Update Sept. 19 - This Sussex County NJ foreclosed home for sale attracted a huge amount of interest and multiple offers. Freddie Mac/HomeSteps has accepted one and kept another as a backup. Alas, there isn't an equivalent home for sale in Highland Lakes right now - or I'd have a deal on it too right now!

At long last, this fabulous three-bedroom ranch home for sale in Highland Lakes NJ awaits you! An attractively priced foreclosure in Sussex County NJ, this Vernon home has the most spectacular lake views. Whether you seek a vacation property or a permanent residence, this ranch in Highland Lakes might just be the deal for which you've been waiting!

Offered at just $167000 - in time to benefit from the $8000 first-time home buyer tax credit!

Since early July, I've been VERY excited about listing 29 Lakeside Drive - Highland Lakes (Vernon NJ) for sale because it is in such good condition compared to typical REOs for sale - Highland Lakes and elsewhere. Freddie Mac/HomeSteps has been most generous in funding "make ready" work. The neglected yard got a long overdue haircut (as a neighbor stood and cheered!). The Vernon NJ home for sale has been emptied and cleaned - see the terrible "before" photo. Some steps are still in the works: electric repairs and removal of the living room carpet/reseal the underlying hardwood floors. This Highland Lakes foreclosure home for sale will also have the plumbing checked once we can operate the well pump. (It had been winterized.)

I'm delighted to report that it no longers looks like that photo. This Vernon NJ home for sale is now ready for buyers to come take a peek! With the lake right across the street, I anticipate a great deal of interest from:

• first-time home buyers wanting to purchase in time for the $8000 tax credit ;
• those downsizing and wanting a smaller home - particularly a ranch;
• folks seeking a vacation or getaway property in a lovely Sussex County NJ lake community;
• all house hunters seeking a fabulous deal!

The following link to one of my posts may be useful if you're considering a foreclosure in Highland Lakes - Vernon - Sussex County NJ or anywhere in the U.S. You'll also find links to some of my other posts on distressed properties - REOs, foreclosures, pre-forclosures, short sales, etc.

Want to Steal a Foreclosure? Get the REO facts from a Sussex County NJ real estate agent

Copyright © 2009, Irene Kennedy, all rights reserved. This blog post from RealtorIrene represents Irene's personal musings.

Considering selling a home or looking to buy one around Sussex County, NJ? Benefit from creative marketing, top negotiating skills and vast real estate knowledge by contacting Irene directly via the data to the right or HomesIrene.

Irene Kennedy, who is a NJ real estate agent with Weichert, Realtors, lives in Sussex County & works from the Hamburg office. Her primary market includes: Augusta, Branchville, Crystal Springs, Frankford, Franklin, Hamburg, Hampton, Hardyston, Highland Lakes, Lake Mohawk, Newton, Ogdensburg, Scenic Lakes, Sparta, Stockholm, Sussex, Vernon, Wantage. With her vast network, however, Irene Kennedy also can help you find an equally talented real estate agent elsewhere.

Update August 21 - In record time for most Sussex County NJ real estate, the home for sale in Franklin had completed Attorney Review and was Under Contract on August 14.  The buyers were guests at my Open House - about which I'll be posting soon!

Clean out was just completed August 6 on this Franklin NJ ranch home for sale. Even so, interest in this well-priced 2 - 3 bedroom Sussex County real estate has been very high. On more than 1/2 acre of land, it has public sewer and is central to major commuter roads.

I (Irene Kennedy) will host the first Open House will be Sunday, August 9, from 1:00 - 5:00 p.m., 19 Scott Road, Franklin - Sussex County NJ.

Priced as attractively as a bank-owned foreclosure, potential buyers of this Franklin ranch at 19 Scott Road - off North Church Road - face none of those headaches. This gem does need painting and a new kitchen floor but the bargain price of $180000 - As-Is - acknowledges those required cosmetics.

Solid Ranch for Sale - 19 Scott Road, Franklin NJ

19 Scott Road, Franklin, NJ 07416 View Map

ESTATE SALE.

