Macomb County MI real estate blog

Please please PLEASE run away from anyone who wants upfront money to help you with your mortgage modification.

Sat, 12 Dec 2009 04:51:45 -0600

People in Michigan who are attempting to participate in the Federal mortgage modification program are facing stressful times. Unfortunately, when people are in distress it tends to bring scam artists out of the woodwork.

Most people that I have encountered over the last year are doing their best to try and stay in their homes, contribute to their communities and ride out this storm. They call and talk to their mortgage lenders, they are persistant through the never ending paper trail involved with seeking a mortgage modification and they sometimes are successful. (Not often enough in my opinion, but that's another rant.)

This week in the Metro Detroit area there was an arrest reported of a man who allegedly offered to help people with their mortgage modifications. His alleged crime? He wanted an upfront fee for the negotiations with the homeowners mortgage lender and then never performed what he stated he would. Allegedly. Remember, we are all still innocent until proven guilty.

Please please PLEASE run from anyone who wants money upfront to help you with your mortgage modification. I know it is stressfull trying to get through to the right person at your bank / mortgage holder who can make a decision. I understand that the bank will tell you that they've lost your file, or that they don't have a complete file (even though you've sent it in many times.) I can only imagine that waiting months for a decision is frustrating as you cannot move on with your life until this part of your financial picture is completed. In spite of all of this please don't ever give money upfront to someone who says they can help you. (Unless that person is an attorney. By all means, if you are able to do so hire an attorney to be your advocate and help you through the process.)

It absolutely makes me sick that in these times of heartbreaking unemployment and economic distress that there are individuals who would prey on homeowners. Thankfully one such alleged person is sitting in the Macomb County Jail today awaiting his day in court.

Contact Kris Wales - A partner for your real estate needs in Macomb County MI

Search Macomb County MI homes for Sale with MLS provided data updated daily.

Want to chat about local real estate? Visit A Macomb County MI real estate blog

Jumping over the foul line - I can't be the only one that is superstitious, can I? Just realized it is Friday the 13th..

Fri, 13 Nov 2009 05:12:06 -0600

This morning as I was sitting and reading blog articles I had so many thoughts pop in to my mind that I want to write about, that I'm anxious to write about, that I'm on the edge of my seat excited to write about, but I can't.

I cannot bring myself to write about how wonderful I find working with HUD can be and how a recent young buyer client is experiencing good things during the HUD transaction.

Another buyer client who just talked to an accountant for clarification regarding the new repeat home buyer tax credit won't be written about in any kind of detail for a while. I can't bring myself to write about this one either.

Why not? The peanut crowd inside of me is yelling "Kris, just write about it! Tell everyone about it!" (That sounded strange..I don't have a peanut crowd inside of me, but I do talk to myself..)

Not yet. I'm superstitious. I'm like the ballplayers who upon ending an inning go back to their own dugouts and don't touch the foul lines with their feet. I'm the pitcher who wears the same undershirt that he wore during his last complete game. I'm the third basemen who bends one more time because he didn't bend exactly 5 times before the pitch is thrown.

Sold signs? Never used them. Not until the closing is over. I know the moment I put up that sold
rider something is going to happen and my sellers would be on the lawn yanking it down.

Write about a transaction in progress? Not me. Nope. Not until it closes. (And then only if I have my clients permission to do so.)

I'll jump over the white chalk foul line, bend 5 times and wear the same undershirt so I can sleep at night without worrying about jinxing a transaction. PS: I just knocked on my wooden desk as I finished writing this, because it is true that knocking on wood takes away any jinx before it happens.

Anyone else have any superstitious based actions? I cannot be the only one. (Please don't tell me I'm the only one.)

Frank And Sally Explain The First Time Home Buyers Tax Credit

Wed, 11 Nov 2009 06:04:41 -0600

Awesome video by Matt Stigliano about the first time home buyers tax credit. Thank you to Matt for allowing this to be shared with all of you.

