Feeds:
Posts
Comments

Archive for the ‘distressed sales’ Category

Buying an Oakland County MI Short Sale Listing- What to Expect

Between what I’ve heard on TV and radio, read and from conversations I’ve had with clients, potential clients, other agents, relatives, friends… I have learned that there are a whole host of definitions for the term “short sale.” And most of them not very accurate.

A short sale is when the house is offered for sale by the owner (person as opposed to a bank) who owes more than what the house is worth and can’t, or isn’t willing to, pay the difference themselves. Any offer that home owner would accept would be subject to the bank agreeing to reduce the mortgage payoff. Selling short. Short sale.

Short sale listings can be some of the best bargains available in Oakland County MI, but there are things about short sales that the Oakland County Michigan home buyer should be aware of prior to even looking at houses.

  • Be      prepared to wait 3-6 months (sometimes longer) for short sale approval
  • Be aware the lien holders may not agree to the payoff required to proceed with your      offer. After 3-6+ months your offer may be countered or outright rejected
  • Don’t expect appliances to stay
  • Don’t expect the seller to pay for repairs
  • Don’t expect your closing costs to be covered in the form of seller concessions-      sometimes they’re capped at 3% and sometimes they won’t be covered at all
  • DO expect to close pretty quickly once the short sale is approved

One of the first things everybody involved in a short sale needs to understand is that the banks are under no obligation to approve a short sale. You would think it would be in the banks best interest to approve a short sale when the offer is reasonable, but often times the actions of many of these banks seem to defy logic. Also, the more lien holders involved in the transaction the more difficult it is to complete and the higher the probability that it won’t close.

Buyers need to realize that there are factors beyond the control of the buyer or buyer’s agent.

  • We can’t      control how cooperative the seller will be with the bank’s demands      addressed in more detail here
  • We can’t      control how      knowledgeable or diligent the listing agent is
  • We don’t      know from day-to-day what financial incentives the government will      offer the banks which can determine what short sales they approve
  • When there      are multiple mortgages we don’t know how well the negotiators for the      first and the second will play together or the abilities of the listing      agent to ref them
  • The seller      can also reject the terms of the short sale which will be addressed in detail      in another article

In a nut shell– short sales can be a good bargain but for the right buyer. You need to have the patience of a saint and the ability to move on someone else’s schedule.

Search the MLS

What to Expect From Your Oakland County Buyer’s Agent

Financing Your Oakland County Home Purchase

Buying an Oakland County Foreclosure or Short Sale

Jackie Hawley, Realtor
ReMax Encore, Clarkston MI
Cell: 248-736-6407
Jackie@JackieHawley.com

www.MiRelocation.com

www.MacedayLake.com

www.OaklandCountyMichiganLakes.com

www.LakeOaklandHomes.com

www.LakeOrionLakefrontRealEstate.com

Read Full Post »

Oakland County MI Real Estate

A short sale is when the house is offered for sale by the owner (person as opposed to a bank) who owes more than what is owed. Once an offer is accepted, the bank has to agree to reduce the mortgage payoff. Usually some of the leg work has been done before the house ever hits the market, but there’s only so much that can be done prior to getting an offer. I have had answers back on short sale offers as quickly as a few days (this is VERY rare), but typically it takes 3-6 months to get an answer back on an offer, and sometimes that answer is just “no” with no counter.

If you need to get into your Oakland County home right away, looking at short sale listings is probably a bad idea. If you have time (and patience) you can usually get a pretty good deal on a short sale listing. It benefits the bank to take their loss now rather than wait and incur the costs of foreclosing. Short sale is also a searchable field in the multiple listing service (MLS) I belong to. Oakland County MI short sale listings can be searched or excluded from searches.

WARNING:

  • Short sales are not for the faint of heart
  • There is no guarantee the short sale will be approved
  • There is no guarantee if the short sale IS approved that it will be at the price agreed upon by you and the seller- SO be prepared for a counter offer
  • Do not even look at short sales if you are under any kind of time constraints!!

Search the MLS

What to Expect From Your Oakland County Buyer’s Agent

Financing Your Oakland County Home Purchase

Buying an Oakland County Foreclosure or Short Sale

Jackie Hawley, Realtor
ReMax Encore, Clarkston MI

Cell: 248-736-6407

Jackie@JackieHawley.com

www.MiRelocation.com

www.MacedayLake.com

www.OaklandCountyMichiganLakes.com

www.LakeOaklandHomes.com

Read Full Post »

Buying an Oakland County or Lapeer County Foreclosure? What to Expect

Or more precisely what not to expect.

