Are you thinking of buying a home but you have no money to put down? There are still no money down mortgages. What that means to you is that you can actually still buy a home and not have any money in the bank or need money for closing. And it is perfectly legal!!! The banks will lend you the money at a higher interest rate (not much higher than normal).
The banks categorize you, the new home buyer as a higher risk since you do not have money, so they charge a little more. You will have to have good credit in this market to get a 100% financing loan.
Do you know what closing costs are? There are fees associated with closing on a home. You have to pay the seller of the home back for taxes he paid in advance, you have to pay for an appraisal, bank fees, and title costs. Depending what state you are closing in those costs can range from $1500 -$3000. But don't worry those costs can be covered too if you have a good real estate agent. Your real estate agent can put in the purchase agreement that the seller will pay 3% of the selling price towards your closing costs. You can actually buy a home with no money what so ever!!!
However it is better to put money down to buy a house. You will get a better rate, and most of all you will truly feel home ownership because you have something invested. You can get an FHA mortgage with only 3% down! I will go into that in my next blog.
If you are interested in finding out whether you qualify to buy a home, go to my web site on Oakland County Homes www.russravary.com You can email me from the site or fill out one of the many forms for information.
Also if you want to Search for Michigan homes free go to the site. Or click on search for Michigan homes free.
Drive safely and if you break a traffic law by accident may there be no policeman around to give you a ticket! Russ Ravary
Tuesday, April 3, 2007
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
Are you selling or aren't you?
My pet peeve of the week is sellers who won't let people in. Last weekend we set it up an appointment through another real estate office. We showed up at the house and the seller told us we could not come in. She wanted to know if 3 days from then would be okay!!! Duh. The seller just got the buyer mad and they are not coming back to look at that house. She supposedly does not empty her messages off the answering machine to know when the appointments are scheduled. Not the smartest seller in the world.
I have two more. Another one we called to see tomorrow they said how about next week towards the end of the week. This was a lease. The people need to move. They will be looking elsewhere.
Another one we called to see tomorrow (a different buyer and seller) the seller said not tommorrow but how about Sat between 12-1 or Sun 4-5. 3 days later again and to at thier convenience.
If you are going to sell your house make a committment to yourself and let it be shown whenever possible. It is a slow market you can't afford to let a buyer go by. There are some houses that are not getting lookers but once a month. I can understand if you have out of town guests, birthday party, a child sick, but let your agent show it as much as he can. Even if it short notice, even if it is not perfect.
I sold one house this way. Another agent was in front of my buyers house and called me. They wanted to get in right then. They liked the looks of the house. I called my buyer. He ranted and raved about no notice. I told him to quickly make the bed and apologize to the prospective buyer on how it was not totally cleaned up. That buyer bought the house. They put in a bid that night!!!
If you are thinking of selling your home. Don't let the buyer get away. Don't let the buyer get away. Don't let the buyer get away.
They are far and few between right now. They will put your house on the back burner like you did them. There are so many houses on the market to look at. Make it available. Make it easy to show all the time. I know it is work to keep it clean and pretty. But if you truly want to move and sell the house then you might have to pack up the kids, the dog and run out of the house. Go to my website and do one of the March things to do in Michigan. If you want to search for Michigan Homes go to my website www.russravary.com
I have two more. Another one we called to see tomorrow they said how about next week towards the end of the week. This was a lease. The people need to move. They will be looking elsewhere.
Another one we called to see tomorrow (a different buyer and seller) the seller said not tommorrow but how about Sat between 12-1 or Sun 4-5. 3 days later again and to at thier convenience.
If you are going to sell your house make a committment to yourself and let it be shown whenever possible. It is a slow market you can't afford to let a buyer go by. There are some houses that are not getting lookers but once a month. I can understand if you have out of town guests, birthday party, a child sick, but let your agent show it as much as he can. Even if it short notice, even if it is not perfect.
I sold one house this way. Another agent was in front of my buyers house and called me. They wanted to get in right then. They liked the looks of the house. I called my buyer. He ranted and raved about no notice. I told him to quickly make the bed and apologize to the prospective buyer on how it was not totally cleaned up. That buyer bought the house. They put in a bid that night!!!
If you are thinking of selling your home. Don't let the buyer get away. Don't let the buyer get away. Don't let the buyer get away.
They are far and few between right now. They will put your house on the back burner like you did them. There are so many houses on the market to look at. Make it available. Make it easy to show all the time. I know it is work to keep it clean and pretty. But if you truly want to move and sell the house then you might have to pack up the kids, the dog and run out of the house. Go to my website and do one of the March things to do in Michigan. If you want to search for Michigan Homes go to my website www.russravary.com
Tuesday, March 27, 2007
Foreclosures in Michigan
Good News Florida is number 1 in foreclosures. We are not the only state hurting with slow sales. One nationwide builder in Florida was 85% down from last year. That is a big number.
