Lee Morof's Real Estate Blog

If you are financially distressed, it might be time to cut your losses and minimize the damage to your financial future. If you’re feeling the economic pressure of an impending foreclosure, then consider putting your home up for a Southeast Michigan short sale.

While it might seem like Southeast Michigan short sales should be a speedy process, they’ve been known to play havoc with many unsuspecting sellers. In honor of April Fool’s Day, we’ve created a list of the many short sale pitfalls sellers encounter.

• Settle your accounts – Strive to pay off all your other debt. Your bank might not approve your short sale application if you have judgments from other creditors pending.

• Pay your HOAs – Even if you’re defaulting on your mortgage, it’s important to meet your monthly Home Owner’s Association dues. Your HOA usually has to approve a short sale, so you definitely want to be in good standing when it’s time for them to sign on the dotted line.

• Make sure your buyer is pre-approved – Talk with your real estate agent and have them ensure that your buyer is legitimate. If there is any wavering on the buyer’s side, the bank might not want to deal with the hassle and you’ll be declined.

• Get your documents together – Your bank will want copies of all documents concerning your property before they even consider approving a Southeast Michigan short sale. Remember, they are forgiving you of debt, so do your best to make them want to help you.

• Don’t give up – Even if you’re declined for a short sale several times, there’s a chance they’ll approve you the next go around. Find out why you were declined and try to remedy the situation as soon as possible.

Don’t let a short sale fall through and turn you into a fool this April. Follow the tips above and you’ll be prepared to present a credible account to your bank. If you’re considering a Southeast Michigan short sale, please call 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
www.NorthWoodwardHomes.com

Preventive maintenance is crucial to the value and upkeep of your home.  Keeping your Southeast Michigan real estate in great shape with regular check-ups will save you the headache and cost of emergency repairs.

Here are six items to add to your outdoor spring maintenance checklist:

1. Clean the Gutters:  Gutters work best when clean and free of gunk.  Check yours for foliage, tree limbs, etc., especially if trees hang over the roof.
2. Make sure the downspouts are clean:  They should point at least two feet away from foundation walls.
3. Check exterior paint: Look for chipped, cracked paint.  Scrape off any failing paint, sand it down, prime the surface, and paint it with a high-quality, low-VOC exterior paint.
4. Brighten your Southeast Michigan real estate with a good power washing: Rent a power washer or borrow your neighbor’s. This should always be one of the first things you do after winter to brighten and freshen the exterior of your home.
5. Trim overgrown trees and hedges: Trim away from the home to discourage growth of mildew and moisture.  Don’t forget to trim along your property line to make it appealing to potential buyers.
6. Rake up all the downed leaves: Leaves will suffocate your grass and stop it from growing.  Pull up weeds and dead flowers and replace with low-maintenance varieties such as pansies, begonias or mums.
7. Inspect trees for broken branches: If the limb is high up, hire a licensed arborist. If you can reach it from the ground, take it down using the three-cut pruning technique, which prevents bark from tearing and creating an open wound on the trunk. If you had heavy snowfall this winter, look for bending branches and check to make sure they produce leaves this spring.
8. Repair cracked pavement: Before weeds have a chance to take hold, repair cracks in your asphalt driveway and concrete walkways. On surfaces that have ruptured from the effects of frost heaving, hire a professional to pour or pave a new surface.

If you’re thinking of selling your Southeast Michigan real estate, I’d be happy to do a walk through at no cost to help you identify repairs or maintenance that will help your home sell faster and for more money.  Call me 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
www.NorthWoodwardHomes.com

Whether you’ve bought and sold a dozen homes or you’re a first-time home buyer, you probably know that after you purchase Bloomfield Hills real estate, there is usually no option to return or exchange it. Because of this finality, you need to be sure your contract spells out all the conditions you want met before the deal can close. In real estate contracts, these conditions are called contingencies.

Contingencies are the requirements that both the buyer and the seller must meet in order for the closing contract to be valid. If something does not meet specific criteria, the contract must be renegotiated or it becomes null. Below is a list of contract contingencies every buyer should include in their bid — so that you don’t end up with an unexpected fixer-upper on your hands!

