Archive for April, 2009
Home Buyers – Low-Ball Deal
In these strange economic times for home buyers a person looking to purchase a home could not find a better time to be getting the best deals available within the housing market. With home buyers looking for steals and sellers looking for an out and banks selling off homes at cutrate prices the opportunities could not be better favoring the home buyers.
The old school conventional wisdom within the housing industry just does not hold water today and can actually get in your way of getting your best lowball deal on a house you want to buy. A lowball offer can best be summed up as any offer that is less than a large percentage of the asking price.
The current market dictates that seller needs to consider every offer made from prospective home buyers no matter how low the offer is. Home buyers should make lowball offers in this market because they could come out way ahead of the game.
Home buyers should also keep a few things in mind before buying a house simply because it seems like such a steal. Shopping around for the right home for you and your family can be a real emotional rollercoaster of a ride. Shopping for homes is not like shopping for anything else you have shopped for before. It is important to stay focused on what you really want and what you need when buying a house.
Home buyers check list.
The size of the house the location the age of the home and many offer variables need to be accessed before jumping on a deal.
Does the house you are considering have a good school nearby that your children will be attending? Is the home surrounded by neighbors you would rather watch on reality TV than live next door to? The home may be next to a nice wooded area but were you aware that the land was sold and a new shopping mall is going to be next to your back yard sometime next year?
As you can see for any serious home buyers there are a lot of considerations to check out before purchasing a new home. Is the home you are considering maintenance free or will you have to do some major renovations to suit your tastes? Honestly this “consideration” list goes on and on.
The most important thing that you can do before shopping for a home is to make an extensive list of all the considerations that need to be taken into account before buying. You will find some things you can live with while other things can’t be sacrificed for any amount of money.
Remember that old Beatles’ song “Money Can’t Buy Me Love”? Keep that in mind when you decide to put a lowball bid in on some house you found that is right next to the train tracks and expressway. Your family will love you for making a list then checking it twice before buying.
About the writer: Jeff Rauth is President of Commercial Finance Advisors Inc out of Birmingham Michigan. He specializes in Commercial Real Estate Loans between 100000 5000000. Offers unique loan programs such as Commercial Second Mortgages Commercial 30 Year Fixed 90 non SBA financing Commercial Equity Loans. 248 8858797 or commercial real estate loans or commercial loan officer training or how to read tax returns
Foreclosure Process In Michigan
In Michigan a bank can choose either judicial or incourt foreclosure or nonjudicial or out of court foreclosures. As with all states where both methods of foreclosure maybe used the determining factor as to which process the bank will choose is whether or not the deed of trust or mortgage contains a power of sale clause. It is the power of sale clause that allows the bank to forgo the time and expenses of filing a lawsuit against the homeowner who is having trouble making his payments to begin the foreclosure process. Since it is in the banks best interest to spend as little as possible on the process and move it along as quickly as possible the bank will always choose to use nonjudicial foreclosure when it can.
The only time a judicial foreclosure will be used is when there is no power of sale clause in the deed of trust or mortgage. When no power of sale clause exists judicial foreclosure is the banks only option.
To follow this course of action the bank files a lawsuit against the home owner asking the court to find the homeowner officially in default. When this has been obtained the judge/court will tabulate the amount that the home owner owes and give him or her a short time to come up with that amount of money. If during this allotted time the homeowner is unable to pay this money then the home will be scheduled for sale. The court actually must issue the notice of sale. Following this action the process moving forward the sale date is followed the same way whether it is a judicial or a nonjudicial foreclosure.
When a power of sale clause is very specific in the details of how the sale is to be conducted those instructions must be followed. In such a case the datetime and terms of the sale will be laid out in the deed of trust or mortgage. Such detailed instructions are not.
Usually included in a power of sale clause in all instances where those details are not included in the power of sale clause the 1st step is that a notice of sale must be advertised once a week for four weeks.
Integrity 1st Consulting is your Foreclosure specialist Kathy Swift
This ad must be run in a newspaper with circulation in the county where the house is located. A copy of the notice of sale must be physically posted on the home in question as well. This posting of the notice must be placed on the home following the first day the ad is run in the newspaper.
This notice of sale must include the names of the home owner and the bank. It must contain a description of the property and the date place time and terms of the auction.
The auction can either be conducted by the banks Lawyer referred to in most cases as by trustee or the courts sheriff. The sale will always be held between nine are and four pm on the date listed in the notice of sale. The home will be awarded to the person making the highest bid at the auction.
Postponement of the sale can be arranged at the discretion of the bank. Postponements of less than one week will only need to be announced by posting the new sale was originally to be held.
Postponements longer than one week must be advertised in exactly the same manner as the originally scheduled sale was done.
In Michigan when a judicial foreclosure has been used the former home owner is given one year right of redemption following the sale of the home. This means that for one year following the sale of the home the person who lost the home at the sale can regain ownership of the home. They may do this by paying the amount of the winning bid at auction plus interest.
About the writer: Integrity 1st Consulting is your Foreclosure ebook specialist Kathy Swift
Finding Rent To Own Homes
Finding homes to rent are pretty easy. And of course there is a huge selection of homes to buy right now. However finding homes that are rent to own can be very difficult. Weve gotten more questions about rent to own homes in the past 5 months than we have in the 5 years before that. These are also sometimes called lease to purchase homes or lease with the option to purchase. All of these names can be used interchangeably since they are referring to the same kind of basic set up.
In rent to own situations the sellers are willing to lease the home for a certain amount of time. When that rental time is up the renter has the option to buy the home. Usually the money spent on rent during that time is deducted from the purchase price of the home a price which is usually negotiated when the rental time is up and market statistics are as up to date as possible. But if youre interested in a lease to purchase know that all of these factors are flexible and depend on the situation. For example in some cases the purchase price is negotiated well before the renter moves in. So no two cases will be exactly alike.
A lot of buyers look for rent to own homes in order to have time to get their credit in order. Or sometimes buyers find a home that they really like but theyre simply not ready to buy yet. So renting with the option to purchase gives buyers a lot of flexibility and ensures that they will get the home they want if they decide to purchase it. Its similar to test driving a car. But instead of trying it for a couple of days you actually get to move your stuff in and stay for as many months as you can negotiate. There are a lot of benefits for buyers in a rent to own situation.
For sellers rent to owns can become sticky situations. Because the renter/buyer has so much flexibility the seller loses a lot of control in the process. After all there is no guarantee that the renter will buy the home after the specified time frame. So a seller may have taken his home off the market for nothing and may have lost other potential buyers who are actually willing and able to buy real estate in the mean time. Depending on how the contract is written the seller gets to keep all of the money from the rental period regardless of whether the renter buys. Some sellers are willing to risk taking their home off the market for the chance of the sale and they may view the money earned as income they would not have gotten if the home had sat vacant instead. Sellers who are desperate and willing to try anything may want to consider listing their home as a rent to own since some interest even if its not serious interest is better than no interest at all.
For buyers and sellers finding a real estate agent who is willing to work with rent to own homes can be difficult. So if youre considering a rent to own situation be sure to tell your agent upfront. If he or she is not able to work with you find another agent who has experience with these transactions since there are a lot of factors to take into consideration with rent to own properties.
About the writer: Buyers can search for Charleston SC homes for sale on our website which includes the most popular areas Mount Pleasant SC homes and Summerville SC homes!