Lee Morof's Real Estate Blog

A “short sale” is a sale of real estate in which the lender accepts less than is owed on the mortgage so that a new owner can buy it and the current owner can prevent going in to foreclosure. If you’re struggling to make your mortgage payments, if you owe more on your home than its current market value or if you’re nearing foreclosure, you may want to consider selling your home as a Oakland County MI short sale.

Not every homeowner qualifies for a short sale. Whether you qualify depends on how your financial situation has changed since you took out your mortgage. Your mortgage provider determines if you qualify for a Oakland County MI short sale, but here are some basic requirements to give you an idea if you might qualify:

1. Your home’s market value has decreased. Your home’s fair market value has reduced considerably and there is little chance of it coming back up any time soon. If you owe more than your home can sell for, this means you are “underwater” or “upside down.”
2. You have a financial hardship. Having a financial hardship will or has caused you to miss payments. Listed below are examples of hardships:

a. Mortgage adjustment
b. Job loss or curtailment of employment
c. Failed business
d. Excessive debt (a high debt ratio)
e. Divorce
f. Medical emergency/sudden illness
g. Bankruptcy
h. Death

3. You have no assets. The homeowner does not have any savings or any other assets, in order to bring the mortgage current. Other assets include other real estate, stocks, bonds and IRA accounts.

4. Your mortgage payments are in arrears. You are behind in your mortgage payment by more than one month, or you’ve demonstrated that you will not be able to keep up with your payments due to financial hardships.

If you’d like help selling your home as a Oakland County MI short sale, please 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
www.NorthWoodwardHomes.com

Oakland County MI short sales are used by homeowners to prevent losing their homes to foreclosure.  When you see an advertisement for a short sale, the home is in pre-foreclosure.

What is a short sale? It is an agreement between the sellers of a home in the beginning stages of foreclosure and their lender which allows the home to be sold for less than the existing loan balance. If an agreement is reached by all parties, a short sale could save the sellers’ credit by avoiding a foreclosure.

A short sale is not a short process, however.  It is a lengthy process with many legal and financial aspects.

The basic short sale process flows as follows:

• The seller contacts the lender to discuss the possibility of a short sale.
• The seller issues a letter authorizing release of the loan and property information to the buyer or escrow agency.
• A settlement statement is reviewed by the lender. The statement includes the proposed selling price, the amount left to be repaid and itemized expenses.
• The seller completes a hardship letter for Oakland County MI short sales, including a description of all the financial difficulties the seller is going through.  The lender validates and confirms all financial difficulties.
• The seller provides the financial documents including paycheck stubs, bank statements, a personal financial statement, monthly budget assessment and anything else required by the lender.
• Once approved, the buyer can proceed with the purchase.

What are the benefits of a short sale?  The seller is relieved of the debt they cannot afford, a foreclosure proceeding by the lender is avoided and the buyer purchases the home at a discounted price.

Whether you’re a seller who is interested in selling your home as a short sale or a buyer who wants to purchase a Oakland County MI short sale, I can help. Please 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
www.NorthWoodwardHomes.com

Although selling your home as a short sale probably isn’t what you’d prefer, it may be the best option for you.  The good news is that Oakland County MI short sales are becoming the preferred option for lenders hampered by the huge number of foreclosures.

To get you started on your short sale journey, here’s the condensed version of how to sell your home as an Oakland County MI short sale and not be a scammed “flop”:

1. Hire an experienced real estate professional.  Find a real estate attorney and/or agent who have successfully closed a lot of short sales.  REALTORS® with the Certified Distressed Property Expert (CDPE) designation will have a thorough understanding of how to assist their clients in foreclosure avoidance options. Having experienced professionals guide you through the process is crucial to your success.  You want them working for you as soon as possible because they’ll be communicating and negotiating with your lender.

2. Start now.  As soon as you know you can no longer afford your home, hire your real estate professionals and get started.  The longer you wait to get the short sale process started, the harder it’s going to be.  Like everything in life, the more options you have the better off you are.  Don’t wait until foreclosure is your only option.

