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Posts Tagged ‘distressed properties’

Buying a Forelcosure Home in Southeast Michigan

Like with my short sale posts, I still haven’t organized my categories or tags for my foreclosure articles. So in the meantime I figured I’d cheat a bit and paste the links all in one post.

 

Why an Oakland County Michigan Foreclosure Listing May Not be The Best “Deal”

The Foreclosure Process in Southeast Michigan

Oakland County Michigan Home Buyer- Find a Foreclosure Listing You Want? Jump on It!

Oakland County Michigan Foreclosure Listings are NOT Available for Sale BEFORE Hitting the MLS

Southeast Michigan Foreclosure- Misconception #1

Highest and Best are NOT Synonyms

Contingent Offers on Distressed Sale Homes

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lying rat media

lying rat media

Lake Orion Michigan 3rd Quarter Home Sales- Cold Hard Facts Refute Media Reports Regarding Foreclosures. Which is a fairly nice way of stating that, again, the main stream media is full of shit and spreading alarmist and untruthful information regarding the state of housing sales. I kept hearing all day how foreclosures in Michigan are not only up for the 3rd quarter compared to the 3rd quarter of 2009; I was hearing reports about how foreclosures in Michigan were hitting record highs.

First of all, at least one of the sources quoted counts foreclosure notices as a foreclosure. Many of those houses will never go to foreclosure sale. Secondly, you can’t take Detroit statistics and claim that is reflective of the rest of the state. The way I was raised this is the same as lying. If you are of a more forgiving nature this is at a minimum misleading.

You need to look at individual communities to gage the recovery of the real estate market. This blog post will discuss the sales trends for Lake Orion Michigan– both the township and the Village.

The facts are:

Lake Orion Michigan unit sales for the 3rd quarter of 2010 were down from last year but are still up over last year through the first 3 quarters.

The Lake Orion Michigan median sale price for the 3rd quarter of 2010 was up 12.8% – $158,250 vs $138,000 in 2009.

The median monthly sale price in Lake Orion Michigan was up over last year for the last 5 months in a row and 6 of the past 9 months. 

lake orion michigan monthly median sale prices

2010=yellow 2009=blue

There were 27 foreclosure sales in the 3rd quarter of 2010 (or 33% of total sales) vs 56 foreclosure sales for the same period in 2009 (or 46% of total 3rd quarter sales).

Short sales made up 22% of total sales for the 3rd quarter of 2010 and only 4% of total 3rd quarter sales in 2009. The decrease in foreclosure sales and increase in short sales are probably a huge factor in the increase in median sale price.

Also the decrease in inventory is a contributing factor for the increase in sales price.all is not rosy in the lake orion michigan housing market

All is not rosy in the Lake Orion Michigan housing market, but it is much better than the media would have you believe. Have we hit rock bottom? Who knows? Only time will tell; we won’t know where the bottom is until we’ve passed it. But facts are facts and the bilge the media has been spewing is far from factual.

Lake Orion Michigan Detailed Sales Data

Neighborhood Sales Data

Lakefront Sales Data by Lake   

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Buying a Short Sale in Oakland County Michigan

Since at the current time my categories and tags are a mess I thought it would be a good idea to have all my posts about buying a short sale in one place- hence this post. Below are links to blog posts I’ve written about writing an offer on a short sale, some tips to help make the process go smoother, and what to expect.

Short sales are not for the faint of heart. It will usually take 3-6 months to even know if the seller’s bank(s) will approve your offer. The seller has different motivations than with a normal sale thus negotiation tactics will be different with a short sale than with a regular sale or foreclosure sale.

The first link is for a post covering the basics of writing an offer on any Oakland County or Lapeer County Michigan Home. The rest of the links are more specific to short sale listings.

Writing an Offer on a Southeast Michigan Home

Short Sales in Southeast Michigan- What to Expect

Buying a Southeast Michigan Short Sale Listing- Negotiating Tips- Part 1 of ?

Buying a Southeast Michigan Short Sale Listing- Negotiating Tips- Part 2 of ?

Buying a Southeast Michigan Short Sale Listing- Negotiating Tips- Part 3 of ?

Short Sales and Seller Concessions- Important Update!

“Highest” and “Best” are Not Synonyms

Contingent Offers on Distressed Sale Homes

Southeast Michigan Short Sale Buyer- Beware the Flopper

Please don’t hesitate to contact me if you have any questions or are in the market to buy a house in Oakland or Lapeer County Michigan.

Jackie Hawley
cell: (248)736-6407
Jackie@JackieHawley.com
Search The MLS

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Oxford Michigan Homes- Prices Up! Inventory Down!

Does this mean Oxford Michigan real estate has reached rock bottom? Who knows? What I can state is that at the end of August:

Unit sales are up 17.5%

Median sales price is up 15%

Total sales volume through August 2010 was $30,807,690 vs $22,988,190 in 2009. In fact the total sales volume is up slightly from 2007 and 2008, too.

oxford michigan home sales data

Active listings on 9/18/2010- 119 with a median asking price of $189,900
Active listings on 9/28/2009- 165 with a median asking price of $238,500

Bank owned sales are on the decline:
Through August 2010: 71 bank owned sales or 41.5% of total sales
Through August 2009: 70 bank owned sales or 49.6% of total sales

Short sales are on the increase:
Through August 2010 there were 33 short sales or 19.3% of total sales
Through August 2009 there were 14 short sales or 9.9% of total sales

The decrease in foreclosure sales in Oxford Michigan has contributed to the increase in the median sales price. Many of the bank owned homes are on the lower end of the price spectrum. There are still deals to be had- private home owners need to price their homes like a foreclosure in order to sell. Interest rates are low. Property taxes have been dropping and are more in line with the true value of Oxford Michigan homes

We will not know when we’ve hit the bottom until we’ve passed it. But whether you buy at the bottom of the curve or a just near the bottom, this is a great time to buy that home you may not have been able to afford in the past. It is also a great time to buy investment properties- using cheap money to buy cheap houses in an environment where rental demand is high.

