Michigan Foreclosures, Northville Foreclosures, Farmington Hills foreclosures - what to remember
When buying a Michigan foreclosure, REO, or any bank owned property around Michigan, Oakland County, Wayne County, or Livingston county you need to remember a few things.
1) When buying a Michigan foreclosure remember to read and re-read the contract and addendums from the bank. Many times the bank has language protecting them. Sometimes they push some of the title closing costs on you. Beware. Anything you do not understand ask your Realtor to explain.
2) When buying a Michigan foreclosure remember that the bank is not going to fix anything. You are buying the home "as is".
3) When buying a Michigan foreclosure you should always have an inspection clause and have a professional inspect the property. Don't let uncle Joe inspect your Michigan foreclosure. You need to be aware of all the possible problems with the home.
4) When buying a Michigan foreclosure remember it takes time to get the deal closed. Most foreclosure departments are only open during the week Monday through Friday. Be patient when bidding on a Michigan foreclosure.
There are many Michigan foreclosures out there. There are many bargains in the Michigan foreclosures. If you would like a list of Michigan foreclosures sent to you email me at info@RussRavary.com or email me at OurMortgageGuy@yahoo.com I will send you a list of Michigan foreclosures in the city you request that you can open and browse through at your leisure.
For more on Michigan foreclosures, Michigan Real estate, and Michigan Mortgage go to my website www.RussRavary.com see my website for Michigan real estate investing (Flipping) or to search over 70,000 Michigan homes for sale free
Showing posts with label foreclosures. Show all posts
Showing posts with label foreclosures. Show all posts
Thursday, March 13, 2008
Wednesday, February 20, 2008
Isn't this the craziest thing?
Is this the craziest thing?
Banks are doing the dumbest things lately.
For example. I have a borrower who has $30,000 saved up. He wants to use some of it for a down payment. But he can't qualify for the program. You see the guidelines for the program say they will only loan him 95% if only he doesn't have any money. He has to show nothing and that he is going to borrow the money from somebody else. No isn't that dumb? They won't do a home loan for somebody that has saved the money but, will loan it to somebody that hasn't.
Another example is the My community program. They will loan 95% if you are under a certain income. But my borrower makes too much money. He makes over $70,000 a year. The guidelines say he can't fit into that program, believe it not he makes too much money!!! No isn't that dumb, they will put somebody into a loan if they make a little bit of money. They will stretch their finances, but NO DON'T EVER LOAN MONEY TO SOMEBODY THAT MAKES TO MUCH EACH YEAR. Now isn't that dumb.
Another example is my buyer wants to buy a house for $181,250 and put 5% down. We got such a great deal that other comparable homes in the were selling for more. The home was brand new, and appraised for more than the selling price. It appraised for $190,000. 4.6% more than the purchase price. You are going to love this one. The bank has to deduct 5% from the loan amount because Detroit is a declining market. The appraiser did his job right and even though the bank is letting other appraisals slide. (Everybody knows Detroit and other areas around the country are declining markets)
So they will only loan 90% on a person that has money saved, has a down payment, makes good money, has great credit scores, and the house value is greater than the purchase price.
But they will loan 95% to people that make less, have less saved and No money for a down payment. ISN'T THAT DUMB.... Try explaining this whole scenario to the guy that was turned down. I don't understand it, how can the borrower.
And we wonder why there are so many foreclosures around the country. They make it hard for a good credit risk person to get a loan and loan the money out to higher credit risks. You have to love it.
To top it off I sent this to a bank official that denied this loan and wouldn't do it.... He laughed about it. He basically said rules are rules. That's why we survive.
I sent the loan to a different bank first thing this morning and got an approval for the loan. Quicker service, less grief, and nicer. My client is happier with this new bank and their ability to give him the 95%.
For more on Michigan Mortgages, Credit and credit scores, mortgage information and Michigan real estate go to www.RussRavary.com
Banks are doing the dumbest things lately.
For example. I have a borrower who has $30,000 saved up. He wants to use some of it for a down payment. But he can't qualify for the program. You see the guidelines for the program say they will only loan him 95% if only he doesn't have any money. He has to show nothing and that he is going to borrow the money from somebody else. No isn't that dumb? They won't do a home loan for somebody that has saved the money but, will loan it to somebody that hasn't.
