Real Estate Information Archive

Are you planning to buy a home in Albuquerque and work for yourself? These days, it's more common and popular in Albuquerque to be a freelancer, contract worker, gig worker, or anyone self-employed. The downside is that there are no benefits such as health insurance. The same time, there are more upsides for professionals who can work remotely.

One of the advantages is the freedom and flexibility you have to create your own schedule and earn unlimited income. You can also create your own lifestyle by balancing work and personal time.

Freelancers and contractors may encounter a problem, however.

Is it possible to get a mortgage?

It can be difficult to prove your income if you do not have a traditional employer when you apply for a mortgage. Lenders will also scrutinize your application more closely.

Keep Up with Relevant Documents

It's easy to lose track of your earnings and expenditures over time, but when it comes time to apply for a mortgage, being disorganized can become a problem. You can expect to have ups and downs in your income when you're a freelancer or self-employed. A lender wants to see your long-term earnings average. If you can show your lender at least several years' worth of earnings documentation, you should be able to calm their fears.

A pattern of earnings needs to be demonstrated. You might have to delay buying a home until you can do that. The best way to show steady earnings is to show trends that are on the rise.

Furthermore, if you are self-employed, you likely try to write off as much of your business expenses as you can. Obviously, you want to show as high an income as possible, so if you are planning to buy a house in the near future, consider your deductions accordingly.

Rather than W2s, you will need to show your 1099s from the past two years. In addition to your tax returns, you may need to provide bank statements and profit and loss statements. Additionally, you can provide letters from clients proving your relationship is stable.

Income Calculation

The way you calculate your income as a freelancer is different. By dividing the past two years of your adjusted gross income by 24, your lender will arrive at your average monthly income.

Make the most of your savings

In order to avoid paying private mortgage insurance, you should aim to save at least 20% of the home's purchase price. With that in mind, it's best to make a large downpayment in order to demonstrate your reliability as a borrower.

Organize Your Finances

If you're self-employed, you can expect to face more hurdles when buying a home. You will most certainly be held to a higher standard financially, so be prepared.

Ideally, you need a credit score of at least 740. The higher the score, the better.

Put a plan in place to pay off your debt, including your credit cards. A lender's willingness to lend to you is heavily influenced by your credit utilization. It is ideal to use less than 30 percent of your credit limit.

Check your credit report before applying for a home loan. By doing this, you can see where you need to improve and where possible errors may be occurring. It is not uncommon to find errors in credit reports.

Before you apply for a home loan, refrain from opening new accounts or lines of credit, because that will negatively impact your credit score.

Finally, separate your personal and business bank accounts before applying for a mortgage. Your business should not use a personal bank account.

Getting a mortgage as a freelancer is definitely possible, but also more challenging. Prepare yourself for it as much as possible, and you will be more successful in the long run.

HOT PROPERTY OF THE WEEK!

8116 CORN MOUNTAIN Place NW, Albuquerque, NM 87114

Popular floor plan 4BDR/3BA/3CG plus office/study on the main level plus a large loft! Light, bright & open floor plan with lots of living space featuring an oversized family room with stacked stone fireplace, wall of windows & soaring ceilings, separate living room, formal dining room w/new flooring! Entertainer's kitchen features beautiful cabinetry, solid surface countertops, recessed lighting, island/bar tile flooring, pantry & sunny bkfst nook! Private master suite features huge walk-in closet, dual sink vanity, garden tub & sep shower! Covered patio, shrubs, trees, rock landscape. In the heart of Ventana Ranch West close to schools, parks, pathways, shopping!!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

It can be daunting to begin the process of building a custom home rather than buying one of the existing ones in Albuquerque. You know what you're getting when you buy an existing home. There is a lot of uncertainty when doing a custom build.

Choosing a home builder is the first thing you need to do.

What you should know about choosing a builder and some tips to help you along the way are detailed below.

Exactly What is a Home Builder?

This may sound like an obvious question, but not so much. The term home builder has a broad definition. Builders are contractors who construct residential housing, but there are subcategories of home builders.

There are home builders available for hire. An in-house team of professionals works for the company you hire. It is a turnkey project that the team manages from start to finish.

A general contractor is another option. The general contractor will hire and manage workers. Your house will be built by this contractor. General contractors also obtain building permits and materials.

It may be that you hire your own architect to design your home, and then you hire a general contractor to build it.

An agreement with a general contractor typically includes a fee of up to 20% of the project's cost, which covers the contractor's services.

