Updates and News

Would You Want to be Your Neighbor?

Michael Trefel

Posted by Michael Trefel on Sep 4, 2010

Good neighbors are often not mentioned because the faults of bad neighbors are generally more obvious to everyone. Loud music, blaring TVs, frequent parties, driving too fast, messy yards, obnoxious pets, and being perpetually inconsiderate are some main offenses. However, just because good neighbors aren't discussed as often as poor ones, it doesn't mean being a good neighbor goes unnoticed. Here are some ways you can be the type of neighbor you would want.

Welcome new neighbors with a card, a plate of goodies, or just a friendly introduction. Everyone wants to feel like they have found their "home," and being kind and welcoming to new neighbors can help build lasting friendships.

Maintain your yard. You don't have to be the envy of all your neighbors with the greenest, most well-kept lawn. In fact, depending on where you live, the time of year, and your water supply, that can sometimes be more annoying than a dead lawn. Just water and mow your lawn as necessary, and pick up stray toys at the end of each day. Also, this should go without saying, but never park a vehicle on your lawn.

Slow down. You don't want to be the person who is known for speeding out of your driveway. Be aware of children playing outside, runners, bikers, and other vehicles in your neighborhood.

Be conscious of your music volume and the time of day you listen to loud music.

Invite neighbors over for dinner. Host a barbeque or party to get to know your neighbors.

Give your neighbors fair warning if you're going to have a large party or if cars may be parked in front of their homes. Even better, give them an invitation to the party.

Maintain control of your pets. Don't allow them to roam the neighborhood, and always clean up after them. Don't let your dog keep your neighbors up by barking outside all night.

When new neighbors move in, offer to help unload moving trucks and unpack boxes.

Offer to make meals for families with a new baby, an ill family member, or families who have recently lost a loved one.

Know and follow your HOA guidelines and/or city ordinances.

The simplest way to be a good neighbor is to be polite and considerate. Smile, wave, and strike up conversations. Do what your mother always taught you, and treat your neighbors as you want them to treat you.

Originally authored by Ashley Smith on Sep 3, 2010

Offering Seller Incentives in Lieu of Homebuyer Tax Credit

Michael Trefel

Posted by Michael Trefel on Aug 25, 2010

After the $8,000 homebuyer tax credit expired in April this year, pending sales of existing properties fell 30% in May according to the National Association of Realtors (NAR).

If you are a current seller in this market, you may already feel the severe effects of the end of the federal tax credit. If you want to sell your home, there are a number of incentives you can offer to homebuyers in lieu of the homebuyer tax credit.

Lower your price. This seems obvious, but to really make it count, you may have to price your home low from the beginning to get multiple offers. Buyers are much more aware of the economy than they ever have been, and often, a lower price is much more appealing than any free perk. Also, buyers have access to an unlimited amount of data, and they will know if your home is priced too high.

Pay closing costs. Offer to pay a portion of the buyer's closing costs. Under the FHA mortgage program, sellers can provide credits up to 3% of the sale price (previously 6% but was changed to 3% in April 2010) to off-set closing costs. Sellers cannot, however, directly pay any portion of the buyer's down payment.

Update the interior. Offer to install new carpet, use a fresh coat of paint, and replace light fixtures.

Include appliances. Many new homeowners don't own a refrigerator, stove, dishwasher or microwave. Including appliances that are already in the home is very enticing to many homebuyers.

Another option for sellers is to hold off until next year. Many market analysts are predicting the country won't see a steadily growing market until spring 2011. Most importantly, be patient. Statistics show that on average, it takes 21 showings to sell a home. However, offering incentives in lieu of the homebuyer tax credit, which caused a surge in home purchases over the past 18 months, is one way to help you sell your home faster.

Originally authored by Ashley Smith on Aug 24, 2010

Credit Report Basics: What to Know When Buying a Home

Michael Trefel

Posted by Michael Trefel on Aug 18, 2010

Many prospective homebuyers overlook the process of checking their credit report prior to applying for a loan. The information in your credit report can affect your interest rate, your down payment, or whether or not you can even buy a home.

Mortgage lenders want to know they will be repaid. Your credit report, which is a detailed record of your credit history, helps lenders determine a potential buyer's ability to repay their loan. Usually, mortgage lenders put the most emphasis on the following aspects of your credit report:

Past payment history
Current debts
Length of credit history
Number of new credit accounts you've opened or applied for
Types of credit you have

How Can I Get My Credit Report?

