Lee Morof's Real Estate Blog

Short sales, that is, sales that fail to cover the remaining mortgage due on homes, are still somewhat commonplace despite the recent uptick in the housing economy. The benefit to a Southeast Michigan short sale is that it can preserve the credit of the seller by avoiding foreclosure. Unfortunately, the short sale process is difficult to navigate.

The good news is that new FNMA and FMAC guidelines go into effect November, 2012, which may help your situation. Here’s a quick rundown on some of the changes:

Eligibility: The Federal Finance House Authority, in consultation with Fannie Mae and Freddie Mac, has loosened the eligibility. For instance, military families who receive Permanent Change of Station orders will now be eligible.

Streamlined Documentation:  Fannie Mae is reducing the documentation, and in some cases eliminating it, in cases of a borrower hardship of more than 90 days delinquent and with a credit score lower than 620.

Standard Payments: Subordinate-lien payments will be limited to $6,000, eliminating the negotiation for higher payments. Standardizing the transaction may speed up the short sale process on homes.

Servicer Approval: Servicers of Southeast Michigan short sales no longer need individual approval from Fannie Mae so long as the short sales conform to the requirements. Homeowners with hardships, such as divorce, illness or death of a borrower or employment transfer, may be approved as long as the loan is not yet in default. Servicers will also be required to complete short sale evaluations in 60 days.

Help Desk: A Short Sale Assistance Desk is already available to help real estate professionals in targets markets. This is an escalation procedure which may help facilitate and streamline the short sale process.

The streamlined process of Southeast Michigan short sales will assist homeowners most in need, and enable lenders to more quickly and easily qualify certain homeowners for a short sale who are current on their mortgage payments, but dealing with hardships.

If you’re considering selling your home as a short sale, I can help. Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney Lee Morof 
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

In tighter financial times, finding ways to trim expenses on your North Woodward home in Oakland County, Michigan, can give you a little more cushion for those unexpected expenses (my daughter dented my new car!) or small indulgences that make life a little bit better (gourmet coffee – delicious!).

Here are a few tips on how to keep your electric bill down, and make your North Woodward home a haven of energy conservation and economy.

• Unplug – In this age of charging everything from cell phones to laptops, it’s easy to look around and realize that you have many, many appliance plugged in that don’t need to be.
• Insulate with your window coverings – You want to do all that you can to keep the heat in your home and not leaking out into the wider world. Heavy drapes that are hung close to the window are a great way to make sure of this. Open them during the day to make the most of the natural heat from the sun and then close them at night to keep the heat trapped inside.
• Switch to Compact Fluorescent Lamps – The initial investment in the bulbs is more expensive, but they last longer and save on the electric bill by using 75% less energy. As your old bulbs burn out, make the switch, and see your electric bill drop.
• Keep your freezer full – It takes less energy to keep a full freezer cold than an empty one. You can choose to make this an excuse to keep more ice cream on hand, or just put in some extra containers of water in the freezer for ice blocks. The good news is that if a thunderstorm knocks out your electricity, those big blocks of ice might keep your ice cream safe.
• Upgrade to Energy Star Appliances – These appliances are designed to be more energy efficient, saving you money over the long haul.

The more aware of your energy consumption you are, the more you will remember to turn off that light switch and unplug the toaster when it’s not in use. Little actions add up!

If you’re considering buying or selling one of the North Woodward Homes, I can 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 Lee Morof 
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

When it comes to buying Bloomfield Hills real estate, people focus on the basic questions: Are there enough bedrooms? Is it in a good neighborhood? How is the school system? While these are important points, you also need to focus on the quality of the house itself.

The quality and maintenance of a house can be overlooked when buyers get excited about investing in a home. Fortunately, there are a few areas you can check to get a quick idea of how the Bloomfield Hills real estate was built and how well it’s been maintained.

1. Look at the foundation. A few small cracks may not be a big deal, but multiple cracked areas could spell trouble. Also, try to see a home in the rain, so that you can look for water pools that could turn into basement leaks.
2. Take a look under the kitchen sink and bathroom vanities. Any signs of water damage could mean more serious plumbing issues.
3. Don’t overlook the utilities. Rusty water heaters, beat up furnaces and older model air conditioners could mean costly upgrades in the near future.
4. Peek into the attic. You want to see plenty of insulation, neatly run electrical lines and absolutely no sign of any moisture. If something looks off to you, make sure your home inspector really checks out the area.
5. Inspect the sidewalk, driveway and deck. Landscaping, concrete and wood decking in need of repair can lead to big bills down the road.
6. Examine everything you can see on the outside. Look at what you can see of the roof. Are there any shingles missing? Has part of it discolored? Are the gutters in good condition? Also, examine all of the brick and siding.
7. Open the electrical box. You want to see everything neatly organized and the area each breaker covers clearly indicated.

