Realty Website (search properties or find other agents in my office.)

www.YourCOREAdvisor - Blog with other information about buying and selling Real Estate. 

5 commentsChris Ormsbee • January 20 2010 05:36PM

NEWS BLAST - HUD Waives 90 Day Hold Period for FHA Loans Effective 2/1/2010

HUD Waives 90 Day Hold Period required for FHA Loans.

Kenneth M Donohue and David H Stevens

HUD realizes that the 90 day hold period "Seasoning" requirement for an FHA Loan is hurting buyers, especially first time home buyers more than the investors and rehab flippers (that they thought were getting rich by preying on the helpless homeowner (BTW some were))...

David H Stevens the Assistant Secretary for Housing - Federal Housing Commissioner Signed a a 1 year waiver into effect on January 15, 2010

Check out the actual text here...

http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

 

My Summary of the Waiver:

  • For just about anyone with Arms Length Transaction and Fair Marketing Effort.

  • If More Than 20% Increase from Acquisition to Flip Price - then need Justification and or documented rehab, Second Appraisal and Inspected to meet FHA and HUD Standards.

  • Does not apply to the Home Equity Conversion Program.

 

The Brief 90 Day Hold Policy History:

  • June 7, 2006 - Waiver that let Government Agencies, Revitalization Efforts, Non Profits, Relocation Companies and Disaster Areas have an exemption from the 90 day rule.

  • Foreclosing have a waiver to dispose of assets.

  • June 8 2008 - Waiver exempting 90 day Hold for sales of REO properties acquired by Mortgagees

  • My two cents for what its worth.

  • May 15, 2009 - Extension of REO Mortgagee Waiver to May 10, 2010 (sounds like an REO liquidation deadline or another extension will come and I believe this Waiver will cover them till at least Feb 1, 2011.

  • Sep 14, 2009 - Waiver granted exempting sales of properties that had been previously foreclosed or abandoned by for-profit or non-profits in HUD's Neighborhood Stabilization Program (NSP).

  • January 15, 2010 - This Waiver granted, effective February 1, 2010, exempting just about everyone.

     

Basically the Department of Housing and Urban Development has realized that with the flood of foreclosure properties on market, their 90 day seasoning or anti-flipping rule is hurting short sale efforts and first time home buyers and other buyers that could otherwise buy affordable housing that has been bought up and rehabbed or at least inspected and certified to be HUD approved and a few other things... that it is OK to flip that house out to a buyer with an FHA HUD Guaranteed Loan.

This should aid re-absorption of these homes to first time home buyers as opposed to landlord/investors or other investors who are planning to ride it back up and sell the homes for a profit after the market rebounds, after renting them for a few years, even if it is at a loss. There is no doubt in my mind that the houses caught in this mess are best made into homes for first time and other home buyers, the people of the United States of America that need the lower down payment required by FHA, than from a conventional mortgage.

If the average home costs $200,000 in an area FHA requires 3.5 percent down which would be $7,000. The 10 or 20% required for some conventional loans would be $20,000 to $40,000. Everyone can see how this prevents or at least dissuades home ownership. Even if someone has the $20,000-$40,000, I contend they are better off going with a smaller down payment and keeping a reserve emergency fund, rather than completely depleting their savings and moving into a new home. 

Don't get me wrong, I am not anti-investor, but I think an investor play here is to be or finance/partner with the "rehab guy" swoop in, bail out the troubled home owner, clean the place up a bit, maybe carpet/paint/minor repair and flip it to a new home owner... now they can qualify with an FHA loan 3% down. If your a long or longer term investor, I think the play is to do the above but then to finance the houses for the buyer (that can't even qualify for an FHA loan - like me), with no shorter than a 5 year balloon - give em a chance to perform... and lending should return to more of a normal state by then to where they will hopefully have a little equity to refinance and pay you off.

I know there are pundits out there that think that "risky borrowing" has led us here... I disagree, that was a component of course, but it always exists and has existed. Without risk there is no reward!

 

I suppose you could even use the Alan Greenspan term of "irrational exuberance". But from where I was sitting in Montrose Colorado, it was the drying up of the money supply that killed the construction and job base of our town. From what I understand this mess was caused "more by" the Banks "irrationally exuberant" bets on derivatives (a highly leveraged and speculative investment - essentially a hedged  bet on interest rates and currencies from what I understand (an option on a futures contract)).  This coupled with some investment bank's unscrupulous "packaging" of loans to make them look less risky then they were so they could be sold off as A or B paper when they were really C.   The market was essentially "manipulated" by banks so they would have bigger profits.  Were they risk takers?  Yes.  Was it "irrationally exuberant"?  In my opinion Yes at best irresponsible and criminal.

