Foreclosure Sales Hit the Skids in Wayne County

Wayne County Sheriff Warren Evans has stopped all foreclosure sales because there is no way to know which homes are covered under TARP, the Troubled Asset Relief Program passed by Congress which supercedes Michigan foreclosure law.

Last week Evans sent a letter to Michigan's Gov. Jennifer Granholm requesting she declare a state of emergency in Wayne County to address the growing home foreclosure crisis.

Today Evans announced that to proceed with sales not knowing whether the homeowner has had an opportunity to modify their loan would put him in a position of violating federal law.

Evans says his office will work with both homeowners facing foreclosure and their lenders to ensure they are able to exercise their rights according to the law. Additionally, he's urging sheriffs throughout Michigan to join the foreclosure moratorium.

If you or someone you know is having difficulty making their mortgage payment, visit the Wayne County Mortgage Prevention Program's website for guidance and assistance.

photo credit: respres

Taking The Leap & Leaving The Nest

There has never been a better time to buy your first home than right now. Given the current economy, you probably think I'm crazy, but hear me out.

First of all, interest rates are still really great and there are rumbles about them getting better. Second is the first time homebuyer tax credit passed this year. And third, the mortgage is likely to be cheaper than paying rent.

Case in point, my daughter.

After she graduated from college in May, we started running some numbers in preparation for her leaving the nest. She was looking at between $600-750 per month for a small apartment. Based on what I was seeing on the market, I suggested we investigate foreclosed & HUD homes.

Long story short...we found a really great 3 bedroom, 2 bath brick ranch with finished basement, fenced yard and 2 car garage for $50K. Her payment? Under $600 a month!

Are there still great deals out there? Absolutely...and some of them are not even HUD or bank-owned. Some sellers just need to move now.

If you're been thinking about taking the leap, be sure to work with a buyer's agent who can look out for your best interests and research potential problems. And if you check out HUD homes, make sure make sure you're working with an agent whose brokerage is approved by HUD to submit electronic bids.

Sweet Deal For 1st Time Homebuyers

Looking to take advantage of the great deals out there right now, my daughter just closed on a Redford foreclosure.

Just a few years back, there was very little available under $100K for first time buyers. Now with HUD offering $500 down FHA mortgages with $2,500 buyer incentives, her house payment on a $50K home will be less than she would pay to rent an apartment, much less a house with a garage and basement!

If you've got good credit with stable employment, it's a really great time to buy. The above incentives are only good through September 30th.

Not every agent is able to help with HUD homes, so make sure you're working with an agent whose brokerage is approved by HUD to submit electronic bids.

Increased Sales But Half Are Foreclosures

Realcomp, our local and Michigan's largest Multiple Listing Service, released the latest sales figures recently indicating a 12.7% year to date increase in sales over last year for the entire MLS.

Although the number of homes on the market has declined an average of 7%, more the half the homes sold in May were foreclosures.

The good news is that Michigan has dropped to 5th in the nation in foreclosures, many homes are now priced to sell, and interest rates are still at historic low levels.

A particularly good bargain right now are HUD homes. They are currently offering buyer incentives of only $500 down and $2,500 at closing if you're buying the property as a principle residence. These incentives are valid through the end of September so if you know someone who has been thinking about taking the homeownership leap, now is definitely the time.

For those of you thinking about buying for investment, now is also a great time to expand your portfolio. There are lots of really great deals out there.

Homeowners Catch A Break, Part 1

Although the Sunday, April 13th edition of the Detroit Free Press highlighted the high levels of home inventories in the area, the rates of foreclosures have decreased. We've definitely noticed an increase in activity over last year and there continues to be lots of good deals for both first time buyers and move-up buyers, so we're looking forward to a strong Spring selling season.

A couple of pieces of important legislation have been passed by the Michigan State Legislature recently to ease the homeowner burden during this challenging market. These include:

1. A 33-month 'pop-up' tax moratorium making it more economical to make a move, and a
   
Conditional recission of homestead exemption for those sellers who own and are living in a second property who still haven't sold their original property

Additionally Attorney General Mike Cox clarified an exemption to the state transfer tax enabling home sellers to request a refund of state transfer taxes paid during a sale if certain requirements are met.

Be sure to take advantage of any of these changes if they apply to you!

Tales From The Foreclosure Front

In the last month, I've shown more vacant, foreclosed homes than I care to admit. It's really kind of sad to see the sorry state of some of these homes.

Last Saturday, with sub-zero temperatures, I had appointments to show three homes, all foreclosures under $100K. The necessities for showing these homes are long johns and flashlights (they have no power) and snow boots (driveways and walkways never get cleared). Additionally, a strong constitution is advised because you never know what you're going to find.

One time, we saw a refrigerator that looked like it had exploded with some kind of liquid on the floor and oozing black stuff everywhere. Because of the stench, we didn't get close enough to investigate further.

Back to my Saturday appointments. We couldn't get into the first home because the door was frozen shut.

The second home had been sold by a fellow agent in 2003 and had been in great shape so I was hopeful. Unfortunately, the previous owners must have loaded the place with cats because the smell was overpowering. The flooring had been stripped to the subfloor, but it clearly didn't help. Plus some of the windows were broken (above) and the entire Living Room ceiling paint was peeling off (right).

As we entered the last home, we noticed a nicely remodeled Kitchen, hardwood flooring, nice layout and bedroom sizes, great neighborhood...promising. Until we got to the bathroom. Check out the shower surround in the photo on the left. The rest of the bathroom had even been updated!

Foreclosed homes seem to range from those just needing a good scrubbing to better to bulldoze and start over again. Some of them are just a mystery, like the ones with every light fixture, switch, appliance, cabinet, and outlet yanked out.

I'll be really glad when the market turns around and foreclosed homes are a thing of the past. For now, I'm just praying for warmer weather!