Deals on wheels

Monroe Realtor Elsie Smoluk says there are some ­incredible foreclosures and short sales to be had in Union County for savvy homebuyers who understand the ins and outs of buying distressed properties. Not savvy? She’s got that covered, too.

Smoluk works for Prudential Carolinas Realty, 2605 W. Roosevelt Blvd., specializing in foreclosures and short sales, when the lender sells a property for less than it’s owed on the mortgage. Sadly, business was booming in 2009: There were a record 1,790 foreclosure filings, up 44 percent from 2008, according to the N.C. Administrative Office of the Courts. Nearly 1,000 of those are still in the process or went back to the lender to be placed on the market, Smoluk said.

In January this year, there were another 125 filings. Of those, half had Monroe mailing addresses, with the second-highest number located in Waxhaw, Smoluk said. Of course, one ­person’s bad news can be an opportunity for someone else looking for a home.

Smoluk, who’s been a real estate agent for 30 years and handling these properties for the last three years, embraces the deals on wheels approach of carting prospective customers around in groups to look at these properties. But she noted, “I take a very different approach.”

Before buyers head to their cars to caravan around the county with her, she conducts a two-hour seminar to teach up to a dozen prospective homebuyers about how to buy a distressed property. Education is key, she said.

“The biggest problem now is probably on the borrower’s side with lack of knowledge,” she explained, noting buyers don’t need to be experts before they come to her class. She ­presents about 20 homes and they decide on around eight to visit.

“I discuss the three times that they’re likely to buy a foreclosed property,” she added. “Before they go to the courthouse (pre-foreclosure), at court and when the bank owns it.”

Then the home-seekers grab a box lunch and tour in their own cars for about three hours, primarily in ­Monroe, ­Wingate, Indian Trail and sometimes ­Waxhaw. Smoluk said she shows buyers properties in a broad range of conditions and prices, generally between $60,000 and $300,000.

“Some may need rehabbing, but you don’t need to be a rehabber to buy a foreclosure.” In fact, she said some ­distressed homes, such as a two-story, three-­bedroom, 2.5-bath house in Monroe available for $99,000, are in mint, move-in ­condition.

Helping sellers save a home

Smoluk said she and her husband, Jack, a short-sale negotiator for Wells Fargo, and son, Geoff, got into the distressed property business themselves six years ago, rehabbing homes in Indian Trail and Wingate. By law, she and Jack can’t work together, she noted.

She said she’ll never turn down a listing, but “the niche I work with is people in distress. I work 10 to 20 hours a week helping folks save their homes.”

She offers help to sellers, even before they’re in foreclosure, she said. She gets a daily list from the county courthouse in Monroe when lenders have started the foreclosure process. And she refers some families in home crisis to United Family Services in Monroe to learn about federal programs available to help them.

“The majority of my listings are pre-­foreclosure homes. I send them a letter before they get on the market. I’m offering a whole lot more than just selling their homes.

“I want them to know they have options. Sometimes people just move out and leave the houses. It’s unnecessary.”

She likes pre-foreclosure sales, she said, because the house still is occupied and cared for. “There’s zero risk. It’s still a normal sale.”

Once it’s in court, it’s the “highest risk,” she continued. “The purchaser hasn’t had access (or) seen any problems. It’s as is. There are no contingencies for an inspection and (the property) might have liens on it.”

In the third scenario, when the bank owns the house, a short sale, Smoluk said “some people think that’s when you get the best deal. Maybe yes or no. The bank is carrying the cost and could be less flexible on the sale price than in pre-foreclosure.”

And although potential buyers can get inspections, short-sale homes also are sold as is, she added.

It’s hard to estimate how much a buyer can save on a distressed property, she said, since each home sale is different. One property currently listed originally sold for $683,000 and probably has a $500,000 current market value. The lender has offered it for $178,000 minimum, she said.

On the other hand, a bank-owned property whose mortgage was originally $150,000 is being offered for $150,000. “There’s no rule of thumb,” she said.

Smoluk hopes to hold another seminar in the spring. For more information, call her at 704-363-8815. United Family ­Services can be reached at 704-226-1352.