 

Were the small contractors and builders of Montrose Colorado risk takers, yes, of course, but they were calculated seemingly smart risks they were taking... We didn't have whole subdivisions of 50 or more spec homes built to sell to no one. In Montrose, we had small family men and women that worked in the construction trades slowly cranking out one house at a time for the next family that wanted to move to a beautiful place in Western Colorado with Great Upstream Water as I like to call it. To some extent they, these people moving to Montrose slowed down, but often they just couldn't get a loan or couldn't sell their house, but they wanted to come. These small builders only need one house not to sell for a year or so and they can go under... They use the profit from one home to obtain the loan for the next home. Risk takers? Yes. Irrationally Exuberant? No.

 

Regardless of who's fault it is we need to figure out how to re-build America and the USA... Create jobs and put people back in homes, rather than on the street or in apartments. For us Realtors of the world we need to figure out how to increase the number of transactions (currently lacking the buyer component of the equation...)

 

I realize not everyone can own a home... If I didn't own a home already, I as a Realtor couldn't buy or own a home right now, because I don't have a W-2-ed steady paycheck and job... I live commission to commission and the banks and lenders consider that risky... Can't say I disagree, but I have never defaulted on a single loan in 46 years and don't plan to start... Due to complicated and lengthy tax returns, I have used the "evil liars loan" stated-loan programs of yesteryear for my last three real estate loans. So for those of you that are screaming here we go again, wave two... I think you are wrong.

 

The banks and AIG should have been left to fail and this mess would of cleared faster than it will with all the bank and insurance company bail outs... (Know why AIG was going down, an otherwise extremely profitable "Insurance Company"... because they were insuring the Bank's Derivative Bets that went bad... and then they couldn't pay up, if they didn't pay, the bank failed.) How they (AIG) were ever convinced to risk their butts for the Banks behalf without making them jump through the hoops and pay the "actuarialized safe house bet" premiums, that we would all have to for any kind of insurance is beyond me, but it happened.

 

So what do we do... blame and punish the average guy, who might have been framing houses, dry up the money supply and essentially freeze lending and tighten up credit so none of these people can get jobs or loans and then they will lose there houses and the press will blame their loss on their risky borrowing and over-zealous budgeting and income expectations.

 

I ask you this? Who's job is stable today? I dare you to name more than 10 that are essentially guaranteed (I can't even think of 10 at the moment...) I mean think of it, lawsuits, mergers, bankruptcies, bank failures, government cuts, city job cuts due to reduced tax base, etc. There is little that is safe other than being self employed in something with a relatively stable demand, but even then you are constantly battling off change, the big guy and the government itself...

 

There are no guarantees, there are just challenges and opportunities.

 

This "Hud Waiver" is a welcome change and I believe it will provide opportunity and greatly help many people from new families, to old ones starting over or upgrading homes, etc. It will even help investors, and contractors that go into rehabbing properties rather than building homes...

 

Chris Ormsbee

Chris Ormsbee

Century 21 Action Realty

The Montrose Gold Team 

www.C21ActionRealty.com

www.C21ActionRealty.com/COrmsbee

www.SoldCORE.com

www.MontroseGoldTeamBlog.com

www.MontroseGoldTeam.com

 

PS - Share this news with your fellow Realtors, so they can educate their buyers and investors about the change. Plus you might seem "smart" to them... Feel free to reblog as well. Thanks for reading my long worded rant - news blast.

Chris Ormsbee Profile PicChris Ormsbee - Colorado Licensed Real Estate Broker/Realtor

Give me a Call - (970) 209-0252

Century 21 Action Realty - (970) 249-7777 - 1245 E Main St. Montrose, CO 81401

Check out the websites if you like:

www.SoldCORE.com   - Western Colorado Real Estate, Community, and Demographic Information and Links

www.MontroseGoldTeamBlog.com   - Information and Opinions about Real Estate, The Job of selling it, and the process of buying or selling a home or commerical property.  Especially in Montrose Colorado.

www.C21ActionRealty.com/cormsbee - Search Western Colorado & Montrose Homes & Properties Here!

www.C21ActionRealty.com - The Century 21 Action Realty Website (search properties or find other agents in my office.)

www.YourCOREAdvisor - Blog with other information about buying and selling Real Estate. 