Via Matt Stigliano (RE/MAX Access - San Antonio Real Estate Rockstar):

Meet Frank and his agent, Sally.

In trying to come up with a simple breakdown of the First Time Home Buyer Tax Credit, I thought that video would be the answer. Since I've done a few for the previous tax credit, I wanted to find a new way to use video to explain it all. Enter Frank and Sally. In this video, Frank's agent Sally, helps him understand the basics of the First Time Home Buyer Tax Credit. In the future, Frank and Sally will be providing some much needed help to me, so that I might take some time off from blogging when they're able to pick up the slack.

If you'd like to use this video, just click on the video and locate the "Embed" text box on that page. Copy and paste...that's all there is to it. All I ask is that you attribute it back to me and RErockstar.com.

Frank and Sally are fictional characters who do not represent any persons living, dead, or animated. Sally is not technically licensed in any state other than the virtual world, but her real estate knowledge is based on Texas real estate (I taught her everything I know). Frank likes Metallica, but Sally is more of an easy-listening kind of gal.

All content ©2008-2009 by Matt Stigliano, Realtor® unless otherwise noted.

Matt Stigliano, Realtor® | RE/MAX Access | (210) 646-HOME | www.RErockstar.com

"Your all access pass to San Antonio real estate."

Connect with me on Twitter and Facebook.

"UP TO" $8000 - it is not an across the board $8000 first time home buyers tax credit.

Mon, 09 Nov 2009 05:36:51 -0600

One of the common misconceptions for home buyers (and some real estate professionals) is that the first time home buyers tax credit is $8000 for all buyers.

When reading the fine print of the IRS form 5405 there is an entry line to fill out asking for the smaller of 2 items: $8000 or 10% of the purchase price.

An example: Mr. Smith purchases a home for $65,000. If he meets the criteria to receive
the 1st time home buyers tax credit he would enter $6500 on line #1 of form 5405. If Mr.
Smith purchased a home for $90,000 then he would enter $8000 on that line.

Reiterating: The tax credit is for 10% of the purchase price of the home up to $8000. It is not a full $8000 for every home buyer.

Let's all help to stop the confusion to home buyers by using the words "Up to" in our articles.

Edit: The chart that NAR put out for their members to use states "$8000" but it doesn't say "Up to $8000". You may want to add the language to your own charts for accuracy.

I'm more excited about the extension of unemployment benefits than the tax credit extension

Sat, 07 Nov 2009 05:38:48 -0600

Unless you live in Michigan, or one of the other hard hit by unemployment states, the signing of H.R. 3548 by President Obama yesterday probably was good news to you because of the extension to the first time home buyers tax credit. Here, in my local area, I'm cheering because there will be thousands and thousands of out of work people who will continue to receive an unemployment check, for at least 20 more weeks.

How hard hit is my area by unemployment?   (Look at these numbers and try to remember that the numbers reflect real people and their lives, and isn't just data.)

Michigans overall unemployment rate at the end of September was reported to be 15.3 percent.    In Wayne County alone it was 18.3 percent.   The city of Detroit?   A staggering 28%.

Many of those people who were laid off at the beginning of this year, or late last year, have not found replacement jobs.   It has been reported that approximately 44,000 people in Michigan cashed their last unemployment checks in October.

Coming in to the winter months and having their unemployment benefits cease would be cruel. Thank you to all of our government officials for taking care of this and giving an extended lifeline to those who so desperately need it.

When I read the news yesterday about the President signing this bill I was excited, and relieved, more so for those who cashed their last unemployment checks then I was for future home buyers.   Needs first - wants later.

How did home buyers in Macomb County MI pay for their purchases in October 2009? A Macomb County MI real estate market report

Tue, 03 Nov 2009 05:15:56 -0600

A bit of a twist to my home sales market report for October '09 in Macomb County MI:

I thought it would be informative for home owners to see how home buyers in our area are purchasing
their homes - is FHA still "king", or are cash buyers taking the lead?

Macomb County had 917 residential homes sold during the month of October 2009, which is an
increase from this time last year (730 homes sold.)

