Lee Morof's Real Estate Blog

Thanks to President Obama’s ambitious plan to improve the housing market, being on the list of Michigan foreclosures in Oakland County doesn’t necessarily mean that foreclosure is inevitable.  You have options, and the President’s loan modification program makes keeping your home even more possible. 

Overview of the Plan
The President’s plan to reduce Michigan foreclosures is based on the thought that struggling homeowners wouldn’t sell their houses if they could only make the monthly payments.  Due to this belief, participating lenders are required to reduce monthly payments for homeowners who qualify until they’re no more than 38% of the homeowner’s monthly gross income.  After that, the government lends a helping hand.  Between the lender and the government, the mortgage payments would be dropped to no more than 31% through various means (extension of the loan, reduced interest rate, etc).

Even with the 31% threshold, many are afraid that’s not enough incentive for homeowners to keep up payments on a depreciating home.  They speculate that homeowners may default on the loan anyway.  To cover this possibility, the administration is offering cash incentives to lenders and struggling homeowners.

Each lender that participates will receive $1,000 per loan modification.  Those lenders will also get an annual $1,000 for up to three years as long as the homeowner keeps their payments up.  For homeowners facing Michigan foreclosures in Oakland County, the good news is that borrowers can get their principal lowered by $1,000 per year for up to five years.  Again, however, it depends on whether they keep their payments up.

You May Qualify
This is fantastic news for many.  If you’re facing foreclosure due to financial hardship, you may qualify for loan modification under the administration’s plan.  If you live in the home, the principal balance still owed is less than $729,750 and you received the loan before January 1, 2009, you’re eligible.  Be aware, however, that you have to prove that you live there, that it’s your primary residence and that you’re having a financial hardship.

If you’re behind on your mortgage or facing foreclosure, I can help you figure out your options.  Time is of the essence, so give me a call now at 248-514-2640.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

Michigan foreclosures in Oakland County are a sad fact of life.  The truth of the matter is that, for many, even loan modification isn’t an option.  When faced with foreclosure or short sale, how do you decide which is best?  While short sales have been pushed by many as a viable option, it’s hard to know what’s best for you.  Here are some facts about the consequences of both:

Your Credit
While both Michigan foreclosures and short sales will affect your credit score, the differences are wide.  A foreclosure can affect your score for as long as three years or more, and lower it as much as 300 points.  The foreclosure can remain on your public history for over ten years.

However, only late payments show on your credit with a short sale.  Your score can drop as little as 50 points and be affected for as short as one year.  In addition, it isn’t reported on your history; it will show that the mortgage was settled and paid in full.

Your Job
On its own, a short sale generally doesn’t affect your employment.  However, a foreclosure is a different story.  Some employers regularly check their employees’ credit records.  As well, many require credit checks for new hires.  A foreclosure on your record can jeopardize your current position or future opportunities, as well as cause the revocation of a security clearance.

Judgments
In the event of a foreclosure, many banks have the right to try and get a deficiency judgment, stating that you have failed to pay the entire amount of the mortgage.  With short sales, however, lenders will normally agree to give up the right to that judgment and put it in writing.

Lastly, keep in mind that Michigan foreclosures generally close below the price they would get from a short sale, so the remaining balance might be significantly higher with a foreclosure.

If you want to stay out of foreclosure through short sales, I can help.  Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

If you’re looking to get a good deal by buying one of the Michigan foreclosures in Oakland County, keep in mind that many of the homeowners not only didn’t have money for the mortgage, they probably didn’t have money for the upkeep of the house either.  If you’ve found a home you’re interested in, here’s a short checklist to follow even before you decide to contact a home inspector.  

Structure
For some Oakland County Michigan foreclosures, structure is a definite issue.  Pay close attention to the following, as they may indicate more severe problems:

• Are the interior walls in good condition?  Any cracks and stains?
• Are the floors in good condition?  What are they made of?  Some floors are made of substandard materials, unsafe for more than casual use.
• Is the roof in good repair or are there missing/curled up shingles?
• Are the gutters, downspouts and flashing in good condition?
• Do the doors and windows stick or glide freely?  When closed, do they block out weather or is there a draft?