Don’t expect to be able to negotiate anything other than price.

Think $150 to re-key a door is high? Too bad. There’s no way around it and you won’t get the key at closing. It may be left in your mail box. Or on the electrical box. Or in the mud under the electrical box.

Furnace doesn’t work? Don’t expect it to be fixed or replaced.

Your attorney doesn’t like the wording in the bank addendum? Too bad. If you change it the seller will back out (or not sign it- same thing).

Want the by-laws which are required to be supplied to a potential buyer in Michigan? In fact if the property is a condo or site condo the buyer can legally walk until they are received and approved. But in the case of a bank owned property you will probably end up at the county building getting them to the tune of $.50/page because neither the seller nor listing agent will have them.

Buying a foreclosure on a private road? You may need to walk door to door getting signatures on a private road agreement or you may not get your mortgage. The seller won’t do it, and heaven forbid the listing agent actually do his or her job.

The seller’s agent may or may not make sure the utilities are on and the house un-winterized prior to your home inspection.

The seller’s agent may or may not make sure the driveways are cleared (in the winter) so bring your boots.

The listing agent may have the utilities on– but if we’re looking in the dark bring a flashlight because there’s no guarantee there will be lights.

The sad facts are, the banks and government (many foreclosures are government owned) don’t care. If the sale falls apart they can just put it back on the market and unlike a normal seller they can afford to keep reducing their price.

It’s a sad fact that most foreclosure listing agents in Oakland County MI and Lapeer County MI don’t even look at their listings let alone service them.

Want to buy a foreclosure listing in Oakland County or Lapeer County MI? You MAY get the house for a good price, but is the discount worth the stress, lack of protections, and probably hidden defects you will need to correct later worth the discounted price?

One other thing to consider– the re-salability of the house. Right now I have 2 listings that were previously bought as foreclosure listings. I have title issues on one and trying to track down the private road agreement for the other before we get an offer. The advangage of using an agent who specializes in NON Distressed sales.

Buying a Distressed Listing

Search the MLS

Jackie Hawley
ReMax Encore, Clarkston MI

Cell: (248)736-6407

Jackie@JackieHawley.com

www.MiRelocation.com

Read Full Post »

Can A Seller REALLY Enforce That The Buyer Not Resell For A Specific Period Of Time?

A lot of the bank and government owned listings specify owner occupied only for the first couple weeks or for the first month. They require the buyer to sign a document that the house will be their primary residence and that they can’t sell for the first 60 days up to a year after closing.

What law is the buyer breaking if they lie? I never realized it was against the law for buyers and sellers to lie to each other. They do it all the time- “I can’t go below X on my price.” Or “X it the very top I can afford.”

I spoke to the listing agent today of a HUD listing for a buyer who wants it as a 2nd home- her lake home. The agent told me she would have to claim it as her primary residence for the first year and change her driver’s license.

Is this enforceable? Is it legal? Once the transaction is completed the seller no longer has any interest in the home.

I’m not an attorney and don’t want to become a test case. But I am curious if anybody has heard of a bank or the government going after a buyer after they didn’t move in or if they sell too early.

Jackie Hawley

ReMax Encore, Clarkston

Jackie@JackieHawley.com

www.MiRelocation.com

248-736-6407

Read Full Post »

Short sales in Clarkston Michigan – click here for the very basics including my attempt to define exactly what a short sale is and the basic steps involved. Below is more about what to expect throughout the short sale transaction.

Short sale listings can be some of the best bargains available in Clarkston MI, but there are things about short sales that the Clarkston MI home buyer should be aware of prior to even looking at houses.

  • Be prepared to wait 3-6 months (sometimes longer) for short sale approval
  • Be aware the lien holders may not agree to the payoff required to proceed with your offer. After 3-6+ months your offer may be countered or outright rejected
  • Don’t expect appliances to stay
  • Don’t expect the seller to pay for repairs
  • DO expect to close pretty quickly once the short sale is approved

One of the first things everybody involved in a short sale needs to understand is that the banks are under no obligation to approve a short sale. The banks are better off accepting a reasonable offer on a short sale rather than foreclosing, and I haven’t had one denied yet, but that doesn’t mean they are never denied. There are factors beyond the control of the buyer or buyer’s agent.