There are currently three companies that maintain credit information: TransUnion, Equifax, and Experian. You are entitled to one free credit report per year by going to AnnualCreditReport.com. However, this credit report will not give you a credit score. If you want your credit score, you'll likely have to pay an additional fee.

Each of the credit reporting agencies also give you the option to purchase the full report and score they maintain. There are also options to purchase a "3-in-one" report which is a detailed overview of the information and scores from each of the three agencies. Be cautious of "free reports" with hidden fees unless you prefer a monthly credit monitoring service fee.

By reviewing your credit report in advance, you can determine the possibility of obtaining a loan with a good interest rate before applying for your loan. You can also catch any errors that may hinder the loan process.

What Does My Credit Score Say About Me?

The information provided by the three credit reporting agencies is used to create your FICO score, which is a number from approximately 300 to 850. Lenders will use your credit score when considering you for a loan, and if it's considered good, you'll have an easier time getting approved. If it's considered bad, you'll have more difficulty getting approved for a loan and likely pay a higher interest rate and down payment than somebody with good credit. You can get all three of your FICO scores from myFico.com.

If each of your FICO credit scores is 760 or higher, your credit is considered excellent. If your FICO scores are between 700 and 759, your credit is considered good. If your FICO scores are less than 700, or if you don't know your scores but know your credit reports list negative items, then it's time to start rebuilding your credit.

Don't be surprised if you discover that the credit scores from each of the three agencies are different. In reality, all three of the bureaus offer FICO credit scores using the same formula. The difference in these scores is largely because the bureaus don't necessarily all share the same data. For example, one bureau may list more accounts for you than another. Because these differences are common, it may be beneficial to pull and examine your credit reports from all three bureaus before you apply for a mortgage loan.

How Can I Fix Errors on my Credit Report?

There are generally two types of errors you might see on your credit reports:

Inaccurate information which might include errors with your personal information or account information that is not yours. For example, if your credit report reflects a store credit card you know you never opened, then that error needs to be fixed immediately. It could be a data mix-up, or it could be a sign of identity theft.

Accurate information that should have already expired from your report.

One study states that 79% of credit reports reviewed had some form of error in them.

The Internet has made the process of fixing errors convenient, and the government has regulated the process. When you dispute information on your credit report, the reporting agencies are required to investigate the dispute in a timely fashion. If they find that your dispute is legitimate, or if they are unable to verify the item one way or the other, they must remove said item from your credit report.

Hiring a credit repair company to handle this process for you isn't recommended. They generally charge you a large amount to do what you can easily do yourself.

What Can I Do to Improve My Credit?

Items that hurt your credit score are:

Bankruptcy
Outstanding (unpaid) debts
Late payments
Credit card balances near the credit limit on those cards
Liens (both outstanding and paid)

Depending on what it is, negative information can stay on your credit report for seven to ten years. A bankruptcy filing must come off after 10 years. All other information including civil suits, judgments, collection accounts, and any other adverse items come off after 7 years from the date of delinquency. It's possible for these items to last longer than the law allows, so it's important to review your reports once each year to make sure items are removed when they are supposed to be.

To maintain good credit or improve bad credit, follow these tips:

Don't close accounts. Having too many open accounts can hurt your score, but once you've opened the accounts, you can't repair your credit report by closing the account. When you close accounts, your total available credit shrinks. Closing older accounts can also make your credit history seem younger than it actually is.
If you want to apply for credit, do so in a fairly short period of time. The FICO score treats multiple inquiries in a 45-day period as just one inquiry and ignores all inquiries made within 30 days prior to the day the score is computed.
Correct all errors on all three reports.
Pay all your bills on time.
Be consistent in paying down your debt.
Apply for credit sparingly.

Originally authored by Ashley Smith on Aug 17, 2010

Natural Disaster Preparation: Will You Be Ready?

Michael Trefel

Posted by Michael Trefel on Aug 9, 2010

Throughout history, natural disasters have wreaked havoc on families, homes, communities, and even entire nations. According to the Federal Emergency Management Agency (FEMA), every state in the country has been hit by flooding, fires, or destructive high winds. There are also 41 states that have a significant earthquake hazard.

Advanced planning and preparation can be the key to a quick response and a quick, safe recovery if you happen to face a natural disaster.