Water
Look for these possible water problems:

• Is there mold and mildew on the basement walls or a dark, scaly surface?  This can indicate too much moisture, and can mean a leak in the foundation.
• Is the ceiling bubbling, have brown spots, patches or new paint?  New paint might be a sign of covering up stains from water leaks.
• Are there drainpipes around the foundation?  Do they lead away from the foundation?  Are there cracks or a lot of weeds around the area? 

Inside Hazards
Many older houses haven’t been updated or may not be up to code.  Here are some of the more common issues:

• Is there asbestos around exposed pipes for the furnace, heating system or water heater?
• Can you see any signs of vermin or insects?  Mice, termites, cockroaches and bats all leave signs of habitation behind.

If everything else is good, have the house tested for radon, carbon monoxide and lead-based paint.

Although there are many other things to consider when looking to purchase one of the Michigan foreclosures, these three are essential to a healthy living environment.  Most importantly, make sure you’re an informed buyer. 

If you’re looking to buy a foreclosed home, I can help.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

If you’re one of the many people dealing with Michigan foreclosures, you will probably be moving to a smaller, more affordable place.  When it’s time to move you don’t want to leave the important things behind, but you may not have room for everything, either.  Here’s a checklist to help you get the important stuff taken care of within the last month:

1. Change of address – With the rate Michigan foreclosures happen, you want to make sure your change of address is one of the first things you do.
2. Find a moving and packing company.  
3. Clean out your safe deposit box and transfer it to the new area.
4. Get your family’s medical records, school records and other important papers.
5. Change your insurance policies for your home.
6. Get a fire resistant safe and put all records, cards, birth certificates, etc.  Make sure you have it with you during the actual move.
7. Pack less used items.
8. Arrange to have the utilities disconnected/changed over.
9. Plan your remaining meals so you can pack the nonperishable items you don’t need.
10. Make a list of everything you’re personally taking with you.
11. Walk through and decide what you really need to take.  Hold a garage sale or call a charity to get rid of the rest.
12. Let your friends and family members know where you’re going and how they can reach you.
13. Confirm arrangements with the moving and storage companies.
14. Check the yard and sheds for left over items.
15. Take apart any furniture or other items for packing.
16. Start a “survival box”, which includes anything you might need for overnight or for a few days.
17. Defrost the refrigerator and freezer.
18. Close bank accounts if needed.
19. Do a last walk through before leaving to make sure you haven’t forgotten anything.  Be sure to look through the attic, basement, closets, etc. 
20. Drop off your keys with the bank or new owner.

Being one of the Michigan foreclosures isn’t fun; it’s stressful and you’re more likely to forget things in this type of situation.  Make lists to keep track of what you’re doing and then use them!

When you’re ready to buy your next home, let me help you find one that fits your lifestyle, budget and needs.  Call me today at 248-514-2640 or drop me an email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

Foreclosure is a dreaded word at any time, but the present economy makes it a common dread, one that many homeowners share that normally would never enter their minds. There are new government aid programs as well as tried and true methods for combating Michigan foreclosures and every homeowner should know them.

Nip It in the Bud

Procrastination is never a good thing but when it comes to foreclosures it is a death sentence. Most homeowners know when they are on shaky ground and starting to have problems paying their mortgage.

Because it is usually the biggest monthly expense, mortgages are often the first thing to suffer when things get tight. Waiting to talk to your mortgage company about problems until you actually begin missing payments doesn’t leave much time to correct the situation, and believe it or not, most mortgage companies would prefer to work things out than have a “dead” non-performing asset on their books.

Call your mortgage company and talk to them about solutions to your problems. When you call, be prepared to explain the situation that is causing your difficulties to prove that there really is a hardship. Most lenders will send you a pre-foreclosure package that guides you and shows you what you need to do to prove you are under financial strain.

HOPE for Homeowners 

HOPE is the HUD program that helps homeowners avoid imminent Michigan foreclosures. The government program refinances at a lower rate to help people stay in their homes when all other avenues of solution have failed.

Don’t Give Up Without Exhausting All Means

Your home is important and worth the effort it takes to keep it. With the help of the stimulus plan, banks are able to do more than they used to be able (or willing) to do to provide solutions to homeowners to avoid Michigan foreclosures.