Private, solid ranch with hardwood floors on very desirable street in Franklin Boro – but this has PUBLIC SEWER.

Both bedrooms have walk-in closets.

Eat-in kitchen.

Fireplace.

Improvements: windows, furnace, water heater, well pumps, etc.

Owner placed yellow flags to roughly mark property lines but he didn't climb into brush...

Details

Asking Price:

$180000

MLS:

2702316

Sq. Feet:

1400

Lot Size:

.51 acres

Bedrooms:

2

Bathrooms:

1

# of Floors:

1

Garage Size:

2 car

Year Built:

1940

Property Amenities

- Range/Oven
- Full Refrigerator
- Washer/Dryer
- Fireplace

- Hardwood floors
- Basement
- Attic

- Yard
- Living room
- Dining Room

Contact Info

Irene Kennedy
Real Estate Agent in Sussex County, NJ

Main 973-827-8899
Cell 973-493-8216
Email | Website

All information is deemed reliable but is not guaranteed.

Copyright © 2009, Irene Kennedy, all rights reserved. This blog post from RealtorIrene.com represents Irene's personal musings.

Considering selling a home or looking to buy one around Sussex County NJ? Benefit from creative marketing, top negotiating skills and vast real estate knowledge by contacting Irene via the data to the right or HomesIrene.com.

Irene Kennedy, who is a NJ real estate agent with Weichert, Realtors, lives in Sussex County & works from the Hamburg office.

A BPO requires a listing history and details about the Subject property. As the 2 MLS systems to which I belong have a 10-year memory, I normally can get a lot of data about a home, even if it is not currently listed for sale or as a rental.

What happens when there is no data in the MLS? Worse yet, when there are no comps?

One Thursday afternoon in February 2009, I accepted an exterior BPO order for a home in Sparta - had a 24-hour deadline.  Armed only with the owner's name and the address, I scoured both GSMLS & NJMLS. Not an entry anywhere.  So, I scurried to Sparta's lovely municipal building, where the staff jumps through hoops to provide assistance.

According to the Sparta assessor, the Subject was once a single family but had been a boarding house for many, many years. Conversions resulted in a 10 bedroom dwelling with multiple kitchens, too-few baths and no living room, no dining room, etc. Original part was over 100 years old, additions slapped on every so often. Oh, fabulous, finding comps will be a piece of cake!!! The assessor confirmed there was nothing even close within Sparta - and doubted I'd find another similar, legal boarding home in the county.

Then I had to check into the septic system to find out if it had a 10 bedroom capacity.  Sparta's plumbing expert happened to be in the office and helped me wade through the septic - information in the file, that is.  Upshot? He couldn't figure out what the story was; file had contradictions, incomplete schematic, etc. 

Okay, now I have to take a few exterior photos of the Subject.  The gravel drive had not been plowed and was just a sheet of ice. The home was set well back from the road. So, in my dress shoes (flats, thank heaven!), I slip and slide close enough to see the house.  Pink. The enormous structure was most unusual and pink!  I took photos of 3 sides but to this day cannot really say which was the front of the home. I will not upload my own pictures and identify it.

Spent 5 hours on this BPO, including town hall and efforts to locate comps.  Met my deadline.

The following Tuesday, I get a call from the vendor who hired me for this BPO. The "client" isn't happy that I comped it as a boarding house.  Now, one of my BPO tricks is to upload supporting documentation - in this case, the assessor's card and septic summary went along with my submission.  "Sorry, but I went to great lengths and did a BPO based on reality and how the Subject is assessed. It is NOT a single family and has not been for more than a decade. It actually took me a lot longer because it is not a home." 

And that is how I got a second, full payment to do another BPO on the Subject as a single family! :-)

 Broker Price Opinions - Part 1: BPOs on Homes around Sussex County, New Jersey

Search for Sussex County, NJ, homes for sale - pink elephants or not! 

Part 6 of Distressed Properties are NOT Black Holes!, a six part series by Sussex County NJ real estate pro, Irene Kennedy

REOs do present some challenges that may or may not occur in other types of real estate sales. I'll provide the most common issues I encounter around Sussex County, NJ - and bet my colleagues will add lots of other snafus!