Sales prices county wide are still falling, with the average sales price being $91,890 compared to $101,574
in October of 2008. It is a sharp decrease county wide, but some cities / townships showed increases.
(Please feel free to call or email me for a detailed report for your area. I would be happy to provide the information for you - no fees for this service.)

How were buyers paying for their homes? The chart below will show a breakdown of how these 917
homes that sold in Macomb County MI were purchased last month.

Cash purchases	311
FHA mortgage purchases	324
Conventional mortgage purchases	162
VA mortgage purchases	21
Land Contract purchases	16
"Other" - not specified	83

With the large number of cash purchases we can still see that investors are buying the lower priced homes, taking advantage of this buyers market to increase their portfolios of rental properties. The large number of FHA and VA buyers also tells me that the first time home buyer tax credit had home buyers out in full force to take advantage of the money being offered to help them.

All of the data above was collected by Mirealsource™ and it's participating brokers and agents, and is deemed to be reliable but not guaranteed. As always, if you want specific information regarding your neighborhood or home, please feel free to contact me for a no pressure analysis.

Purchasing a vacant home in Macomb County MI? Pick up the phone and call the city building department.

Thu, 29 Oct 2009 05:10:00 -0500

One of the cities in my area has a wonderful online service in which you can find out the current taxes,
utility bills (water and sewer) and also check to see if there are any permits that have been pulled for
repairs or renovations.

In the case of vacant homes (foreclosures, REO's, etc.) there is also one more check that you as a purchaser
need to do: Pick up the phone and call the city and find out if a certificate of occupancy is needed prior
to moving in to the home and if an inspection is needed by the building department.

A buyer client and I are in the middle of a "counter offer" purchase on a bank owned home, and one of the
things that I asked her to do was to call the city building department and find out if this home needed to
have an inspection prior to her being able to move in to it.   As it turns out, this home was red-tagged (although the tag was not readily visible when we viewed the home) and does need to be inspected by the building department.

It will cost the buyer $200 for the city building inspector to come out and look at the home, as well as additional fees if permits need to be pulled for any city mandated repairs.   Most small repairs can be done by the potential home owner, but those needing more expensive work (electrical, plumbing, heating & cooling, etc) will require additional inspections and permits.

Please don't assume that just because there isn't a notation on a city / township online service about an inspection being required that this is truthful. Data does "fall through the cracks" and entries are sometimes not made in a timely fashion.

                                                Pick up the phone and call.

For those wondering why I don't make the call myself for my buyer clients: Third party translations can sometimes fall short of accuracy. I want my buyer clients to hear for themselves what the city / township building department has to say. They can also ask specific questions while they are talking to the representative while those questions are fresh in their minds.

Landlords in the city of Detroit are up in arms, but people who care about children say "It's about time!"

Fri, 23 Oct 2009 07:46:49 -0500

It's taken too many years but the city of Detroit finally said to landlords: "If you own a home or an apartment building in the city and you rent out the home or apartment it is your responsibility to make it lead free."

Is it going to be expensive for landlords? Yes. Is this new ordinance going to cause rent to rise to compensate for the testing and removal of lead? Probably.

I have a feeling though that parents of children who live in these homes and apartments within the city would gladly pay higher rent in order to protect their children. I also have a feeling that many other cities will now follow suit and be drafting their own ordinances. It's going to be an interesting year ahead watching all of this unfold within the city of Detroit and hopefully within other cities in Michigan.

It's about damned time.

The text of the Detroit News article regarding the passing of this ordinance can be found here.

Call me picky, but I don't let buyer clients sign blank forms.

Wed, 21 Oct 2009 09:22:51 -0500

Oh, the wonderful world of bank owned properties!

Let's see, first the sellers disclosure is stamped: "Exempt" or some such other language. The bank owners have never lived in the home so they surely cannot attest to the condition of the home unless they have inspected it. I get it. My buyers get it.