• Home Inspection Contingency – This is a really important contingency because you want to make sure there are no problems with the Bloomfield Hills real estate. If any serious problems are discovered, such as wood-destroying pests, lead-based paint or a damaged roof, you can renegotiate your contract to account for the costs you’ll incur during repairs.
• Loan Contingency – This allows the buyer to shop around for a loan so that they can get financed under a particular interest rate and not get locked into high mortgage payments that they cannot afford. If a buyer can’t secure a loan that meets the contingency parameters, then the contract can be voided.
• Home Insurance Contingency – This means that you’re asking the seller to provide proof that the home is currently insured. This is needed because, in recent years, homeowners living in states with a history of household toxic mold, earthquakes, or hurricanes, have been surprised to receive a flat out “no” from the insurance carriers. You want to make certain that the home is insurable before you buy it. If there are serious issues with the home, insurance companies might reject it or charge astronomical rates.

If you would like to know more about contingencies or need help buying Bloomfield Hills real estate, please call me 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
www.NorthWoodwardHomes.com

If you are in the market to purchase Southeast Michigan real estate, the first place you need to start is with your credit report.  If it has been more than a year since you reviewed it, now is the time.  Do not wait until you find your dream home before examining your credit report.  If there are problems with it, you could be turned down for the mortgage.

After you’ve received your current credit report, follow these five steps to spring clean your credit report before starting your search for Southeast Michigan real estate:

1. Check your personal information: Is your personal information such as name, address, and social security number accurate?  If not, get that information corrected.

2. Review all the accounts listed: Are they all yours? Are the account numbers correct? Are the account balances accurate?

3. Get credit report errors corrected: Under the Fair Credit Reporting Act (FCRA), both the credit reporting agency and the information provider (that is, the person, company, creditor or organization that provides information about you to a credit reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under this law, contact the credit reporting company and the information provider.

4. Contact the credit reporting agency about errors all errors on the report: Send a letter by certified mail and “return receipt request” so that you can document that the credit reporting company received the letter. Keep a copy of the letter and documents. Include the following in the letter:

a. Copies (not the originals) of documents that support your position.

b. Your complete name and address

c. The facts about the problem and an explanation of why you dispute the information

d. A copy of your credit report with the items in question circled.

5. Contact the information provider about errors they made: In writing, contact the creditor or other information provider to let them know that you dispute an item they’ve placed on your credit report. Send a letter by certified mail and “return receipt request” so that you can document that the letter was received. Keep a copy of the letter and documents. Include copies (not originals) of documents that support your position.

The hardest part of buying Southeast Michigan real estate could be finding the right property for you, or it could be the six to twelve months it may take to clean up your credit report.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com  with any questions you have concerning your credit and buying real estate.

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

You’ve decided it’s time to sell your home. Now you’re dreading the process of finding a Bloomfield Hills real estate agent in Southeast Michigan. Don’t worry! There are many outstanding agents available. Just be sure to interview at least three agents and call a few of their clients to check their references before making your choice.

To help you through this process, here are six key questions to ask when interviewing Bloomfield Hills real estate agents:

1. How many homes have you sold in this area in the last year and how long did it take you to sell them? Obviously, the more homes sold the better and the quicker the homes sold the better. Don’t go with a real estate agent who has sold nothing in the last six months. That most likely means they don’t know how to sell in the current market.
2. How much did the homes sell for? Hire an experienced Bloomfield Hills real estate agent who knows your area and has sold homes priced similar to yours. He or she will know how to price and market your home.
3. Do you live and work in this area? It’s important to find an agent who thoroughly knows the local market. You want an agent who knows what homes are selling for in today’s market, what buyers in your area are looking for and what’s for sale in your area right now.
4. How do you market homes online? You’re looking for a Bloomfield Hills real estate agent who is comfortable using Facebook, Twitter or YouTube to market homes. Look at agents’ websites to see how many photos and videos they’ve posted for other homes they’re selling.  Also visit real estate websites such as Realtor.com, Yahoo Real Estate, Trulia and Zillow to see how the agent showcases homes he or she is selling. Buyers like to see pictures and videos of homes, so you need an agent who provides this as a regular part of his or her service.
5. How do you market homes offline? While searching for homes online is by far the most popular way to find homes for sale these days, you don’t want to miss out on offline marketing. Choose an agent who markets your home in a multitude of mediums, which may include house-for-sale flyers, real estate magazines or newspapers.
6. What are the most common problems that come up when selling a home and how would you handle them? An experienced agent will be able to tell you what to expect throughout the process, as well as possible problems that may arise and how to avoid them.