There are also the options of hiring project managers or hiring a construction management company. Subcontractors may be hired and materials may be obtained, and they may charge fees for overseeing the project.

Choosing The Right Builder in Albuquerque

Knowing the different types of homebuilders, how can you select the best one for your project?

• Identify your niche. Considering your budget, home size, and style are all important when building a house. Ensure that the company you choose specializes in the niche that your home falls under. You wouldn't hire a company specializing in luxury properties if you were building a starter home.
• Prepare a list of the most important things to you and a clear vision of what you want before you start talking to builders.
• When comparing contractors, ask to see examples of their work. Furthermore, you'll want to know how long the company has been operating.
• You can learn a lot about contractors from online reviews.
• Credentials should be checked before hiring a builder. The state license and insurance should be up-to-date.
• What kind of warranty does the builder offer?
• A builder's recently built homes should be viewed in person, and if possible, you should take a tour, although this isn't always possible.

Questions to Ask Builders

At least three builders should be interviewed. You must have a clear understanding of what your expectations and timeline are before you do this, as was discussed above.

Among the questions you should ask are whether or not they are willing to provide references and if they offer a guarantee. Once you select a builder, every detail of what you agree upon should be in writing, including how allowances are determined, the type of materials they use (such as copper or plastic plumbing), and how you will work together.

You should call references provided by potential builders. Vendors and subcontractors should also be contacted.

As a first step, you might consider contacting your local home builder's association. They can provide you with a list of local builders.

In addition to real estate agents, such as Sandi Pressley and her team, you may be able to get help from friends or relatives who have worked with a builder.

Building your own home in Albuquerque can be an exciting and life-changing experience. Make sure it’s a positive decision by following these tips above.

HOT PROPERTY OF THE WEEK!

14412 OAKWOOD Place NE, Albuquerque, NM 87123

A gem nestled in the Foothills! Built in 2000, this 4-Bedroom custom home comes with all the bells & whistles. At 4,665sqft, this home boasts incredible living space made for entertaining. Open kitchen is a chef's delight w/ great new appliances, 5-burner Gas Range, gorgeous granite, large pantry and tons of seating. Spread out w/ the lower level entertaining area, or go outside on any of the multiple balconies, or through the huge backyard with hot tub and so many great views. This smart home features lights that turn on automatically as you enter the room & is wired with surround sound. The Master Suite showcases a luxurious bathroom complete with jetted tub, oversized shower, & custom California Closet. With a water softener, humidifier, and laundry chute, this home truly has it all.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

If you're ready to enter the luxury home market in Albuquerque, there's no better place to start than with our latest featured luxury listings. Whether you're looking for extra room for your family, meticulous contruction and features, or a spectacular view, these homes are sure to please.

Feel free to contact Sandi Pressley and her team at 505-263-2173 to get more information and schedule a viewing of these fine homes. You can also check out all of our listings on our Featured Listings page.

14412 OAKWOOD Place NE, Albuquerque, NM 87123

A gem nestled in the Foothills! Built in 2000, this 4-Bedroom custom home comes with all the bells & whistles. At 4,665sqft, this home boasts incredible living space made for entertaining. Open kitchen is a chef's delight w/ great new appliances, 5-burner Gas Range, gorgeous granite, large pantry and tons of seating. Spread out w/ the lower level entertaining area, or go outside on any of the multiple balconies, or through the huge backyard with hot tub and so many great views. This smart home features lights that turn on automatically as you enter the room & is wired with surround sound. The Master Suite showcases a luxurious bathroom complete with jetted tub, oversized shower, & custom California Closet. With a water softener, humidifier, and laundry chute, this home truly has it all.

Learn More!

315 LAGUNA SECA Lane NW, Albuquerque, NM 87104

Private gated community of The Gardens on the Rio Grande! Minutes to Old Town, downtown, parks, shopping, restaurants! Incredible outdoor living & entertaining space with 3 sets of patio doors to the lush interior courtyard, rose bushes, shrubs, trees & beautiful serene fountain! Relax & unwind in the custom spa with waterfall! 3BDR Plus OFFICE/STUDY/3BA/3CG! Formal dining! Oversized great room with soaring ceilings and Kiva fireplace. REFRIGERATED AIR & FURNACES! RADIANT HEAT! Skylights! Gourmet kitchen with granite countertops, island w/wine rack, SubZero fridge, gas cooktop & convection oven! Large secondary bdrs with Jack-N-Jill bath! Elegant mst suite looks onto courtyard & features Kiva fireplace, sitting area, jetted tub, sep shower, dual sink granite vanity & two closets!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