Another example is the My community program. They will loan 95% if you are under a certain income. But my borrower makes too much money. He makes over $70,000 a year. The guidelines say he can't fit into that program, believe it not he makes too much money!!! No isn't that dumb, they will put somebody into a loan if they make a little bit of money. They will stretch their finances, but NO DON'T EVER LOAN MONEY TO SOMEBODY THAT MAKES TO MUCH EACH YEAR. Now isn't that dumb.
Another example is my buyer wants to buy a house for $181,250 and put 5% down. We got such a great deal that other comparable homes in the were selling for more. The home was brand new, and appraised for more than the selling price. It appraised for $190,000. 4.6% more than the purchase price. You are going to love this one. The bank has to deduct 5% from the loan amount because Detroit is a declining market. The appraiser did his job right and even though the bank is letting other appraisals slide. (Everybody knows Detroit and other areas around the country are declining markets)
So they will only loan 90% on a person that has money saved, has a down payment, makes good money, has great credit scores, and the house value is greater than the purchase price.
But they will loan 95% to people that make less, have less saved and No money for a down payment. ISN'T THAT DUMB.... Try explaining this whole scenario to the guy that was turned down. I don't understand it, how can the borrower.
And we wonder why there are so many foreclosures around the country. They make it hard for a good credit risk person to get a loan and loan the money out to higher credit risks. You have to love it.
To top it off I sent this to a bank official that denied this loan and wouldn't do it.... He laughed about it. He basically said rules are rules. That's why we survive.
I sent the loan to a different bank first thing this morning and got an approval for the loan. Quicker service, less grief, and nicer. My client is happier with this new bank and their ability to give him the 95%.
For more on Michigan Mortgages, Credit and credit scores, mortgage information and Michigan real estate go to www.RussRavary.com
Friday, February 15, 2008
Mortgage delinquencies and foreclosures continue to rise
According to an article on CNN Money Countrywide's Mortgage foreclosures and delinquencies continued to rise in January. Another article said that the median home price in Lansing, Michigan fell 18% to 109,600 in the fourth quarter of last year.
That is what I believe is in store for us all year. I believe home prices will continue to fall, there will be more foreclosures on the Michigan real estate market. I believe the overly optimistic stance by many realtors that the real estate market will start turning around in the last quarter of the year is wrong. It is going to take time to work out of this mess.
The fed may continue to drop the fed rate, but I don't know what affect it will have on the mortgage interest rates. They have dropped it quite a bit already, but as of today's mortgage rates are higher than when the fed dropped thefed rate the first time this year. For more on the difference between the fed rate and mortgage interest rates you can go to my other blog www.activerain.com/blogs/russravary look on the right hand side for "fed rate" or "difference between"
Gambling on whether mortgage interest rates will come down more is like gambling on whether a stock will go up on a certain day. If you can lock in a good mortgage rate lock it in, don't be a glutton waiting for the bottom. It may never come. Some "experts" believe the mortgage interest rates may go up instead of down. Who knows which way they may go, it is anybody's guess. For more on mortgages, Michigan foreclosures, or Michigan homes for sale go to www.RussRavary.com
That is what I believe is in store for us all year. I believe home prices will continue to fall, there will be more foreclosures on the Michigan real estate market. I believe the overly optimistic stance by many realtors that the real estate market will start turning around in the last quarter of the year is wrong. It is going to take time to work out of this mess.
The fed may continue to drop the fed rate, but I don't know what affect it will have on the mortgage interest rates. They have dropped it quite a bit already, but as of today's mortgage rates are higher than when the fed dropped thefed rate the first time this year. For more on the difference between the fed rate and mortgage interest rates you can go to my other blog www.activerain.com/blogs/russravary look on the right hand side for "fed rate" or "difference between"
Gambling on whether mortgage interest rates will come down more is like gambling on whether a stock will go up on a certain day. If you can lock in a good mortgage rate lock it in, don't be a glutton waiting for the bottom. It may never come. Some "experts" believe the mortgage interest rates may go up instead of down. Who knows which way they may go, it is anybody's guess. For more on mortgages, Michigan foreclosures, or Michigan homes for sale go to www.RussRavary.com
Tuesday, June 19, 2007
Michigan foreclosures
A Buy in Bank Foreclosures?
