Lee Morof's Real Estate Blog

You’ve reviewed your finances and have decided you can afford to and want to help your child buy Bloomfield Hills real estate.  Is lending the money to your offspring your best option?  Here are some questions to consider when making this decision.

1.  Will you need the money later?

If there’s a chance that you might need the money to live on at some point, lending the money to your child is a better option than giving it to them.  You can always forgive part of the loan later on, if you find you don’t need the money to live on.

2. How much should you lend?

Depending on your financial situation, you can lend part or all of the down payment or part or all of the purchase price of the Bloomfield Hills real estate.

If you have enough money to lend the entire mortgage amount, consult with your financial planner to determine if this is the best option for you. Lending the entire amount often offers you more income than you’d get from a bank and gives your child an even lower interest rate than he or she would get with a traditional mortgage.  It also allows your child to deduct the mortgage interest because the loan is secured by the property.

3. Who will receive the mortgage payments?

Decide if you want to receive the monthly mortgage payments or if you’d prefer to have a third party service the mortgage.  If you want to know more about employing a third party to draw up the mortgage contract and accept the monthly payments, look into companies that handle intra-family loans.

4. How much interest should you charge?

As part of the loan agreement, you’ll want to charge an interest rate equal to the IRS-approved Applicable Federal Rates (AFRs). The AFR is the lowest interest rate you can charge without causing any unwanted tax complications.  Work with your financial and legal experts to ensure the loan agreement is in the best interest of both you and your child.

Let me help you find the Bloomfield Hills real estate that meets the needs of you and your child and get it at a great price.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

With appealingly-low home prices and historically-low mortgage rates, you know this is an ideal time to buy Southeast Michigan real estate. What about your adult child who doesn’t have the down payment needed to buy his or her first home? Should you help him or her take advantage of this opportunity?

Many parents are asking themselves this question. According to a survey done by the National Association of REALTORS®, 36% of first-time buyers received help with their down payment from family or friends – typically parents – in 2010.  That was up 28% from 2009.

Can you afford it?

The first thing to ask yourself is whether you can afford it. Are you on track to reach your financial goals for retirement? If you are not, you cannot afford to help your child buy Southeast Michigan real estate.  Additionally, some financial experts suggest that you should not tie up more than 3% to 5% of your assets in family loans.

Are you prepared to lose the money?

Your offspring may fully intend to repay you, but his or her ability to do so could change quickly in today’s financial environment.

To reduce the possibility of your child falling behind on payments or defaulting, create a contingency plan.  If the amount you’ve lent is small enough, you might decide to give it to them as a gift. If not, work out a schedule of repayment. For instance, you could reduce the monthly payment. Just make sure you get some type of payment on a regular basis, even if it’s only symbolic.

Will your other children be accepting?

Your other children should know that you are providing this aid, if you intend to also help them financially, and if not, why you made that decision. If helping one of your kids finance a home will cause a major rift in your family, you may not want to move forward with it.
Can you do the deal and then back off?

Helping your son or daughter buy Southeast Michigan real estate in Oakland County, Michigan can be a positive for all of you. But you don’t want to be the type of parent who helps and then spends the next decade dictating how to decorate the home and dropping in to visit any time you please.

If you’d like to find a home to purchase for your child, I can help.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for additional information.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

As the need for home loan modifications has increased, so has the number of home loan modification scams.  Like all scams, they aren’t always easy to detect.  To help you identify loan modification scammers, here are five things to watch out for:

1. Asking for payment up front. This can be masked as a house payment, insurance payment or a deposit. No matter what they tell you it’s for, do not give it to them in advance of work being performed and Bloomfield Hills real estate contracts being signed.  If you do give payment up front, at best, you’ll pay for work that could have been done for free through other non-profit organizations or loan modification assistance programs. At worst, no work will be done, you’ll never see your money again, and you’ll no longer have time to save your Bloomfield Hills real estate from foreclosure.
2. Guaranteeing a loan modification. Legitimate lenders and HUD officials never guarantee they can do this for you.  They only tell you they will do their best to help.  Do your research.  Type the name of the company into a search engine along with the word scam.  The results may surprise you.  Call the Better Business Bureau to see if the company has any complaints against them.
3. Telling you to send your mortgage payment somewhere other than to your lender. Never ever send your Bloomfield Hills home mortgage payment to anyone other than your mortgage lender. As soon as you have trouble making your monthly payment, contact your mortgage lender.
4. Offering government-based loan modifications. Government agencies do not make calls like this. Contact your mortgage lender and ask whether you qualify for any government programs to prevent foreclosure.
5. Asking you to give out personal or financial information.  Do not give this information over the phone or the internet without verifying this is a company you are familiar with. Don’t click on a link sent to you in an email – find and type the web address in for yourself. Don’t give info to someone who initiates a phone call to you – look up the number yourself and call them.  Most scams happen via the phone or the internet; however, some scammers visit you at your home, so don’t give your information to anyone knocking on your door, either.

You can learn more about how you can protect yourself from loan scams at LoanScamAlert.com.

If you’d like to talk about options for selling your Bloomfield Hills real estate (whether as a traditional sale or as one of the Southeast Michigan short sales), as a Certified Distressed Property Expert, I would be happy to help. Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

More than likely, you’ve cooked dinners, you’ve played games and you’ve made thousands of memories within the personally decorated walls of your home — and now you think you’re ready to move on. No matter the reason for selling your Southeast Michigan real estate, getting emotional is normal. However, you need to keep those emotions in check, because they could be detrimental to closing the deal.

Emotional calls constantly get sellers in troubling situations that make them regret their split decisions. A snide remark, too-low offer or fixer-up request can strike a personal cord, but you need to set your feelings aside in order to do what’s best for your financial future. Below are emotional mistakes that can stop negotiations and put you in housing hot water!

• Overpricing faux pas – Just because your sweat is worth a lot to you doesn’t mean that your property’s value will reflect the years of hard work, cleaning, upgrades and love you’ve put into it. Do your research. If there are comparable houses in your neighborhood at lower price points, reduce your listing price so that you’ll be a contender for buyers.
• Negative negotiating – Even though you may not want to entertain low offers, listen to your Southeast Michigan real estate agent. He or she has been through hundreds of negotiations and is your best bet for closing the deal at a fair price.
• Personal injuries – Don’t let buyer biases get to your personal ego and cause you to reject a potential purchaser all together. Remember, you are selling this house and moving on; they’ll be able to do whatever they want once they own it anyway.
• Mourning the sale – The memories go with you, so don’t have any second thoughts. Concentrate on making new happy moments in your future home.

Don’t let sentimental seller’s syndrome cause you to blow a fuse, have seller’s remorse, or worst of all, lose a sale. Eliminate emotions from the sale process in order to draw in buyers, get your money’s worth and sell quickly.

If you need help selling your Southeast Michigan real estate in Oakland County, call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

Before you put your home on the market, you want to make certain that it’s in tip-top condition to ensure a quick sale. The key to listing your home at a competitive price and guaranteeing you have what buyers are looking for is to think like a Bloomfield Hills real estate agent.

To get your home ready to sell, here are five easy and inexpensive home improvements this Bloomfield Hills real estate agent recommends:

1. Layout – Take an objective look at your home and stage accordingly. Remove clutter and rearrange so that potential buyers can envision each room for its purpose. Also, store any obtrusive furniture that disrupts walking flow or makes rooms look smaller.
2. Hardware – Update all hardware. Changing out door handles, drawer pulls and light fixtures is an easy way to modernize your home while costing little money.
3. Charm – Play up the unique features of your home. Refinish hardwood floors if scuffed, remove excess objects from built-in bookshelves and clean unique light fixtures. It’s these irreplaceable elements that make your home stand out from other homes and hook buyers.
4. Scent – Eliminate all bad odors like pet scent, stale cooking odors and cigarette smoke.  Just lighting candles or spraying air freshener won’t work.  Clean, deodorize and get rid of rugs or other cloth objects that still smell bad.
5. Curb Appeal – Spend some time sprucing up the yard of your Bloomfield Hills real estate. It’s the first impression buyers will have of your home, and although the house might be in mint condition, a lots-of-work lawn could instill a negative notion before they even step a foot inside your home.

