Lee Morof's Real Estate Blog

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

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

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

There are a few mistakes that many first-time home buyers make.  Here are three of the most common mistakes and how you can avoid them when purchasing your first Bloomfield Hills home.

Mistake #1:  Assuming your credit is good.
The information in your credit report determines whether you can get a loan — and how much interest you will have to pay – so it pays to be certain your credit reports are accurate.

Check your credit reports for free from all three credit reporting companies — Equifax, Experian, and TransUnion — to make sure everything is correct.  If you find errors, contact both the credit reporting company and the information provider (the person, company or organization that provided information about you to a credit reporting company) involved in the errors and ask them to fix the credit report errors.

Mistake #2:  Getting pre-qualified, not pre-approved, for a loan.
It’s far better to be pre-approved for a Bloomfield Hills real estate loan than to be pre-qualified.   Here’s why…

With pre-qualification, your lender does a preliminary evaluation of your ability to pay for a home and gives an estimate of the mortgage amount they’ll give you.  The lender does not verify the information you provide.

With pre-approval, your lender verifies your income, assets, debts and credit history.  They provide you with written confirmation of the mortgage amount for which you’re approved. That written confirmation demonstrates to the seller that you are committed to buying and can give you an advantage over other Bloomfield Hills real estate buyers.

Mistake #3:  Allowing emotions to influence your decisions.
Buying a home is an investment.  It needs to be treated as any other investment.  You don’t buy stocks because they are pretty and you shouldn’t pick your home that way either.  Make sure the home you buy fits your needs and allows you room to grow over the next few years. As with any sound investment, time is the key to a good return.

If you are a first-time home buyer, as an experienced Bloomfield Hills real estate agent, I would be happy to help you find and get the best price for your first 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
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

If you own Bloomfield Hills real estate that you rent out, you already know how much work it is to juggle all the responsibilities of being a landlord.   Being able to share that work with someone else is an obvious reason for hiring a property management company.

Here are five additional benefits to hiring a company to manage your rental properties:

1. Stay up to date on legal issues: It’s difficult to stay on top of all the ins and outs of rental ordinances and tenant rights.  Property management companies ensure tenant and landlord rights are not violated and that all state and local laws regarding rental property are followed.  To help with this, property management companies often have an attorney on staff or on retainer.
2. Free up more of your time: The property management company is responsible for the day-to-day operations of your rental homes.  If the furnace goes out in the middle of the night, the management company gets the call not you.  They schedule routine maintenance and handle any repairs that are needed.  Some management companies perform monthly inspections of your Bloomfield Hills real estate to identify any problems or tenants that are damaging the property.
3. Screen potential tenants: Instead of spending your time interviewing potential tenants, running credit reports or checking references, you can spend your time on other things that you need or want to do.  The property management company advertises your rentals and screens all potential tenants.  Their job is to get you the best possible tenants for your rental home.
4. Collect rents: The management company collects and deposits rent on all your rental properties.  This cuts down on the accounting you must do on a monthly basis.  Each unit is tracked separately, so you know which rentals are making the best return and which ones you might want to sell.
5. Remove unwanted tenants: The management company is responsible for evicting tenants for non-payment of rent or improper care of your Bloomfield Hills real estate.  They handle filing the paperwork and going to the court hearing, as well as the follow-up process.  This is probably one of the most unpleasant landlord duties and one of the most difficult to implement without violating the tenant’s rights from lack of knowledge.

Want to buy Bloomfield Hills real estate for income property?  I can help.  Give me a call at 248-514-2640 or send me an email 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 home prices nearing their bottom, now might be a great time to buy Bloomfield Hills real estate as income property. Many more people will be looking to rent now that pre-approved mortgages are harder to come by. But, before you become a landlord, you’ll want to make sure your potential rental property won’t remain vacant for long.

6 tips to help you evaluate your Bloomfield Hills real estate investment:

1. Determine if your area has a strong rental market. See what kind of homes are for rent and track how long they remain vacant. If the same properties are listed week after week, it might not be the best area to purchase a rental.

2. Get a feel for the stability of the population.  It’s good to find a rental property in a transient community because residents are less likely to purchase their own homes, and more likely to rent, if they know they’re only going to be there for a couple years.  In particular, look for areas with military installations or colleges nearby.

3. Keep an eye on Craigslist and the local Classifieds. Track how many rentals are available at any given time, and get an idea of the size of houses most commonly listed. You won’t want to be trying to rent a 1-bedroom house in a neighborhood that is full of young families.

4. Make sure your potential rental property is located in a good school district. Potential renters with children could be turned off by the quality of the local schools if they have a poor reputation.

5. Check around with local property management companies. They’ll often have the best information about what sort of properties are the easiest to rent out. You can also check their websites to see the properties they have available.

6. Find a house that’s in good shape. Would you live there? If not, either move on to a different property or immediately fix it up to good, livable conditions.

Owning a rental home can be a great investment. Do your homework, and purchase a home people will be clamoring to rent — not one that continues to sit vacant.