Remember, buying a home is a huge investment. Do your research and have everything checked out by a professional.

If you’re looking to buy Bloomfield Hills real estate, I can help.  Please call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney Lee Morof 
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

In September, the days start to get noticeably shorter; with winter looming on the horizon, you may be pondering the uptick in your North Woodward home’s natural gas bill with some dread.  Here are a few tips on how to keep that bill as low as possible, so you can enjoy the coming season in financial comfort.

• Clear and clean – A yearly inspection of your furnace and boiler can keep them running at peak efficiency. Be sure to clean or replace filters on a regular schedule.
• Insulate – One of the best ways to save on energy costs is to keep your home well-insulated. It keeps the warm air inside during the winter and the cool air in during the summer.  Consider putting more insulation in the attic and caulk or replace any drafting doors or windows.
• Use a programmable thermostat – If you keep a regular schedule, you can turn down the heat in your North Woodward home when you’re at work, and have it automatically warm up just as you are returning home. When you go on vacation, be sure to adjust the programmable thermostat settings.
• Stay out of hot water – Keep an eye on your hot water usage. A shorter shower with a lower-flow showerhead can save you money. Wrap an insulation blanket around the hot water heater to lower your bill even more.
• Air dry freshness – Avoid that energy hog gas dryer and air dry your clothes for fresh air goodness.

Small changes can add up to more than pocket change on your North Woodward home’s natural gas bill.  Conserve and save!

If you’re looking for information on buying or selling a home, 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 Lee Morof 
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

They say that language reflects culture, and certainly, the difficulties in the real estate market are showing up in the list of new words for this year. If you’re buying or selling Southeast Michigan real estate in Oakland County, Michigan, you may already have taken note of some of these new words. Here are three for your consideration:

Water: Not Just For Swimming Anymore
According to the keepers of the language flame at Merriam Webster, “underwater” has a new definition. “Underwater” now officially also means “having, relating to, or being a mortgage loan for which more is owed than the property securing the loan is worth.”

Many people in underwater mortgages are choosing to delay selling until their home value comes back up. The good news is that values are indeed rising again, so waiting out the storm can be a good idea.

Risk: To Be Feared and Avoided
Perhaps not coincidentally, another new word at Merriam Webster is “systemic risk.” This means “the risk that the failure of one financial institution (as a bank) could cause other interconnected institutions to fail and harm the economy as a whole.”

Man Cave: Give Me Shelter
Many men probably took shelter in the now-officially-named “man cave.” This means “a room or space (as in a basement) designed according to the taste of the man of the house to be used as his personal area for hobbies and leisure activities.”

The good news is that the Southeast Michigan real estate market is improving. Homeowners who were holding their breath while underwater are now coming up to the surface and enjoying the fresh air.

If you’re looking for more information on buying or selling Southeast Michigan real estate, I can 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 Lee Morof 
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

If you’re considering putting your Royal Oak Michigan home up for sale, you may have heard rumors  that there is a new tax going into effect in January, 2013. Here’s the rundown on what the tax really is – and isn’t.

The new tax is called the ‘‘Unearned Income Medicare Contribution.” It is a 3.8 percent tax on the net investment income of high-income taxpayers. The tax will apply to those with an adjusted gross income of more than $200,000 ($250,000 for joint filers), with no indexing for inflation.

The Good News
Odds are that you will never pay this tax.

Why You Most Likely Won’t Pay the New Tax
The tax will apply to capital gains, not sale proceeds. Because of the current exclusion of gains on home sales — up to $500,000 (joint) or $250,000 (single) on a primary residence — the vast majority of home sellers will not be required to pay this tax.

Here’s an example: A couple with an adjusted gross income of more than $250,000 (which qualifies them for the tax — more than 90% of households make less than that) decide to put their Royal Oak Michigan home up for sale. They purchased their home long, long ago for $50,000. They sell the house, miraculously, for $549,000. Because that profit of $499,000 is under the $500,000 profit exclusion amount allowed for couples, they owe no tax.

The Bottom Line
There are plenty of other taxes that are worth getting upset about; this isn’t one of them.

If you’re looking for more information on putting your Royal Oak Michigan home up for sale, I can 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  Lee Morof
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

Summer is drawing quickly to a close. That means you need do some serious evaluating in order to take advantage of the rest of the season’s long daylight hours and get your Southeast Michigan real estate sold. While it might be the last thing on your to-do list, it’ll be worth it in the end.

So before you can spend the evening catching fireflies and roasting marshmallows, buckle down and get s’more work done on your Southeast Michigan real estate. Below are five ways you can prepare your home and yourself for the big sale!