Unknown conditions. The bank has no history on the property. It does not know if there is an old oil tank buried. The age of the roof is a mystery. Most banks have not even had one of their own employees visit the property. The BPO and photos are normally the basis and extent of the bank's knowledge. I've never had a bank hire a home inspector to do a more thorough job. So, yes, there is more risk for a buyer. This is true not just for foreclosures in Sussex County NJ!

Speed. Bank's love contracts that call for a closing in 30 days or less. They don't like to hear 90 days, 60 days. I did have one agree to a 45-day window but it actually closed earlier than that. Most banks specify that the buyer pays $XX per day for each day the closing is delayed - for any reason other than the bank extending.

Unusual Aspects. 

• Shifting costs: In my primary real estate area within Sussex County, sellers normally pay for water/well testing, a Certificate of Occupancy and some other low-cost items. With REOs, the cost and responsibility is often shifted to the buyer.
• AS-IS: Means exactly that; what you see is what you get. What you don't see is also what you get. The bank will not do or discount the price toward repairs; these are taken into account with the list price.
• Disclosures: There will not be a Seller's Disclosure because the bank has no historic knowledge; what you see is what you get.
• Home Inspection Timing: Some banks insist any home inspections be done prior to submitting an offer. Many buyers refuse to pay for a home inspection before knowing if the seller (the bank) will accept their offer. For my most recent closing of one of my REOs in Sussex County, I had a terrible time as buyers walked away and put in offers on places where inspection followed a contract. Only a licensed general contractor who was not going to do a home inspection at any point submitted an offer (lowball). I eventually persuaded the bank to permit a home inspection within 5 days of an accepted offer. I contacted every agent and the buyers to whom I had showed the home - and the offers came rolling in.

Even though the bank will not do anything based on the inspector's report, I still highly recommend all home buyers in Sussex County NJ do a full home inspection on an REO property. Regardless of its timing, this is a sound investment and might uncover some non-visible problems. The home inspector said the place needs a new roof? Based on the big blue plastic tarp nailed onto the roof over the hole that opens into the living room where the tree fell, I'd vote that a new roof comes as no surprise... All buyers should have an expert opinion on the condition of the property they are considering, just to know fully what they are getting and to decide if they really wish to proceed with the purchase based on all facts.

Fully Executed Contract. Deal is done. Banks very rarely change any terms once that contract is ratified. Do not expect concessions afterwards. If something really surprising pops up, such as a very high radon reading, it probably wouldn't hurt to ask for a modest adjustment, but I've not yet had a bank agree.

Repairs. AS-IS really means as-is. If the property had no toilet when it was listed and when you saw it, the bank will not be buying a new toilet. For the REO I mentioned in the above paragraph, when the first offer was accepted, the buyer promptly did a home inspection. Based on that, he came back with "must fix" items or dollar equivalent and the bank politely said go fly a kite. That listing, the buyer, his agent, and the fully-executed contract itself had been clear about As-Is and most of the items were quite apparent with the naked eye.

Negotiations. No face-to-face chats. When I represent the buyers of Sussex County homes for sale, I often ask the listing agent if he or she can arrange to have us sit down together with the sellers to present my buyers' offer and to negotiate a deal. (Buyers not present but "on standby" via phone.) This isn't a possibility when the bank owns the property. Furthermore, the bank does not give a hoot that Sally & Jim look forward to raising their growing family in this home. The bank doesn't care of the local chapter of the Hell's Angels is purchasing the REO. The bank cares about the bottom line and the speed of the closing. The listing agent prepares a "net sheet,"  preliminary HUD-1 or similar form to show how much money the bank will net, based on the offer presented.

