Commerce Michigan Real Estate – Buy A Home On A Lease Option And Stop Wasting Money On Rent

Many Commerce Michigan real estate owners and want to be homeowners are facing real problems. The number of Commerce MI real estate foreclosures is increasing. Throughout Oakland County, foreclosures are increasing. According to county government officials, “Rising homeownership costs, advancing debt, declining incomes, job loss and a weakening state economy have doubled foreclosures in Oakland County over the past year.”

Many of the same factors that have caused an increase in foreclosures have affected the credit scores of some really good people, in particular, declining incomes, job loss and a weakening state economy. If you are hoping to buy Commerce Michigan real estate, but your credit has been bruised, you should know that there is hope.

Because of its location, near Detroit and less than thirty minutes from Pontiac, many residents were employed by GM. Some still are. Lay-offs, cut-backs and buy-outs affected not only auto-industry employees, but nearly everyone in the state. Many companies closed offices or went out of business completely, because there businesses relied on the money spent by auto-industry employees.

A temporary job loss may have caused your credit problems. Even a few late payments on the credit cards can dramatically lower the credit score. You may have worked hard to pay off your debts and even saved up for a downpayment, but still find that buying Commerce MI real estate is difficult, frustrating or downright impossible. There are options that you don’t know about.

No matter what caused your credit problems, they can be overcome. If you can afford to rent Commerce Michigan real estate, then you can probably afford to own Commerce MI real estate. If you are employed and can afford the monthly payments, then a lease option / rent to own plan can work for you. A downpayment or option consideration will be required, but a portion of your monthly rent will go towards the purchase of a home. In other words, you can build equity and obtain true home ownership.

With a standard lease, all of the money goes to the landlord; none of it goes towards your future. People sometimes rent for years and have nothing to show for it but a bunch of rent receipts. As experienced real estate investors in Michigan, we offer a very unique lease option program that will allow you to invest in your future, improve your credit score and own a home, much sooner than you ever thought possible. We know that bad things happen to good people and we want to help turn it all around.

Perhaps you are a Commerce MI real estate owner that is facing the problems caused by “rising homeownership costs, advancing debt, declining incomes, job loss and a weakening state economy.” You may be looking through the Commerce Michigan real estate listings and wondering how long your home will stay on the market if you are a seller. You may have bought your property when your income was high and your future looked bright. Your company may be offering you a transfer, but you are wondering how you will buy a home in a new area, before selling the home that you have.

You may be behind on your payments and facing foreclosure. There are several unique options for avoiding foreclosure. The lease option program that we offer is one. We may be able to find a potential buyer….someone who can make those mortgage payments and may eventually buy your Commerce Michigan real estate. We look for the win-win situation for both buyers and sellers of Commerce MI real estate and for buyers and sellers throughout the state of Michigan.

Commerce Michigan real estate is some of the most beautiful property in the country. At one time it was a weekend and summer resort for residents of Detroit. Transportation improvements made it possible to live there year round and still work in Detroit, Ann Arbor or Pontiac. The Huron River and several lakes provide a rural secluded feel, while the parks and golf courses provide recreation. It is likely that the value of Commerce MI real estate will increase again in time, as the state’s economy eventually rebounds.

Now could be an excellent time to begin investing in your future.

Buy A Short Sale Home At Heavily Discounted Prices

You may have been reading or heard about all the money that you can save today with the purchase of a short sale home. Many people who do not even have any experience with buying homes or real estate investments are now buying these homes with great success. This is, however, a process that must be fully understood before being undertaken.

When you are buying this real estate, you are essentially purchasing a home at a heavily discounted price. The words “Short Sale” basically mean that the seller’s lender is willing to accept a payoff amount less than balance of the current mortgage. You can make offers on homes, which the seller and their lender will then consider. Both the seller and the lender must be in agreement for the short sale to be accepted.

Lenders will most often allow a home to be listed for short sale if the current buyer has fallen behind on mortgage payments or has completely stopped making payments. However, in some cases a lender might allow the current buyer to list the home as a short sale even if they are completely current on their mortgage payments. Situations like this may happen when the buyer has become “upside down”(owing more than the home is even worth) in the home due to the real estate market value dropping.

If you are considering buying a short sale house, it is vital that you do some investigation once you have found a potential home. Finding out whether a foreclosure notice has been issued and learning the amount that is still owed on the home, information that an agent can obtain for you, will help you in deciding if this is a good chance to make an offer. Lenders that offer a home that they are foreclosing on may be more motivated than those who have homes that the buyers are still making payments on. Knowing the amount owed is helpful since it will give you an idea of the finances behind the deal: How much the lender might be willing to sell for. Getting all of the pertinent information can save you a bundle when you are purchasing these properties.

Tips For Wholesaling Houses With Tenants

Many new investors expect to be wholesaling vacant houses when they get into the business, yet quickly find a great percentage of properties today are occupied, even foreclosures and REOs. So how does this change the game and what tips can help those wholesaling houses with tenants better navigate the process more profitably?