I’d appreciate the opportunity to interview for the job of selling your home in Southeast Michigan. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to schedule a time for our interview.

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

There’s good news for buyers and sellers of Bloomfield Hills real estate: The U.S. Economic and Housing Market Outlook that came out around February 23 is encouraging. According to this research done by Freddie Mac, the economy and housing market are showing cautious signs of recovery.

Here are some of the changes stimulating these improvements in both nationwide and Bloomfield Hills real estate:

• Loans that were seriously delinquent or going into foreclosure declined to the lowest quarterly share since the start of 2009, according to the latest Mortgage Bankers Association Mortgage Delinquency Survey.
• Existing home sales were at the strongest pace in January since May 2010, according to the National Association of REALTORS®.
• Job gains exceeded expectations for the past two months.
• The unemployment rate fell to the lowest since 2009, in January. In December, jobless claims were at their lowest level since 2008.
• Weekly unemployment benefits applications decreased for the third consecutive week to 348,000, the fewest since the first week in March 2008.
• Home builder confidence continues to grow.
• Households are paying off their debts and at the same time accessing credit more easily.
• Historically low mortgage rates encourage home buying. According to Freddie Mac, the national average rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.92 percent in January.

Please join me in celebrating the fact that there’s a lot to be positive about looking ahead!

Thinking of buying or selling Bloomfield Hills real estate? Please give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com to talk about how I can help you take advantage of the upcoming spring and summer selling season.

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

Recently released figures indicate real estate nationwide and Southeast Michigan real estate in Oakland County are continuing to steadily improve. Here are seven signs that demonstrate the upturn:

1. Housing affordability has risen dramatically. This is due to a combination of reduced real estate prices and record-low mortgage rates.
2. Housing starts are increasing, driven mostly by multifamily starts.
3. Existing home sales increased in January, which is now three months of gains out of the past four months.
4. At the end of January, total housing inventory fell to a 6.1 month supply. According to Lawrence Yun, NAR chief economist, “The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers.”
5. There are plenty of home buyers and investors competing for foreclosure sales in almost all markets.
6. Purchases of homes by all types of buyers from seasoned investors to first-time home buyers are on the rise.

Most economists agree that the market is improving. Frank Nothaft, Freddie Mac vice president and chief economist says, “Our outlook anticipates gradual, but steady, improvement in the economy and the housing market, supported by low interest rates and brightening job market prospects.”

This is excellent news for the spring and summer Southeast Michigan real estate buying season that’s just around the corner. If you’ve been considering buying or selling a home, now’s the time to start that process so you’re ready for the hottest season we’ve seen in years.

Thinking about buying or selling Southeast Michigan real estate? Please contact me today at 248-514-2640 or email info@NorthWoodwardHomes.com. I can help you achieve your goals.

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

Setting your clocks forward means it’s time for a seasonal safety check!  On Sunday, March 11, Daylight Savings Time will be upon us.

As you circle your North Woodward home in Southeast Michigan, setting clocks ahead, make sure to do this short safety checklist.

