Grand Rapids Homeowners: How to Stop the Foreclosure Process in Michigan

There are generally three techniques a homeowner can use to prevent the foreclosure process in Michigan. As a homeowner, you have the options of: a short sale transaction, mortgage loan re-instatement, or a mortgage modification. This article will discuss briefly, each of these kinds of processes and how they apply to short sales in Grand Rapids

What is a short sale property transaction? A short sale opportunity develops when the property owner no longer has the ability to pay his or her mortgage loan. Usually, there’s no foreseeable alternative in the near future for the homeowner and the borrower is in danger of losing his or her property once the mortgage lender begins the property foreclosure process in Michigan. 

In order to help save the homeowner’s credit rating and eliminate a potentially costly and prolonged property foreclosure proceeding, the owner of the home, as well as, the mortgage loan company agrees to seek a short sale. 

The mortgage company agrees to settle for, in most cases, a significantly less amount of money than the actual outstanding property loan. They fully understand they will lose money on your home; however, they still get most of their financial investment back and avoid the costly, time consuming property foreclosure process. 

Once the decision has been made to put your house up for sale you can either sell it by yourself, (FSBO) for sale by owner, or you can use any good short sale realtor in Grand Rapids that has plenty of short selling experience. Keep in mind that just because your mortgage company has agreed to do a short sale, doesn’t mean they’ll settle for just any short sale offer that comes in, in some cases the lender will turn down a good short sale offer, or make the process so complex that you may risk losing your new buyer. That’s why using any of the good short sale realtors in Grand Rapids is to your advantage. 

The mortgage loan reinstatement method and how it applies in Michigan. Due to Michigan’s current economic climate, many West Michigan homeowners’ have found themselves in the unemployment line. The downside to trying any mortgage reinstatement plan is that generally, the property owner has to come up with the total amount of mortgage payments that they’re behind on to begin with. Once in a while, the financial institutions will give an individual some sort of time frame to get current with their home mortgage loan. Generally a 90 to 120 day grace period, providing you continue to remain current with the monthly payments from then on. For many West Michigan homeowner’s, obtaining the money to bring their mortgage payment up-to-date with their home loan in the first place, is usually the most challenging obstacle. Another strategy is the mortgage loan modification program. 

What is a mortgage loan modification? A Mortgage loan modification is usually the very first method a property owner should use once they begin to have difficulty making their mortgage payments. Sometimes, the mortgage company may be the first to suggest a mortgage loan modification. The mortgage company may work with the homeowner to figure out if there is anything that could possibly be done to keep from using the foreclosure process

A loan modification program will involve using one or more of these techniques: adjusting the interest rate on your loan, reducing the monthly mortgage payments and adding the balance to the backend of the mortgage, or perhaps re-doing the entire mortgage agreement it’s self. For many homeowners’, those who meet governmental standards, a mortgage loan modification program can help to save their property against the foreclosure process in Michigan. 

As previously explained, selling an individual’s family home by means of a short sale is going to be a financial decision made between the mortgage lenders and the owner of the home. In Michigan, Short sales are generally thought of as a final attempt to avoid a home foreclosure. Homeowner’s should certainly seek the help of a good Michigan short sale real estate agent that has plenty of practical experience to help guide you throughout the transaction while trying to sell your house. 

As you can see, there are a few methods that a property owner could utilize to avoid the home foreclosure process in Michigan; use any or all of these steps to your benefit. Some homeowners could save money by selling the home by themselves; however, choosing a good short sale realtor in Grand Rapids to sell your home could very well speed up the selling process and get you back on your feet sooner.

Buying A Short Sale Home In Grand Rapids: How To Get A Mortgage Lender To Agree To Your Short Sale Offer

In Michigan, the vast majority of family homes are generally offered for sale using a local Grand Rapids Realtor. However, a lot of homeowners will offer their homes or real estate for sale by owner. Many do this because they want to have control over the transaction and try to save themselves some money in the process. They can choose how much money they wish to sell the house for, how it’s advertised, and when to hold an open house. 