So you say, what about buying foreclosures. Is it a good time to buy a foreclosure? Let me explain the process of foreclosures in Michigan. First the homeowners miss 3 or more payments on their house. The bank may send them a letter right away stating they need to pay up or they are going to start foreclosure proceedings. Then it takes anywhere from 2 months to a year before the bank turns it over to attorneys and schedule a sheriff sale.
A sheriff sale is where the house is auctioned off to pay off the bank. It is usually held near the county building where the home is located. They send notices out and post it in the paper. When the house is auctioned off anybody can bid. The bottom line is that the bank will usually be the high bidder especially in this market. They have to buy the home back for at least at the price of the mortgage. So if the house was worth $200,000 and they had a mortgage of $190,000. The bank is not going to let it be sold for $100,000 or any low price. They will just buy it back.
In this market they may let you have it at $170,000 or $180,000. Maybe. But most of the time they will buy it back and then list it with real estate agents. The only time it is a good deal is if they have a low mortgage balance versus what the house is worth. But that does not happen very often because there are a few lenders that will loan 60 - 70% even if you are in foreclosure. They scoop up the house if you default again with only a 60% mortgage. They have done good.
So many of the houses have mortgages of over 70% on them. Lately many of them aren't worth the amount of mortgage on them. So it isn't a great deal to buy them at Sheriff sale. You must know what the house is worth for the condition it is in before you put in a bid. You are bidding blind because you can't get into the house to look around. The people who have defaulted on the mortgage are most likely living there. They have been living there rent free because the bank won't (most of the time) take any thing but the full past due amount. But there are times that there are deals at sheriff sale. You just have to be an educated buyer and know what is a good deal.
That comes to the next point. Even if you win the sheriff sale the people who have defaulted have six months to come up with the money to pay off the bank. That very seldom happens. If they haven't paid it up to this point they don't have the money. After six months you get to move in. They will be evicted at the end of the six month redemption period.
Now the bank has it back. I will tell you what they do next in my next post. If you want to search Michigan homes go to my website www.russravary.com and search homes free.
May tomorrows plans come off without a hitch for you. Russ Ravary
So you say, what about buying foreclosures. Is it a good time to buy a foreclosure? Let me explain the process of foreclosures in Michigan. First the homeowners miss 3 or more payments on their house. The bank may send them a letter right away stating they need to pay up or they are going to start foreclosure proceedings. Then it takes anywhere from 2 months to a year before the bank turns it over to attorneys and schedule a sheriff sale.
A sheriff sale is where the house is auctioned off to pay off the bank. It is usually held near the county building where the home is located. They send notices out and post it in the paper. When the house is auctioned off anybody can bid. The bottom line is that the bank will usually be the high bidder especially in this market. They have to buy the home back for at least at the price of the mortgage. So if the house was worth $200,000 and they had a mortgage of $190,000. The bank is not going to let it be sold for $100,000 or any low price. They will just buy it back.
In this market they may let you have it at $170,000 or $180,000. Maybe. But most of the time they will buy it back and then list it with real estate agents. The only time it is a good deal is if they have a low mortgage balance versus what the house is worth. But that does not happen very often because there are a few lenders that will loan 60 - 70% even if you are in foreclosure. They scoop up the house if you default again with only a 60% mortgage. They have done good.
So many of the houses have mortgages of over 70% on them. Lately many of them aren't worth the amount of mortgage on them. So it isn't a great deal to buy them at Sheriff sale. You must know what the house is worth for the condition it is in before you put in a bid. You are bidding blind because you can't get into the house to look around. The people who have defaulted on the mortgage are most likely living there. They have been living there rent free because the bank won't (most of the time) take any thing but the full past due amount. But there are times that there are deals at sheriff sale. You just have to be an educated buyer and know what is a good deal.
That comes to the next point. Even if you win the sheriff sale the people who have defaulted have six months to come up with the money to pay off the bank. That very seldom happens. If they haven't paid it up to this point they don't have the money. After six months you get to move in. They will be evicted at the end of the six month redemption period.
Now the bank has it back. I will tell you what they do next in my next post. If you want to search Michigan homes go to my website www.russravary.com and search homes free.
May tomorrows plans come off without a hitch for you. Russ Ravary
Sunday, March 25, 2007
Upside down in a Michigan home
What do you do if you are upside in a home?. What do I mean by being upside down?