In the last 18 months, buyers' preferences have changed. An AIA survey of home design trends was recently released for Q3 2021 by the American Institute of Architects. It found that:

• 70% of respondents want more outdoor living space
• 69% of respondents want a home office (48% wanted multiple offices)
• 46% of respondents want a multi-function room/flexible space
• 42% of respondents want an au pair/in-law suite
• 39% of respondents want an exercise room/yoga space

Albuquerque homeowners who wish to add any of the above options have two options: renovate their existing homes or purchase a home that already contains those features. You may be influenced by factors such as:

• Possibility of relocating
• The cost difference between renovating and buying
• Find an existing house or design a new one that has exactly what you want (rather than trying to rearrange your current house)

Regardless of the outcome, you'll need access to capital: either for the renovation or the down payment on your next home. You probably have the money you need in the form of equity in your home already.

Home Equity Is Skyrocketing

Over the last two years, home prices have risen at a record pace, improving homeowners' equity dramatically. Odeta Kushi, Deputy Chief Economist at First American, quantifies the amount of equity homeowners gained recently:

“Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high.”

If you own a home, you may have the funds to purchase the perfect home or renovate your current home. However, if you wait to decide, the cost of tapping that equity may increase.

Renovations will require you to refinance (or take out a home equity loan) to access the equity. In the event that you decide to move instead and use your equity as a down payment, you will still need a mortgage to cover the difference between the down payment and the price of your next home.

Over the next year, mortgage rates are expected to increase. You will probably pay more if you wait to leverage your equity. Most current mortgage borrowers have a rate of less than 4%, according to the latest Federal Housing Finance Agency (FHFA) data. By taking action now, you can keep your mortgage rate below 4% if you're one of those homeowners. If you're among the 43 percent of homeowners with a mortgage rate over 4%, you may be able to refinance for a cash-out or buy a more expensive home without significantly increasing your monthly payment.

Calculate your home's equity

To determine how much equity you have in your current home, or to find a constructed or existing home that has everything you need, you first need to determine how much equity you have in your current home. You will need two things for that:

• The current mortgage balance on your home
• The current value of your home

If you have a monthly mortgage statement, you should be able to find your mortgage balance there. You can get an appraisal for several hundred dollars, or you can get an equity appraisal for free from a professional local real estate agent.

If the past 18 months have refocused your thoughts on what you want from your house, now may be the time to either renovate or make a move to the perfect home. Contact the Sandi Pressley team to help you decide what the best way to move forward if you decide to buy a home in Albuquerque.

HOT PROPERTY OF THE WEEK!

508 ORTEGA Road NW, Los Ranchos, NM 87114

Plenty of room for your HORSES & HORSE POWER! Gorgeous approx 1.26 acre NV Village of Los Ranchos Horse Property. One of a kind, rare opportunity to own private gated valuable Sub-dividable lot. 4BD/3.5 BA renovated 2015 w/hardwood oak floors, 2015 roof, HVAC, HWH, windows, insulation, refrigerated air/heat throughout home. 1000sf grand sunroom w/ tile setting the stage for peace & relaxation. Recessed Lighting & Skylights! New SS appl! This home shines like a diamond! Not incl in TSF Finished 1979sqft heated/cooled 6 Car Tandem Garage/Shop w/220! The possibilities are truly endless.1100sf Horse barn, plus storage, 2 patios, circular drive w/50+ trees & fenced lawn.1 mile to Alameda Open Space, trails & Rio Grande River, & 15 mins to Airport. Perfect for entertaining. RV parking/NO HOA!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

You've likely heard a lot about all-cash offers if you've ever watched a real estate show, especially one that focuses on the luxury market. All-cash offers are becoming increasingly popular because there are few properties on the Albuquerque real estate market, and bidding wars are rampant.

What that means may confuse you.

An all-cash offer contains a secret that you may not know about - you can still get a mortgage.

Cash Offers: The Basics

All-cash offers mean that a buyer will pay for the home in full at closing. Consequently, the buyer can show they are able to perform the transaction based on their bank account. There are fewer chances for something to go wrong along the way with a cash offer, which makes it appealing to a seller.

The risk of selling to someone who plans to get a mortgage is greater. From the seller's viewpoint, the less financing a deal requires, the better.

A prospective buyer who is not financing their home will use a cashier's check or electronic transfer.