First Aid Supplies

In the case of a natural disaster, or any home emergency, it is important to have basic emergency and first aid supplies readily available, and every family member should know where these supplies are located and how to use them. These supplies should include:

Prescription and other OTC medications such as aspirin, ibuprofen, acetaminophen, anti-diarrhea medication, anti-nausea medication, cold medicine, throat lozenges, etc.
Flashlight with extra batteries
First aid instruction book
Blankets and sheets
Antibiotic ointment
Sterile gauze pads
Assorted bandages
Small, sharp scissors
Instant ice pack
Adhesive tape
Absorbent cotton balls
Antibacterial soap
Water purification tablets
Small bottle of bleach
Multipurpose knife/tool
Large and small plastic bags

These items should be stored in a durable, waterproof container. Update items annually as some, such as medications, may expire.

Develop a Family Emergency Plan

Your family members should all be prepared to respond to a natural disaster. Take time to discuss and practice for emergency situations. Teach responsible family members how to turn off the water, gas, and electricity. Make sure your children know how to safely exit your home. Designate a gathering place near your home as well as another meeting place in the occasion that you are separated.

Knowledge of first aid procedures can be invaluable. The Red Cross chapter in your community can assist you in finding a helpful class for your family. FEMA also has some material to assist children in learning more about disaster preparedness.

Preparing your Home

Consult your local building authority for the base flood elevation in your area, and determine whether your home is in a Special Flood Hazard Area.
Secure large appliances, such as your refrigerator and water heater, with flexible cable, braided wire, or metal strapping to keep them from falling over.
Every home should have an ABC-rated fire extinguisher.
Anchor propane tanks and gas cylinders.
Make sure your house number is visible from the street in case emergency personnel need to find your home. Some cities offer a program to paint your house number on the curb for a small fee. The best place for your house number is near the front door or slightly above eye level and lit by a light.
Permanent shutters are the best protection for high winds. A lower-cost approach is to put up plywood panels.
Roofs can be the first to go in severe storms. Simple metal straps can keep roof rafters tied to the top wall of the house and prevent uplift during high winds.
Foundation bolts cost around $2 each and can save thousands of dollars worth of damage if high winds, floods, or earthquakes try to force a house off its foundation.
Keep important records, such as mortgage papers, medical records, insurance policies, birth certificates, marriage licenses, wills, stock and bond certificates, tax records, an inventory of your assets and personal items, and other vital documents in one central location where they can easily be transported if you must leave the area quickly. Keep all papers in a water- and fire-proof container.
Check your homeowner's insurance coverage. Floods are not covered by homeowner's insurance policies. However, flood insurance is available through the government-backed National Flood Insurance Program.
Make food storage a priority. Have at least a five-day supply of food and water for each family member on hand. Store water in sealed, unbreakable containers, and replace it as necessary. Food should be non-perishable goods such as canned or sealed-package items.

Originally authored by Ashley Smith on Aug 9, 2010

6 Common Home Buyer Mistakes to Avoid

Michael Trefel

Posted by Michael Trefel on Aug 3, 2010

You've determined that you're ready to buy a home. You've saved enough for a down payment, you've been searching for properties, and you're ready to make your dream a reality. Buying a home is an exciting process; however, if you're not careful, it can turn into a nightmare. Here are 6 common home buyer mistakes to avoid.

1. Not Budgeting Properly

It's easy to overestimate what you can afford. Although owning a home may be a better investment than renting, it's not necessarily going to be cheaper. Take a good look at your income and expenses for a few months before determining what you can comfortably afford. Make a budget sheet using Microsoft Excel or any other budgeting software. List all your income as well as every single expense, including food, gifts, and even haircuts. Keep in mind any emergency expenses as well.

When budgeting, don't forget about hidden costs including closing costs, homeowner's insurance, property taxes, HOA fees, and décor and furniture to fill your new home.

2. Neglecting your Credit Report Prior to Getting Approved

Your credit score can be either helpful or detrimental to your loan process. Getting a full credit report from all three credit reporting agencies - Experian, Equifax, and TransUnion - before applying for your home loan will not only let you know how credit-worthy you are, it can lead you to possible reporting errors. One study found that as many as 25 percent of credit reports have damaging errors.

3. Not Getting Pre-approved for a Home Loan before Searching

Most sellers prefer bids from prospective buyers who are already pre-approved for a home loan. Being pre-qualified and pre-approved are different. Pre-qualification is usually the unofficial process of informing a lender of your credit status, income, and debt. The lender can usually give you a ballpark figure of what type of loan they may offer. Pre-qualification is based on your word alone and doesn't hold much weight with sellers.