5 commentsChris Ormsbee • January 17 2010 04:32AM

What Kind of Soil Does Your Home's Foundation Sit On?

What Kind of Soil Does Your Home's Foundation Sit On?

Diane on Flat Top Above Montrose Colorado

You might be thinking...

"Who cares?".  

Think again!

The soil and foundation combination are the most important parts of your home.  They hold up your entire home and keep it square and hopefully level as well.  But square and intact is the most important. 

You really don't want your foundation to move at all, but if that is not feasible or cost effective you can at least design it to move in unison.

 

 

So how do you know what kind of soil you have or what type of foundation or what shape it is in?

Investigation, research and a professional opinion.  Here the "professional opinion" should not be your Realtor's.

You need a Geotechnical Engineer or a Geologist and then a structural engineer for the foundation.

What can YOU look for before hiring an engineer?

  • Foundation cracks
  • Sunken areas around foundation where water settles.
  • No gutters or gutters with spouts dumping right along the foundation.
  • Signs or smells of mold or mildew.
  • Drywall cracks
  • Uneven or sloping floors
  • Doors that don't close or line up properly
  • Windows that don't open and shut properly
  • Things that look out of Square with one another (e.g. Door Trim Above door looks crooked)
  • On raw ground - look for cracks, wet areas, white areas (especially in Montrose Colorado), slide areas, rock fall hazards (are you under a cliff or steep slope with big rocks on it. - BTW I have seen boulders bigger than cars halfway in houses in Telluride CO. - they fell/rolled down the hill and crashed into the unsuspecting home), etc.
  • Ask your Realtor if he/she sees anything funny looking, but don't rely on their opinion, just use it for clues to potential further investigation by the professional.

What does all this really mean if I see or smell problems?

Typically it means there has been movement of some type.  How recent and the cause are what is most important to determine.  Is it still moving?  Has the problem been fixed to stop or minimize further damage or movement?   Is the foundation structurally damaged where the crack is causing further strain and stress on adjacent components?   

These apply to new or existing homes.

These soil and foundation questions are all very important to ask, whether you own your home now or you are just thinking about buying it. 

Planning to Build a New Home or Addition?

Step 1 - Get a Soils Assessment Study

It is critically important to protect your investment when building a new home to have a soils study done, unless it is just so obvious, like solid rock, that you are certain you don't need it.  Even then I would say it was worthwhile (good insurance), because it is Step One.

Step 2 - Give the Soils Data to the Structural Engineer

Give the Soils Data to your foundation engineer so they can determine the bearing capacity of the soil (how much weight can it hold before it will give).   

If it is lower, they may have you over-excavate and backfill with good compacted material, or use piles, pad and pier, post tension slab, waffle slab, etc.

If it is high, like solid rock - they may be able to save on foundation design and costs. (e.g. When I did communication towers for a living... we anchored some directly into solid granite or other rocks atop mountains by drilling holes and using epoxy to secure the anchor bolts directly to the rock. - no foundation necessary.)

Step 3 - Make sure your Contractor Builds What was Designed!

The best design in the world is worthless if it isn't used during the construction.  Not all but some contractors I have witnessed show blatant disregard for the "directions" - they just do it their way.  Maybe their way has worked on the last 100 houses, but if your house is set on special soil conditions, it may have some special directions that need followed to protect your home.   

Buying an Existing Home or Already Living There?

It is also important to know these things for an existing home.  I don't recommend rushing out and spending thousands on soils studies and boring samples if you are already living there or just shopping for a new home.  However, become as knowledgeable as you can.  You are or will be the "Manager" of the home responsible for it's care and maintenance, so you need to understand some of its complexities.  You should also try to get at least somewhat educated by your home inspector and/or inspection report, as to how things work, what maintenance needs done regularly.  

So before you spend money especially if you are already there I would recommend the following:

  • Look for signs listed above.
  • Ask your neighbors, friends that have lived in the area a long time and maybe heard stories of people having trouble with their homes.  Where did they live? etc.
  • Check with your government authorities.  City, County, State and Federal.  They have tons of data.  It covers a good baseline and definition for the general area, but don't rely on just this.  "Hidden Dangers" can lurk below.  For example if there was an old drainage - natural or man-made that has been improperly filled in without a drainage system, that fill area will continue to carry the same water it did before it was filled.  This could cause problems either by erosion, compression or swelling. 
  • Google it for that matter.    Google:  Soil Types Areas and Maps in Montrose Colorado 

Then unless your comfortable that you have no problem, Hire the Professional.