While many, especially newer real estate investors may find wholesaling vacant houses simpler, there are many advantages to flipping tenant occupied properties in this market.

First time home buyers still make up a small percentage of the market in most areas and certainly don’t provide the consistent volume and speed that wholesaling houses to investors hungry for rental units does.

Properties which already have tenants in place eliminate the guess work for end investors and give them the confidence and advantage that comes with an asset which is already delivering positive cash flow and returns. This can help generate higher profit margins and move homes faster.

Of course wholesaling properties that are occupied can also come with some need for additional due diligence and a few challenges. First and foremost today this means figuring out exactly who is occupying the property and what the deal is.

In many cases today, even when a property has been foreclosed on and classified as a bank owned REO for years previous owners can still be found living there. This is a big problem situation for investors. While it may not appear to be much of a concern for those wholesaling or flipping real estate contracts it can mean getting stuck with a deal no one else wants to touch.

Make sure the property is free of previous owners and squatters before closing or be prepared to be stuck with them indefinitely.

Even when actual tenants are in place it is essential to verify rents, rent status and deposits accurately. Never just take the seller’s word for it, or even their agent or an occupant. Official estoppel letters should be obtained from all units and figures verified.

Keep on top of this at closing to ensure all funds paid are prorated and appropriate amounts are transferred to the new owner. As the buyer or middle man remember that cash back at closing due to deposit credit and rent paid in advance is not profit. Some have boasted walking away from the closing table with thousands in cash, but which actually needs to be held for refundable deposits or forwarded to new buyers.

The buying and selling process, especially when there are multiple sales in a short period of time can be very stressful and annoying for renters. Be friendly, be as transparent as possible and ensure that they understand the benefits to prevent them from becoming difficult or blocking potential deals.

Stop My Foreclosure! How to Convince Your Mortgage Company to Give You Another Chance

Statistics show that national foreclosure filings were up 72% in the first quarter of 2006. Clearly more and more homeowners are facing the possibility of losing their house as they struggle to stay current on their payments. Being in foreclosure is a scary situation – but with a little knowledge and a willingness to deal with the problem, you can stop your foreclosure.

The first thing you need to realize is, your lender does not want to foreclose, and they do not want your house. Mortgage companies are in business to loan money, not to own real estate. However, you and the lender are legally bound by the contract you both signed when you bought your house. Your security agreement states that if you do not pay, they must foreclose. If they do not foreclose, investors won’t invest in mortgages and that is bad for everyone.

Here is an astonishing fact: According to Freddie Mac, over half of homeowners who are foreclosed on never even try to work with their lender! Thousands of people lose their home each year because they simply did not pick up the phone and try to work it out with their lender. If you are behind on your payment(s) by even 15 days, you need to contact your lender and let them know what the situation is.

Before you go any further, spend a moment to make a very important decision. Something has caused you to miss your payments – is it a temporary setback that will soon be in the past, or a permanent or semi-permanent situation? If this is just a bump in the road, then try to find a way to keep your house. But major life change such as divorce, job loss, family problems, health issues, etc. may mean your best option is to sell the house and make a fresh start. Make a logical, not emotional decision.

If you have missed a payment or two, foreclosure is just around the corner unless you work out an agreement with your lender. Before you call, take a few minutes to prepare. Write down your budget – all expenses and sources of income – as you will likely be asked about it by the representative so they can attempt to qualify you for a program. Call the customer service phone number and ask for the loss mitigation department. Here are four common agreements that can get you out of hot water and back on track.

A Reinstatement – simply means pay all your back payments in one lump sum at some point, now or in the near future. The lender the reinstates your loan and you continue to make your payments. May be combined with a forbearance agreement.

A Forbearance – allows you to make no payment or partial payment with the understanding that you will soon pay all the past due amount. You will have to have a realistic source that the funds are coming from such as a bonus, tax refund, loan proceeds, etc.

A Payment Agreement – is when you make a partial payment on the past due amount along with your normal payment for a period of months until you are caught up and current. Your lender will want to know that your budget (income less expenses) will leave room for that increased payment, so be prepared to prove it to them.

A Loan Modification – is a renegotiation of the terms of your original note to make your payment more affordable. You might be able to extend the loan and add the payments to the end, simply add the amount to the principal balance and increase the payment accordingly, or transform the loan from adjustable-rate to fixed-rate.

One final thing to remember when calling loss mitigation – the person on the other end of the phone is not your enemy. They are just doing their job, and it’s a not-too-fun job, and most of the people they talk to do not want to talk to them. Let them know you are serious about remedying your situation, but be friendly, upbeat, positive, and gracious.

There are many more radical ways of stopping a foreclosure, but the first and best option is simply good communication and a negotiating a win-win arrangement with your lender. Good luck!