As cash purchases do not involve a lender, the closing time is usually shorter. The process can usually be completed in two weeks. Within those two weeks, any liens can be cleared, paperwork can be prepared and insurance can be procured.

An average closing time for a mortgage-financed purchase is 30 days. However, the timeline may vary from 45 to 60 days from signing to closing date.

How to Buy a Home With Cash

In the process of buying a house all-cash, the following steps usually occur:

Upon accepting the buyer's offer, a Purchase and Sale Agreement is then drafted. This is called going under contract.

Afterwards, funds must be verified. In the case of a seller, it's vital that the buyer actually has the cash they claim. One to two percent of the sales price is usually required as earnest money. A bank statement or investment statement may be required as proof of funds. Your real estate agent can assist you with this.

Title companies check for liens and arrange title insurance. A title company ensures the transfer of ownership occurs correctly on closing day. In addition, an escrow company handles the transfer of funds and closing documents. Escrow companies also handle legal paperwork.

Depending on what the buyer finds during the inspection, the buyer may have the option to renegotiate a lower sale price or request repairs.

The closing documents must then be reviewed and signed. The amount of paperwork you'll encounter is considerable even when the transaction is all-cash.

Are You Still Competitive With a Mortgage?

It is true that buyers prefer cash buyers, especially right now in a seller's market. You can still be considered all-cash with a loan.

A decision-now approval is offered by some lenders. Although it's not cash, the benefits may be similar for a seller because of the preapproval. Therefore, the loan will already be funded, and the lender can verify the remaining amount of the sales price.

The buyer can then remove financing contingencies from their offer without worrying about losing their earnest money since they've already secured a mortgage.

It's possible to become a strong buyer by doing something like this, depending on the lender's offer.

Finally, you may want to shop around if you're considering this approach because not all lenders offer upfront underwriting.

HOT PROPERTY OF THE WEEK!

508 ORTEGA Road NW, Los Ranchos, NM 87114

Plenty of room for your HORSES & HORSE POWER! Gorgeous approx 1.26 acre NV Village of Los Ranchos Horse Property. One of a kind, rare opportunity to own private gated valuable Sub-dividable lot. 4BD/3.5 BA renovated 2015 w/hardwood oak floors, 2015 roof, HVAC, HWH, windows, insulation, refrigerated air/heat throughout home. 1000sf grand sunroom w/ tile setting the stage for peace & relaxation. Recessed Lighting & Skylights! New SS appl! This home shines like a diamond! Not incl in TSF Finished 1979sqft heated/cooled 6 Car Tandem Garage/Shop w/220! The possibilities are truly endless.1100sf Horse barn, plus storage, 2 patios, circular drive w/50+ trees & fenced lawn.1 mile to Alameda Open Space, trails & Rio Grande River, & 15 mins to Airport. Perfect for entertaining. RV parking/NO HOA!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Whether you're looking to make more room for your expanding family (including your horses), or want to upgrade your lifestyle, these stunning homes will offer all that and so much more. And you can't beat the the amazing location and stunning views these homes offer. Don't wait to shedule your exclusive viewing!

Feel free to contact Sandi Pressley and her team at 505-263-2173 to get more information and schedule a viewing of these fine homes. You can also check out all of our listings on our Featured Listings page.

218 SKYLAND Boulevard, Tijeras, NM 87059

This wonderful home boasts, Newer windows, newer carpet, newer tile! Newer stainless steel appliances. (Wash & Dryer, Refrigerator all convey as is) Newer water heater, new septic system 2018, newer blinds throughout, Newer metal roof, newer energy efficient heater! Out-Buildings for horses, goats chickens. Home has an attached mother in law suite (built in 2004) w/2 bedrooms, kitchenette, and huge family room, could be Air BNB, office, the possibilities are endless! radiant heat (in in law quarters), 3/4 bath w/handicap access) complete with own entrance, private patio area. Beautiful vigas, tongue and groove ceiling, oversized garage w/workshop area, and so much more! only 10 miles once exit off Cedar Crest exit!

Learn More!