 

• Part 1 - Distressed Properties are NOT Black Holes!
• Part 2 - Short Sales can be a great thing despite Timeframe & Lowballs
• Part 3 - So You Want a Foreclosure: Bank-owned Properties - REOs
• Part 4 - Want to Steal a Foreclosure? Get the REO facts.
• Part 5 - Consider a Foreclosure - Advantages of REOs
• Part 6 - Pitfalls of Foreclosures. Disadvantages of REOs for Buyers

Copyright © 2009, Irene Kennedy, all rights reserved. This blog post from RealtorIrene.com represents Irene's personal musings.

Considering selling a home or looking to buy one around Sussex County, NJ? Benefit from creative marketing, top negotiating skills and vast real estate knowledge by contacting Irene via the data to the right or HomesIrene.com.

Irene Kennedy, who is a NJ real estate agent with Weichert, Realtors, lives in Sussex County & works from the Hamburg office. Her primary market includes: Augusta, Branchville, Crystal Springs, Frankford, Franklin, Hamburg, Hampton, Hardyston, Highland Lakes, Lake Mohawk, Newton, Ogdensburg, Scenic Lakes, Sparta, Stockholm, Sussex, Vernon, Wantage.

Consider a Foreclosure - Advantages of REOs (as experienced by a Warren County NJ expert): Part 5 of Distressed Properties are NOT Black Holes!, a six part series based on experience from a Warren County real estate agent.

Many buyers rule out all foreclosures due to a lack of facts. I think this is a huge mistake and potential Warren County NJ, buyers are shorting themselves by not at least considering REOs. Part 6 will discuss the "cons" but here are some of the "pros."

Value: The homes are usually excellent value for the price. Great value. Top value. Wonderful value. Hope I'm making my point... (Now, distressed properties in Warren County NJ and elsewhere are not the only good deals around. I always show my buyers all properties that fit their criteria - one of which is usually that they want a bargain.)

Condition: Not all bank-owned properties are in terrible shape. Sure, some are uninhabitable without a lot of work. Some need lots of cosmetics - painting, new carpeting, etc. Others, however, are in move-in condition. 

Dealing directly with the owner: Pretty much like the relationship with any seller of a property, the listing agent has a direct contact at the bank.

Few multiple liens: All mortgages were wiped when the foreclosure took place. Even if other liens exist (taxes, home-owner-association dues, water bills), in my experience, the new owner is in the process or planning to pay them off. There may be banks that expect buyers to pay items normally covered by the seller, but I haven't encountered any yet.

Faster deals than with Short Sales: There is no third-party who adds a layer to the transaction process. Banks already have the comps in hand and are WAITING to make a decision on an offer - they particularly favor offers where the closing is scheduled within 30 days. From offer to ratification is pretty quick; 3 - 4 business days in my NJ REO experience. Lengthy back-and-force negotiations would increase that but it does not take long at all to get an answer on an REO. Once I had to wait over 24 hours for a counteroffer on an REO; my personal contact was sick and I opted not to hit the "for immediate help" key.

Once a verbal agreement is reached, the bank wants the buyer to initial all changes to the contract. The listing agent sends this amended form back to the bank, where it can take a couple days to process because it may need to go to multiple departments for the authorized signatures.

Commission fixed: The commission paid to your agent is set and agreed to in advance. For Short Sales, a bank might refuse to pay the full commission; this MIGHT mean you make up a shortfall. (Something to settle in advance with your agent when making an offer on a Short Sale listing!!!)

• Part 1 - Distressed Properties are NOT Black Holes!
• Part 2 - Short Sales can be a great thing despite Timeframe & Lowballs
• Part 3 - So You Want a Foreclosure: Bank-owned Properties - REOs
• Part 4 - Want to Steal a Foreclosure? Get the REO facts.
• Part 5 - Consider a Foreclosure - Advantages of REOs
• Part 6 - Pitfalls of Foreclosures. Disadvantages of REOs for Buyers

Copyright © 2009, Irene Kennedy, all rights reserved. This blog post from RealtorIrene.com represents Irene's personal musings.

Note: In Spring 2010, Irene Kennedy moved to Warren County NJ, bringing all her Foreclosure and Short Sale experience - and contacts at those same banks - with her!