Are you thinking?  "Oh come on, how could little water hurt my foundation?  Think again.  

Think of a hydrolic jack.  You cannot compress water.  So in clay soils that are more plate like, the water is attracted to and gets im-between the plates and causes them to swell or expand, then when it drys out they shrink again.  Natural Nano-technology that we don't want.

Still don't want to get the professional!  Do more of your own research till you convince yourself that you are willing to risk hundreds of thousands of your dollars on YOUR judgment.

Resources for Colorado and the Montrose, Telluride, Ouray, Olathe, Delta Areas:

http://soils.usda.gov/survey/online_surveys/colorado/

http://soildatamart.nrcs.usda.gov/Manuscripts/CO675/0/WSS-San%20Miguel.pdf

http://soildatamart.nrcs.usda.gov/Manuscripts/CO676/0/uncompahgre.pdf

 

Realtors - Listing or Selling a Home

What if it where your home?

  • For most homeowners a home is the biggest investment they will ever make, your fiduciary duty is to help them get the best deal on their investment, this includes avoiding uneccessary risks.
  • The foundation is the most critical part of this investment. 
  • The dirt or soil that foundation sits on is critical to the foundation.

So whether you want to be a geologist, love dirt or rocks or you hate them.  You need to know enough to advise your clients to seek out expert help, especially if you see or know of a problem that might exist.

If you know you are listing a home in a "bad soils" area or that the Sellers has had problems,  then suggest to the homeowner that if they don't have engineering information and soils reports, that they may want to essentially "pre-inspect" and supply this to the buyer.  If there is damage, it similarly may be worth the investment of having a professional inspect and recommend repairs even if they haven't been completed.

Obviously many of the same potential risks could be here as they are with a seller paying for inspections, appraisals, etc.  Some fear the "professional" will be swayed by the person paying them.  This logic makes sense to me, but I haven't witnessed its abuses first hand. 

I think most professionals are professional!  But throw a couple lawsuit happy lawyers in the mix and that perception could change in a hurry.  So if you provide these seller paid inspections or reports make sure there is a disclaimer that the buyer should investigate themselves and they are being provided as a courtesy.

Similarly for buyers, if you suspect something suspicious or know the area is at high risk of water table problems or foundation problems, mold problems.  You need to make your buyer aware and at least let them decide if they want to spend the money to further investigate.  That is our job.

 

Who are the Professionals?

Realtors - of course but here we need to be professional and tell people they should hire more professionals.

Structural Engineers - They make sure it stands up. They are very smart people. They can do all that complex math and physics calculations to determine live and dead loads of the structure and how they will be distributed to the soil and if they know rather than guess the soils bearing capacity, then they can design the "proper" foundation.  They can also help you figure out how to best fix your home to make sure the money you are spending doesn't go to waste and have to be repeated.  They need to factor in building weight, snow load, wind load, occupancy load, etc.

Soil's Engineers - Geologists - Geotechnical Engineers - These guys are very smart too, but since they love rocks and people say "dumb as rocks" you would think it wouldn't be that hard.  But as it relates to your house they have to understand both physical and chemical properties of the soils and the interaction with the environment (typically water is the key problem, variable or component of change.)

Civil Engineers - Design infrastructure - to some extent foundations, but typically storm drains, surface drainage, dams, roads, utilities, site layout, etc.

Architects - They make it look good and draw pretty pictures - understand quite a bit about Structural but largely are more about functional, practical and efficient space.  Aesthetics and flow.  And they like to party!

Interior Designers - Can sometimes do the work of an Architect and draw plans, depending on their background, typically though they are used for "interior design" how should the kitchen cabinets be laid out, what surface will look right and yet maintain its function.   What floor coverings?  What Finishes?  Color Selection and Coordination. 

Lawyers - Keep everyone honest under the threat that if they decieve or cheat or harm, they will be sued.  Seriously though, in the real estate transactions they typically try to ensure the client is protected from a legal perspective and that all the i's are dotted and the t's are crossed.

