Real Estate Auctions

 I don’t know much about them, but I’m quickly becoming fascinated with them and wonder if I go to the below auction..what my chances would be to winning this home for less than 5K…  what do you think?

I know usually they are filled with investors (like car auctions filled with dealers) filled with investors with big cash at hand to out bid me…but I might just go to see how this particular auction work. I see MANY of their signs all throughout the West End. This home looks to have some nice features:

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769 CASCADE PLACE ATLANTA, GA 30310

Description
3BR 2BA 1968sf+\- single-family. Built 1925. Approx .25ac lot. Taxes approx $2865 (’06)Oakland City subdivision.Open House
1-4pm Sat. Feb. 16th and 2hrs prior to sale.

Opening Bid
$1,000

Sells
1:45 PM Wednesday, February 20, 2008

Sale Location: 1571 LINDA WAY ATLANTA, GA 30310

Mortgage Update: 203K Renovation Program Available

I had some interest last week in the 203K FHA renovation loan which comes into play on purchases of homes that need repair work , such as foreclosures. Since it is an FHA loan, the price range cannot exceed approximately $260,000 in metro Atlanta, but there are plenty of homes that meet that criteria. And there is a good possibility that FHA will increase its loan limits very soon to match conventional loans at $417,000.

Basically the 203K program works like this. The borrower gets bids from contractors on the work that needs to be done to the home. Cosmetic items such as kitchen appliances can even be included, for example. We then take the sales price and the proposed repair amount and base the loan on that figure. The borrower would then close and an escrow account would be set up for the repair items. Typically the work would be completed in 90 days. Once the work is completed, we would send the appraiser back out for a final inspection and the money would be disbursed.

The rate on this program is typically about 1% higher than the traditional FHA loan program. There is no minimum credit score to qualify as the 203K is basically an FHA loan.

Best regards,

Sam Thompson

Loan Officer

Opteum Mortgage

678-742-6631 (office)

1-866-226-2066 (toll free)

770-301-0527 (cell)

678-585-8345 (e-fax)

222 Chastain Meadows Court, Suite 300

Kennesaw, GA 30144

email: Sthompson@opteum.com

web: http://www.opteum.com/sthompson

New Listing on Rogers Ave/ Westview

I have a listing…on Rogers Ave. Will get pictures up soon. A well loved 3 bedrm, 1 updated bath/separate shower, Brick home.  Details++ , character (butler pantry, dark wood moulding, bay window, built in original pantry- huge wooden coat closet, glass knobs, hardwood floors), HUGE yard, finished full basement-studded for 2nd bathroom, Gazebo, Deck, NEW furnace, NEW water heater, much more.

I was excited to get this one, more excited because the sellers are not sad about the sale…You know I take everything to heart, and when a seller is selling under duress and is sad…..my nights are filled with prayers.

Anyway- I will have the pictures up soon. … Need some good buyers- it’s MOVE IN READY!!!

FICO Scoring System Gets Redesign

Fair Isaac Corp., the company that devised the ubiquitous FICO credit scores, announced this week that it plans to roll out a suite of tools designed to predict future default risk.

Fair Isaac says the new products will predict how lenders can offer even more debt to consumers without taking on undue risk.

The update revamps the old credit-scoring formula so that it penalizes consumers with a high debt load more than the earlier version. FICO 08 should increase predictive strength by 5 to 15 percent, according to Fair Isaac’s vice president of scoring, Tom Quinn.

FICO 08 is also expected to do a better job of determining which consumers with past defaults are “more on the road to recovery and should have more of a higher score,” Quinn says.

The new index can look at three consumers with a 700 FICO score and determine which of the three could take on additional debt without defaulting, according to the company.

Source: Star-Tribune, Kara McGuire (01/22/08)

Developer Sues Real Estate Pro Over Blog

Miami developer Tibor Hollo has sued a real estate practitioner for $25 million, after the practitioner blogged that the developer went bankrupt in the 1980s and is facing financial difficulties in the current downturn.

Hollo filed the lawsuit against the firm Esslinger-Wooten-Maxwell and its associate Lucas Lechuga, alleging libel and defamation against him and his Opera Tower condo development after Lechuga’s blog predicted that at least half of the owners in the 635-unit development would default.

That followed a post in November that Hollo had filed for bankruptcy in the 1980s, an allegation that appears to be untrue.

On Monday, Esslinger-Wooten-Maxwell fired Hollo.

Robert Jarvis, a constitutional law and ethics professor at Nova Southeastern University, who isn’t involved in the case, says he doubts Lechuga will be held liable for defaming Hollo.

”Courts understand [blogs] are written in unedited, unvetted fashion,” Jarvis says. “There’s a lot of hyperbole. That’s why it’s so difficult to win defamation lawsuits.”

Source: The Miami Herald, Patrick Danner (01/29/08)