Everybody watches late night TV and sees the infomercials on how people made millions buying bank foreclosures. Can you do it? It is possible but banks have closed many of the loopholes in the lending process.
Michigan foreclosures. Let me explain what happens in the foreclosure process in Michigan. A homeowner falls 3 or more payments behind on the mortgage. The bank then sends them a letter that they are going to start foreclosure proceedings against the homeowner. Sometimes the banks are very quick to get a letter out and start the foreclosure proceedings. Other times some banks take months to get the foreclosure process started.
Then it is usually turned over to a foreclosure attorney to handle. The house is then scheduled to be sold at “ sheriff sale”. The home is auctioned off. Unfortunately many people think you can steal the homes at the sale. There are deals there at the sale but you have to do the research on the homes and their value. But what usually happens is the bank will buy the home back. The reason they do this is because they have a mortgage on it. Let’s say the house is worth $120,000 and the homeowners owe $100,000 on a mortgage. The bank will buy it back up to the $100,000 to recover their costs and to get the other possible liens off the home. You could buy it for $101,000 or more and the bank would probably let you buy it.
If the mortgage was $90,000 then the bank would bid up to $90,000 to keep their interest in the property. So up to this point the only way you can get a deal on the property is to out bid other buyers on a home.
Now the bank owns the home. The original owners may still be living in the home. They have up to 6 months to pay the bank the full amount to keep the home. This seldom happens.
The bank usually waits for the six month redemption period to lapse. They then contact 3 different real estate agents. The bank will ask the realtor to give them a price that the house should sell for. The bank is asking the realtor for a price, that price usually is fair market value in the eyes of the realtor. So that foreclosed home is no deal. It is around fair market value. The bank then hires a realtor to change locks, winterize the home, clean carpets, and if necessary get the home in saleable condition.
So the bottom line is that the bank is trying to recover what they are owed on the house or get fair market value. So most homes that are foreclosed are not great deals. Though there are some fixer uppers that may be deals. Ask your real estate agents to look for them. There also are HUD foreclosures that go through a little different process. There may be deals in them. I will be talking about them in another section.
The key to buying homes cheaply is to know values of the neighborhood and city and look for fixer uppers or homes below market value. Search Michigan Homes.
If you need a realtor to help you look go to my website www.russravary.com
Happy house hunting
Russ Ravary
Everybody watches late night TV and sees the infomercials on how people made millions buying bank foreclosures. Can you do it? It is possible but banks have closed many of the loopholes in the lending process.
Michigan foreclosures. Let me explain what happens in the foreclosure process in Michigan. A homeowner falls 3 or more payments behind on the mortgage. The bank then sends them a letter that they are going to start foreclosure proceedings against the homeowner. Sometimes the banks are very quick to get a letter out and start the foreclosure proceedings. Other times some banks take months to get the foreclosure process started.
Then it is usually turned over to a foreclosure attorney to handle. The house is then scheduled to be sold at “ sheriff sale”. The home is auctioned off. Unfortunately many people think you can steal the homes at the sale. There are deals there at the sale but you have to do the research on the homes and their value. But what usually happens is the bank will buy the home back. The reason they do this is because they have a mortgage on it. Let’s say the house is worth $120,000 and the homeowners owe $100,000 on a mortgage. The bank will buy it back up to the $100,000 to recover their costs and to get the other possible liens off the home. You could buy it for $101,000 or more and the bank would probably let you buy it.
If the mortgage was $90,000 then the bank would bid up to $90,000 to keep their interest in the property. So up to this point the only way you can get a deal on the property is to out bid other buyers on a home.
Now the bank owns the home. The original owners may still be living in the home. They have up to 6 months to pay the bank the full amount to keep the home. This seldom happens.