Want to Steal a Foreclosure? Get the REO facts from a Northwestern NJ real estate agent - serving Warren, Hunterdon and Sussex Counties

Part 4 of Distressed Properties are NOT Black Holes! a six part series based on my real estate experiences in and around Warren, Hunterdon and Sussex County, NJ.

REO List Price Considerations

Most BPO forms ask the agent to indicate what a property will sell for within 30 days and within 90 - 120 days.  In setting a price, the bank considers:

• current, local market conditions including active inventory, average days on market, etc.
• shape of the property;
• how much of a loss it has already taken on the original mortgage and the foreclosure process;
• amounts paid for trash-out and any work required to make the home safe and secure, i.e., winterization;
• carrying costs (insurance, taxes, bare-bones maintenance, utilities, etc.) during the time the REO is listed;
• the commission it will pay both agents - a fixed percentage in my experience.

Based on these factors, the bank also looks at its internal situation. How many REOs are they carrying? How quickly does the bank need to "unload" the property? Let's remember that most banks are "for profit" organizations; many report to shareholders. Nevertheless, an REO list price is usually a good deal.

         Stealing an REO in Northwestern NJ

Interested in getting a foreclosure for 70% or less of list price? Ain't gonna happen!

The list price is typically a huge bargain already. The bank really DOES know what a fair offer is, based on hard data for local market conditions. The list price takes the shape of the property into account, so don't expect another discount based on bad condition. The bank will not take lowball offers seriously and may not even counter one.

The bank knows that most homes in an area the average sold price is XX% of the list price - in my Warren, Hunterdon and Sussex County, NJ, market areas, this ratio is 95%. While a bank might accept slightly less than the average ratio, my experience shows that this percentage gives one a great idea of what number the bank will accept.

I've found REO banks to be even less flexible on price than non-corporate sellers. Why? Because they know their list price is a steal, which is why buyers come in droves to look at REOs.

Non-Money Components - Your offering price is just one factor

1. Closing Date: If you want to purchase an REO, offer to close in 30 days. Yes, I realize this is quick but it has a dollar value! Banks want the REO off their books, especially if the closing will be prior to the end of a financial quarter.
2. Paperwork: Complete and submit every piece of paper the bank has requested. Most banks have their own forms and want them used. For my REO listings, I can load them in the MLS for any agent to readily obtain. Banks will reject offers that are missing the required paperwork.
3. Down payment: Some banks specify a percentage of the price as minimim earnest money. In every case, I suggest the "good faith deposit" be at least 1.5% of your proposed purchase price. Show the bank you are a serious buyer. A strong second deposit (post-contract, before closing) will also sway the bank in your favor.
4. Mortgage: A few banks want a shot at your loan and insist they do your pre-approval, even if you have no intention of using them for the loan.  (Remember, it is their property and they can make whatever rules they want...) Even without any imposed requirements, a pre-approval from a "brand name" will strengthen your offer. Sure, you can actually then get your loan from "My Cousin Vinnie's Finance Center in Podunk" but a name-brand might just be that little added extra that gets your offer accepted by the bank.

Here is why I earn the big bucks (ROFL) for Northwestern NJreal estate

A tip I use to help my buyers "steal" a Warren, Hunterdon or Sussex NJ REO

Banks tend to have a very aggressive price-reduction strategy. They want to sell the REO quickly even if they will not consider offers far below the list price. Many banks drop the price almost monthly, assuming no offers are being negotiated. Waiting until the price drops where you want it to be could mean someone comes in ahead of you -DON'T RISK LOSING A PROPERTY YOU REALLY WANT OVER A SMALL DOLLAR AMOUNT.

But in considering your offer, you should know WHEN the last price reduction took place, the frequency between all price changes and the percentage of each. If it is a new REO listing, I can often determine a particular bank's reduction pattern by examining another local REO listing owned by the same bank.   So, if a bank habitually reduces its list price 5% every 32 days and the current price came about 27 days ago...