Accountants/Book-keepers - Tell us if we can afford to hire the other professionals, and track all the home interest deductions, help us figure out tax credits or special rules.

 

Today we had a Professional Visit our Staff meeting - guess what she talked about!

This morning at our weekly staff meeting we were visited by a local geologist from a local full service environmental and engineering firm (Buckhorn Geotech in Montrose Colorado). 

http://www.buckhorngeo.com

She was discussing our situation and our varied soils in the area.  As a very general rule there are different types in different areas.   In reality, each home site where the home will sit should have a soils test to be sure there is no anomoly.  (e.g. here there used to be old drainages, they were filled in and built over... this isn't a good thing cause the water still goes through there).

I usually tell clients everything to the East of the River is Adobe Clay Soils and everything to the West of the River (the Uncompahgre River) is usually more gravel type soils and Alluvial deposits.  She agreed that as a general rule of thumb this was accurate, because the river has moved east and left these alluvial gravel deposits on top of the shale where spring creek mesa and behind sunset mesa lie.

But what I learned new today is that even where there are the gravel areas, there is shale below this.  Shale turns to adobe clay soils when exposed to the elements.  It also once wet swells and "holds" water or keeps it from soaking in and draining - rather the water moves horizontally along the top of the Shale layer till it can find a crack to escape out of or it just saturates the soil above it.   If this shale is causing a high water table then a septic system must be engineered to avoid ground water contamination.

The shale was under an ocean at one point she explained and the sandstone layers were basically beaches at one point.

And what I was raised to call the Hog Back to the West of the City of Montrose, is not a hog back at all, but truly a mesa.  So it makes more sense to me now that they renamed the "hog back" to "Sunset Mesa" and that it is.

Our desert Mountain Valley is in the center of two uplifting plates.  Most of the ground to the West of the river has in fact had the shale eroded away and or had river deposits placed on top as the valley was eroded and the river was pushed to the east as the plate on the Uncompahgre Plateau rose.

Adobe Badlands with Black Canyon Uplift

I hope I got all that right.  My geologist buddys would probably rip it apart.

As it relates to Real Estate in the Montrose Colorado area or anywhere for that matter is that if you are buying an existing home or building a new one, it is important to know what kind of soil is under your foundation.  Are there any special hazards or risks associated with that soil.

Many of the Developed soils in the Colorado area present expansive problems.  What this really means is that when the soils gets wet it swells.   Then when it drys back out it shrinks.  It is this movement that affects or can damage a home if not properly managed or designed.

Our guest also explained that some of our soils can also be compressive or not hold up under load and sink or slide.  The cause of this is essentially, that the clays are electrically attracted to water, so the water can leach the clays from the soils leaving voids in some areas.  This is essentially a "sink hole".  As water flows through the soil it takes the clay with it and then leaves a void.   These voids grow over time and can present real dangerous holes under the surface that can collapse when loaded.

You are probably all saying Too Much Information...  Needless to say, I took most of what she told us and regurgitated it with what I already knew and wrote this blog.  

 

May the foundation of your house and your life be SOLID and ON SOLID FOOTING!

Have a great day!    Chris

 

Chris Ormsbee Profile PicChris Ormsbee - Colorado Licensed Real Estate Broker/Realtor

Give me a Call - (970) 209-0252

Century 21 Action Realty - (970) 249-7777 - 1245 E Main St. Montrose, CO 81401

Check out the websites if you like:

www.SoldCORE.com   - Western Colorado Real Estate, Community, and Demographic Information and Links

www.MontroseGoldTeamBlog.com   - Information and Opinions about Real Estate, The Job of selling it, and the process of buying or selling a home or commerical property.  Especially in Montrose Colorado.

www.C21ActionRealty.com/cormsbee - Search Western Colorado & Montrose Homes & Properties Here!

www.C21ActionRealty.com - The Century 21 Action Realty Website (search properties or find other agents in my office.)

www.YourCOREAdvisor - Blog with other information about buying and selling Real Estate. 

3 commentsChris Ormsbee • November 25 2009 04:52AM

Growing Clients - Marketing to Boost Real Estate Business

Growing Clients - Marketing to Boost Real Estate Business

Small Vinyard

Over the last couple weeks I have been conversing with an old Tenant of mine from when I used to own an old warehouse that I rehabbed the front of. 