What I don't "get" is this: The Federally mandated lead base paint disclosure form is sent to buyers agents blank. Not a bit of wording on it, not even the catch all: "Sorry, I don't know, have never tested the home, do your own due diligance."

I don't know about anyone else, but handing my buyer clients a blank form that is important to any purchase transaction in the US to just sign, date and initial willy nilly gives me the wilies.

What I have done since I first saw this blank lead based paint disclosure is this - I write the following language above the spot for the buyer clients to sign:

"As of the date of purchasers signature the sellers have not provided disclosure and purchasers are signing an incomplete form."

They are then given the opportunity to indicate whether they are waiving the right to have a lead based paint inspection, or whether they wish to conduct one.

How do all of you handle this when you see it? Surely it cannot be something that is typical only in my area.

The flip side to being the voice of trust for our clients

Fri, 09 Oct 2009 05:30:24 -0500

The other morning I read a wonderful article by Rich Jacobson. He wrote about how we as real estate professionals need to the voice of reason and trust to our clients,as well as telling us about a real life situation in which this was conveyed professionally by him to his clients and vice verse.

As I read his article I found myself nodding my head in agreement with him, and also remembering the times that speaking honestly and at times, bluntly, with my clients has caused me to be fired over the years.

You see, I have this funny quirk of bluntness that leads my mouth to spill out the words:
"That won't work" or "It isn't a good idea" or "I can't do that".

Recent examples of my quirky bluntess:

The FHA buyer who wanted to look at condos in subdivisions that I knew wouldn't
fly with HUD.
The home owner who wanted to put their home on the market for $30,000 more than
the current value to "just give it a try."
The first time home buyer who insisted on viewing short sale homes with the Federal tax
credit being the overwhelming factor in his buying a home this year.

I lost all 3 of those potential clients because of my bluntness when it became clear that no matter what I said or how I worded it that they were going to go full head on with their decisions.

On the flip side, I had a Rich Jacobson moment just a short while ago in which my buyer client said "This is why I hired you. Thank you." when giving her advice and explaining why something wouldn't work out and wasn't in her best interest.

Lose a few clients and sleep better at night? I'll do that every time.

Home sales in Macomb County MI - Comparing this past September with previous years

Mon, 05 Oct 2009 05:18:28 -0500

My Macomb County MI area has been in the midst of this housing value decline for several years now, and I thought it would be interesting to see how this past September home sales compared to the previous September sales data (2007 and 2008).

While we aren't seeing home prices stabilizing as of yet, we are seeing fewer homes come on the market. We're also seeing more homes being sold this year than in years past. That should help us in the near future with the supply & demand issue that has been so heavily tilted to the "supply" side of the market.

Macomb County MI	September 2007	September 2008	September 2009
Homes listed	2020	1948	1475
Homes sold	525	797	840
Avg. sales price	139795	115136	89751

It's interesting to note that while fewer homes are coming on the market this year (less foreclosures and bank owned homes) there is more competition for the homes. The increase in the homes sold when comparing September 2007 to this past September is 60%.

If you would like specific information regarding your Macomb County homes value please don't hesitate to contact me. No pressure - just conversation.

All data courtesy of Mirealsource™ and its participating real estate brokers and agents and is deemed to be reliable but not guaranteed.

Behind the scenes with a Buyers Agent - "I didn't know you did all that!"

Tue, 22 Sep 2009 06:22:17 -0500

The common misconception about Buyers Agents is that we take people out to look at a few homes, write the offers, then sit back and collect a paycheck.

Misconception? What an understatement!

Take for example what goes on behind the scenes before we ever step foot in a home with our buyer clients:

Talk with the buyers about their wish list / want list / must have list in a home.
Sort through all of the thousands of listings in the various MLS databases, narrowing
down only those that fit the buyers criteria.
Research the property taxes on the properties. (I'll let you know about the importance
of this in a separate post.)
Check the ownership of the home (looking for conflicting information in public records)
Sifting through the comments and photos to ascertain whether a home meets your financing
criteria (Will the condo be HUD approved? Will the home pass FHA or VA muster?)