Unfortunately, due to the recent condition of our economy and the West Michigan real estate market in general, a large number of these homeowners are selling their homes to prevent a foreclosure. These individuals can’t afford to pay for their home anymore, and a sale of the property will stop, or prevent a foreclosure process in Michigan

If you’re looking to purchase a new home for less than the current market value, or simply want to make a profit renting or reselling homes, you need to concentrate on buying short sale houses in Grand Rapids. That being said, buying a short sale property isn’t an effortless process. A lot of home sellers won’t advertise the fact they’re actually selling their home to avoid the foreclosure process 

The first step in the process is to contact the owner and schedule a meeting with them in person; so that you can view the property, inside and out. You should be friendly and try to strike up a casual conversation with the owner; if done properly, in almost no time at all, you should have the story behind the owner’s intent behind the sale of the property. It could be due to relocation, loss of a job or divorce; however, it can also be to avoid foreclosure. These are the properties you’ll want to find. If the owner does mention they’re trying to avoid foreclosure, be sure to ask about the name of their mortgage lender. 

If you like the property in question, ask for more details about the price and how firm they are. Is the selling price reasonable to the actual home’s estimated market value? If it’s a short sale opportunity to avoid a foreclosure, the price should be considerably less than the current market value. If the owner of the home is selling their house to prevent a foreclosure, they should be prepared to take any offer close to their mortgage balance; their primary aim is usually to pay off their mortgage loan. If the price is way to high or the owner is just in the beginning stages of trying to sell their home on their own, you’re going to have to do some negotiating first. In cases where the past due mortgage balance is relatively low, you can offer that as your starting offer. If the owner is hesitant, offer to add a few thousand dollars more to help them with the cost of moving or rent deposit. If the homeowner refuses your offer, you can just move on to another house, or you have yet another possible course of action. 

As previously mentioned, you have to find the name of their mortgage company. Although it may seem a little misleading, it could lead you to a new home or investment property for your family. What you must do in this case is approach the lender and talk to a loan officer, or the person in charge of short sales in Grand Rapids. Tell them you and your family attempted to make an offer on the house, but the home owners appeared to be asking for way too much for the property. Emphasize your interest in the house; however you also need to express your unwillingness to spend an unfair amount of money on this house. Try to gage how receptive the mortgage company is to your interest in the property; at this point, you should suggest a short sale; especially, if the homeowner told you their property will be going to foreclosure. 

The short sale process in Michigan is a transaction between the lender and the homeowner. They come to an agreement to sell the house for less than the unpaid balance of the mortgage loan, homeowners agree with this to prevent the foreclosure process. The property gets sold and the homeowner doesn’t receive a foreclosure on his or her credit report; not to mention preventing a possible bankruptcy situation. Mortgage loan lenders agree to short sales because they simply want to have their money back, even if a lot less than what may be due. It simultaneously, saves them from a long and expensive Michigan foreclosure process, where many homeowners can become difficult and unruly. 

If you contact the mortgage lender inquiring about the short sale process in Grand Rapids, keep in mind the sale won’t develop right away. Remember, typically the homeowner is still trying to sell their property on their. However, due to the status of the local economy, many potential home buyers are finding it difficult to receive mortgage loans; which mean these houses are staying on the real estate market for months and months. The short sale process normally requires a month or more of letters from the mortgage company threatening to foreclose on the home before homeowner agrees with a short sale. On the other hand, if you have contacted the mortgage company and prepared a good offer, you will probably be the first buyer they contact when they decide to take action. 

If you don’t have the time to locate these short sale properties by yourself, but still want to take advantage of the lower prices, you can always hire one of the many Realtors in Grand Rapids to work on your behalf as a buyer’s agent. There may or may not be some extra fees involved when hiring a Grand Rapids Realtor to work as your buyer’s agent, however it will save you time and effort.