  • We can’t control how cooperative the seller will be with the bank’s demands addressed in more detail here
  • We can’t control how knowledgeable or diligent the listing agent is
  • We don’t know from day-to-day what financial incentives the government will offer the banks which can determine what short sales they approve
  • When there are multiple mortgages we don’t know how well the negotiators for the first and the second will play together or the abilities of the listing agent to ref them
  • The seller can also reject the terms of the short sale which will be addressed in detail in another post

In a nut shell– short sales can be a good bargain but for the right buyer. You need to have the patience of a saint and the ability to move on someone else’s schedule.

Coming soon – strategies for making a short sale offer.

Jackie Hawley
Keller Williams Realty, Clarkston
Cell: (248) 736-6407
Jackie@JackieHawley.com

Search the MLS

Clarkston Lakefront Homes For Sale

Clarkston MI Homes For Sale

Lake Oakland and Woodhull Lake

Lotus and Maceday Lakes

Deer Lake

Read Full Post »

Lake Orion Michigan Foreclosure Listings Are NOT Available For Sale BEFORE Hitting The MLS

I am asked multiple times a week if I can let someone know about Lake Orion MI foreclosure listings before they hit the market. When I say “there is no way” I am then often asked about RealtyTrac. RealtyTrac reports foreclosure notices. Many houses that are served a notice of foreclosure do not go into foreclosure. In fact, it appears that actual foreclosure listings here in Lake Orion MI are on the decline and many distressed Lake Orion home owners are going the short sale route.

We have a couple of foreclosure agents in my office and I’m friendly with other foreclosure agents who work in Lake Orion Michigan and have been assured that the vast majority of foreclosure listings DO get sold through the MLS, and have to be available on the MLS for a minimum of 3 days before they even submit offers.

So, dear Lake Orion Michigan home buyer– Please rest assured that you are not missing out on any of those great foreclosure deals when you get a daily MLS update from me. Also, please be aware- sometimes foreclosure listings aren’t always the best deals. Many of the short sale listings sell for a great price, and the “regular” listings that truely want to sell are priced like a foreclosure or short sale.

Buying a Lake Orion MI Foreclosure

Lake Orion Homes For Sale

Search the MLS

Jackie Hawley
Keller Williams Realty, Clarkston
Cell: (248) 736-6407

Jackie@JackieHawley.com

www.MiRelocation.com 

Read Full Post »

Thinking of buying a new home in Clarkston or Lake Orion MI? You need to get that pre-approval from your lender very early in the process. Ideally before you even start looking, and for a variety of reasons. Of course there are the same reasons as always– need to know a price to perform an MLS search. Need to know the type of mortgage. Listing agent won’t present an offer without one. All good and valid reasons.

But often times educated buyers have a good idea of what they can afford and even the type of mortgage based on the amount of down payment money they have to work with. So what is wrong with finding a house and calling the loan officer and getting a quick pre-approval? How long can that take? A day? Maybe two days? Maybe even in just a few hours if you are organized and have everything ready to send immediately?

A guess it depends on how strong of a pre-approval letter you want? Or need. Right now if you are buying in Clarkston or Lake Orion you have a 20% or 25% chance of competing against a cash buyer. The odds go up if you are buying a bank owned  home. But the facts are that 19% of all sales in Clarkston, MI in 2011 were cash sales and 23% of all sales in Lake Orion, MI were cash sales.

What’s the difference to the seller you may ask? Either cash or mortgage it is still cash to the seller. And this is true- it is still cash to the seller. But there are no conditions to obtaining the cash in a cash sale. The house doesn’t need to appraise unless otherwise addressed in the offer. The buyer doesn’t need to keep his job or be careful about purchases that may affect his ability to get the mortgage. Cash IS king and when you are competing against a cash buyer you need to come in as strong as possible- and that starts with a strong pre-approval from a dependable lender.

Financing

Writing the Offer

The Home Inspection

Search The MLS

Choosing a Buyer’s Agent

Lake Orion MI Homes For Sale

Clarkston MI Homes For Sale

Jackie Hawley Keller Williams Realty, Clarkston MI

Jackie@JackieHawley.com

Cell: (248) 736-6407

Read Full Post »

Older Posts »