With Michigan's economy and housing market we are seeing more and more people in this predicament. What has happen is that your house value has fallen below what you owe on the mortgage.
Upside down means that you owe more on the house than the house is worth. It does not mean anything if you are staying in the home and you can afford the mortgage payment. You just have to ride out our poor housing market and continue to pay down the mortgage.
The problem is if your payment is going to rise beyond what you can afford or you have to relocate. Or if you can't keep up and you are going into foreclosure. Then you have a problem. First you need to contact the bank and try to work something out with them. Either a lower payment or giving the home back to the bank(They call it deed in lieu of foreclosure) you are giving the house back to the bank and moving out right away. If you truly have financial problems the bank will try to work with you. However there are some banks out there that are hard noses.
If you can't work out something with the bank then you need to consult with a bankruptcy lawyer next.
The last choice if nothing else works out if that you may have walk away from the house. If you can't sell it, you can't afford the payment, you have to move to get a job, you can't work out a deal with the bank, you can't file bankruptcy, then you may have to walk away from the house. If you want to talk about your options go to my website and contact me. I'll try to help you on what to say to the bank. Or to see if you have any options. www.russravary.com
If you are upside down and are staying the house start paying a little extra each month to lower the mortgage balance. Do you know if you make one extra payment a year on a 30 year mortgage that you will cut it down to about 22 years. Even a little bit each month helps. Good luck and have a great week.
With Michigan's economy and housing market we are seeing more and more people in this predicament. What has happen is that your house value has fallen below what you owe on the mortgage.
Upside down means that you owe more on the house than the house is worth. It does not mean anything if you are staying in the home and you can afford the mortgage payment. You just have to ride out our poor housing market and continue to pay down the mortgage.
The problem is if your payment is going to rise beyond what you can afford or you have to relocate. Or if you can't keep up and you are going into foreclosure. Then you have a problem. First you need to contact the bank and try to work something out with them. Either a lower payment or giving the home back to the bank(They call it deed in lieu of foreclosure) you are giving the house back to the bank and moving out right away. If you truly have financial problems the bank will try to work with you. However there are some banks out there that are hard noses.
If you can't work out something with the bank then you need to consult with a bankruptcy lawyer next.
The last choice if nothing else works out if that you may have walk away from the house. If you can't sell it, you can't afford the payment, you have to move to get a job, you can't work out a deal with the bank, you can't file bankruptcy, then you may have to walk away from the house. If you want to talk about your options go to my website and contact me. I'll try to help you on what to say to the bank. Or to see if you have any options. www.russravary.com
If you are upside down and are staying the house start paying a little extra each month to lower the mortgage balance. Do you know if you make one extra payment a year on a 30 year mortgage that you will cut it down to about 22 years. Even a little bit each month helps. Good luck and have a great week.
Thursday, March 22, 2007
Rates holding steady
With Michigan economy slowed down, our interest rates are holding steady. For a thirty year fixed they are hovering around the 6% mark, which is an excellent rate considering 10 - 20 years ago they were are high as 8-10%.
I keep telling everybody if you don't have to sell don't. It is not a market that you can put your house out there and hope somebody will pay top dollar. It's a buyer's market here in Detroit. You can search Michigan Homes and find good deals out there.
The only reason you want to put your home up for sale is because you are relocating, you can't afford the payment, you are getting divorced, it is in estate. Or if you are moving up into a bigger house. You are not going to make as much as you would have on the sale of your house two years ago. But you will gain some much value on a bigger home.
Here is the big but - please do not stretch yourself into a variable rate or a negative amortization loan in order to buy a bigger home. If your loan is called an option arm, balloon mortgage, arm, smart choice loan, adjustable rate mortgage, pick a payment loan and you are pushing you monetary limits to get into the house....... You are doing the wrong thing to your self. What happens when the rate goes up, what happens when the balance of the loan goes up?
Houses in Michigan are not gaining in value. I am noticing even in the expired listings each day that about 25% of the home listed are owned by banks. I don't want you to get into that problem. I want you to buy a home, to be able to afford it, to be able to live a good life beyond being house poor. I want you to be able to say that was a good move 5-10 years from now while living in the house. I don't want to add stress in your life of you going into foreclosure.
For more mortgage information or Michigan real estate information go to my website www.russravary.com If have a great Michigan things to do section and a great Michigan things to do section by month.
"Life comes by you only once. Today will be gone forever soon. Enjoy it, thank a friend for their friendship and help, and forget about the little problems" Have a great day. Russ Ravary
I keep telling everybody if you don't have to sell don't. It is not a market that you can put your house out there and hope somebody will pay top dollar. It's a buyer's market here in Detroit. You can search Michigan Homes and find good deals out there.
