Whether you’re looking to buy a personal home in Grand Rapids, MI or just looking to invest in the local West Michigan real estate market, you should examine both short sale opportunities, as well as, buying home foreclosures. Which real estate transaction is in your best interest, and which kind of transaction deserves the majority of your attention?
Before evaluating the advantages and disadvantages of buying short sales and foreclosed properties in Grand Rapids, MI, make sure you understand the actual processes of each transaction.
The foreclosure process develops when a Michigan homeowner has become delinquent on their residential home loan. They’re unable to pay their mortgage and have used up all other options. Typically the property is sold off at a foreclosure auction or the ownership reverts back to the initial loan provider. Short sales in Grand Rapids are an alternate course of action to the property foreclosure method. The foreclosure process in Michigan has a negative effect towards credit score reports and is rather expensive for mortgage companies. With the short sale process in Michigan, instead of home foreclosure, the house is usually offered, at a reduced amount of the mortgage balance due, for sale ahead of a public auction.
So, which real estate transaction is going to be more advantageous for you? Buying Michigan real estate foreclosures or buying short sales in Grand Rapids? It depends, however, a good Realtor in Grand Rapids will be able to help you.
Usually, with the short sale transaction, the lenders will have the final say; the mortgage company authorizes all of the final offers. Having said that, the mortgage lender will not propose a short sale themselves, they will expect the borrower to make good on the actual loan amount or expect the homeowner to sell the property or home at full market price.
Once the property owner realizes they have little or no other solution, will contact the financial institution to seek information about the short sale process in Michigan. The property or home owner understands they will have to leave the property after it is sold.
On the other hand, foreclosures in Grand Rapids, MI can result in disorderly evictions; a number of home occupants refuse to abandon their home’s without the need of force. Essentially, with foreclosed homes, you could end up being left with really difficult occupants who actually refuse to move, unless of course the authorities intervene.
If this is your initial purchase and / or you’re looking for fewer headaches following the purchase, it really is a better idea to purchase a short sale house or simply buy empty home foreclosures in Grand Rapids.
When buying Michigan short sales, you pay considerably less than the unpaid residential home loan balance. This approach usually means getting an outstanding investment for your money. For example, buyers might be able to purchase a well-kept single family house for under $50,000 if the outstanding mortgage loan balance is $75,000 or less.
Buying Michigan foreclosures, alternatively, can be done for dirt-cheap, however, the amount you actually end up paying is going to be dependent on the condition of the particular home and the competition that shows up at the property foreclosure auction. Remember to keep in mind that individuals that allow their homes to go into foreclosure have usually reached a place where they don’t really care about the house anymore; which could result in a house that has also been damaged and quite possibly will need extensive remodeling and / or maintenance.
If you’re looking to make the largest return on your investment, buying Grand Rapids foreclosures is usually an individual’s best option. If you’re looking to get the best value for your hard earned money, looking at short sales in Grand Rapids is usually the best solution.
Michigan foreclosure sales have lots of guidelines and regulations that must be followed.
In many scenarios, payment in full is necessary within 24 or 48 hours after the auction. Usually, there are more experienced real estate investors with cash on hand that participate and are very successful at property foreclosure auction sales. Many of these investors have substantial monetary resources and will simply out bid an individual on a piece of property; if they really want it. If you really want to find a new home or perhaps you’re just getting up and running with real estate investing, you’ll more than likely have to acquire some decent funding to start with.
Unless you have a spotless credit report, most financial institutions will not fund the possibility of people successfully winning at a Michigan home foreclosure auction. Mortgage lenders, on the other hand, will provide you with the necessary funds to purchase short sale property in Grand Rapids.
Buying Michigan short sales or home foreclosure properties both offer good quality investment options. If you’re a real estate investor or the hopeful first-time home buyer, always keep your options open; you never know what you’ll bargains you’ll find when buying foreclosures or short sales in Grand Rapids, MI.