• Change the batteries: Batteries in smoke detectors and carbon monoxide detectors need to be replaced. Also check batteries in thermostats, phone accessories and portable electronics. Don’t throw those batteries away! Old but still working batteries can be used in children’s toys, electronic devices and remote controls.
• Buy new alarms: Replace any smoke alarms older than ten years; replace any carbon monoxide alarms older than five years. Sensors in these units degrade and lose their effectiveness over time.
• Replace light bulbs: While you have the stepstools and stepladders out to reach the smoke detectors, check for light bulbs that are out.
• Find the flashlights and replace their batteries: Having the flashlights where you need them is the first step to being able to use them.  Change their batteries to make sure they work when you need them!
• Check first-aid kits: With spring and summer coming, bumps, scrapes and stings will be on the rise.  Check your first-aid kit and replace any missing supplies.  Don’t forget your car’s first aid kit – buy one or replace any missing items.
• Check and discard expired medications: Expired medications can cause medical problems due to change through aging.
• Clean the dryer vent: Check and clean the dryer vent for buildup that can become a fire or carbon-monoxide hazard.
• Reset timers on outdoor lights: Avoid wasting electricity by resetting timers on outdoor lights so they’re not on during daylight hours.
• Replace the water filter in your refrigerator: Isn’t it hard to remember to do this? Why not make it another time-change activity. Follow manufacturer’s instructions for replacing the water filter.

Remember to discard used batteries and expired medications properly.  Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com with questions on your Southeast Michigan, North Woodward home’s safety.

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

With the current economy, homeowners are finding themselves in sticky situations when it comes to keeping up with their mortgages. If the possibility of foreclosure is within your future, you might want to determine whether you’re a candidate for a Southeast Michigan short sale.

A short sale is when the owner and the bank agree to sell the home for a loss. Short sales are more beneficial to the homeowner’s financial future because it tends to damage their credit score by reducing it around 100 points instead of the 300 points a foreclosure might inflict. If you are starting negotiations with your bank to try and list your home as a Southeast Michigan short sale, consider the following three qualifications.

1. Foreclosure has NOT already taken place. A short sale can still happen during the foreclosure process if you’re still in pre-foreclosure and you have only received notices from your bank. However, if your home is already in foreclosure and is up for auction, it is too late.
2. You have NOT filed for bankruptcy. If you have, then you are ineligible for a short sale. Banks cannot pursue collection of debt if you’ve filed for bankruptcy — so you can’t work with them on selling your home.
3. You owe more than your home is worth. The best way to determine whether your home would qualify for a Southeast Michigan short sale is to ask an experienced real estate agent to estimate your home’s current value and compare it to how much you still owe. If you owe more than it’s worth, then you may qualify for a short sale.

Don’t wait until it’s too late! If you’re having trouble paying the mortgage on your home and meet the three qualifications above, it might be time to talk to your bank.

This subject can be extremely confusing. As a Certified Distressed Property Expert and Attorney, I am uniquely qualified to help!  Please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com, if you are searching for more short sale information.

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

The mortgage application process can be confusing — so you only want to have to go through it once when buying Bloomfield Hills real estate.  Keep these tips in mind as you complete the application process to make sure you get the answer you want: Approved!

• Make Sure Your Credit is Clear: If there are any lingering issues on your credit report, get them resolved prior to application and get your credit in high standing for the best loan rates.
• Lower Your Debt: If you meet the income requirements, but have substantial debts elsewhere – car payments, student loans, credit card debt – your application may be denied.  Budget, save up and pay off as much as you can.
• Have the Required Income: With the tightening of regulations, any wiggle room you may have had before is gone. You must meet the income requirements for the loan.  Remember that not all income may be counted toward your loan – rental property income, for instance, is often excluded.
• Negotiate the Repair of Any Condition Issues with the Seller: Lenders are leery of extending loans on any properties that could later be deemed distressed.  Issues turned up during the appraisal process should be addressed for loan purposes, as well as your own comfort and safety.
• Follow the Instructions: The stacks of paperwork documenting your application are a nuisance, yes, but they are required.  Do the work and make sure your application is complete.

Put these tips into action and your application is more likely to be approved.

If you’re ready to buy Bloomfield Hills real estate, I can help. Whether you need help finding a reputable lender or a home to buy, 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