Based on the number of one-to-four family homes with mortgages, Ulster County has the highest rate of preforeclosure notices in New York State, 8.1 percent. With any luck at all most of the property owners who have these mortgages will find a way to bring their payments current or work with a housing counselor certified by HUD and avoid having their properties foreclosed on but not all of them will, some of this Ulster County Real Estate will go to foreclosure.
If you’re one of the fortunate ones who’s kept your credit in good repair, have some cash looking for an investment vehicle (Lord knows the stock market isn’t making us feel warm and fuzzy these days) or both, buying a foreclosure property in any of the Townships in Ulster County (i.e. Woodstock, New Paltz, Stone Ridge, Kingston, etc.) can be a good investment. What can you do to take advantage of this opportunity?
First, be REALISTIC! Chances are the home will come onto the market for not much less than its appraised value. The owner of this Ulster County Real Estate, the Lender, has already taken a loss on this property. They haven’t received a mortgage payment in a while (hence the foreclosure) and they’ve spent a substantial sum of money on legal fees to get the property back. They want to move the property but they also want to recover as much as they can.
Next, DO YOUR HOMEWORK! Work with your Ulster County Real Estate Professional to find out how much the property is worth or will be worth after repairs. Don’t forget to factor in Market Conditions (is the market on the upswing or is it falling?) and your timeframe for turning the property around.
Be PATIENT, don’t rush into the purchase. Because foreclosure prices usually represent a bargain, there may be multiple purchasers who might drive the price up, especially if it’s located in Woodstock, Stone Ridge or New Paltz. Carefully calculate what you’re willing to spend and do not exceed that price.
Take into consideration the cost of REPAIRS. Many owners of the homes that go into foreclosure have been having hard financial times long before they let go of their homes. That means the house may not have gotten much needed repairs or general maintenance for a while. Take a Contractor with you if you’re really interested. Most foreclosure properties are sold “As-Is”. The cost of having a Contractor inspect the property for you pales in comparison to the money they may save you in repairs!
Don’t forget CARRYING COSTS. The expense of Property Taxes, Insurance, Heat, Electricity and general Upkeep will depend on how long you have the property if you’re not an Owner-Occupant.
Hire an Ulster County REAL ESTATE ATTORNEY. Once the bank agrees to a sale they want to move quickly and may load up the contract with a lot of legal mumbo jumbo which may include a “Time is of the Essence Clause” and/or penalties for going beyond a certain closing date.
Buying a foreclosure property is definitely not for the faint of heart and may not be the best choice for first-time homebuyers. I know the information above will help purchasers of Ulster County Real Estate go into this transaction with their eyes wide open. For more help purchasing foreclosures feel free to call on me.
Edwin J. Maldonado, ABR, GREEN, GRI
NYS Licensed Real Estate Broker-Associate
Murphy Realty Group / 845.338.5252
845.389.8555 (Call or Text)