A good buyers agent will spend hours behind the scenes working in the buyers best interests before they ever step foot into a home. But you the buyer don't know that, because we don't give you a detailed invoice of work performed like other professionals do. The list above is only a snapshot of what a buyers agent does for you. The list goes on and on during the process of purchasing your home.

How do you know if we have done a good and thorough job for you? When you get to the closing table thrilled with the purchase of your new home, with as little stress as possible, and without any surprises. We willingly take on the stress and sleepless nights so that you don't have to.

Have you visited the Q & A section of ActiveRain lately?

Sun, 20 Sep 2009 11:14:19 -0500

ActiveRain has a Q & A section that is set up for consumers to ask questions of the real estate professionals here, much like Trulia has for its site. While Trulia is catching on with the general public and has many professionals answering questions from consumers in a timely manner, the Q & A section here has not.

There are some wonderful questions asked lately by members of the public that have gone unanswered:

Location: Arkansas
Submitted 09/19/09 08:12 PM

Q. looking for 10 to 20 acres with small house, want to start farm/greenhouses.

Location: North Carolina
Submitted 09/18/09 07:26 PM

Q. looking to buy 1.5 acreas in waynesville nc

Many of the questions that are posted are those that we cannot answer (those that need an attorneys advice, etc.) but most are questions that we can help people with and also gain more exposure to other consumers.

The Q & A "Ask a real estate professional" section of ActiveRain can be found on the main screen, and by scrolling down to just above the list of states. See a screen print below:

"You mean I'm financing my closing costs??" - what it really means when you ask for sellers concessions

Fri, 18 Sep 2009 11:56:57 -0500

One of the most confusing aspects of the purchase process for home buyers is sellers concessions. They've heard their mortgage lender mention it, in lieu of the buyers needing to bring to closing all of their closing costs, pre-paids, etc. It's also been discussed with their buyers agent during the process and while sitting down to write an offer on a home. It is still confusing to most buyers though unless you draw it out for them - who is really paying for what, and what it means to them in the amount they will finance. The table below is an example of a buyer who is putting 3 1/2% down on their FHA mortgage and asking for the allowed 6% in sellers concessions:

$100,000 purchase price

6% in sellers concessions toward pre-paids, closing costs, and/or tax prorations

Purchasers down payment 3 1/2%

Sellers net $94,000

Amount financed by the purchasers : $96,500

Notice that I highlighted the "Sellers net". This is what the seller will be concerned about as they go over your offer to purchase. If the "net" isn't what they had in mind and counter offer, they probably will do so at the expense of the sellers concessions towards you. Let's say for example that the sellers have decided they want their "in our pocket" to be $97,000. If you need all 6% of the allowable sellers concessions in order to purchase the home you will have to finance your closing costs. An example of a counter offer to make it work for the sellers and for you:

$103,200 purchase price

6% in sellers concessions towards pre-paids, closing costs, and/or tax prorations

Purchasers down payment 3 1/2%

Sellers net $97,008

Amount financed by the purchasers: $99,588

Helpful tip: Ask your mortgage lender to give you 2 or 3 different Good Faith Estimates. In these estimates the lender can estimate your payment based upon 2 or 3 different mortgage amounts. If you do this prior to writing your offer to purchase you will be able to make a comfortable decision on what would be your final offer to the seller.

Credit scores - FICO scores for mortgages - I need a 700 credit score?

Tue, 15 Sep 2009 15:08:19 -0500

Jeff Belonger was kind enough to allow this wonderful article to be re-blogged (re-published) and since it is such a terrific article about FHA and credit scores I knew it would help many of you who have the same questions.

Thank you Jeff. Once again, you have come to the forefront with a wealth of knowledge about FHA mortgage products.

Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans (Infinity Home Mortgage Company, Inc):

Yes, credit guidelines have gotten tougher, but NO, you don’t need a 700 credit score.