Buyers’ needs vary in every market. However, buyers will always consider these five features before they buy. So, stay one step ahead of the game and ensure your house is up to par with buyers’ expectations.

If you’re getting ready to sell your home and are looking for a Bloomfield Hills real estate agent who can help you sell your home fast and for top-dollar, I’d be honored to be interviewed for the job.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to schedule an appointment.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

Today’s economy has been rough on most everyone’s pocketbooks, and when it comes to prioritizing payments, mortgage payments can take a hit. If you find yourself in a bind, owe more than your home is worth and can’t afford your current mortgage, then you might want to consider talking to a real estate agent, one who is a Certified Distressed Property Expert, and bank about the possibility of a Southeast Michigan short sale.

To help you prepare for those conversations, here are the basics about Southeast Michigan short sales:

• What is a short sale? A short sale is an agreement that your real estate agent negotiates between you and your bank to sell your home for less than you still owe. The bank absorbs the loss so that the seller doesn’t have to repay the balance of the mortgage.
• Why would you do this? Your home is now worth less than you owe, which is called being underwater, and you have a financial hardship. There are a number of reasons that could put you in financial hardship and have you considering a short sale — such as unemployment, job transfer, illness, under employment and divorce.
• How does it work? A real estate agent lists your home at its current market value. Then a buyer places an offer that is usually much less than the amount required to pay off the loan. The seller or agent (if the seller has given written permission for the agent to do so) takes the short sale purchase agreement to the bank holding the mortgage in hopes that they’ll accept it.
• What do you need? Basic guidelines usually include a hardship letter about why you need a short sale, bank statements for the last three months, two years of tax returns and permission for your real estate agent to negotiate short sale terms with your bank.
• How should you proceed? Most accountants agree that a short sale is better for your credit score than a foreclosure. Talk to your real estate agent who is a Certified Distressed Property Experty and have him or her refer you to an accountant who can evaluate your situation and help you take the steps necessary to secure a good financial future.

There’s a lot more to short sales than I’ve outlined here, but it gives you a starting point.

If you’re finding it difficult to meet your monthly mortgage payments and still owe more than your home is worth, then you might want to consider a Southeast Michigan short sale. It can decrease your debt and release you from that monthly financial burden. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

Buying Royal Oak Michigan homes for sale when you live in another state or country can be challenging.  Here are a few simple ideas to help make things a little less hectic.

• Investigate online.  Most people know to search for Royal Oak Michigan homes for sale Michigan online, but what about searching for a neighborhood?  Although you can’t search each and every individual neighborhood, you can research almost any city online.  This gives you a pretty good idea of what the area has to offer in the way of schools, shopping and safety.
• Hire a buyer’s agent.  While you’re searching online, your buyer’s agent can search the Multiple Listing Service (MLS) for you.  She or he can email newly listed properties to you daily.
• Use your buyer’s agent as your eyes, ears and nose.  When you find a home that meets your needs, ask your buyer’s agent to visit it in person.  Have him or her take photos of the interior and exterior of the property and email them to you.  S/he can even take a video and post it on YouTube for you to see.  Ask your buyer’s agent to tell you what the home smells like and how loud (or quiet) the neighborhood is.
• Share as much information with your agent as you can.  The more you research the area, the more information you are going to have to give to your agent.  Talk with your agent and let her or him know what you have found and any areas that you may have decided against.  This will save you and your agent time.
• Visit to get a personal impression.  If at all possible, after you’ve narrowed the properties down to the top two or three, personally visit them.  While you can buy a house sight unseen, it’s best to make at least one trip to get a feel for which home most appeals to you.