If you would like more information on what to do in the event of possible foreclosure, please give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com today.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

Buying Michigan foreclosures can be an exciting task. And the thought of getting a great deal on a home can literally make you giddy. But before you get caught up in all the good things about buying a foreclosure, there are still many details to sort out before you get the keys to your dream home. 

When buying a foreclosure, you should:

1.  Get help
Purchasing a foreclosure requires a lot knowledge, skill and attention to detail. From real estate agents and home inspectors, to attorneys and investors, you’ll need the help of professionals to see you through the process. You will have your hands full, so seek out help ahead of time.

2.  Work fast
When it comes to getting Michigan real estate home foreclosures, sometimes, your favorite property may also be someone else’s favorite. That’s why, as soon as you find the home, do your research so you can submit a knowledgeable bid on the property early on.

3.  Do your research
Research details about the property. Many surprises can pop up, so it’s important to spend the extra time finding out everything you can about the property, including whether or not the home has any liens on it. Although this can be a bit of a roadblock, you may be able to negotiate.

4.  Factor in risks
Lots of times, when buying Michigan foreclosures, the home is sold as is. It’s up to you to decide if you’re willing to renovate or update the home as needed. If so, just make sure you have enough money to cover any needed repairs or cosmetic work. 

If you’re interested in getting a foreclosed property at a great price, give me a call today at 248-514-2640.  I specialize in guiding people through the foreclosure process, and I’m happy to answer all your questions.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

The thought of losing your home due to a Michigan foreclosure can be a devastating experience. If you’ve been late on payments or missed them altogether, foreclosure could be in your future. However, it doesn’t have to be. There are varieties of steps you can take to prevent Michigan foreclosures.

1. Contact your lender
In order to sort out the situation, you need to involve your lender as soon as possible so you can figure out the next plan of action and keep your home.

2. Set up a repayment plan
Usually, repaying your missed payments is the start of fixing the problem; that’s why contacting the lender is so important. Depending on what you work out, your repayment costs may only be a little bit more than the cost of your current mortgage.

3. Try to get forbearance
Depending on your specific situation, you may be able to put your loan in forbearance. This means, you could be allowed to make smaller payments or you could be free from payments altogether for about a year.

4. Modify your loan
This is also known as a loan modification. The plan involves reducing your interest rate, resulting in cheaper payments. This can help you get back on track and avoid Michigan foreclosures.

5. Refinance
Refinancing your loan could also result in a lower interest rate, therefore, helping you keep your home. For example, if you have an adjustable rate mortgage that keeps going up each year, refinancing to a fixed-rate loan would be tremendously helpful.

6. Sell your home
Although this option is not ideal, it is better than foreclosure. When you sell your home, you have the chance to keep your credit score intact.

There are never any perfect choices when facing foreclosure. But before you think all is lost, examine your options.

If you need to sell your home as quickly as possible, I can help.  My 30-Day Marketing Plan will help get your home sold. I have a proven track record of selling 85% of the homes listed with me.  Call me at 248-514-2640 today to get started!

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

If you’re looking at hard times, and have fallen behind on your real estate mortgage payments, you may already think it’s too late to save your home from becoming one of the Michigan  foreclosures.  But rest assured, you can take steps to keep your home and stop the process. 

1. One of the most important things to do is keep the lines of communication open with your lender.  Most lenders would much rather avoid foreclosing on your Southeast Michigan real estate.  If you call your lender as soon as you miss a payment, you may be able to qualify for a forbearance, which could cancel the payment that you are unable to make.  You are unlikely to receive forbearance more than once, so make sure that you will be able to start making payments at the time the forbearance runs out.
2. Of course, the simplest way to avoid becoming one of the Michigan foreclosure is to pay the total amount owed, including all the attorney’s fees.  But, you probably wouldn’t be worried about foreclosure if you were able to do that.
3. If you are not able to make payments to get caught up, you still have one final option to keep your home.  In some cases, filing bankruptcy can stop the Michigan foreclosure process.  If your condo doesn’t have a lot of equity built up that could be used to pay off your debts, the courts may allow you to keep your home.  The past due and current mortgage payments are included in a payment plan designed to get you out of debt in three to five years.  The decision to file for bankruptcy protection should not be made without consulting with a lawyer.