Specific Neighborhood Sales Data

Oakland County Michigan Lakefront Homes For Sale

Oxford Michigan Homes For Sale

Search The MLS

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It’s no big secret that Michigan residents in general have been going through some rough economic times. I say in general, because not everybody is hurting. But with unemployment/underemployment at 20% or more many Michiganders have felt a financial pinch.

Some of that financial pinch shows in many of the houses that have sold in the past few years. Not as well maintained and some foreclosures are downright destroyed. For those who have taken advantage of our buyers’ market, you will more than likely need/want to make repairs and improvements on those homes. And while making those repairs and improvements you may want to consider the fact that the cost of energy has been on the increase with no end in site at this time. Personally, my electric use is down, but my electric bill is higher than for the same period last year.

We can only tackle the cost of power itself with constant contact with Congress people (Cap and Trade, etc) and in the voting booth this fall. But we DO have some control on the amount of electricity and gas we use and get some of our tax dollars back in the process via tax credits and rebates.

There are Federal tax credits that don’t expire until 2016 for items such as Geothermal Heat Pumps, Residential Wind Turbines and Solar Energy Systems- 30% of cost with no upper limit.

And there are Federal tax credits that expire December 31, 2010 for 30% of the cost up to $1500 for items such as “biomass stoves” known to the rest of us as wood stoves (or corn, or pellets), central air, heating, water heaters, insulation, windows, doors, and roofing. You should go to the federal government web site for details and exclusions and consult with your accountant before purchasing anything.

Not covered are items like ceiling fans, CFL’s- those swirly light bulbs made in China (the last American light bulb factory just closed down), toilets, electric furnaces/boilers (like we all have natural gas available), clothes washers and dryers….

You state may have it’s own credits or rebates. Some of the rebates for the state of Michigan have run out of money (but there is sill money in the budget to promote breast feeding), but there is still some money left for the purchase of refrigerators, clothes washers and dishwashers. Check this web site for details.

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Why an Oakland County Michigan Foreclosure Listing May Not be the Best “Deal”

I often get inquiries from potential buyers who want to look at foreclosure listings. No short sales. No “regular” listing. Just foreclosures. Sometimes foreclosure listings in Oakland and Lapeer County Michigan are GREAT deals. Often times foreclosure listings are grossly under-priced. And often times those listings need major work and won’t mortgage in their current condition.

Not every foreclosed listing in Oakland and Lapeer County areas are dumps; there are some beautiful homes in pristine condition. Sometimes they’re priced at fair market value and sometimes they are grossly under-priced. But the sad truth is that every time a grossly under-priced home sells they bring down the value for ALL homes in the area. So if a “regular” seller truly wants to sell, he needs to price it like a foreclosure. And as long as prices are on the decline, short sale listings need to sell for bit less than foreclosures or regular sales, since it takes about 6 months to get a short sale approved and the house will need to appraise 6 months out.

I was showing houses recently in Waterford Michigan, under $100,000, and my client even mentioned the difference in condition between the bank owned and private owned homes.

My suggestion to those who want a deal. Look at ALL the listings that fit your criteria (unless you don’t have time to wait on a short sale). You could miss out on a great deal if you are only looking at foreclosed homes– at least that is the case in Southeast Michigan.

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The Foreclosure Process in Southeast Michigan

Many of the numbers the media likes to spout about homes going into foreclosure are a bit exaggerated. When you read about the number of homes in foreclosure the stats often quoted are the notices of foreclosure that have been served- not the new bank owned listings. There are also companies like Realty Trac that publish specific houses as foreclosed homes. And technically while that that may be true, those houses are not for sale and may never come up for sale.

Below is my attempt to dispell the myths floating around about foreclosures and explain as simply as possible how the foreclosure process works in Southeast Michigan.

Typically a person needs to be behind on their house payment by 3 months or more before they receive a notice of foreclosure. That notice of foreclosure will have a date for the sheriff’s sale– usually a couple months off. The bank (or first lien holder if there are multiple loans on a house) will buy the house back at the sheriff’s sale for the amount of the mortgage or fair market value or someplace in between.

After the sheriff’s sale the owner has what is called a redemption period to pay off their mortgage(s). Most homes will have a 6 month redemption period. Homes on 3 plus acres will have a year to redeem. During this entire time the owner still has full rights of use and has the ability to sell. But the media will still call these homes bank owned or “in foreclosure” during this period.

Many of these homes will never go back to the bank. Some people will catch up before it ever gets to the sheriff’s sale. Some will sell during that time; some people still do have equity in their homes and others may be willing and able to bring cash to the closing. Others will sell via the short sale route. Many times a lender will delay the sheriff’s sale if the owner is in the process of a short sale. Some will even extend the redemption period if necessary rather than take the house back and sell as an REO (bank owned) property.

I’m finding that the amount of true bank owned sales in North Oakland County are on the decline and a major increase in short sale closings. For very detailed sales statics please click the links below for very dry and for many boring sales data for Lake Orion, Oxford and Clarkston Michigan.

Lake Orion Michigan sales data

Oxford Michigan sales data

Clarkston Michigan sales data

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