Homes For Sale in Murfreesboro, TN | Buying a House in Murfreesboro, TN | Foreclosures in Murfreesboro, TN | Short Sales in Murfreesboro, TN

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Lucky Luecke
Managing Broker
    Years of Experience: 15

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Direct: (615) 519-4040

Office: (615) 896-2733

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Red Realty
522 Uptown Square
Murfreesboro, TN 37129
(615) 896-2733

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Posts Tagged ‘foreclosures in Middle Tennessee’

Avoid REO Surprises!

Monday, June 27th, 2011

From a buyer’s perspective… An REO property, that which was obtained by a bank or lender following a foreclosure, requires a different mindset.

First, buyers are not dealing with a “normal” condition where an individual owns the house and one can seek out and attempt to fulfill the seller’s emotional needs as in a traditional real estate transaction.  Banks do not have an emotional stake in the property, so they are very unlikely to be swayed by a buyer’s hardship or willing to undergo needed property repairs, etc.

Second, the bank’s asset manager is usually someone who is based out of state (and unfamiliar with the local market), is not in a position to give away any assurances about the property’s condition and likely, will only sell “as is”, where is, with no express or implied warranties.  The bank’s goal is to be completely done with the property at closing, without any lingering responsibility for repairs, tax reapportionments, follow up calls from the new buyers in property defect issues, etc.

Third, don’t assume that the property is free and clear of all liens.  Some buyers, particularly if they use the seller’s title company to close the transaction, discover too late that a search was done 2 weeks before closing (but not immediately before closing) and missed liens of ad valorem taxes or other problems that place a “cloud” over the title.

Protect Your Interests By Doing The Following:

  • Do a thorough investigation of the propertyDue diligence is your responsibility.  Utilize a qualified house inspector, examine any bank required addendums and know what you are agreeing to.  Conduct appropriate inspections (termite, septic, radon, etc.) so that you know what you are purchasing.  By agreeing to purchase “as is”, insert contract language that protects you if the seller failed to put a tarp over the hole in the roof (discovered 3 weeks earlier) for example.  Such seller negligence might cause you $30,000 worth of additional expenses if you weren’t careful prior to contract acceptance.
  • Spend the money for a property survey:  That is the best way to determine boundary lines.  Acreage disputes are not covered by title insurance.
  • Consider an Enhanced Title Insurance or GAP Insurance Policy:  At the very least, have a title search conducted early on in the process and have the title company do another immediately before closing.  In Middle Tennessee I recommend Stones River Title and Biltmore Title.
  • Conduct a Final Walk Through Inspection to ensure that the property was in the same relative condition it was in at contract acceptance.  Make sure language is in the contract that allows you to terminate with full return of your earnest money if the seller fails to either adjust the purchase price or to return the property to condition it was in as of the binding agreement date.
  • Request and/or Require as a Condition to Sale, that the Seller Provide You with Previous Inspection Reports or other documents pertaining to property condition.  Many listing agents and sellers will fail to disclose what they know about property because the seller is in an Exempt from Property Condition Disclosure Status.  Just beware!
  • Make New Keys ASAP After Closing:  There’s no telling how many people have had access or copied the key to your new house.  Don’t forget to reprogram the garage door opener and security gate if applicable.
  • Buy a 1 Year Third Party Home Warranty (or Negotiate it with the Purchase Price):  Thus may be the peace of mind you need during that first year.

Can Foreclosure Sales Affect Your Middle Tennessee Home Value?

Tuesday, April 5th, 2011

For years, licensed real estate appraisers excluded foreclosure sales from market value considerations because they were considered outside the norm.  Unfortunately, high unemployment rates and a slow economy may have caused neighboring homes to suddenly pop up for sale in record numbers.

Foreclosures homes vary in appearance from community to community.  Some foreclosure sales are handled quietly and quickly resold by the lender for market value.  You might see a moving van pull up one day, occupants’ belonging are loaded, then drive off, followed shortly thereafter by a real estate broker’s FOR SALE sign.

In  other neighborhoods, a foreclosed home might be boarded up and plastered with large signs advertising bank owned or REO.  Some homes might remain in a vacant, abandoned state for years.  Weeds and shrubs grow high enough to block first level windows, vandals or pranksters throw rocks through second story windows and the home becomes an eyesore, a dumping ground for trash, used mattresses and auto parts.  This is particularly true if you are in a more rural area outside the city’s reach to enforce certain codes and regulations governing this condition.

As a homeowner, you may have done everything possible to maintain and improve the resale value of your house.  Be advised that you will experience the negative effects of foreclosed homes surrounding you even though you have been conscientious, have never missed a mortgage payment and have even made extra efforts to pay off your loan ahead of time.

Due to large numbers of foreclosed and short sales, Appraisers are now using those sales when deciding on which “comparable sales” to consider.