3. Prove to your lender that you’re truly a financial hardship case.  If you just want to stop paying your mortgage, you won’t be able to sell your home as a short sale.  You must prove you honestly cannot afford your home by giving your lender a:

• Detailed financial worksheet documenting your expenses and income.
• Copy of your income tax returns for at least the last two years.
• Hardship letter providing details about why you cannot pay your mortgage.

4. Submit Letter of Authorization.  Write a letter to your lender giving him permission to talk with your real estate professionals about your loan.  Include the names of all the borrowers and their social security numbers, your real estate professionals’ names and contact information, your home’s address and loan reference number.

5. Take the advice of your real estate professionals.  You hired them for their expertise.  Now, take their advice and allow the pros to guide you the rest of the way through this process.

Whether you have questions about Oakland County MI short sales and the stumbling blocks to selling your home as a short sale, foreclosures or traditional home sales, I can help.  Please 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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

No doubt you’ve heard about the rising number of Oakland County MI short sales and foreclosures.  If you’re thinking that now would be a good time to jump on the bandwagon by purchasing one of the Oakland County MI short sales or foreclosures, here are a few tips to help you find (and buy) your dream home.

Lee Morof is a Oakland County Michigan Certified Distressed Property Expert

Arrange for Financing
Know how much home you can afford so you can determine your price range.  You don’t want to waste any time looking at property that won’t fit your financial needs.  If you do, you might even miss the deal you’re looking for.  Many lenders will pre-qualify you.  The process doesn’t take long and you’ll be able to look at Oakland County MI short sales and foreclosures with confidence.

Get a List of Available Properties
Your number one best resource for Oakland County MI short sales is your real estate agent who is able to guide you to the properties that best fit your needs as well as show you the properties.  Your local bank should be able to give you a list of homes that have been foreclosed on.

Research Your Favorites
Narrow down the list to your favorite properties.  Then, investigate the homes and the areas they’re in because the neighborhood has an impact on the value.  In addition, carefully assess the properties for damage and calculate the cost of the repairs.  After you’ve done the math, pick the house that suits your needs.  If you don’t want to do all the assessments and make all these decisions on your own, work with a professional southeast Michigan real estate agent who can guide you through this process.

It’s Time to Make a Bid
Okay, you’ve found the property you want to buy.  What should you do now?  It’s time to put in a bid on the property.  If you aren’t comfortable negotiating (or if you aren’t good at it), let your real estate agent place your bid and negotiate the deal for you. If you need to move quickly, be aware it will probably take longer to close on a short sale property.

Ready to get a great deal on one of the Oakland County MI short sales or foreclosures?  I am a Certified Distressed Property Expert and I can help!  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Are you looking for the ideal home for you and your family?  You may find yourself trying to decide between two similar homes, one being an Oakland County MI short sale property.  You could have worse problems than this on your search for the perfect home, but how do you decide which home is better for you and your family?

Here are  a few primary points to consider:

1. Location. This is where you are going to live. You need to consider how far away it is from work, schools, and shopping. You probably want to do as little driving as possible. A home close to where you will be spending your time away from home may be the better choice for you. 
2. Home repairs. What will you need to do to the home once you move in? Think about the time and money you will have to invest in the home before making your decision. One of the homes might be in slightly better shape, and may be the better option for you so you can concentrate on getting settled in your new home after moving in.
3. Age of appliances. This can make a big difference in your choice. Do you really want to have to replace the appliances soon after you move in? You might be better choosing a home with newer appliances.
4. Hobbies. Is there a car lover or avid crafter in your family? Look at which home has the most to offer these people. Perhaps one garage has been expanded or has built-in work benches. Maybe a closet already has a space to organize craft supplies. 
5. Time to complete the sale.  If you need to move in a short time frame, buying an Oakland County MI short sale property may take longer to complete the real estate transaction. 

Let me help you find the home that best fits your lifestyle. If you’re looking to build value in one of the Oakland County MI short sales or a foreclosure, I can help!  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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