Let’s face it – everyone wants to get the best deal possible on a home and a lot of people like the idea of “sweat equity”. The unfortunate side is if you find a home in a location that you love, with a layout that you love, but decor, etc that you hate – it may present more challenges.

Sure, you can get a loan on a home, move in, and do things room by room, painting and replacing floors, trim, windows as you have the extra funds, but if you are like most families, you have little “extra” income and these projects take forever to do. What if the house is really bad off and simply is not livable without work? Then you can’t get a loan no matter how much you love the house, right? Wrong!

Since 1978, the FHA has offered “rehab” loans known as the 203k loan. It is not widely used because most consumers do not know about it, and most real estate agents, brokers, and lenders are either unaware or to lazy to work them. The 203k loan takes considerable extra work on behalf of the REALTOR®, the loan officer, and a little extra stress on behalf of the buyer, but it can be a very rewarding way to go if you want to buy that “fixer-upper” and have the money to do the work.

These loans are for owner-occupants only (sorry, no investors) and have several stipulations that either I or lender can go over with you.

If you are already using the services of a GOOD Real Estate Broker/Agent, ask them about this. If you have not yet contacted one, call or email me. I have done several rehab loans and have lenders that don’t mind earning their money

Foreclosures are a part of any real estate market and while national statistics are high in the foreclosure rate, we are no where near that. However, foreclosures are still, and always will be, a small part of the market where investors and regular buyers can make a profit and see equity.

On the Mississippi Coast, much like most markets, the majority of the foreclosures need work, or as most of the agents representing the banks say – “need TLC”. If you do not mind trading a little sweat equity or hiring someone to do some work for you, there are awesome deals in the foreclosure market.

One of the key factors you have to watch out for in buying a foreclosure is overpricing and under-valuing the repairs by listing agents and banks. Obviously, the bank’s goals are to get as much money as possible and sell as quickly as possible. This presents almost mutually opposing interests in their own house. Many foreclosures are priced very close to market value but a well-documented offer from a qualified buyer can often convince the bank to take a lower price. In some instances (specifically HUD), the bank also favors owner-occupants over investors.

If you are looking to buy foreclosures on the Mississippi Gulf Coast, contact me – there are deals and steals to be found. I am very familiar with the process, assisting with repair bids, and obtaining specialized financing for homes that need work.

Foreclosures are a par of any real estate market and offer a great chance for investors, but also opportunity for buyers to find more home for the money, many times with equity in place.

Gulfport MS does not have the high foreclosure rate of some of the larger cities in the US that were hit harder by the economic downturn, but they are still out there. The important thing to remember when looking for foreclosures in the Gulfport market, or anywhere on the MS Coast for that matter, is that while deals are out there, you should not expect outrageous deals. The average foreclosure in our market sells for 15-20% below market value. While this may include some minor work to the property, and possibly some updating, it still represents a significant discount.

Another factor in buying foreclosures is to use a buyer’s representative that is familiar with the process, contingency periods (or lack thereof), and other factors that are much different than buying a home listed with an individual owner. Not using a broker who is familiar with this could put your time and your money at risk.

Contact me today for assistance buying or selling any property on the MS Coast.