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.