In today’s residential real estate market, there is a lot of interest in buying bank owned properties. Some of the information you may read about is convoluted and confusing. Therefore, let this article serve as a breakdown of how purchasing bank owned property typically works.

An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. These properties are now owned by the bank because the properties failed to result in a bid. In fact, most foreclosure auctions do not even result in bids. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees which accrued during the foreclosure process.

Foreclosure sales begin with a…

Has the pendulum shifted? Have we seen the worst of the real estate market here in Metro Detroit?

#marketupdatejan17#

Supply is down 20% and buyer demand is up 6%

The real estate market is changing right before our eyes. In the last year inventory or the amount of homes for sale each month has decreased by more than 20%. This in part due to the fact that there are a lot less bank foreclosures on the market. Lenders are much more open to short sales which avoids a foreclosure.

Of the 5,139 sales last month (the fact that there were 5,139 sales last month is remarkable in itself), 757 or 14.7% were short sales. Had the lender not been open to a short sale a lot of those homes would have eventually foreclosed. In general we know demand is up…

On October 24, 2011, the Obama administration rolled out a revamped program to help homeowners stave off foreclosures. This plan is for current borrowers who want to get a lower monthly payment through a lower mortgage rate. Proponents of the program say it would help boost the economy by relieving financial stress on homeowners and reducing their mortgage so that they would have more expendable money.

The new initiative, which involves removing barriers to homeowners qualifying for the Home Affordable Refinance Program (HARP), is the latest in a series of steps by the President to defend his mortgage relief efforts and promote his jobs and economic policies.

At its core, the latest initiative would allow homeowners to refinance regardless of how…

The MARK Z. Home Selling Team finished number 81 in the country out of 2 Million plus Realtors on the "Top 250 Teams by Transaction Sides List" for 2011. The Wall Street Journal and Real Trends Inc. anncounced the top 1,000 real estate agents and teams for 2011 in the United States. Teams and Agents were ranked based on the total number of closed transactions in 2010. I wanted to congratulate my team on a very successful year in a very challenging real estate market. 

We are starting to see the market turn for the positive. Although we are seeing home prices increase in certain communities, we are still having appraisal issues on many houses. Foreclosure inventory is very scarse and when one does pop up on the scene more times than not, it is a…

To Lease, Own, Or Lease-To-Own Your Home

At some time in your life, you may have rented a home or an apartment, so you may have undoubtedly encountered a lease agreement. If you’ve ever bought or sold a house, you’re familiar with a purchase offer. The lease-to-own agreement is a hybrid of the two – a lease agreement combined with a purchase offer. Whether renting is better than buying depends on many factors, particularly how fast prices and rents rise and how long one intends to stay in the home.

A lease-to-own house purchase (also “rent-to-own purchase” or “lease purchase”) is a lease combined with an option to purchase the property within a specified period, usually 3 years or less, at an agreed-upon price. The borrower pays an…

The typical client is concerned about credit after bankruptcy and how to establish credit again. Rebuilding credit after filing bankruptcy is not difficult, but does take time. It is obviously important to stay current on any new or existing obligations that you have. For example, taking out a new loan, even a small one, and making the monthly payments consistently and on time will cause credit scores to increase. One very important…

22% of homes listed for sale in Michigan are short sales

Analysis

Overall, short sales that closed in April were up 2.1% from 678 (of 2010) to 692 (of 2011).

Median sales price down in every county except Lapeer County (Up 14.9%) and Livingston County (Up 8.5%).

The average days on market (DOM) for the entire MLS decreased over the last year by 9 days, from 99 to 90 days.

Synopis of Inventory (April of 2011 vs. April 2010)

All MLS on-market inventory was at 32,910 units - 4,465 or 13.5% of these are foreclosures and 28,445 or 86.5% of these are NON-foreclosures.

Inventory continues to decline as compared to 38,394 last year in April of 2010.

Out of the total on-market inventory, 7,246 or 22% of them have been identified as short…

Positive Signs ahead although prices are still declining

The amount of homes for sale or on market inventory and average days on market continue to decline compared to 2010 levels for the same period. In fact there are 6,000 fewer homes on market in March 2011 VS. March 2010.

When you see the words MLS, this stands for Multiple Listing Service. Out of the 32,317 homes listed for sale, 27,686 of the houses were NOT foreclosures and 4,631 of the homes listed were bank foreclosures. Of the 27,686 homes 7,464 were short sales, where the homeowner is trying to sell the home for less than they owe.

The average days on market is 97 days compared to last year in March when it was 102 days on average before a home would sell.

Home Prices Decline…

If you're just starting out searching for a home, it's hard not to notice that a lot of the best deals on the market are short sales. First you should know exactly what a short sale is. If a listing is categorized as a short sale or you notice in the description it says "subject to 3rd party approval or lender approval", this means the seller or owner is requesting that their lender allow them to sell the house for less than what they owe on their mortgage.

It all starts with a written offer

Lenders will not decide whether to approve or deny a short sale until a formal written offer has been presented to them. Once they get a written offer they will begin the review process. The review process can take anywhere from 45 days to six months. If you…

Metro Detroit Home Prices Rise 1.6%, While Inventory Is Down

Waiting for the market to bottom out? You may have missed the boat. All the signs of an upward trending market are in place. Demand is up, while supply is down. Foreclosures are rare and when they do hit the market usually sell for over the asking price. Interest rates are still at an all time low. We are still having a hard time getting homes to appraise, but in time that should clear itself up. Below is specific data to each county comparing February of 2011 vs. February of 2010. 

Synopsis of Inventory (02/2011 vs. 02/2010)

*All MLS on -market inventory was at 32,695 units - 4,907 of these are foreclosures, 27,788 of these are NON-foreclosures.

Analysis:

*On-market inventory…