Pre-approval is the verification of the information you provided to the lender. This process will give you a better idea of how much the bank will loan you. Getting pre-approved can get you a step ahead other potential bidders that have no pre-approval.

4. Skipping the Home Inspection

You love that old fixer-upper, but skipping the home inspection can cost you as much in repairs as the cost of the home itself. The home inspection should include the overall foundation and structural features of the house, the roof, walls, plumbing, the presence of mold, pest infestations, heating, air conditioning, appliances, and the electrical system. Also, ensure that your inspector is certified with the American Society of Home Inspectors.

5. Picking the wrong neighborhood

You've found a home you love, but do you know what happens in the neighborhood after dark? Do you know the crime rate? What is the traffic like during rush hour? How is the school district?

Knock on your potential neighbors' doors, and don't be afraid to ask questions. Call the school principal, or talk to parents who are waiting to pick up their kids after school. Read the local newspaper to learn more about the community. There are many real estate blogs and community websites on the internet so before buying the home, check out the neighborhood.

6. Using a Bad Real Estate Agent or No Agent

You want a real estate agent who understands your needs and limitations and will work for you and look out for your interests. Get references from friends, family, co-workers, and neighbors. Consider interviewing a few different agents to find out about their activity and experience in your area.

It's definitely possible to buy a home without the help of a professional real estate agent, but realtors have access to all the homes on the market through the multiple listing service (MLS). Unless you are in the real estate business yourself, you'll likely not have any access to the MLS in your area. Real estate agents spend their time sifting through listings, making appointments to show homes, meeting with inspectors, and helping you create a comparative market analysis to determine proper pricing.

The real estate agent you choose could be the greatest asset or biggest obstacle to finding your dream home.

Originally authored by Ashley Smith on Aug 2, 2010

Sell Your Home using Home Staging

Michael Trefel

Posted by Michael Trefel on Jul 22, 2010

Many buyers make a decision about a home within 15 seconds of walking through the front door. To make a great first impression, many homeowners are turning to Home Staging. Home Staging is the process of setting the scene throughout your home to create immediate buyer interest.

Benefits of Home Staging

Donna Dazzo, a New York-based home stager, pointed out that staging moves up sell dates and adds more money to sellers' pockets. She noted a recent study performed by The Real Estate Staging Association, which showed that after they'd been on the market for quite some time, occupied homes that were staged sold on average within six days, while unoccupied homes sold within 28 days after staging. "Home staging results in a higher price, all other things being equal," she said, adding that the money that clients invest in staging usually results in a 350-percent return on investment in terms of getting a number closer to their sale price. "An investment in staging will always be less than the first price reduction," she said.

Clean Up and Remove All Clutter

Potential buyers don't want to see how you live. They want to picture themselves living in your home. When cleaning for home staging, you should plan to clean your home better than you ever have before. Clean every surface including windows (inside and out) and window sills, ledges, door knobs, ceiling fans, shelves, mini blinds, ceiling and floor corners, and baseboards. Remove all tile grout with bleach. Caulk areas around sinks and bathtubs. If the job seems overwhelming, consider hiring a maid service or cleaning crew. The benefits of home staging will be worth the cost.

Get your carpets professionally cleaned. If you have pets, this is absolutely necessary. Even if you don't, professionally cleaned carpets are far more appealing than worn out, stained ones.

When considering purchasing your home, people will open your cupboards and closets. Make sure they're organized neatly. Every storage area in your home should be neat, clean, organized, and clutter-free.

To Decorate or Not to Decorate

You need to show your home at its best potential to buyers. Lori Matzke, Professional Home Stager and Founder of "Center Stage Home" states, "Keep in mind that what you are selling is the house, not its contents. . . If you remove throw or area rugs, eliminate clutter and collections, and cut down on furniture and accessories, the room will appear to be more airy and spacious. . . It's all about flow."

Make your home look as spacious as possible. Rearrange furniture so it is conducive to a smooth traffic flow. Store away any excess furniture and knick knacks. Take down your wedding photos, religious items, school pictures, and collection of refrigerator art.