He rented the back of it which was basically just still in its original warehouse condition with a couple of unit heaters and two huge swamp coolers (evaporative coolers for the politically correct).  Coach Kirk (Bruce Kirk) uses it to teach gymnastics.  He runs Snow Shadow Gymnastics there.  He teaches a traditional olympic style program and the sport of gymnastics. 

It is truly amazing to me what the human body can do, because mine can't.  :-)

 

Coach Kirk and Snow Shadow Gymnastics have been in that space for 11 years now.  I know he has struggled over the years to grow and maintain his business in our small town.  We are all constantly having to market and get the word out about our product or service in order to obtain or "grow" new clients.  

Once you get new clients you need to maintain them and or help them prosper, so they can help you.   All of this is Marketing!

So Coach called me the other day asking about some space I have for lease.  He asked how much it was.  I knew it was quite a bit more than what he was paying now.   So I decided I would see if I could help him out a bit to get a boost in business to grow his clientelle and or product offering, so he could eventually afford to rent or buy a bigger space.  Who knows if or when he would be able to move where I might get paid a comission, but I figure the best way for me to get better is to teach!  Plus I have always liked Coach Kirk.

He called today and had registered a domain name www.snowshadowgymnastics.com (not there yet) and was trying to get the hosting setup and publish his site from MS Publisher.  I told him to stop by and I would see if I could help him.  Since I was in the middle of updating Active Rain I decided to write about it.  He didn't have the publisher file of his website with him so we didn't get that done, but we did get him a gmail account, a blogger blog setup http://snowshadowgymnastics.blogspot.com  and a twitter account and looked at a few affiliate marketing options he might explore.

 

Nik - So What or Huh look

You might be thinking "Huh or So What!", but what I am postulating here is that the easiest thing for us to talk about with our clients or our sphere in many cases might be what we deal with daily... Marketing!

Marketing is something we do daily in the Real Estate business and as a rule I would say most of us are quite good at it.  Trying to present something in its best light while being honest and maintaining integrity, plus we are all a very creative bunch. 

We know from numerous teachers and programs that we all have been exposed to over the years that we need to develop a sphere of influence that thinks of us and our business when someone else they know mentions Real Estate or whatever your business is.  This person - your key sphere of people you have a deeper relationship with - recommends you to the people they meet in need of your services.  This goes a long way in building up your credibility before you even meet new clients.

I left Coach Kirk my Flip video camera to play around with to try to get some video for youtube and his blog.  If he gets the hang of it I am sure he will go buy his own.  I want the HD version anyway and Christmas is just around the corner.  In the mean time he will try to upload his website he designed and play around with twitter and facebook a bit.

 

That is my son Nik saying "Huh" in body language! (pictures make a blog better - IMO)

So do you have some special knowledge you might share with one of your sphere or friends?  My guess is if nothing else, you probably know more about marketing and internet marketing than the average business owner or purveyor of goods or services, so share your knowledge, invest a little hands on time and think of the future bonds and the deep relationships you will reap from them.  Plus it just makes you feel good to help someone.

 

So go out there and

  • Grow your Clients
  • Share your Marketing Knowledge - Teach to Learn
  • Boost your Real Estate Business or Whatever Your Business Is
  • Build your Sphere of Influence by Sharing

If nothing else sharing your marketing knowledge with clients and discussing how to grow new clients might give you something else to talk about if your football team is losing like the Denver Broncos are at the moment.  (Thats just depressing!)

Have a great day!  Chris

Chris Ormsbee is a Realtor and is a licensed Real Estate Agent in the State of Colorado.  He is part of the Montrose Gold Team and works for Century 21 Action Realty in Montrose Colorado.  Century 21 Action Realty is located at 1245 E Main St. Montrose, CO 81401 and our phone number is  (970) 209-0252 

Chris Ormsbee is NOT a Lawyer, Accountant, CPA, Surveyor, Structural Engineer, Financial Advisor, Judge, Jury or a Normal Guy, but he does occassionally sleep at a Holiday Inn Express.

Besides Commenting here, you can Contact Chris Ormsbee (especially if you want to buy or sell real estate):

Chris' Cell Phone is               (970) 209-0252         (970) 209-0252

Chris can be friend-ed on Facebook.  His user name is Chris Ormsbee

Chris also has other blogs pertaining to Real Estate:

http://www.YourCOREAdvisor.com/blog

http://www.MontroseGoldTeamBlog.com

Chris is also "diverse" and has

http://www.TheDivorceWorkshop.com - a divorce counseling and advice site.

http://IdeasThoughtsWhatevers.blogspot.com/  - a discussion about Internet Marketing Ideas and trial "sales pitches", wild wacky ideas and politics abound and some content may be oriented to adults - surfers beware!