The bank usually waits for the six month redemption period to lapse. They then contact 3 different real estate agents. The bank will ask the realtor to give them a price that the house should sell for. The bank is asking the realtor for a price, that price usually is fair market value in the eyes of the realtor. So that foreclosed home is no deal. It is around fair market value. The bank then hires a realtor to change locks, winterize the home, clean carpets, and if necessary get the home in saleable condition.
So the bottom line is that the bank is trying to recover what they are owed on the house or get fair market value. So most homes that are foreclosed are not great deals. Though there are some fixer uppers that may be deals. Ask your real estate agents to look for them. There also are HUD foreclosures that go through a little different process. There may be deals in them. I will be talking about them in another section.
The key to buying homes cheaply is to know values of the neighborhood and city and look for fixer uppers or homes below market value. Search Michigan Homes.
If you need a realtor to help you look go to my website www.russravary.com
Happy house hunting
Russ Ravary
Saturday, April 28, 2007
Plan your mortgage
Well foreclosures were up 47% in March. Don't let that happen to you. If you are just planning to buy a home. Be one of the smart ones. Just because somebody will allow you to borrow 50% of your income doesn't mean you should.
50% of your income to go towards your house payment is too much. You are going to be house poor. You want to be in the 35% range. The only reason you should be stretched out that far is that you are going to get big raises in the next few years. Or you are a young professional like a doctor and you know for sure your income is going to rise dramatically.
28-38% used to be the range that banks would loan you. The banks like you to have reserves (savings). Do you have savings in the bank? Do you have 6 months to a year of savings to pay all your bills? For example do you have enough to pay all your credit card bills, car payments, cell phone bills, utility bills and house payments and taxes.
The good borrowers do, they have back up so they can pay their bills even in bad times. That's how they keep their good credit rating. I'm not saying you shouldn't buy a house if you don't have that much saved. What I am saying is that is what you want to strive for. Live within your means, feel relaxed, be able to take vacations, be able to help your kids through college, be ok if your have medical problems in life. You don't want to be that Walmart greeter. Sure it is ok to be the Walmart greeter at 70 years old because you want something to do, but it is a whole different thing to have to go to work so you can afford your house payment or be able to eat.
Too many people want the big beautiful house and the fancy cars. But think how embarrassed you would be to tell your family and friends that you lost your house in foreclosure. Be one of the smart ones in life. Once you start on this path you will be glad you did.
So when you are out shopping for a mortgage, don't ask how of a house can I buy. Instead figure out yourself what payment can you afford comfortably. Then ask your mortgage professional the interest rate and how big of a house that payment can buy.
May unexpected money come your way this week. For more mortgage information and Michigan real estate information go to www.russravary.com
Russ Ravary
"your real estate and mortgage specialist"
50% of your income to go towards your house payment is too much. You are going to be house poor. You want to be in the 35% range. The only reason you should be stretched out that far is that you are going to get big raises in the next few years. Or you are a young professional like a doctor and you know for sure your income is going to rise dramatically.
28-38% used to be the range that banks would loan you. The banks like you to have reserves (savings). Do you have savings in the bank? Do you have 6 months to a year of savings to pay all your bills? For example do you have enough to pay all your credit card bills, car payments, cell phone bills, utility bills and house payments and taxes.
The good borrowers do, they have back up so they can pay their bills even in bad times. That's how they keep their good credit rating. I'm not saying you shouldn't buy a house if you don't have that much saved. What I am saying is that is what you want to strive for. Live within your means, feel relaxed, be able to take vacations, be able to help your kids through college, be ok if your have medical problems in life. You don't want to be that Walmart greeter. Sure it is ok to be the Walmart greeter at 70 years old because you want something to do, but it is a whole different thing to have to go to work so you can afford your house payment or be able to eat.
Too many people want the big beautiful house and the fancy cars. But think how embarrassed you would be to tell your family and friends that you lost your house in foreclosure. Be one of the smart ones in life. Once you start on this path you will be glad you did.
So when you are out shopping for a mortgage, don't ask how of a house can I buy. Instead figure out yourself what payment can you afford comfortably. Then ask your mortgage professional the interest rate and how big of a house that payment can buy.
May unexpected money come your way this week. For more mortgage information and Michigan real estate information go to www.russravary.com
Russ Ravary
"your real estate and mortgage specialist"
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