How to beat the housing market slump

PAINESVILLE -- The housing slump has hit Northeast Ohio harder then many places throughout the country.

Foreclosureonline lists over 11,600 foreclosed homes in Cuyahoga County alone. Each one may have its own sad story but is there a silver lining?

There is good news in real estate, even with a slowly recovering economy.

If you're about to be foreclosed on, there are ways to ease the pain. If you're looking for a deal, there are places to find it.

College student Kristen Voyticky thought she was sowing the seeds of her future, renting to own this house.

Realtor and friend Wendy Kunash says the bank was foreclosing on Kristen's landlord even before entering into the rent-to-own agreement.

"She had no idea what she was walking into, which was already a troubled mess," Kunash said.

After leasing for 18 months, buying a furnace, landscaping and even paying to install a city water line, the house went to sheriff's sale.

Kristen could have fought back. Instead, she bought back.

Voyticky purchased the house at auction for $20,000 less than the original price negotiated with her landlord.

"I was absolutely shocked. I was ready to pay $112 was kinda what I was thinking," Voyticky said.

Laura Fulton makes a living buying, rehabbing and flipping houses.

"It's a great time to buy right now. We have never seen these prices or these interest rates," Fulton said.

She says Kristen's story is an exception to the rule. Sheriff sales are usually sight unseen. Fulton once got burned.

"They sawed off the mantel of the fireplace. They tore off cabinet doors, trashed the yard and turfed it. Then left dogs in the house for a long time, unattended," Fulton said.

Starting bids aren't always two-thirds the appraised value. Not if the appraisal is out of date. Fulton likes bank sales and short sales.

"You can get in the property. You're able to do your inspections, being able to view the property, assess what needs to be done to the house," Fulton said.

In a short sale, the seller can also benefit, so personal trainer Kathy Scharam discovered.

Despite working two jobs, Kathy could not keep up with her house payments. She chose a short sale over foreclosure and was forgiven a good chunk of what she owed.

"Their credit is damaged but not to the degree a sheriff's sale would be," Schram said.

Kathy is starting over. She is feeling better about herself and her future.

"Somebody is going to be very happy with this house, that it was left in good condition. The relief was not making the mortgage payment and wondering how to make ends meet," Schram said.

Kristen's future is also looking rosy. She's getting a new roof over her head. With the money she saved at auction, Kristen won't have to move out to get it.

If you're looking for a buyer checklist, here are a few recommendations to follow when purchasing a home in this real estate market.

* Work with an experienced licensed Realtor

* Get pre-qualified for your loan first. Make sure you shop for the best rates

* View all properties in your price range and area. The Internet is a good place to start

* If you find something you like, compare prices of homes in the neighborhood. Used licensed inspectors to check it out

* Don't be afraid to negotiate your best price