Most people are aware of the profits that can be made by purchasing Breckenridge real estate foreclosures, which are usually owned by the mortgage lender. When a homeowner is unable to repay the mortgage, the lender will repossess the property and evict them, and then seek to sell the home quickly before incurring further financial losses. Due to the fact that the lender is trying not to lose money and is not pushing to make anything extra, foreclosure properties can yield quick profits.

Does this process have risk? Risk is involved in all investment opportunities. However, since there is nearly always a demand for homes, purchasing bank foreclosure properties can be quite profitable.  You have to be able to recognize the types of properties that will resell well, in order to successfully invest in bank foreclosures. It is also true that you generate profits by buying.

To be able to make bank foreclosures profitable, you have to know the real estate market in the area where you’re planning to buy. You need to know what is a good deal and what is not, and you must be able to estimate the approximate value of a property.

There is a huge amount of competition in the field, and also a lot of potential for those interested in investing in REO foreclosure properties. You must have competent counsel to guide you through the process, as there are some risks you need to be aware of.

For about thirty years, Jonna Beardsley has been a Realtor for Summit County and since 1978 has worked in the industry of short sales and foreclosures. If you want to get a list of short sale opportunities, upcoming foreclosures, or if you have questions about the foreclosure process or foreclosed properties, just contact Jonna. You can contact her at jonna@breckenridgeassociates.com or call her at (970) 390-2533.

Getting Pre-Approved Is An Important Step…

A big step in buying Breckenridge CO real estate is getting pre-approved. We believe that an essential issue when beginning the process of acquiring a home is to have a meeting with a lender and obtain a pre-approval. Prior to starting the process of purchasing, ask your lender what the largest amount is that you can qualify for in order to buy your property. You don’t always have to spend so much money; sometimes you can choose to spend a little less. It’s easy to fall in love with the features of homes that are not within your budget.

It is essential that you get in contact with a qualified lender. For those lenders with whom we have had good experiences in the past and that have earned our trust, we will recommend them to you.

Additionally we make a serious recommendation for the use of a lender that is local, especially if the investment is in a town home or a condo. Lenders must ensure that both the property and the buyer qualify. It’s hard for out of town lenders to get qualified for mountain properties. Local lenders have multiple years of experience and can do these tasks quickly and efficiently.

We are not expressing this to benefit them, but to allow you to save time, energy and, above all, stress. In order to determine the price most suitable for you and your comfort level, the lender will review your financial position.

Best Advice

Go one step further with the pre-qualification and complete a loan approval. This approach is the best option!

• You will know in advance what your payments will be – one of the ways the pre-approval process will help you.

• You will use your time efficiently by looking only at homes within your budget.

• You are able to choose the loan package that benefits you the most without being pushed. In the market today, there are many programs and options to pick from. Your lender will tell you your options and assist you in choosing the best one.

• Sellers prefer offers that they know qualify for secure financing. If you are competing with others, then this will give your offer an edge. A pre-approval letter along with all agreements to purchase are requested by many listing agents, today.

• You will get a closing cost estimate with a detailed explanation.

• You will enjoy peace of mind.

Vital Information for your Consulting Appointment

We will work to pin-point the area you wish to live in as well as identify any “must have” features you want in your home.

The Search Begins The Next Step…

The next step is the beginning of the search. When you decide what type of property you want, then it’s time to begin looking. To assist you in the location of your dream home, make an appointment.

You Should be Cautious When Extending an Offer…

When you discover an unbeatable property, you should make a competitive offer right away. Your buyer representative has an ample background in contract negotiations; he or she will see that you obtain the property you desire for a reasonable price

The Accepted Offer

You will have what we refer to as a pending offer when the seller accepts your offer. We will ensure that all dates and deadlines are attended to, and that every detail is handled correctly and quickly.

You Are Almost Finished Once You Reach the Inspection
Stage…

Specific details are addressed and inspections are completed to make sure that the property is ideal for you. The specifics of the contract are negotiated some more and we advance into closing!

Finishing the Closing and Signing the Closing Paperwork…

You need to be ready to wire money funds or have a cashier’s check ready, as well as sign and have the required paperwork notarized. Make sure to have your driver’s license on hand, as the title company requires a copy. You will be in your new home after the next few steps you take.