(Fellow agents - I know this tip is could mean more work, if you're not already doing this. Some of you might use MLS systems that do not permit you to research historical data to gather a price reduction history.  My personal perspective is that I'll continue to do all I can to get my buyer the best deal possible AND submit an offer that will fly.) 

• Part 1 - Distressed Properties are NOT Black Holes!
• Part 2 - Short Sales can be a great thing despite Timeframe & Lowballs
• Part 3 - So You Want a Foreclosure: Bank-owned Properties - REOs
• Part 4 - Want to Steal a Foreclosure? Get the REO facts.
• Part 5 - Consider a Foreclosure - Advantages of REOs
• Part 6 - Pitfalls of Foreclosures. Disadvantages of REOs for Buyers

Copyright © 2009, Irene Kennedy, all rights reserved. All posts from RealtorIrene.com represent Irene's personal musings.

Considering selling a home or looking to buy a foreclosure in Warren, Hunterdon or Sussex Count, NJ? Benefit from creative marketing, top negotiating skills and vast real estate knowledge by contacting Irene via the data to the right.

Part 3 of Distressed Properties are NOT Black Holes!, a six part series. (While I'm based in Sussex County, photos here are from one of my REOs in Passaic County, West Milford, NJ.)

REOs are wonderful opportunities and should NEVER be dismissed!

I'll use the term bank but the new owner could be a mortgage company, corporation or debt collector.

By the time a bank actually owns the property (now called an REO = real estate owned), the bank already has hired one or more people to provide a written opinion of current market value where the property is located. This could be an appraisal but more often is a BPO done by an experienced real estate agent. The condition of the REO is taken into consideration by the appraiser or agent doing the BPO, although some BPOs are external only and the agent never sees the inside.  

NOTE - Many BPOs ask for the cost to do basic repairs to the property; I've never had a bank actually pay to do those. Sometimes banks have multiple BPOs done to get a few different opinions.

Work begins long before the REO is listed!

Banks may or may not select one of the BPO agents to be the listing agent representing the seller. Once the bank has selected an agent to handle its REO, there often is work to be done before the home is actually put on the market. 

If the home is occupied by a tenant or the former owner, that situation needs to be changed.  Many banks offer a "Cash for Keys" deal - a payment made to the occupant in return of moving out and leaving the property in reasonable condition.  Based on my experience, I'd say the amount would cover the first month rent on another place and a U-Haul in which to move personal property. It's a modest incentive to avoid eviction proceedings.

Warning to agents - Absolutely talk to your broker or an attorney before handling any Cash-for-Keys work! Do not assume it is okay because the bank has asked you to do so. Local laws relating to this can vary widely. Your safety is another factor - not everyone will react well if you knock on a door and ask them to vacate...

Then it is cleanup time. A few banks have their own contracts to handle this but most leave the work to the listing agent. The bank expects its agent to pay for such work and get reimbursed. Because of this, as well as time and effort, some agent use a service to handle this "trash out" process and continuing care.

What gets done

• Depending on the amount and cost of work involved, the listing agent might need to get several bids on these items.
• The banks pay to have contents removed. (Agents - again check laws, you may have to hold this personal property and make an attempt to contact its owners to claim it.)
• Basic yard work yields some curb appeal. As I mentioned above, few repairs will be done but safety issues might be corrected.
• The home is winterized - at least in my neck of the woods - probably in most places to prevent water damage even without freezing.
• Utilities. Some banks insist electricity be on; some pay to heat as well.
• Continued care. Many banks authorize minimal on-going work: shoveling snow, periodic lawn mowing, leaf removal, etc.  

During this period, the bank will have obtained price opinions and set an asking price. Now the property is ready to be listed.

• Part 1 - Distressed Properties are NOT Black Holes!
• Part 2 - Short Sales can be a great thing despite Timeframe & Lowballs
• Part 3 - So You Want a Foreclosure: Bank-owned Properties - REOs  (this page)
• Part 4 - Want to Steal a Foreclosure? Get the REO facts.
• Part 5 - Consider a Foreclosure - Advantages of REOs
• Part 6 - Pitfalls of Foreclosures. Disadvantages of REOs for Buyers