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 michigan foreclosures. Show all posts
Showing posts with label michigan foreclosures. Show all posts
Thursday, March 13, 2008
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
Thursday, March 29, 2007
Buying floreclosures
I am picking up where I left off on my last post. To reiterate a point. Just because it was a foreclosure does not make it a deal.
Your real estate agent should be doing some leg work for you. If you like the house then they should be telling you what other homes in the area are selling for. He may be able to tell when it was last sold, how much of a mortgage is on it, and how long it has been on the market.
All this information should be helping you to determine how much to bid on the house.
Banks want to get it sold but they don't necessarily want to give it away. Remember you are buying it as is. The bank is not going to do anything or fix anything (most likely).
I always tell clients to put in a purchase offer in with a price you can live with. On one end. I have had agents tell me that their clients have told them. "why hasn't anybody put even a low ball bid in on my house?" Then when we did put in a low ball bid they only come back with a 4% lower counteroffer. In this market it is not that great. If you are shopping for a bargain then it should be 10% plus in this market.
On the other end we have put in a 12% below market bid and it is accepted without a counteroffer. The sellers had a bigger mortgage than that. They just wanted to get out of the house.
Signs to look for when looking for a deal: empty house, low mortgage on home, house on market a long time, people have relocated, people are getting divorced. Check the house value against what has sold in the six months (not a year). Good luck and happy hunting. Search Michigan Homes free on my website www.russravary.com Russ Ravary
Your real estate agent should be doing some leg work for you. If you like the house then they should be telling you what other homes in the area are selling for. He may be able to tell when it was last sold, how much of a mortgage is on it, and how long it has been on the market.
All this information should be helping you to determine how much to bid on the house.
Banks want to get it sold but they don't necessarily want to give it away. Remember you are buying it as is. The bank is not going to do anything or fix anything (most likely).
I always tell clients to put in a purchase offer in with a price you can live with. On one end. I have had agents tell me that their clients have told them. "why hasn't anybody put even a low ball bid in on my house?" Then when we did put in a low ball bid they only come back with a 4% lower counteroffer. In this market it is not that great. If you are shopping for a bargain then it should be 10% plus in this market.
On the other end we have put in a 12% below market bid and it is accepted without a counteroffer. The sellers had a bigger mortgage than that. They just wanted to get out of the house.
Signs to look for when looking for a deal: empty house, low mortgage on home, house on market a long time, people have relocated, people are getting divorced. Check the house value against what has sold in the six months (not a year). Good luck and happy hunting. Search Michigan Homes free on my website www.russravary.com Russ Ravary
Tuesday, March 13, 2007
Mortgage meltdown
If you have been reading the newspaper or watching Good Morning America this morning. You would have heard about the mortgage meltdown. What does the mortgage meltdown really mean to the average consumer?
Let's start with why it happened. Banks, and lenders began loosening lending guidelines about 6-7 years ago. They made it easier for almost anybody to get a loan. You did not have to show employment sometimes, sometimes you did not have to verify income, and sometimes you did not even need one dime to buy a house. It was easy to get a loan even if you were self-employed, had a recent bankruptcy, or even a prior foreclosure.
The gurus in the back room thought they had figured out the projected default rate. They factored that into the interest rate. So if 10 out of a 1000 people were going to default as they guessed then they charged a little higher rate to everybody. Just like they do with credit cards. The good payers subsidize the losses of the non-payers. That is the way of business.
Well unfortunately the gurus in the back room under figured the losses. So long as the real estate market is going up all was well. The foreclosures are huge right now. Especially Michigan foreclosures, we are near the top of the list. The banks, the lenders, and investment portfolios are taking losses. Yes investment portfolios, mortgages were being bundled up and sold on wall street. They are in various mutual funds and hedge funds now. So those funds are going to lose a little value here and there.
But the major consequence of what is happening is that lenders are going out of business, there is a tightening of loan criteria. No longer can anybody just sign and get a loan. There are less choices and less programs for loan officers. Less choices for consumers. So some people that could have bought a house last year with no money down, may need money or may not even be able to get a loan. Before lenders could sell those loans on wall street, now wall street wants nothing to do with them because of all the losses. It's not profitable.
Less people on Wall Street to sell to, less companies able to stay in business, less choices and fewer easy options for Mortgages for the average consumer.
Interest Rates are going to be higher for non-conforming people. People with bruised credit, self-employed people with no verifiable income, people with no reserves are non-conforming people.
Where the biggest danger is that some of adjustable rate mortgages may rise quickly. Good Morning America was saying that you needed to be in a 30 year fixed rate mortgage if you could be. I think that is a great idea. We are near the low point of mortgage rates. Rates may come down a little but the possibility of them going up is greater.
So if you are thinking of selling to get out from under your mortgage, or just thinking of moving out of state.... you can check your houses value at www.checkmyhousesvalue.com
I always thought people should have a little reserves when they buy a home. What happens if the furnace fails or the roof leaks. Sure it's nice to buy a home, but I would like my clients to be able to afford the home. So they can be in it 5 -10 years down the road and not lose it to foreclosure. If you want more information on mortgages, want a good rate feel free to call me at (313) 310-9855 or go to my website at www.russravary.com May life treat you and your family well today. Russ Ravary
Let's start with why it happened. Banks, and lenders began loosening lending guidelines about 6-7 years ago. They made it easier for almost anybody to get a loan. You did not have to show employment sometimes, sometimes you did not have to verify income, and sometimes you did not even need one dime to buy a house. It was easy to get a loan even if you were self-employed, had a recent bankruptcy, or even a prior foreclosure.
The gurus in the back room thought they had figured out the projected default rate. They factored that into the interest rate. So if 10 out of a 1000 people were going to default as they guessed then they charged a little higher rate to everybody. Just like they do with credit cards. The good payers subsidize the losses of the non-payers. That is the way of business.
Well unfortunately the gurus in the back room under figured the losses. So long as the real estate market is going up all was well. The foreclosures are huge right now. Especially Michigan foreclosures, we are near the top of the list. The banks, the lenders, and investment portfolios are taking losses. Yes investment portfolios, mortgages were being bundled up and sold on wall street. They are in various mutual funds and hedge funds now. So those funds are going to lose a little value here and there.
But the major consequence of what is happening is that lenders are going out of business, there is a tightening of loan criteria. No longer can anybody just sign and get a loan. There are less choices and less programs for loan officers. Less choices for consumers. So some people that could have bought a house last year with no money down, may need money or may not even be able to get a loan. Before lenders could sell those loans on wall street, now wall street wants nothing to do with them because of all the losses. It's not profitable.
Less people on Wall Street to sell to, less companies able to stay in business, less choices and fewer easy options for Mortgages for the average consumer.
Interest Rates are going to be higher for non-conforming people. People with bruised credit, self-employed people with no verifiable income, people with no reserves are non-conforming people.
Where the biggest danger is that some of adjustable rate mortgages may rise quickly. Good Morning America was saying that you needed to be in a 30 year fixed rate mortgage if you could be. I think that is a great idea. We are near the low point of mortgage rates. Rates may come down a little but the possibility of them going up is greater.
So if you are thinking of selling to get out from under your mortgage, or just thinking of moving out of state.... you can check your houses value at www.checkmyhousesvalue.com
I always thought people should have a little reserves when they buy a home. What happens if the furnace fails or the roof leaks. Sure it's nice to buy a home, but I would like my clients to be able to afford the home. So they can be in it 5 -10 years down the road and not lose it to foreclosure. If you want more information on mortgages, want a good rate feel free to call me at (313) 310-9855 or go to my website at www.russravary.com May life treat you and your family well today. Russ Ravary
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