Lee Morof's Real Estate Blog

Buying a home that has been foreclosed on is a great way to get deals whether you are an investor or want to live in the home you purchase. There are a few things about buying one of the foreclosures for sale in southeast Michigan that differ from an average real estate purchase.  Here are a few tips to help you cash in by buying a foreclosed property:

Hire an Agent who Specializes in Foreclosures

Not all real estate agents have experience in buying foreclosures for sale in southeast Michigan. If you have a professional agent on your side who understands the process, you’re one step ahead of the game.

Inspect Closely

Like all real estate you’re considering buying, it’s important to inspect a potential foreclosure purchase. The former residents most likely didn’t move out under favorable conditions, and it is often reflected inside the home. Before buying the home, carefully consider any repairs you will have to make.

Is It Really a Bargain?

Add the cost of all repairs needed into the price of the foreclosure.  Then, determine if the property is really a bargain.

Also consider the price of the home.  Just because it’s a foreclosure doesn’t automatically mean it’s a bargain.  With the fluctuation in real estate prices, homes that were priced high when they were for sale before foreclosure might still be over priced as a foreclosed property. Make sure you and your real estate agent carefully research the market and determine if this is a true bargain.

Background Check

Your bank will check your background, credit, etc; you need to do the same in regards to your prospective purchase. Homes that have been repossessed may also carry encumbrances on the title from past debts the previous owner incurred.  Don’t let yourself fall into a nasty surprise.  Check to ensure there are no liens or encumbrances on the title before purchasing the property.  As a licensed real estate lawyer, I can easily determine if there is anything that might cost you thousands of dollars if you purchase the wrong property.

If you would like more information on buying foreclosures for sale in southeast Michigan, give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

With all the talk of the great deals you can get on foreclosures for sale in Southeast Michigan, you may be tempted to step into the investment market. Or, you may get the idea that buying a foreclosure is your best bet for a great deal on a home. Well, it’s possible, but remember that the foreclosure market is full of perilous pathways and competitive investment pros who know what they’re doing.

Whether you’re considering purchasing foreclosures for sale in Southeast Michigan as investments or as your personal residence, here are a few tips that will help you get a great investment and avoid a bad disaster.

• Gather a Team of Professionals:  Your team of professionals should include a home inspector, a real estate agent and an appraiser.  You may also want to include a professional repairman, if you’re not handy. With foreclosures, you often have to be ready to move on the home immediately, so establish relationships with these professionals ahead of time.

• Buy a Pre-foreclosure:  According to the experts, pre-foreclosure is one of the best times to buy. The seller will probably be more willing to accommodate you because they want to avoid ruining their credit. Which means you’ll have a much better chance of getting a good deal – something more than the seller owes the bank, but less than market value.

• Skip the Auction:  While going to foreclosure auctions is another possibility, it isn’t for the beginning investor. You may find that you’ve done a whole bunch of research for nothing, because the auction was cancelled. You may end up with a trashed property because the previous owners didn’t want to move, or because the house has been empty for a long while.

• Be Careful Buying Bank-Owned Properties:  This option is seldom as great as it sounds. Not all banks price homes at fair market value. Many of them are trying to get their money back, which, with current depreciation, could be much more than the home is currently worth.

If you’re considering buying foreclosures for sale in Southeast Michigan as an investor or a homebuyer, I can help.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

Many potential homeowners are starting to look towards foreclosures for sale in Southeast Michigan as a way to get the home of their dreams without spending their life savings. What they may not realize is that the sheer amount of foreclosed properties can be daunting. Some are so completely overwhelmed by the choices that they give up and walk away.

Foreclosures for sale in Southeast Michigan can be great deals, but you’ll have a few decisions to make before you even go looking. Because there are so many options, here and throughout the nation, it’s important to figure out what type of foreclosed home is best for you.

Government Foreclosures
Homes with federally sponsored loans, such as HUD homes, are repossessed by government housing agencies. Because these homes offer a lot of opportunities for discount purchases, they move quickly.

Foreclosure Auctions
One of the most common ways to buy a foreclosure is while it’s on the chopping block of a traditional real estate auction. The auction is public, with homes sold to the highest bidder.

REO Foreclosures
Repossessed by the bank, real estate owned properties have been through a foreclosure auction without being bought. There’s not necessarily anything wrong with the home itself.  In fact, many foreclosure auctions fail to sell the home.  The primary reason foreclosure auctions do not succeed is that the auction price is more than what the property is worth. When the auction does fail, ownership reverts to the bank and the home becomes an REO.

