Lee Morof's Real Estate Blog

If you lost your real estate because of Michigan foreclosures, you probably haven’t given up on your dream, of owning a home.  You may be scared to try for financing – afraid you’ll be turned down and embarrassed in the process. 

There are few guidelines that lenders follow to determine when you’ll qualify for financing after foreclosure.  Arming yourself with this information will help you overcome your fears and qualify for a mortgage again.

Foreclosure With Extenuating Circumstances
Generally, lenders will take into consideration any extenuating circumstances surrounding Michigan foreclosures on your home.  Was there a death or illness that prevented you from earning money to pay your mortgage?  Did you have a job transfer that came with a steep pay cut?  Were you severely injured and temporarily disabled as a result?

You can add a memo to your credit report that explains any lapses in credit worthiness to potential lenders.  This report can be up to two hundred words and will be shown to all who look at your credit report.

Many lenders will shorten the waiting period for documented extenuating circumstances.  The customary waiting period after a foreclosure is at least seven years.  But with documentation, the waiting period can be shortened to as little as three years.

Deed-in-Lieu of Foreclosure and Short Sale
You may be wondering what the waiting period for financing is for deed-in-lieu of foreclosure or in the case of a short sale.  Fortunately lenders aren’t quite as strict if you were able to avoid an actual foreclosure sale.

The waiting period for a deed-in-lieu of foreclosure is four to seven years.  If there were special circumstances surrounding the deal, you may be able to qualify in as little as two years.  The lender may require a certain down payment or credit score as a condition of approval.

Getting financing after a short sale is the easiest.  Generally the lender will only require a two year waiting period before they’ll approve financing. 

The good news about financing after becoming one of the Michigan foreclosures is that it is possible.  Your dreams of owning Troy Michigan real estate don’t have to end because you’ve had a foreclosure in your past. You may just have to be a little more patient.

Whether you’re ready to buy your next home or simply have a question about southeast Michigan real estate, I’d love to help.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

If you’ve been thinking about investing in one of the many Michigan foreclosures , there are lots of great bargains to be had.  However, make sure the home you buy doesn’t have major problems.  Before you spend the money on a professional home inspector, look at these common problem areas:

Ceilings
Usually, ceilings are made of plaster and plasterboard.  While looking at the ceilings, keep an eye out for these issues:

• Cracks, holes or uneven areas
• Dampness or mold growth
• Crumbling areas
• Cracked or bulging areas

Walls
In general, walls are made of bonding plaster or plasterboard.  You can look for the same problems as you would on ceilings, with the addition of a few more:

• Loose skirting board
• Soft, damp or rotten
• Discolored decorations, blisters or other faults such as peeling wallpaper
• Dangerous materials such as asbestos or gloss-painted polystyrene tiles.  Asbestos can be hard to identify; if you think you have asbestos, get professional help.

Floors
No matter what material the floor is made of in Michigan foreclosures, the structural supports are generally made of the same types of materials as other homes.  Here are a few things to look for:

• Uneven flooring
• Movement, cracking, lifting or dampness
• Loose floor covering, such as raised boards or lifted tiles
• Large gaps between floorboards
• Cracked or missing tiles

Plumbing
The kitchen and the bathroom may hold most of the plumbing, but some will go through the rest of the house as well.  Look at the plumbing for:

• Rust or leaks
• Hammering or knocking pipes
• Lead pipes
• Improperly supported water tanks

Wiring
Faulty or old wiring can be a major hazard in any potential home.  Although some wiring issues aren’t easy to spot, there are signs:

• Rubber cables or single-flex wiring twisted together with exposed insulation
• Blackened or failing power sockets
• Brittle or bare wiring
• Plugs that get hot when used

No home inspection should be considered finished until a licensed home inspector has come to the Michigan foreclosures that you’re interested in.  By using this guide, you’ll only have to call an inspector once – to get a clean bill of health on your new real estate.

Want to get a great buy on a foreclosed property in southeast Michigan?  I specialize in this area and would be happy to guide you through the process of purchasing a foreclosed property.  And, as a licensed real estate broker and lawyer, I can help you save money while keeping you from making a mistake that could cost you thousands of dollars.

Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com now!

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

Whether you’re looking at Michigan foreclosures to find a new home or because you’re interested in flipping houses, you need to know the basics.  There are three types of foreclosure properties, based on where the home is in the process.  The three stages are pre-foreclosure, foreclosure and post-foreclosure.

Stage #1: Pre-Foreclosures
Michigan foreclosures are not a pretty business.  You can’t help but know that no matter how you put it, you’re probably not making the situation better for the homeowner.  However, in the pre-foreclosure stage, you’ll be able to do the most good for yourself, as well as the homeowner.  Since this stage happens before the lender gets involved, the home can be transferred at a mutually agreed upon price, forestalling further damage to the homeowner’s credit rating.  The best way to find pre-foreclosed homes is to talk to a professional Troy Michigan real estate agent. 

Stage #2: Foreclosures
The process for foreclosures varies from state to state.  Whether a foreclosure is a judicial or non-judicial form depends on whether the state is a title or a lien state.  Judicial foreclosures have to deal with mortgages instead of deeds of trusts, and the process takes much longer than non-judicial foreclosures.  Non-judicial foreclosures involve the power to foreclose on a property without court approval and it includes a third party that handles the entire foreclosure process in two to four months. 

Stage #3: Post-foreclosures
In this stage of foreclosure, the property is already in the hands of the lending institution, a new owner or investor.  You can look at the foreclosure notice to find the name of the lender and the amount owed on the mortgage.  Lenders are generally very willing to sell.  While you can still make an offer to a private investor, either on your own or through a real estate agent, the price may be higher than you originally wanted to pay.

Does this all sound difficult for an average buyer to understand?  As a licensed broker and real estate lawyer, I’m uniquely qualified to help you through the legal maze of buying a Troy Michigan home foreclosure or other Oakland County homes for sale.  If you’re interested in purchasing Michigan foreclosures in Oakland County, Southeast Michigan, give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com. 

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

Today I began working with a new buyer who wants to start by looking at Southeast Michigan Foreclossures because, naturally, she wants to get a “good deal”. We looked at three homes and they were complete disasters. One had terrible structural problems. The other two had water and mold problems. None of these homes are financeable due to their condition. In other words, unless the buyer is paying cash, she will not be able to get a mortgage loan to purchase her Southeast Michigan Foreclosure home. Now, some will say, “well, there is a program with the bank where I can get money for the repairs.” O.K. then. Will somebody give me a real example of this happening recently where major repairs like mold remediation and structural problems exist? Every lender I have spoken with knows about the program but none of them have done it. They also tell me that the paperwork and red tape are huge. In my experience, it just makes more sense to purchase a home that is functional so you can get financing and then give the home your personal touches with paint, carpeting, etc.

If you’re ready to look for Southeast Michigan real estate, give me a call at 248-514-2640 and I’ll help you find and buy the right home for you!

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

I am a RE/MAX agent in Birmingham, Michigan. I primarily represent home buyers and sellers in the North Woodward Area of Oakland County, Southeast Michigan. Currently, approximately one of every two sales in Oakland County, Michigan is a bank owned home. Of course, this has caused huge downward pressure on home values and has perpetuated our buyer’s market. A bill currently before the United States House of  Representatives has some provisions that I believe would help. First, the bill provides for a $7.000 tax credit for those buying bank owned homes and would provide $4 billion in grants for communities to buy and fix up foreclosed homes. The naysayers in the house contend that this would unfairly award purchasers who would have bought anyway and would devalue other homes. In addition, the naysayers think that this would encourage banks to foreclose on more homeowners. I believe that the bill’s detractors are misguided. First, these measures would help reduce the huge inventory of bank owned homes and, in turn, would help get supply to meet current demand. This will help home values not hurt them. The bill also includes the issuance of $10 billiion in tax free mortgage revenue bonds to help homeowners refinance subprime loans. This part of the bill has white house support and would naturally result in fewer foreclosure. All combined, these measures should help reduce the glut of bank owned homes on the market much faster than would occur otherwise.

Ready to buy Southeast Michigan real estate?  I can help you find and buy the right home for you at the best price and terms.  Call me today at 248-514-2640.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-5114-2640