Some studies show that neighborhoods with strong foreclosure numbers see  a drop of 1% in property values for neighboring houses.  If you’ve been considering selling your Murfreesboro Tennessee real estate, for whatever reason, it may be wise to do so in-spite of today’s “Buyer’s Market” as some foreclosure sales seem to self perpetuate.  As soon as one home owner goes into default, others nearby may abandon their property, lawns don’t get mowed and a vicious cycle soon begins.  Let me use my real estate expertise to help you determine if this is the right time for you to sell and buy another house in Middle Tennessee.  See my website for more information.

How to Avoid Mistakes Which Could Cost You Thousands When Buying Bank Owned Foreclosures in Tennessee!

Thursday, March 31st, 2011

There are certainly many instances when buyers of foreclosed homes have benefited greatly in today’s “Buyers Market” due to favorable pricing and great values without issues.  This is true for buyers who are owner occupants as well as for investors.

However, there are many instances where naive buyers have truly gotten “burned”.  Their money pit could have been avoided had they had a qualified and trusted Broker represent them when considering a purchase of a foreclosed property.

Among the many things that could go “bad” are:

  • Property Conditions.  The bank is exempt from completing a Sellers Property Condition Disclosure form.  This places increased pressure on Buyers to conduct their own due diligence to better ensure that they are not buying a “money pit”.  Always have a through home and property inspection and negotiate the right to withdraw and terminate a Purchase/Sale Agreement if there is discovery of repair items beyond that which makes you comfortable.  In many instances, the previous owner (who had gotten behind on their mortgage payments) had probably not been spending the money necessary for ongoing or preventative maintenance.  Furthermore, the savvy Buyer Broker will advise their client to negotiate a contingency requiring the Seller to disclose the results of previous inspections and/or known adverse conditions (ie. such as a previous Sales Agreement that was terminated due to mold in the crawlspace).
  • Buying As Is/Where Is.  Expect to purchase a foreclosed property under these terms.  However, many Buyers and their Agents overlook negotiating a contingency which protects the Buyer from having to go through with the purchase if the property condition deteriorated following the Binding Agreement Date of the Agreement (or from the expiration of the Inspection Period) through the day of closing.

Example, there are instances where either due to vandalism, hail storm or flood, considerable damage to the vacant property has occurred right before closing!  Buyers, without the recommended protective contingency, have gotten “stuck” with excessive repair costs beyond what they had originally planned on.

  • Bank Required Addendum.  Often times submitted by the Seller well after Verbal Agreement between the parties, this one sided document can be as many as twenty pages long.  The first sentence generally states that this supersedes any and all documents and agreements between the parties.  The second sentence then states that the Buyer must relinquish their first born child to the bank (I kid, but it’s not too far off).  Be advised that these documents often times include a Right of Redemption (without time limits) which enables the previous owner the right to redeem and “depossess” you from the premises in the future.

Granted, this is typically a low risk (as the previous owner is unlikely financially able to recover the property).  However, how many times do families receive an inheritance, win the lottery, ect.  It is possible!  How would you like to be “depossessed”?

  • Title Insurance.  Buyers are strongly urged to have a Title Insurance Policy, particularly on Foreclosed Purchased Properties.  However, are you aware that such a policy will not protect the Buyer on an acreage dispute, for example, if you elected not to have a survey done before closing?  Big mistake!  I know of one instance where the buyer thought he was getting eleven acres but only was conveyed five acres.  The buyer found this out three months after closing upon getting notice from The Property Tax Assessor Department.  Many thousands of dollars were spent fighting this matter in court!

Call me to help you, your friends or family when buying foreclosed properties in Middle Tennessee.

Take Advantage of New Mortgage Assistance Program in Tennessee!

Friday, March 25th, 2011

If you are unemployed or substantially underemployed and own a single family home or condominium in Tennessee with a mortgage and this is your primary residence, you may be eligible to qualify for mortgage payment assistance through the Keep My Tennessee Home program administered by The Tennessee Housing Development Agency (THDA).

The purpose of this program is to assist the unemployed and substantially underemployed home owner to remain in their homes and avoid foreclosure while they seek increased income.

Funding is from Troubled Assets Relief Program (TARP) which was originally intended to take bad mortgages off the books of financial institutions in the United States.  When those institutions paid back the loans, those funds were re-figured into the Hardest Hit Fund.  THDA renamed that to Keep My Tennessee Home.  THDA estimates 11.000 households should benefit over the next five years with the $217 million approximation.

As a first step to preliminarily check if you might be eligible go to: or call 1-855-890-8073.  When Q & A reveal preliminary eligibility, an applicant is matched with a foreclosure prevention counselor ans the application is completed together.

Program Eligibility Highlights (Illustration only, not all inclusive)

  • Single-family home, including manufactured homes, on foundations permanently affixed to real estate that they own.
  • Have a history of timely mortgage payments prior to the job loss/reduction of income, or no more than two 30- day late payments in the 12 months prior to the job loss/reduction of income.
  • Have no more than six months’ reserves of liquid assets
  • Have a household income less than $74,980 and a total unpaid principal balance not exceeding $226,100.

You can visit the THDA website for more  help.

Market Recap

  • Avg. Sales Price: 172,000

  • Avg. Days on Market: 93

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