 

 

Chris Ormsbee Profile PicChris Ormsbee - Colorado Licensed Real Estate Broker/Realtor

Give me a Call - (970) 209-0252

Century 21 Action Realty - (970) 249-7777 - 1245 E Main St. Montrose, CO 81401

Check out the websites if you like:

www.SoldCORE.com   - Western Colorado Real Estate, Community, and Demographic Information and Links

www.MontroseGoldTeamBlog.com   - Information and Opinions about Real Estate, The Job of selling it, and the process of buying or selling a home or commerical property.  Especially in Montrose Colorado.

www.C21ActionRealty.com/cormsbee - Search Western Colorado & Montrose Homes & Properties Here!

www.C21ActionRealty.com - The Century 21 Action Realty Website (search properties or find other agents in my office.)

www.YourCOREAdvisor - Blog with other information about buying and selling Real Estate. 

2 commentsChris Ormsbee • November 23 2009 12:21AM

Free Foreclosure List for Homes in Montrose Colorado

How to find a Free list of Foreclosure Homes in and around Montrose Colorado

There are hundreds of web sites out there that try to "sell" you a list of foreclosure homes, bank owned properties, REOs and pre-foreclosure home leads. 

Some of these sites actually do a good job of condensing data and making the process simple, yet many if not most, regurgitate data recorded at the court house without cross referencing or checkin the status in other locations, like the local MLS.

This is where a Realtor can come in very handy, especially a Realtor that knows the Foreclosure process and how to find and negotiate the purchase of homes that are in the process of being Foreclosed and those that have been through the Foreclosure process and are now Bank Owned or REOs.

Most people looking for "foreclosure homes" are investors or people that want to be investors, but more and more there are people just looking for a "screaming deal" on a home for themselves.

The foreclosed homes range in value and our service area is very diverse.   The cheapest foreclosed home listing the Montrose Gold Team currently has listed is $155,000 and the highest is probably going to be priced about $1,000,000 to $1,250,000. 

The best generic advice for a Free Foreclosure List 

Access the county web site (where you are searching) by googling the "county name" and selecting the "real" government provided county website.  Then look for a page or tab for the trustee or possibly assessor or if they have a search function to search the site type in "Foreclosure List".  In general Government Websites are wonderful for providing tons of "FREE" information (we actually all paid for it, so use it)... You should always migrate to them in research.

In Montrose Colorado you can access the Free Foreclosure List at:

http://www.montrosecounty.net/treasurer/foreclosures/ 

Then if you have Microsoft Word you can click on the "Active" link and it will open on the same page in Word.  Otherwise you can right click and select Save Target As and save the ".doc" file and then you can open it with SWriter - OpenOffice.org's free word processing application.

Other sites you may need are the Assessor's site at:

http://eagleweb.montrosecounty.net/eagleassessor/web/splash.jsp

and the Online Recorded Records Searching Site at:

http://oncore.montrosecounty.net/Search.aspx

Unfortunately Montrose County Charges for access to the viewable "online records" but you can view the "header" information for free and search to see if documents exist in a party's name...

 

All of the Homes and Properties below have been through Foreclosure.  They are now considered bank owned or in one case FDIC owned because this property brought the small bank down!

This home below is in the Hastings Mesa Area off of Elam Ranch Rd is a bank owned property and went through a foreclosure.

It is about 40 minutes from Montrose and about 20 minutes to Telluride... It is all solar and wind powered for electricity and is heated with propane. 

Access is limited during the winter and requires snow mobile or snow shoe access.  However if plowed daily, it could probably be kept open year round.   This home was purchased for $1.8 Million and had $1.5 Million in Debt on it.  It had been on the market for 6 months at a price of $1.5 Million and didn't sell.  So it will probably be priced around $1.25 Million.

Foreclosure Home near Telluride Co

We have small neighborhood homes like this:

Local Montrose Foreclosure Home - REO

We have a local Golf Course Community where the whole community with the club house and undeveloped lots for sale was Foreclosed!  We have many homes in this community that have been foreclosed or are in the processes of being foreclosed. 

This home below is on Painted Wall in the Bridges Golf Course Community and is listed at $375,000.  It is under contract and set to close at the end of September.