You will also need to make sure that all of your necessary utilities are turned on.

For the last 30 years Jonna Beardsley has been a certified resort specialist. Jonna’s experience and dedication will help you buy, sell, or build an investment property in the Rocky Mountains. She wants her clients to feel secure and protected, so she brings a lot to the table, such as Knowledge, Trust and Experience. Email Jonna at jonna@breckenridgeassociates.com or call her at 970-390-2533.

Although in most markets, home prices continue their downward spiral, some areas have seen an increase in market activity; for those who are interested in purchasing a home, affordability continues to be the most important issue. According to a recent article in the Los Angeles Times, activity has increased in some markets, like Phoenix, where bidding wars have occurred over foreclosures and short sales. According to reports, Phoenix has more homes for sale than at any time after 2006, and prices seem to be on the way to firming up. Buyers are coming back, attracted by the large sale discounts offered by foreclosed and distressed properties. However, home prices continue to drop in most parts of the country, but signs like those in Phoenix are a cause for optimism in the national real estate market.

The main concept is the affordability of homes in multiple locations. “Affordability is a huge topic of conversation today. And affordability has improved quite a bit in the past several years all around the country. In Phoenix and similar markets, there is no better time than now,” says Wayne Yamano, John Burns Real Estate Consulting’s Senior Manager.” The ratio between housing costs and income is currently at it’s best. In certain markets, like Phoenix, it can be more cost effective to buy a home (if you take into account the money saved by the tax advantages) than it is to rent the average price apartment”, he says. “When the peak selling period occurred, the prices were too high and the gap was huge.”

“But now,” he continued, “in many markets, we’ve crossed that threshold, so it’s cheaper to own a home than to rent.” Since interest rates on home loans are still quite low, this opportunity is even more attractive. Yamano says it’s quite hard to time the market. Consider your home to be a shelter rather than an investment. Don’t try to time the market; just make the leap and buy the house, especially if it suits the needs of your growing family. If you wait, you may find that even if real estate prices drop, interest rates may rise! “Interest rates are especially low now and we doubt that they’ll remain there for too long. In fact, in the last two weeks, we were looking at a considerable increase. Yamano mentions that, while it is possible that prices could decrease a little more, if you see interest rates begin to go up, then it won’t matter because you’re home payment would end up being the same.

Jonna Beardsley – Breckenridge Associates “Home town Team – World Class Service” is one of the many industry inside sources that have been put together to create Breckenride Real Estate More Affordable. For almost thirty years now in Breckenridge and Summit County, Jonna has been assisting investors with their real estate requirements. You can get in touch with Jonna through e-mail; jonna@breckenridgeassociates.com or cell 970-390-2533. Be sure to check out her web site: jonnabeardsley.com.

Only 20 percent of Summit County real estate is private property.  Surrounded by the White River National Forest and other government-regulated lands, our homes in Breckenridge, Dillon, Frisco, Silverthorne, and Montezuma are nestled in a Rocky Mountain haven with six major Colorado ski areas.  They include Breckenridge, Keystone, Copper Mountain, Arapahoe Basin, Vail, and Beaver Creek.

In addition to the scarcity of developable land, more people are seeking vacation homes and second homes.  First, the nearby population of metropolitan Denver, about 85 miles to the east, continues to expand.  Summit County is a convenient weekend-vacation spot.  Secondly, baby boomers are only just beginning to drive the second-home and vacation-home markets.  The top end of the generation has started retiring but the younger set, in its prime earning years, is out shopping for places to relax and to enjoy family memories.

Essentially, this is the right time to buy property here.  Today, there are great values at every price point coupled with low interest rates.  As build-out closes in, prices could very well begin surging as they did in Aspen.  The Source reports, “There is still land available, beginning at about $120,000 for a home site.”  We have empty lots, great places to build a family estate, dream home, duplex or fractional, or hunting cabin.  Single-family homes can still be lassoed for about $400,000 and condominiums for $220,000.  For those with distinctive taste, there are condominiums and townhomes for about $2M and single-family homes with exclusive appointments into the multi-millions as well.