Here we go again, with realtors making things sound semi easy. There was a question on Trulia last week, and the buyer said that they heard that you needed credit scores of 700. And what do you do if you have scores from 614 to 620.

Here was part of the answer from a realtor answering the question.

"You can actually purchase a home with a credit score in the 500'sdepending on job history, etc. I have several lenders who can assist you."

Sorry, but this answer sounds easy, and it's not that easy if you are under 620. Yes, there are investors out there that are allowing credit scores below 620, even down to 535. But the guidelines are much stricter. You really can't exceed the income ratios, your job history needs to be good, and your credit still needs to be decent and conform to the FHA guidelines.

Keep this in mind, even though it could be done, at what cost to you? Does your loan officer explain this to you and break this down? The rates and or add ons for lower credit scores are much higher also. And if loan officers and or realtors say, don't worry, you can refinance later, then WORRY !!!

Let's quickly review your refinance options.

You can only do a rate and term within the first 12 months after you purchase your home. If you want to pull any equity out, on a normal refinance, you need 12 months or more.

Let's say rates are now 5.50% with zero points, with a 620 credit score. You currently have a 585 credit score and because of this, your current rate is 6.25% and it's costing you 1 1/2 points. (yes, this is the type of penalty for that kind of credit score) You really can't refinance for about 6 months, and you are working on your credit scores to improve them. Well, in 6 months, rates increase to 6.00% with zero points. You are basically stuck with that higher rate that you originally received.

Keep in mind, it still costs money to refinance, even if you do a FHA streamline refinance. Yes, there are no cost mortgages, but your rate is much higher.

What to do with credit scores if they are below 620 :

This is where a true mortgage professional comes into play. I just had a VA client referred to me by Allison Stewart, who was told on Friday that their scores dropped to 617, as a mid score. I spoke to them on Saturday and explained to them that I can work on their credit and get that up 3 points. Well, on Monday, the previous loan officer called them and told them the same thing. How come she didn't bring this up on Friday? Maybe she is new and not sure? Not good with credit? In any case, here are some basics.

You want to keep your balances below 35% of your credit limit or lower. The higher the percentage, the more it could affect your credit scores. By paying down your balances, this could raise your scores.

Don't pay off your collection accounts if you are applying for a mortgage. You would then want to pay these at closing. By paying off early, it could actually lower your credit scores. It does depend on how old these collections are.

Lates over 12 months old don't hurt as much. Sometimes you can talk to your creditor to remove a questionable late mark.

Summary :

Most of what is mentioned is for FHA mortgages. If you are doing a conventional mortgage, you do need a 620 or higher, and even this costs a lot more than a FHA loan at 620. Here is a comparison with even 20% down. FHA loans vs Conventional loans with 20% down - A rude reality. Besides, you even have MI company issues, that could still deny the loan with a 620 credit score.

Overall, you might want to get into a home as soon as possible. You might have a loan officer that wants to help and can with the lower score, but don't forget, will it cost you more in the long run. You want to deal with a loan officer that will break this down and show you both sides, both comparisons. And be careful of broken promises, because not everyone has integrity and or is truly out for your best interest. This might sound negative, but this is a fact, from examples of past clients that have dealt with broken promises.

FOLLOW ME ON FACEBOOK

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages -

- Conventional Loans - 203 k loans -

- Mortgages -

Experience & Knowledge at its BEST !!!

_________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!

Copyright © 2009 by Jeff Belonger of Infinity Home Mortgage Company, Inc

A gentleman wants to say "Thank you" - Mr. Ernie Harwell at Comerica Park Wednesday September 16th

Tue, 15 Sep 2009 07:02:35 -0500

Ernie Harwell, the legendary baseball Hall of Fame broadcaster, and beloved by generations of Michiganders, will be attending Wednesdays Detroit Tigers vs Kansas City Royals game.

Last week Mr. Harwell announced that he has incurable bile duct cancer and the outpouring of love and support for this man has been ongoing.