For more information on long distance home buying or other tips to make your search for Royal Oak Michigan homes for sale easier, give me a call at 248-514-2640 or send an email to info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

You’ve been watching the news, reading blogs and you know this is the perfect time for you to buy a piece of Bloomfield Hills real estate.  You want to do all the right things to get the best deal, and you know one of the first steps is to line up your financing.

To help you pick a mortgage that matches your goals and financial situation, here’s an overview of three of the most popular mortgages available today.

Fixed Rate Mortgage

If you plan on keeping your new Bloomfield Hills real estate for more than 10 years and you don’t expect your income to change, this is probably the loan for you.  Although fixed rate loans charge a bit more interest, the rate will never change.  This provides financial stability and the security of knowing what your monthly mortgage payment will be.  By locking in the current low interest rates, you’ll save thousands of dollars over the life of your loan.

ARM (Adjustable Rate Mortgage)

With the ARM loan, the interest rate is usually very low at the beginning but can increase over time.  If you plan on keeping your Bloomfield Hills real estate for only a few years, up to 7, or you expect your income to increase, then this might be a better choice for you. If you expect your income to increase, an ARM loan can allow you to buy a more expensive home now. The drawback to this type of loan is that you do not know what your mortgage payment is going to be; if the interest rate jumps dramatically, then so does your payment.  A particularly popular ARM is the 5/1 ARM.  The interest rate of a 5/1 ARM is fixed for a period of 5 years.  In the 6th year, the loan becomes a typical Adjustable Rate Mortgage.  So if you plan to own your home for less than 5 years, the 5/1 ARM may be your best choice.

FHA Mortgage

If your credit is a bit shaky, an FHA loan may be a good fit for you.  The qualifying criteria for FHA loans are not as strict as for traditional mortgages.  Also, because these loans are guaranteed by the FHA, lenders often allow you to provide a smaller down payment than they would allow for other types of mortgages.  If you’re in a time crunch, an FHA loan may not be right for you; processing times are typically longer than other types of loans because of the government paperwork involved.

If you have any questions about mortgages or need a referral to a lender, give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

Recently, environmentally friendly or “green” remodeling has become more and more popular. Nearly every day you see a TV show or online article giving tips on how to make your home and life more eco-friendly.

The catch is that green building can sometimes be extremely expensive. And, in most areas there really aren’t enough buyers specifically looking for features like rain water catch basins and solar panels to make it worth your investment. However, there are some relatively inexpensive ways you can remodel your Bloomfield Hills real estate that will benefit the environment and go easy on your wallet at the same time.

• Refurbish what you can while remodeling. If it’s possible to refinish existing cabinets and woodwork instead of replacing them, you’ll save yourself tons of money. And, nothing says eco-friendly like re-using old, good quality materials instead of throwing them in a landfill.
• Pay for extra insulation. If you’re doing a major remodel or building from scratch, pay for insulation that exceeds the minimum code requirements. You’ll see an immediate reduction in utility bills and that can be a great selling feature in the future.
• Use sustainable and green materials. Low VOC paints and bamboo flooring are eco-friendly and still look great. You don’t have to sacrifice your overall vision in order to make your home more environmentally sound.
• Invest in new, energy-efficient appliances. Again, you’ll see an immediate reduction in your power bills. Besides, what buyer wouldn’t love brand new kitchen appliances and a modern, tankless water heater?
• Upgrade your windows. The biggest drain on the overall insulation of your home could be old, worn-out windows. By replacing them with new, energy-efficient ones, you’ll get immediate benefits that your potential buyers will also appreciate.

With smart planning and careful use of your money, you can remodel your home in ways that will help the environment, save you money and appeal to buyers when it’s time to sell.

If you could use help adding some green to your Bloomfield Hills real estate, call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com