If you have questions about purchasing Bloomfield Hills real estate as income property, 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
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

Here are five tips to help you identify the best Bloomfield Hills real estate agent to get your home sold as fast as possible and for the most money.

1. Hire a full-time Bloomfield Hills real estate agent.  Part-time agents typically have less experience and fewer sold properties under their belts than full-time agents.  Because part-time agents usually have another job, they don’t have as much time to take care of your needs and market and show your home to potential buyers.  Full-time agents have bigger networks they can enlist to help find a buyer for your home.
2. Find a skilled negotiator.  A seasoned Bloomfield Hills real estate agent understands the psychological nature of selling a home.  They advise you during the contract negotiations to ensure you get the best deal while alleviating your stress.
3. Pick an aggressive marketer.  Without a well-implemented, far-reaching marketing program, your house will sit on the market these days.  You want an agent who promotes your home both online and offline, in order to reach the greatest number of potential buyers.  Simply having your home listed on Realtor.com is no longer enough of an online presence.  You want your home showcased on multiple websites with a lot of professional photos and, ideally, a video tour.
4. Choose an agent who knows your neighborhood.  Each neighborhood has different pros and cons which must be promoted or overcome by the agent.  An effective agent knows how to price your property because they know the local competition, which homes that have closed recently are similar to yours and how much they’ve sold for.
5. Ask for home staging services.  Home staging is no longer a “nice to have;” it’s now a “must have,” if you want to sell your home for the most money in the least amount of time.  Many Bloomfield Hills real estate agents are now professional stagers or have a home stager on their teams.

Choosing a powerful listing agent is your first step toward a successful home sale.

If you’d like to work with an agent who is a skilled negotiator, an aggressive marketer and works full time, 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

The process of buying a new home is daunting enough without having to track down all the various paperwork necessary at the last minute. Don’t endure extra stress! Get your paperwork together early, so that you can feel piece of mind when purchasing Bloomfield Hills real estate.

You should have the list of documents below in hand before you make an offer on a home. This will ensure the purchase process is as quick as possible. Every mortgage lender’s requirements can be different, so double-check with yours for a comprehensive list.

• ID – This might seem like a no-brainer to most people, but just make sure you have official identification.

• Pay stubs – Your lender will want proof that you’re still earning an income, so inquire about how many months worth they’ll want you to provide.

• Gift letter – If someone else is helping you with your down payment, the mortgage lender will want to know if you’re receiving a gift or a loan. If someone else is loaning you money, your lender will want to take that debt into account before approving your mortgage.

• Tax returns – Your lender is going to want almost any financial document you can think of. Bring at least the last two years of tax records to be on the safe side.

• Bank account statements – Bring at least the statements from the most recent two months, especially if the bank where your accounts are is not your mortgage provider. Also bring any other financially-related paperwork — that includes proof of child-support or alimony payments.

• Divorce decree – Especially if it’s recent, you’ll want to be able to prove that you’re no longer responsible for your ex’s debts.

In short, if you receive anything at all in the mail regarding your personal finances, make copies and bring them with you when you’re seeking mortgage pre-approval. You never know what the bank will ask for, so try to have everything.

If you want to learn more about preparing Bloomfield Hills real estate purchasing paperwork, I can help.   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

You know my recommendation is that everyone should have a professional property inspection before they close on a house. Wouldn’t it also be a good idea to discover problems with a piece of Bloomfield Hills real estate before you ever make an offer? With some attention to detail, you can find out a lot about the condition of Bloomfield Hills homes.

Here’s a pre-offer, do-it-yourself Bloomfield Hills real estate property inspection checklist to get you started:

• Basement – A basement can give you information about the structure of a house, especially if the basement is unfinished. You’ll want to make sure there are no cracks, the electrical wiring is organized, and there is no evidence of water damage. If there isn’t a basement, examine the exposed foundation on the exterior of the house.
• Electrical panel – Upon examination, it should look orderly and neat. If it is, that doesn’t mean you’re in the clear, but a disorganized panel can often be a sign of shoddy electrical work throughout the house.
• Faucets and fixtures – Is there hot water? Does the shower drip? Does the oven work? Does the toilet run? Not every problem is a major issue, but it’ll give you a good idea of how much care went into the property’s construction and maintenance.
• Attic – Not only should you be looking at available storage space, you’ll want to see how well the insulation was fitted. That can make a huge difference in your monthly electric and gas bills.
• Roof – Missing shingles or interior water damage in homes are bad signs.
• Windows – Make sure they all open and close properly and that you can’t find any drafts, gaps or condensation.
• Interior and exterior finishings – Check out the baseboards and siding to see what kind of shape they’re in. If the builders didn’t pay much attention to what you CAN see, imagine what the internal structure might look like.

Want to work with a professional Bloomfield Hills real estate agent who can help you weed out badly-built or poorly-maintained Bloomfield Hills homes before you make an offer?  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
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com