508 ORTEGA Road NW, Los Ranchos, NM 87114

Plenty of room for your HORSES & HORSE POWER! Gorgeous approx 1.26 acre NV Village of Los Ranchos Horse Property. One of a kind, rare opportunity to own private gated valuable Sub-dividable lot. 4BD/3.5 BA renovated 2015 w/hardwood oak floors, 2015 roof, HVAC, HWH, windows, insulation, refrigerated air/heat throughout home. 1000sf grand sunroom w/ tile setting the stage for peace & relaxation. Recessed Lighting & Skylights! New SS appl! This home shines like a diamond! Not incl in TSF Finished 1979sqft heated/cooled 6 Car Tandem Garage/Shop w/220! The possibilities are truly endless.1100sf Horse barn, plus storage, 2 patios, circular drive w/50+ trees & fenced lawn.1 mile to Alameda Open Space, trails & Rio Grande River, & 15 mins to Airport. Perfect for entertaining. RV parking/NO HOA!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Buying a home in Albuquerque is a great opportunity at the moment, with mortgage rates lowest in several years. In addition to lower monthly payments, a lower interest rate also means that more people can qualify to buy a home. When you apply for a loan, the current interest rate is locked into your loan. But what happens if the rate falls further once it is locked in? What are the chances of getting the lower rate?

Lenders take rate locks seriously. You are reserving a rate when you lock it in with your lender. If rates rise before your closing date, you are protected. Most lock periods are between 15 - 30 days in length. It is crucial that the lock period last as long as the duration of your transaction. 

The lock protects you in case the rate increases. But what if the rate decreases during that time? Would you be able to get the lower rate?

Even if rates fall just a little, such as by less than 0.125%, it won't make much difference to change the rate in your agreement, nor will your lender be very motivated to make the change. Your lender might agree to lower your rate if it decreases by more than 0.25%. 

Changing lenders to get a lower rate is not a problem in advance of the closing date. This will allow you to have a lower rate. However, you also have to submit all your documents all over again to a new lender, including paystubs, tax returns, and bank statements. 

Your lender should consider lowering your agreed rate if rates fall by more than 0.25%. For a lender, it's better to do so than lose your business. Since both of you have worked hard to make the deal work, it benefits both of you.

Also, don't expect to get the absolute lowest rate when you make the request. There may also be a small fee to make the change. In the end, do the math and decide if requesting a lower rate works out for the best. It never hurts to ask!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Buying a home in Albuquerque brings you in contact with two terms, both related to getting a loan. Mortgage prequalification and preapproval are two methods. They may seem interchangeable, but they are actually quite different.

It's crucial for you to understand these terms so that you'll know what you can afford when looking for a home, and so that you'll demonstrate to a seller that you're serious.

Prequalification and preapproval are both steps to getting a mortgage, but if you have preapproval, you may not need a prequalification.

What is Prequalification?

Prequalification involves providing a lender with personal financial information. The goal is to help provide you an estimate of how much you can afford when you’re buying a home.

Prequalification information is usually self-reported. Your credit report is usually not verified during this process. You don't have to ding your credit report with a hard pull to get prequalified.

The prequalification letter shows you can afford the property. Having it will be helpful to your agent and sellers, but not quite as much as a preapproval.

What is Preapproval?

When it comes to buying a home, a preapproval carries a lot of weight. In order to get preapproved, you submit your finances and the lender verifies the information you provide by checking your credit report, your job and income, and your assets and liabilities.

When applying for a preapproval, you'll need details like your total monthly expenses, your W2s and pay stubs, and perhaps a copy of your mortgage statement if you own an existing home.

You receive a preapproval letter after submitting all the necessary documents. A lender will use this letter to explain how much you're approved for, along with types of loans they will give you and their terms.

Preapproval serves as an offer by the lender to you, which applies for a limited period of time. For example, you might have 90 days to buy a home based on your preapproval.

How Do You Get a Mortgage Preapproval?

To obtain a mortgage preapproval, follow these steps:

• Get your own credit score. The higher the score, the better. A score of at least 740 is ideal for the best offers.
• Check your credit report for errors and have any corrected.
• Calculate your debt-to-income ratio. To buy a home, you should aim to have a ratio of 36% or less. Your DTI is a ratio of your gross monthly income that goes toward paying debt.
• Gather the documents you’re likely to need to submit, such as your tax forms, employment details, and banking and account information. If you’re self-employed anticipate showing at least two years of income tax returns.

Finally, make sure to shop around for the best offer from lenders. This will help you find the lender that’s right for you so you increase your chances of getting approved, but also so that you can save money on interest with better terms. 

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Just listed! Whether you're looking for the ideal first home or need to expand your living space, these fine homes will make the perfect choice. These homes are certain to sell fast, so make sure you schedule a showing today.