Mr. Harwell wanted to come to Comerica Park to say "thank you" to all of the fans and the Detroit Tigers organization left the timing of their own tribute up to Mr. Harwell.

Understatement alert: Comerica Park isn't large enough to hold all the people who want to say "thank you and God Bless you" to Mr. Harwell. I have a feeling that when Mr. Harwell speaks the standing ovation and heartfelt shouts of "thank you" to this man will go on for hours.

My husband, sons and I attended Ernie Harwell Day back in 2002, the year Mr. Harwell retired from the booth. The outpouring of love that drizzly overcast day was unlike anything I have ever witnessed. I haven't written anything about Mr. Harwell since he announced he is going to be "moving on to the next journey" of his life, because this has been so hard to comprehend. When one grows up with someone as beautiful as Mr. Harwell it is more than just a bit difficult to convince your heart that he won't always be physically with us.

Mr. Harwell said in his announcement earlier "I'm not saying goodbye. I'm still here."

I won't say it either Mr. Harwell. I'll just say "God Bless and Thank You."

They remember the time wasters - How it affects your credibility.

Sun, 13 Sep 2009 06:28:38 -0500

It was a whirlwind of a week, mainly spent showing homes to several different first time home buyers.

Common theme for this week: Taking advantage of the low housing prices and interest rates as well
as not wanting to miss out on the 1st time home buyers tax credit.

Something else that we saw in common this week: The embellishment by listing agents of the
information published about their listings.

There were more head scratching moments this week than I've witnessed this year while viewing homes: Bedrooms listed on the main floor that were really in finished basements, "completely updated" homes that looked as if there hadn't been any updates since 1970, "gorgeous views" that backed up to busy main roads, etc.

Listing agents: I know it's your job to get buyers in to view your sellers homes. The buyers know this also, they're not stupid. However they take names and notes and remember them. If another of your listings comes on the market they probably won't bother to make appointments to view them. I know I will remember, and if something does come up that seems to meet their wants & needs I will preview them first. However, I won't do that every time. If the pattern continues we'll just bypass your listings altogether.

Your wording and published printouts look awfully darned good to your sellers. Your stretching the truth probably leaves your sellers with a "Isn't he so smart!" smile on their faces. Think about this though: It's a huge turnoff to the buyers out there and a waste of their time. They remember the time-wasters.

Is this what your sellers really want to happen?

Future home buyer cannot get a phone call returned...yes, it still happens.

Thu, 10 Sep 2009 15:09:06 -0500

I received an ActiveRain contact email from a young lady at 1:50 p.m.    I returned her email at a little after 2 this afternoon, and we spoke a few minutes later.

In her email she stated "..am having trouble reaching an agent to help me." During our phone conversation she stated that I was the 5th agent that she has contacted, and I'm the only one to return her call.

Mind boggling isn't it?   Absolutely mind boggling.

What does this young lady want to do?   She wants to look at homes for sale. Simple enough. She wants to see some homes.

The only excuse I can think of that she hasn't had calls returned is because she was contacting the listing agents instead of first contacting a buyers agent.   Maybe in time all of us who represent buyers as our profession will be able to spread the word so far and so often that potential buyers will no longer feel like they have to call the name on the sign to see a home.

Edit: The young lady just wrote to me and gave me permission to post this article. She explained further: 2 of the agents she called were the listing agents. No return phone calls. 2 other agents weren't the listing agents, and in fact one of them set her up with a Listingbook account then dropped off the face of the earth. No return calls from this agent - and it's been 9 days.

Once again: Mind boggling.

"I only want to see foreclosures" - that strategy can backfire on you.

Wed, 09 Sep 2009 08:36:04 -0500

                                            "I only want to see foreclosures"

I had an interesting conversation with a caller yesterday morning and thought I would share it with all of you. I'm hoping that by sharing it and putting it out to the public that other potential home buyers will see it, and understand the very real aspect of how this type of strategy can backfire on the home buying consumer.