REO foreclosures also have auctions, but the bidding process is closed and blind – no haggling allowed. You look over the available properties and come up with an offer to buy the home directly from the bank, rather than competing with other buyers in a public sale.

The good thing with REO foreclosures is that you can also set up the financing and mortgaging options through the same bank. Often, this gives the bank encouragement to give you a better price for the home.

Whether you’re looking at foreclosures for sale in Southeast Michigan as investment opportunities, or to buy your dream home, you have a myriad of options. Knowing what you want – before you start looking – is one of the best ways to ensure you get the deal of a lifetime!

If you’re unsure which type of foreclosed home is best for you, or if you want help finding a great deal on a foreclosure, 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

Even, perhaps especially, in an economic downturn, people are trying to make a living in the real estate market. “Flipping” houses used to be a great way to make a little cash, but not now. Many are now looking at long-term cash prospects, such as renting property, and Southeast Michigan foreclosures seem to be a good start. But are they? Let’s take a look.

Finding a good rental property isn’t easy. It’s not like shopping; you can’t go into a real estate store and grab the first house off the rack that looks good on you. It’s a process of investigating, gaining knowledge and being realistic. This is especially true when looking at Michigan foreclosures.

Homeowners who suffered foreclosure were unable to pay the mortgage. We all know that.  What people usually don’t think about is that the homeowners were probably also unable to pay for upkeep. This means that you, as the buyer, have a larger possibility of buying a money pit rather than a moneymaker. Keep this in mind as you look over a few tips for finding good rental property:

1. Location – Since you’re looking at foreclosed properties rather than properties that are already set up for renting, you can’t check established rental records. However, you can ask your real estate agent for a list of areas with less people moving out and more moving in. As well, look at areas with surrounding retail development. New shopping malls, theatres and restaurants will bring in more people to an area.

2. Addition and subtraction – It’s time to do the math. Ask your real estate agent for what the going rental rates are in the area you’re looking at. You’ll need to find out if the rent you can charge will take care of expenses as well as bring you profit. Figure the yearly income you can expect to make and then subtract mortgage payments and operating expenses. If your math produces a negative balance, don’t buy the property.

3. Taxes – Once you pay expenses, your income is taxable. Now, while you can depreciate rental property,  you can’t depreciate the land it’s on. Talk to a real estate agent or accountant to decide whether it’s worth it or not.

If you follow these three tips and remember to pay attention to the amount of repair needed, you might just find some fantastic deals on Southeast Michigan foreclosures in Oakland County. Take a little time to make sure renting is for you, and then get started.

If you’re looking for potential rental property, 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

When you’re looking to buy a home, and especially when you’re looking at Michigan foreclosures in Oakland County or anywhere else, title searches are important.

Many buyers make the mistake of settling for a quitclaim deed without doing a title search. Unfortunately, the person who signs the quitclaim deed may not be the actual person holding the title. If there are any liens on the title, the new owner may get an unpleasant surprise at closing. With Michigan foreclosures, the possibility that there is a lien on the title is even greater.

What is a title search?
Title searches are performed by title companies or lawyers. These companies and attorneys search the public records for information on the property’s ownership. The goal is to find out if there are any problems with the title.

What kind of information can a title search give you?
A complete title search will cover such things as:

• How many mortgages the property has
• Any liens, such as judgments or mortgages, on the property
• Taxes owed on the property

The purpose, other than finding current information, is to establish chain-of-title – who owned the property at what time, who they sold it to and so on. Title companies look for proof that any encumbrances have been taken care of, as well as easements, rights-of-way and anything else that can affect the title.

Why get title insurance?
Most title companies also offer title insurance. Title insurance, depending on the company, provides a guarantee that the title is clear, as well as insuring that you can’t be held accountable for forgery, fraud, defective records or incorrect signatures that occurred before you received the title. It also guarantees that there is no encumbrance or judgment on the property.

Michigan Foreclosures in Oakland County are a good bet for a great home or investment property. However, make sure you know what you’re getting by having a title search done. As well, spend the money on that one-time fee for title insurance. It may be the best investment you’ve ever made!

Thinking of buying a home?  As a licensed Real Estate Broker and Lawyer, I’m not your average REALTOR®.  I can guide you easily through the entire real estate process, from negotiating the price and writing a contract to having a title search performed to signing your closing papers.  And, I can keep 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.

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

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

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