Feel free to contact Sandi Pressley and her team at 505-263-2173 to get more information and schedule a viewing of these fine homes. You can also check out all of our listings on our Featured Listings page.

11520 WOODMAR Lane NE, Albuquerque, NM 87111

Wonderful opportunity in Prestigious Tanoan! This single-story gem is packed with amenities galore...Renovated bathrooms, updated flooring, owned solar and more! This comfortable 4-bedroom home enjoys 2 large living areas complete with fireplace & built-ins. The master bedroom has an oversized en suite bathroom with gorgeous tile work, dual sinks, and large walk-in closet. The second bedroom features an attached bath, and additional 2 bedrooms share a convenient Jack & Jill bath. And get ready to enjoy the beautiful NM weather in multiple outdoor living spaces: there's a spacious, private courtyard, multiple patio spaces, and yard. Welcome home!

Learn More!

208 MADISON Street NE, Albuquerque, NM 87108

Nob Hill, UNM, downtown!! Close to shopping, restaurants, breweries, transportation! Updated 3BDR/2BA home with private front courtyard, light, bright and open living/dining area with lots of windows, wood floors, wood burning fireplace! REFRIG AIR! Versatile floor plan with 2BDRS/1BA on its own wing! 1BDR & BATH on it's own wing! Updated kitchen and baths! Kitchen features lots of cabs, gas stove, built-in microwave, tile flooring! Separate laundry room! Huge backyard with backyard access, deck and large storage shed!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

As we approach the end of 2020, some analysts predict the number of foreclosures will rise. The Albuquerque housing market remains strong, but Coronavirus shutdowns have damaged the economy, and unemployment has remained high.

It's important to be prepared for the experience of dealing with foreclosure if you're hoping to find a great deal. Buying a foreclosure has many aspects similar to buying any other house, but if you know what to expect, your process will go more smoothly.

Types of Foreclosures

Foreclosed homes fall into two general categories. Home foreclosures include bank-owned homes and real estate-owned properties (REOs). In both cases, the lender is the owner of the home. Foreclosure stages distinguish the two.

A bank-owned home is in foreclosure, meaning the homeowner is not making payments, and the lender is taking steps to remove the homeowner. Bank-owned homes are sold at auction when they are foreclosed. A bank-owned REO property remains the property of the bank even if it doesn't sell at auction. In spite of being auctioned, REO properties haven't been sold yet. REO agents are usually used by lenders to sell them.

The prices of foreclosures are often significantly lower than similar properties in an area. A lot of foreclosed properties are sold at well below the market value. Buying a foreclosure can also help lower your interest rates, reduce your down payment, and save you money on appraisal fees and closing costs.

Some deals on distressed properties can be found in situations where the property isn't bank-owned.

Pre-foreclosure is one example. It means the lender has notified the borrower they have defaulted, but they might be able to avoid foreclosure if they sell the property. In short sales, lenders take less for the property than what's owed on the mortgage. Lenders can approve a short sale even when you aren't in default.

Buying a Foreclosed Home

If you want to buy a foreclosure, the following are the steps to expect:

Mortgage Preapproval

Before looking at properties in Albuquerque foreclosed by banks, preapproval for a mortgage is a good idea. A preapproval will show you're serious about buying, and it will help you narrow down your search.

Find an Agent Experienced in Foreclosures

It's important to have a foreclosure expert on your side. They can also help you find properties in your area if you don't have a specific property in mind.

Make a Competitive Offer

Even if a property is in foreclosure, you may still have to make a competitive offer. It is likely you will receive a substantial deal, but if you make an offer that is too low it may not be accepted.

Get an Inspection

Foreclosed homes are bought as-is. There will be no repairs made by the seller. When you buy a property, whatever is needed becomes your responsibility. If you make an offer, you need to know what you're getting into. If you do an inspection and you find too many problems, you should pass on the property. In the inspection, whatever is found is not going to be a strong negotiation tool - it's only there to help you decide.

You cannot do an inspection when you buy a house at auction. You don't even have the opportunity to see the inside of the home before you bid.

The Risk for Buyers

Buying a foreclosed home comes with a lot of risks. A property inspection may fail to reveal hidden problems or costs. Moreover, it's a long process.

When you buy a foreclosure, you have to deal with a lot of paperwork. The response times for banks to offers on these properties are usually slow, and if a bank is behind in foreclosures, it may take months before they respond.

It doesn't mean you shouldn't consider buying a foreclosure. To be prepared for these hurdles, you simply need to be organized.

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