With Vail Resorts sinking millions into mountain improvements and development of the Breckenridge Ski Resort bases and gondolas, the resort in certain to appreciate.  A primary gondola accesses Main Street.  That is where wonderful community events, art shows, festivals, and concerts are held annually and to celebrate our 150th birthday this year.  Then we offer fishing in the Blue River, hiking and mountain biking over the Continental Divide and on the Colorado Trail, and many more exciting and relaxing activities for every age.  Come build family memories with us.

Jonna Beardsley of Breckenridge Associates offers a wealth of information about Colorado Rocky Mountain real estate.  Call Jonna at (970) 453-2200 for friendly, professional assistance.

Some of the positive signs and indicators present in the Summit County real estate market include construction projects, renovations and remodels, low mortgage rates for second homes, and the continued popularity of Colorado’s playground.  Yet, in spite of the glimmers of hope, real estate agents easily notice that real estate transactions in the Breckenridge and Summit County areas are down approximately 60 percent when compared to 2008.

Because the average sales prices are reflecting values from 2006 and 2007, buyers and investors are taking advantage of the opportunity to purchase vacation homes, second homes, and investment properties.

Several large-scale construction projects are currently underway in our resort town.  Among them are 88 luxurious ski-in/ski-out condominiums at One Ski Hill Place the base of Peak 8.  This RockResort by Vail Resorts features refined mountain living and amenities, with residences ranging from studios to four bedrooms.  Other new developments include The Fairmont Lodge & Spa at Shock Hill and The Fairmont Residences on the River, and Water House on Main Street, which is convenient to our quaint Victorian downtown.

Another exciting project involves the Village at Breckenridge located at the base of the mountain.  Homeowners from the well-loved condominium community decided to commit $18M to an extensive remodel.  The decision will not only improves a long-term investment value of the resort it well return a property to flagship status among newer developments in the area.

Although a recent article in Forbes Magazine referred to Colorado as a top place to live for skiing and culture, Colorado Ski Country USA counted fewer skier visits during this past season.  Vail Resorts concurred.  However, the dip is not too dramatic.  Generations of skiers are loyal to their sport and find ways to cut back slightly without compromising their recreational needs.  The real estate market in the area is accommodating the need for people to modify slightly their real estate goals while moving forward to achieve their dreams. 

Jonna Beardsley of Breckenridge Associates offers a wealth of information about Colorado Rocky Mountain real estate.  Call Jonna at (970) 453-2200 for friendly, professional assistance.

Although the new no-nonsense loans for Breckenridge, Keystone, and Silverthorne CO homes require tighter controls, they seem to be better for all parties—especially the borrowers’ situations.  Borrowers must produce documentation for income, assets, and debt load.  Applicants must qualify and underwriters are determining if the applicants are actually able to make their monthly payments, and then some.

Some buyers pay cash for Summit County CO real estate (primary residences, vacation homes in Breckenridge and Keystone, and second homes in Colorado’s playground).  Others shop around.  It is worth investigating products available through FHA-insured mortgages, credit unions, rural home loans, and local and state agencies.

With new loan limits as high as $625,500, FHA loans will account for ¼ of the mortgages in 2009.  Between 2003 and 2006, only 4% of loans involved the FHA.  The new model for FHA loans is more lenient with credit scores, requires as little as 3% down, may finance the closing costs, limits closing costs to 1% of the mortgage, has no prepayment penalties, and has relaxed the debt-to-income ratios.

However, the Federal Housing Administration (FHA) must approve lenders and appraisals.  Buyers with less than 20% down payments must pay Mortgage Insurance fees and monthly Mortgage Insurance premiums that together may increase the loan by 2.25%.  If buyers have financial reserves, savings, or investments worth two months of mortgage payments, they will get better rates.  Buyers with a 30 to 33% debt-to-income ratio also best rates.

More buyers are turning to credit unions these days.  Most credit unions never got involved in the subprime loan industry.  Nor did they sell and repackage their loans as investments.  Unions normally offer fixed rate, 30-year mortgages, many times at rates lower than the banks.  If a buyer banks with a credit union, they generally receive preferential treatment.

Other buyers may find a good deal for “rural” home loans.  These loans are for people in designated rural areas where the population is less than 20,000.  Backed by the USDA Rural Development Housing and Community Facilities Program, they do not require borrowers to grow crops or raise livestock.  These loans are limited to buyers with incomes less than 115% of the household median income for the area.  The USDA programs include loans with no money down, construction loans, and more.