The only reason you want to put your home up for sale is because you are relocating, you can't afford the payment, you are getting divorced, it is in estate. Or if you are moving up into a bigger house. You are not going to make as much as you would have on the sale of your house two years ago. But you will gain some much value on a bigger home.
Here is the big but - please do not stretch yourself into a variable rate or a negative amortization loan in order to buy a bigger home. If your loan is called an option arm, balloon mortgage, arm, smart choice loan, adjustable rate mortgage, pick a payment loan and you are pushing you monetary limits to get into the house....... You are doing the wrong thing to your self. What happens when the rate goes up, what happens when the balance of the loan goes up?
Houses in Michigan are not gaining in value. I am noticing even in the expired listings each day that about 25% of the home listed are owned by banks. I don't want you to get into that problem. I want you to buy a home, to be able to afford it, to be able to live a good life beyond being house poor. I want you to be able to say that was a good move 5-10 years from now while living in the house. I don't want to add stress in your life of you going into foreclosure.
For more mortgage information or Michigan real estate information go to my website www.russravary.com If have a great Michigan things to do section and a great Michigan things to do section by month.
"Life comes by you only once. Today will be gone forever soon. Enjoy it, thank a friend for their friendship and help, and forget about the little problems" Have a great day. Russ Ravary
Rates holding steady
With Michigan economy slowed down, our interest rates are holding steady. For a thirty year fixed they are hovering around the 6% mark, which is an excellent rate considering 10 - 20 years ago they were are high as 8-10%.
I keep telling everybody if you don't have to sell don't. It is not a market that you can put your house out there and hope somebody will pay top dollar. It's a buyer's market here in Detroit. You can search Michigan Homes and find good deals out there.
The only reason you want to put your home up for sale is because you are relocating, you can't afford the payment, you are getting divorced, it is in estate. Or if you are moving up into a bigger house. You are not going to make as much as you would have on the sale of your house two years ago. But you will gain some much value on a bigger home.
Here is the big but - please do not stretch yourself into a variable rate or a negative amortization loan in order to buy a bigger home. If your loan is called an option arm, balloon mortgage, arm, smart choice loan, adjustable rate mortgage, pick a payment loan and you are pushing you monetary limits to get into the house....... You are doing the wrong thing to your self. What happens when the rate goes up, what happens when the balance of the loan goes up?
Houses in Michigan are not gaining in value. I am noticing even in the expired listings each day that about 25% of the home listed are owned by banks. I don't want you to get into that problem. I want you to buy a home, to be able to afford it, to be able to live a good life beyond being house poor. I want you to be able to say that was a good move 5-10 years from now while living in the house. I don't want to add stress in your life of you going into foreclosure.
For more mortgage information or Michigan real estate information go to my website www.russravary.com If have a great Michigan things to do section and a great Michigan things to do section by month.
"Life comes by you only once. Today will be gone forever soon. Enjoy it, thank a friend for their friendship and help, and forget about the little problems" Have a great day. Russ Ravary
I keep telling everybody if you don't have to sell don't. It is not a market that you can put your house out there and hope somebody will pay top dollar. It's a buyer's market here in Detroit. You can search Michigan Homes and find good deals out there.
The only reason you want to put your home up for sale is because you are relocating, you can't afford the payment, you are getting divorced, it is in estate. Or if you are moving up into a bigger house. You are not going to make as much as you would have on the sale of your house two years ago. But you will gain some much value on a bigger home.
Here is the big but - please do not stretch yourself into a variable rate or a negative amortization loan in order to buy a bigger home. If your loan is called an option arm, balloon mortgage, arm, smart choice loan, adjustable rate mortgage, pick a payment loan and you are pushing you monetary limits to get into the house....... You are doing the wrong thing to your self. What happens when the rate goes up, what happens when the balance of the loan goes up?
Houses in Michigan are not gaining in value. I am noticing even in the expired listings each day that about 25% of the home listed are owned by banks. I don't want you to get into that problem. I want you to buy a home, to be able to afford it, to be able to live a good life beyond being house poor. I want you to be able to say that was a good move 5-10 years from now while living in the house. I don't want to add stress in your life of you going into foreclosure.
For more mortgage information or Michigan real estate information go to my website www.russravary.com If have a great Michigan things to do section and a great Michigan things to do section by month.
"Life comes by you only once. Today will be gone forever soon. Enjoy it, thank a friend for their friendship and help, and forget about the little problems" Have a great day. Russ Ravary
Subscribe to:
Posts (Atom)