If the foreclosure process can’t be stopped, you still have the opportunity to keep your home.  You have until the actual day of the Trustee’s Sale of your real estate to pay up what you’re behind, or make arrangements to be caught up on your loan. 

After the sale, you enter a redemption period, during which you can get your home back if you’re able to satisfy the terms of your lender.  You will likely have at least 180 days before the redemption period expires.

Do you have other real estate related questions?  As a licensed real estate broker and lawyer I’m uniquely qualified to answer your questions.  I can help you buy or sell Oakland County real estate in Southeast Michigan.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com right now!

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

With all the talk of Michigan foreclosures in the news, it’s easy to get worried about the future of your home.  The good news is that you have plenty of warning from your lender before they foreclose on the property. 

Foreclosure is when the lender takes legal action to repossess your home if you default on the loan.  When you miss the first payment, your lender will call you to make arrangements to get your loan current.  It’s very important to talk to your lender at this point.  If you’re having trouble making the payment due to a temporary problem, your lender may offer you forbearance on your loan for a month or two.

If you miss a second payment, the lender will begin to call you more often demanding that you catch up on the loan payments.  You may begin receiving letters from the lender telling you to become current or they will take appropriate legal action. 

If you continue to fall behind on your mortgage, and aren’t able to make a third payment, you’ll receive a different kind of letter from your lender.  You will receive a Notice of Acceleration from the lender telling you to become current on your payments by a certain date, or the entire amount of the loan will become due and payable.  If you are unable to pay up, the lender will begin the Michigan foreclosure process on your property.

Remember, a lender would rather work out a deal with you and avoid the whole foreclosure process altogether.  Keep in contact with your lender, and you may still be able to make a payment arrangement with them and keep your home out of foreclosure.

It can take from two to three months before the foreclosure is final and your home is sold to the highest bidder.  You can pay the total amount owed up until the day of the sale and keep your home. 

Want more real estate advice and home maintenance tips?  Subscribe to my blog now.  You’ll automatically receive free real estate advice and tips in your email inbox a couple of times a week. 

If you’re interested in purchasing one of the Michigan foreclosures and want to know when you can purchase a foreclosed home, call me at 248-514-2640 or email info@NorthWoodwardHomes.com now!

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

If you are having trouble making the payments on your Bloomfield Hills real estate mortgage, you may be worried about foreclosure.  You don’t have to have foreclosure on your credit record for the next ten years.  Your lender may accept a deed-in-lieu and protect your credit rating, or you may be able to get the lender’s approval for a short sale of your property.
 
What Is A Short Sale?
A short sale refers to the lender accepting a discounted payoff amount, or accepting less money than due to satisfy the loan.  Not all lenders will agree to a short sale.  Here are some tips on how to get approved for a short sale.

Call Your Lender
Explain to your lender why you are unable to make the payments and why you should be allowed to have a short sale for your Bloomfield Hills real estate.  You may be asked to submit documentation of your financial difficulties, including bank statements and tax papers.

Send In Documentation
The lender may request that you send in proof of your income and assets. They’ll want to know if you have any money in a savings account or a money market account.  You’ll have to tell them if you have any stocks, bonds or any other real estate that could be liquidated to pay off your debt.

Once you have approval to hold a short sale, you’ll still need to submit more paperwork to the lender.  You can ask your real estate agent to fill out the preliminary net sheet that the lender requires.  This form will show what you expect to sell the house for and what the net profit will be after all loans are paid off.

After you find a buyer you’ll need to mail in a form showing the offer, and a copy of the listing agreement.  The lender still has the option to refuse to approve the sale if the terms don’t meet their requirements.

A short sale may be your ticket to avoiding foreclosure on your Bloomfield Hills real estate.

Ready to work with a professional Bloomfield Hills real estate agent?  One who is also a real estate lawyer and has the ability to guide you through the complicated process of a short sale?  Call me today at 248-514-2640 or email info@NorthWoodwardHomes.com  now for more information!

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640