A Foreclosed Home in the Bridges Golf Course Community

Below is a picture of the club house at The Bridges Golf Course Community.

It  is owned by the FDIC.  They are accepting any bids over $7,000,000 starting tonight 9/18/09...  Original defaulted debt was approximately $24 Million.

The Bridges of the Black Canyon Golf Course

There are all types of Foreclosed Properties and Homes...

The Foreclosure process is the same for commercial and residential property but slightly different (longer for farm ground). 

After the bank gets tired of not being paid, usually about 3 months of non-payment, then they will file a Notice of Election and Demand (NED) which starts the foreclosure process and requires the Public Trustee for the County to set the Sale Date 110-125 days after the filing of the NED.

The Owner must file a notice to Cure at least 10 days prior to the Sale Date if they intend to Cure, so if you have an owner whos home has started into the foreclosure process, it is a good idea to get this Notice from the County and file it immediately to leave their options open.

The Foreclosure List is just the beginning, then the research and the phone calls and visits begin.  A Realtor can be very helpful here unless you have done several of these and know all the ropes. 

If a home is "pre-foreclosure" you may be able to wrap the note, or save the home owner if they aren't too far underwater.  You basically have a "motivated seller".

If a home is "in foreclosure" then you will likely want to try to get the Bank to do a Short Sale.  If the homeowner has a lot of equity again you might be able to wrap their note, cure it and assume ownership of the home.

If a home is "going to foreclosure sale" - you can show up at the courthouse at 9:00 on Wednesday (in Montrose Colorado), bring your cash and make a bid and purchase the home there.

If a home has "gone through foreclosure"  - it is now considered "bank owned" and is often referred to as an REO which stands for Real Estate Owned (by the bank).

Hope this helps!

If you have any specific questions about how to find foreclosed homes that are bank owned, homes in the foreclosure process or homes that are about to go into foreclosure, please call or leave a comment and I will try to answer your questions.

So hopefully you know someone with about 8-10 Million and you will have them call me to buy this foreclosed Golf Course Community full of homes that have been foreclosed or are in the foreclosure process as we speak.   Realize there are many viable "real" families living here as well, paying dues and golfing.

Chris Ormsbee is a Realtor and is a licensed Real Estate Agent in the State of Colorado.  He is part of the Montrose Gold Team and works for Century 21 Action Realty in Montrose Colorado.  Century 21 Action Realty is located at 1245 E Main St. Montrose, CO 81401 and our phone number is (970) 209-0252.   Chris Ormsbee is NOT a Lawyer, Accountant, CPA, Surveyor, Structural Engineer, Financial Advisor, Judge, Jury or a Normal Guy, but he does occassionally sleep at a Holiday Inn Express.

Besides Commenting here, you can Contact Chris Ormsbee (especially if you want to buy or sell real estate):

Chris' Cell Phone is (970) 209-0252

Chris can be friend-ed on Facebook.  His user name is Chris Ormsbee

Chris also has other blogs pertaining to Real Estate:

http://www.YourCOREAdvisor.com/blog

http://www.MontroseGoldTeamBlog.com

Chris is also "diverse" and has

http://www.TheDivorceWorkshop.com - a divorce counseling and advice site.

http://IdeasThoughtsWhatevers.blogspot.com/  - a discussion about Internet Marketing Ideas and trial "sales pitches", wild wacky ideas and politics abound and some content may be oriented to adults - surfers beware!

Chris Ormsbee Profile PicChris Ormsbee - Colorado Licensed Real Estate Broker/Realtor

Give me a Call - (970) 209-0252

Century 21 Action Realty - (970) 249-7777 - 1245 E Main St. Montrose, CO 81401

Check out the websites if you like:

www.SoldCORE.com   - Western Colorado Real Estate, Community, and Demographic Information and Links

www.MontroseGoldTeamBlog.com   - Information and Opinions about Real Estate, The Job of selling it, and the process of buying or selling a home or commerical property.  Especially in Montrose Colorado.

www.C21ActionRealty.com/cormsbee - Search Western Colorado & Montrose Homes & Properties Here!

www.C21ActionRealty.com - The Century 21 Action Realty Website (search properties or find other agents in my office.)

www.YourCOREAdvisor - Blog with other information about buying and selling Real Estate. 

6 commentsChris Ormsbee • September 18 2009 10:40PM