Consider replacing the towels in your bathrooms and kitchen with a couple of fresh new ones. Remove all personal items from countertops, and place a plant on the bathroom vanity. Remove all dirty laundry from sight. Add a centerpiece to your dining room table if you don't already have one. Take a close look at your houseplants. If they are dying or unsightly, remove them or replace them. Place plants in clean, attractive containers. Add a fresh, non-offensive fragrance to your home using potpourri, scented oils, or scented wax (as candle smoke can stain walls) such as cinnamon or vanilla. Many agents are even advising homeowners to bake a fresh batch of cookies if they know they will be showing their home. A fresh coat of paint in a neutral color will also go a long way.

Your front porch is the first thing people see. If you have any dead or tattered planters, replace them with fresh ones. Keep all planters watered and trimmed. Keep your porch clean and inviting. Replace your front door handle if necessary, and put a stylish wreath on the door.

Ms. Dazzo states, "Even though people's clutter is a turn-off to potential buyers, the opposite problem - a vacant home - is one that really keeps houses on the market longer. If there is nothing left in the house, buyers sense desperation and begin trying to whittle down prices, and as the listing gets more stale, the house becomes even harder to sell. . . If it doesn't have furniture, people notice cracks in the walls, scuffs in the floor."

Home Staging can be a project you can do yourself, but if you want to invest in a professional Home Stager, the benefits are often worth the cost.

Originally authored by Ashley Smith on Jul 21, 2010

Cut Your Remodeling Costs

Michael Trefel

Posted by Michael Trefel on Jul 11, 2010

Budget First

Remodeling costs can easily skyrocket if you don't initially budget properly. Creating a strict budget is the best way to cut remodeling costs, and it's the first step you should take. There are often unforeseen costs that arise when remodeling your home; however, if you stick to the budget as closely as possible, you will prevent any outrageous, unexpected costs.

Once you've started the project, keep a detailed accounting spreadsheet, word processing document, or handwritten journal of every penny spent. Ask your contractor and subcontractors for weekly cost updates to ensure you are staying within your budget, and hold them accountable for their expenses.

Reduce Construction Costs

Once you've determined your budget, gather multiple bids from contractors. The difference can mean hundreds of dollars in savings, and never be afraid to ask if any discounts can be offered. Be very clear about how much you want to pay at the end of the project, and obtain a signed contract from any contractor or subcontractor prior to starting the project.

Also, ask your contractor if they have any materials left over from previous jobs. You can usually get used materials at a low price because often, those materials have already been paid for and are taking up warehouse space. Another way to save on material costs is to purchase them yourself. Contractors often mark up supply prices. Also, browse architectural salvage warehouses for doors, windows, woodwork, light fixtures, plumbing fixtures, fireplace mantels, and other assorted architectural details.

Do It Yourself!

To cut remodeling costs drastically, do as much as you can yourself. Home improvement stores can assist you, and the more labor you do yourself, the less you will have to pay in overall costs. Opt for door hardware, light fixtures, and faucets from your local home improvement store, and don't forget the paint! Paint is the cheapest way to renovate a room. By simply giving a room a new coat of paint or trying a different color scheme, a room can be completely transformed. Instead of replacing all your cabinets, refinish or paint the ones you have. Replace the knobs and handles with new accents that can be found at your local hardware store, antique shop, or flea market.

Originally authored by Ashley Smith on Jul 10, 2010

Get to Know your Community by Getting Involved

Michael Trefel

Posted by Michael Trefel on Jul 3, 2010

Being involved in your community doesn't just benefit others; being involved can help you feel more connected to society. Through community service, you gain a sense of responsibility, and you set an example of sacrifice and service to your family and friends.

Here are some ways to get involved in your own community:

Visit volunteermatch.org: Enter your zip code and skills or interests to find volunteer opportunities suited just for you.

Volunteer your time at rest homes or retirement communities, developmental centers, or assisted living facilities in your area.

Volunteer at community events. Many community events throughout the country can be found at the Library of Congress Local Legacies website.

Host or sponsor an event such as a race (try Relay for Life) or a school event. Read your local newspaper or city newsletter to search for opportunities.

Talk to local church leaders to see what the needs of your neighborhood and community are.

Call your local school district to find volunteer opportunities.

Adopt a child or family for Christmas. Many names are also given to local church authorities. Contact local shelters to find families in need or contact your local United Way.

Be an informed citizen so you can be a leader in your own community.

Originally authored by Ashley Smith on Jul 2, 2010

Water Conservation

Michael Trefel

Posted by Michael Trefel on Jun 24, 2010

20 Water Conservation Tips that Won't Cost You a Penny

According to the Utah Division of Water Resources, Utah consumes approximately 293 gallons per person per day. We live in a desert where water is a precious resource. Water conservation not only saves money on utility bills, it helps preserve our environment.