For low- to moderate-income families, it is also worth checking into options offered by the city, the county, and the state.  Jonna Beardsley of Breckenridge Associates offers a wealth of information about Colorado Rocky Mountain real estate.  Call Jonna at (970) 453-2200 for friendly, professional assistance.

The “Stimulus Package,” signed into law on February 17, 2009, enhances that tax shelter in several ways.  Several noteworthy provisions pertain to Breckenridge CO real estate and Summit County homes, including the Homebuyer Tax Credit, FHA, Fannie Mae and Freddie Mac Loan Limits, Neighborhood Stabilization, Low Income Housing Grants, Tax-Exempt Housing Bonds, Energy Efficient Housing Tax Credits and Grants, Transportation Investments, and Broadband Deployment.

First-time homebuyers, as well as buyers who have not owned real estate in the last three years, may take advantage of up to $8,000 of tax credits for purchasing a principal residence between January 1, 2009 and November 30, 2009.  The credit reduces the purchaser’s income tax liability.

The combined FHA, Fannie Mae, and Freddie Mac loan limits cap at $729,750, which is more reasonable for our area.  The amount equals 125 percent of the 2008 local area median home price; it may be higher in a few regions of the nation.  These 2009 limits expire on December 31, 2009. 
Our resort area mostly likely will not benefit from the Neighborhood Stabilization monies.  This $2 billion fund is set aside to assist entire neighborhoods that have seen rampant foreclosures.  However, a quarter of the funds go to households with incomes at or below 50 percent of area median income and many in the hospitality workforce are in that category.  The legislation also allows states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance low-income housing.

The Energy Efficient Tax Credits and Grants are welcome news for our mountain luxury homeowners.  Through 2010, homeowners may claim a 30 percent tax credit for purchases of new furnaces, windows, and insulation.  Although our specific resorts now have excellent broadband capabilities, the Broadband Deployment clause may help more of our neighboring mountain regions to connect with better communication services and wireless.  Imagine taking that waterproof laptop on a whitewater excursion! 

Many of the improvements and tax incentives offered in the Stimulus Bill, including Transportation Investments, will help bolster the value of real estate and benefit our mountain communities.

Jonna Beardsley of Breckenridge Associates offers a wealth of information about Colorado Rocky Mountain real estate.  Call Jonna at (970) 453-2200 for friendly, professional assistance.

Real estate investments in Breckenridge and Summit County Colorado are sound.  Home prices are not dropping wildly as in many cities and resorts.  The local resort market is not overdeveloped or speculated as some are.  The Breckenridge area does not have lists of foreclosed homes and properties like some parts of the nation do.

Being surrounded by national forests, build out is just around the corner, at least for Breckenridge homes and real estate in our mountain valley.  If we look at the trend for other ski resorts such as Aspen, when they reach build out the prices skyrocket. 

Another great reason to invest in a second home in Summit County right now is that inventory has remained steady over the last couple of years, but there are half the buyers.  That means buyers have a wonderful selection.  It also means that buyers have a little bit of negotiation leeway with sellers—but not much.  Why is that?  Most realtors in Summit County work closely with our sellers, advising them where their current standing will be considering overall market prices from a buyer’s point of view.

Have prices dropped?  Yes…sufficiently because we have half of the buyers and twice the inventory.  These factors combined with the low interest rates make a second home investment in Breckenridge or Summit County an outstanding time to buy.

Buyers who come here from Phoenix or Las Vegas and expect to find a crumbling market are in for a few surprises.  Considering the appreciation in our land and real estate values, we have so some wonderful bargains.  However, most of our sellers are financially able to wait out the dip in the market and will not be interested in lowball offers.  They are not compelled to cut prices such as we see happening on the southeast coast of Florida.  Nonetheless, sellers want to sell and will work with reasonable buyers.  They may be able to offer prices from the 2007 era, which means a substantial savings for the buyers.

If we listen to logic and not to the naysayers today, we will stay on track by making sound investments for our future. 

Jonna Beardsley of Breckenridge Associates offers a wealth of information about real estate in the Rocky Mountains.  Call Jonna at (970) 453-2200 for friendly, professional assistance.