1. Host a block-party barbecue. People in the neighborhood are a great way to market your home. Host a party to tell them your plans and allow them to see your home. If they have a friend they want to move nearby, they might just sell your house for you.
2. Make your yard memorable. Summer is the ideal time to spruce up your curb appeal and have it making a good first impression for your home.
3. Repair the roof. This can be a big expense, but it is also one of the first things that home inspectors note. If it needs repairs, do it now. If you don’t, it could cost you more money in the long run when it comes time for closing negotiations.
4. Eliminate odors. Buyers want to imagine themselves living in the home, not how they’re going to get the summer-intensified smell of your pet out of the carpet.
5. Know your minimum price. You need to prepare yourself for the numbers game. Do your research using comparables and determine what your house will most likely go for and what you’re willing to accept.

Use what’s left of summer to make your home stand out from the rest! You’ll sell quickly and can start looking forward to next summer break in a new home — maybe one with a pool.

If you’re thinking about selling your Southeast Michigan real estate and would like more tips on how to get it ready, please 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 Lee Morof 
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

Sellers need to know if you are serious about buying their home. Earnest money is a good faith deposit  that demonstrates to the sellers that you are serious about purchasing their home. This deposit can, and probably will be, forfeited if you walk away from purchasing the Bloomfield Hills real estate.

What is a standard earnest money deposit? There is no set amount, but 1% to 3% of the agreed upon sale price of the Bloomfield Hills real estate is typical. The amount varies depending on your local customs.

Here are a few precautions you should take to protect your earnest money:

• Never give an earnest money deposit to the seller – not even if you’re buying a home that is for sale by owner (FSBO).
• Make the deposit payable to a reputable legal firm, escrow company, title company, or well-known real estate brokerage.
• Verify that your deposit will be put into a separately maintained trust account, and only dispersed according to the terms of the real estate contract.
• Never authorize a release of your earnest money until the purchase transaction closes.

Is your earnest money refundable if you cancel the Bloomfield Hills real estate contract?  Laws vary from state to state, so be sure to read and understand your contract before signing it. Some states have a grace period in which to cancel the contract. If cancelled, both parties must sign mutual release statements before your earnest money is refunded.

When you are ready to find your next Bloomfield Hills home, I can help. Give me a call 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
www.NorthWoodwardHomes.com

For the last few years, the news in the housing market has often been gloomy, but the tide is finally beginning to turn for buyers and sellers of North Woodward homes in Oakland County, Michigan! The Pulsenomics LLC survey of 100 economists points to modest gains in home prices starting in 2013 — and those gains will continue through 2016!

Improving Real Estate Market

While some prices are still slated to drop in 2012, those losses will likely mark the bottom of the trough.  The tumultuous times in the real estate industry are, according to most economists, behind us. Those tough times have left their mark, however. For instance, many former homeowners who have gone through foreclosure will find it difficult to return to homeownership because of the impact on their credit. This could cause overall homeownership rates to fall.

Opportunities for Buyers and Sellers

If you have been waiting for the right moment to sell your home, or buy your first or fifteenth home, the stabilization of the market is good news for you:

• Current owners of North Woodward homes looking to sell can benefit from a larger pool of home buyers.
• Home buyers can look to housing as a good investment again. They may have to contend with a more competitive market and bidding wars on properties though.

If you’d like to know the latest on the market for North Woodward homes in Oakland County, Michigan, I can 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
www.NorthWoodwardHomes.com

Labor Day signals the end of summer, a return to school for the kids, and a welcome three-day weekend for most folks. It can also be a key date for Bloomfield Hills real estate.

If you have your home on the market, you may have heard that if your house hasn’t sold by Labor Day, you should take it off the market. While there is some truth to this persistent myth, the answer (as in many things real estate) is more complicated. Largely, it depends on your circumstances.

Blessed with a home that you would like to sell and the Labor Day weekend, you may be wondering where the summer went and where your perfect buyer is hiding. While in some areas of the country summer is the time for home purchasing, the season extends well beyond the Labor Day cutoff in many areas, particularly in warmer climates. And who hasn’t had a warmer climate this year?

Regardless of the time of year or location, here are three things you can do to help your home sell:

1. Lower the price: Consider comparable properties in the neighborhood and ask yourself if you have really priced your Bloomfield Hills real estate reasonably relative to the market. Bargains do sell faster.
2. Have an open house:  A three-day weekend might just be the time to get home buyers who might otherwise be too busy to view your home. If most people in your area leave town for the holidays, plan an open house for the weekend after Labor Day. Reinvigorate your sales approach with a well-advertised open house.
3. Review home staging:  Maybe there were a few repairs or finishing touches you didn’t get to before putting your house on the market, thinking they wouldn’t matter. A Labor Day yard sale  could remove some of that remaining clutter. Spend some of the long weekend attending to the details and getting your home picture perfect!

If you’re looking for more information on selling your Bloomfield Hills real estate, I can help. Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. In whatever way you choose to spend the holiday, I wish you a happy and safe Labor Day!

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney 
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com