Here are 20 Tips to help you conserve water that do not cost you anything and will eventually save you money:

Don't use the toilet as a garbage can. Each time you flush, you use 3-6 gallons of water. Throw used tissue paper and cotton pads in the trash.
Check faucets and pipes for leaks.
Use your dishwasher only when it is full. If you have a newer model, pre-rinsing is usually not necessary. Use the appropriate setting when washing dishes, and do not run the "Pots and Pans" option unless absolutely necessary.
Match your clothes washer setting to fit the size of the laundry load. Avoid the permanent press cycle, which uses an additional 5 gallons of water for the extra rinse. If you are in the market for a new washer, consider purchasing a water-saving frontload washer.
Don't let the faucet run when you rinse off vegetables and fruit. Wash them in a bowl instead.
Keep a bottle of drinking water in the fridge. Waiting for the tap water to cool wastes water and time.
Take shorter showers. Use a timer or an alarm clock if necessary. Reducing your shower time by 1-2 minutes can save up to 150 gallons per month.
Turn off the tap when brushing your teeth.
Use the garbage disposal sparingly. Use the garbage can instead.
Monitor your water bill. Your bill and water meter are tools that can help you discover leaks. If your bill reflects unusually high water usage, you may have a leak.
If the toilet flapper in the tank doesn't close after flushing, replace it.
Washing dark clothes in cold water saves both water and energy while helping your clothes maintain their colors.
Reuse your towels.
When washing your hands, don't let the water run while you lather the soap.
If you drop ice cubes on the floor when filling your glass from the freezer, don't throw them in the sink. Drop them in a house plant instead.
Teach your children to turn off faucets tightly after each use.
When washing dishes by hand, fill the sink or a large container with clean water. Rinse when all the dishes have been scrubbed with soap.
When you give your pet fresh water, don't throw the old water down the drain. Use it to water plants, trees, or shrubs.
Use a broom, not a hose, to clean driveways, garages, and sidewalks.
Don't water the sidewalk, gutter, or the road. Position your sprinklers accordingly, and avoid watering your lawn on windy days. Ensuring that your sprinklers water only your lawn will avoid wasting water. Also, your neighbor who recently washed his car will appreciate not getting sprayed as he drives past your house.

Originally authored by Ashley Smith on Jun 23, 2010

Buying a Foreclosed Home

Michael Trefel

Posted by Michael Trefel on Jun 11, 2010

Buying a Foreclosed Home

The current state of the economy has caused a flood of foreclosed properties on the market. Many home buyers are taking advantage of the extremely low cost of a foreclosed home. A foreclosure occurs when a property owner fails to make the payments on his or her loan which leads to the property being seized and sold.

There are generally two options when buying a foreclosed home. You can either purchase the home from the lender/bank, or you can purchase the home from a foreclosure auction or sale. Because the process is very different for each, this article will specifically focus on bank foreclosures.

Listings of foreclosures can be obtained from most banks. Some agents and brokers who specialize in foreclosures may also assist you in finding foreclosed property for sale. Consider the following tips when looking at a foreclosed home:

Inspect the house very carefully. Many foreclosed homes have previous homeowners who did not maintain upkeep on the home or the landscape. Sometimes the repairs are minor, but take into account any unexpected repairs when budgeting. You may want to contract a private inspection to give you a better indication of the cost of repairs.
Evaluate the neighborhood. Knock on your potential neighbors' doors to ask them how they like the neighborhood. Research the crime rate in the area as well.
Have an agent find the prices of comparable homes in the area to ensure you are actually getting a good deal.

Once you have found a foreclosed property you are considering buying, go to the County Recorder's Office. The County Recorder's Office can provide you with the Trust Deed, the Notice of Foreclosure Sale, and the Notice of Default on the property. These documents are public record and reflect how much was originally loaned to the homeowner, when the loan was issued, how much was owed at the time the Notice of Default was filed, and how much the bank paid for the property. Since there are usually no concrete rules banks follow that determine their bottom-line price, these documents will help you explore the lowest possible price the bank is willing to sell the home for.

Foreclosed homes are often offered at a significant discount at upwards of 30% or more, so if you are in the market for a bargain, a bank foreclosure may be a great option for you.

Originally authored by Ashley Smith on Jun 10, 2010