Foreclosures in Nassau County, Suffolk County and the NY Metro area continue to increase due to the struggling economy. As a result, some homes become neglected over time and develop situations that subsquently require a restoration company to perform repair work. Initiating necessary foreclosure repairs for a property can be accomplished by a potential homeowner applying for a mortgage related to the 203(k) Program.

203(k) Mortgage
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs like a 203(k) mortgage. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer’s credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.

One Mortgage Loan
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods.

The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.

Advanced Restoration Corporation is a full service property damage restoration company that has the abiltiy to execute all necessary repairs to a property that qualifies for a 203(k) loan. For more information on FHA 203(k) loans and how Advanced Restoration can partner with you, please contact Gary Matzelle at (800) 693-6263. ___________________________________________________________

Advanced Restoration Corporation is a family-owned and operated full-service property damage restoration company with a combined 75 years experience in dealing with Fire & Smoke Damage Restoration, Water Damage, Mold Remediation and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York area.

When disasters strike, Advanced Restoration is ready to respond 24 hours a day, 7 days a week. You are guaranteed to speak with one of our knowledgeable, caring team members, day or night. Our immediate response to a claim/property loss helps minimize the damages to the structure, contents, and ease the sometime catastrophic effect that a disaster may have on an owner or occupants.

Our company is dedicated to serving our clients with courteous and prompt service. We take the utmost pride in the craftsmanship of our work. As certified specialists in water mitigation and fire/smoke restoration, we have the knowledge, expertise and experience to deal with all types of property damage. Our professional staff is also trained in all aspects of mold remediation and damage appraisals.

There are many foreclosure home remodeling projects being undertaken everyday by professional contractors. These repair teams specialize in turning a foreclosed home into a resalable real estate commodity within 45 days of repossession or closing. Many foreclosure home remodeling projects are cosmetic and can be finished well before the 45 day deadline.

Other foreclosure home remodeling areas are more difficult to finish and will take almost all of the allocated time to complete. The foreclosed home may have been neglected for a long period of time, and rodents may have entered the home and chewed holes through walls, woodwork and attic spaces. The items that will need to be replaced, and the repairs that must be accomplished, must be determined before foreclosure home remodeling efforts can even begin.

Professional contractors have a good idea of what damage has been done by viewing each area of the home. They realize the materials that are behind the walls, and how many rolls of insulation are in each wall space. A foreclosure home remodeling project might include repairs to the ceiling areas due to water leaks. If the roof is leaking, then shingles will need to be added to the list of supplies that will be needed to complete the foreclosed home remodeling project on time.

Buckled flooring will definitely require further investigation because this is an indication of structural damage that extends to the support system under the home. The cement slab may be cracked by broken pipes, or the land might have shifted underneath the home from recent storms and a poor drainage system. This type of foreclosure home remodeling problem might delay the home from being listed on the market at all.

Home building contractors do not worry very much about peeling paint and dirt and grime. These are easy fixes for me, and this fix will allow a foreclosure home remodeling project to proceed as planned. Walls can be resurfaced if they are rough and unsightly and the white wall finish will make these walls look brand new after a few coats of paint. A foreclosure home remodeling project can require plumbing skills too. If the piping system in the home is broken, then there is going to be accumulated water somewhere under the home. Broken pipes have to be repaired before a home is placed on the market for sale.

Some of the foreclosure home remodeling projects – are very simple, and some are quite costly. In some cases, the cost of repairs will liquidate, the cash that the owners hope to make on the property, and cost of them more to repair than they will ever be able to recoup. In these cases, it is better to stop the foreclosure home remodeling project and tear the building down and start fresh.

The materials that are used to build the new home might not have as many outstanding features as it would normally have, such as Jacuzzi bath and marbled countertops in the kitchen, but the investors have to cut costs at every turn to recoup the monies they have lost. The new home is like to sell quickly if an attractive price is listed, and it will definitely sell because people love buying brand new homes. The new owners can start their own remodeling projects when they settle in to their new home.