For the past 3 years or so the Metro Detroit area has been swamped with foreclosed upon homes hitting our real estate market. ( This trend has somewhat trickled in the last few months, mainly due to the new 90 day "let's work it out" mandate from the Michigan government to home owners & lenders.)

Because of the supply (overabundance) and demand (waning demand due to economic conditions) the market not only tipped to the buyers advantage side, it fell completely over on it's side.

What happened to other home owners who wanted to sell their homes during all of this?   They had to price their homes competively in order to be successful at selling their homes.

In the last year I have not sold one bank owned (foreclosure) home. All of the homes that have sold to buyer clients have been homes that were owned by the sellers, and not in distress.   They sold because they were well maintained and more imporantly, were priced to sell with the competition of the foreclosures in mind.

Mr. or Ms. Macomb County MI home buyer:   If you "want to see only foreclosures" you will quite possibly missing out on some of the best deals there are out there right now.   Privately owned home owners are pricing their homes to compete with the foreclosures.

Consider this case on point:   Ms. Buyer purchased a condo in Chesterfield Township for $107,000 in June of this year. The condo sold new in 2003 for $187,000. It was in wonderful condition and needed nothing to be able to move in to it.    It was not a bank owned home. If she had limited herself to only viewing foreclosures she would have missed out on this fabulous condo at an unbelievable price.

This is going to be fun - new HUD approval process for condo purchases is right around the corner. Heads up everyone!

Tue, 08 Sep 2009 16:17:47 -0500

I normally write blog posts that are geared for my local consumers (Macomb County MI) but this one is going to affect all of us who have buyer clients using FHA for their mortgages and condo purchases. (Please read HUD Mortgagee Letter 09-19 , HRAP/DELRAP, for all the specific details of the way HUD will approve - or not - a condo complex.)

One of the websites that I rely on when looking for condos for my home buyers is https://entp.hud.gov/idapp/html/condlook.cfm . It's a nice look-up site for buyers and their agents to find out if a condo complex has been approved by HUD for FHA home buyers.

Just a bit ago I went to the above site to look up a condo complex in my area because a new listing popped on the market that matched my buyers criteria and noticed that HUD had changed their screen/search function to reflect the changes that are coming to their approval process. We now are being prompted in the first drop down box to search for HRAP/DELRAP approved condos, or pre-HRAP/DELRAP condos:

Condominium Approval Method

•    HRAP/DELRAP: New HUD Review and Approval Process (HRAP) or Direct
     Endorsement Lender Review and Approval Process (DELRAP).

•    Pre HRAP/DELRAP: Former approval process.

Revised: September 1, 2009

**My understanding is that the new HUD approval process doesn't begin until October 1st, 2009 but it appears that HUD is ramping up for it. You may want to check with your favorite mortgage lenders to find out if their underwriting process is going to make these changes before the October 1st deadline, as we saw with other program changes that started to take affect before "deadlines" actually occurred. I'll be checking with my mortgage partners tomorrow so that there aren't any surprises for my current condo buyers.**

This year has been full of fun changes to our industry, hasn't it?

Another blog article a bit more specific about the changes coming to condo purchases using FHA mortgages: Heads up everyone - we could be in for some fun!

While you've been waiting for the housing market to "hit bottom": Information for Macomb County MI home buyers

Fri, 28 Aug 2009 09:07:38 -0500

While you've been waiting for the housing market to "hit bottom" a few things have happened:

The number of bank owned homes on the market in our area (Macomb County MI) have fallen drastically. This means that suppy and demand is now on the demand side of the equation. Want to buy a foreclosure? Get in line. There are hundreds if not thousands of buyers looking for foreclosures.
There are multiple offers on the clean, well priced homes. Not only do your odds of purchasing the home that you and your agent found decrease, but odds are you will be paying more for the home than the list price in order to be the winning bidder.
More homes subject to a short sale are now on the market in our area. Have patience if you want to purchase one of these homes. You'll need it. Plan on 60-120 days to hear back about your offer from the mortgage holder. You don't want to make an offer on a home subject to a short sale? I don't blame you. However you should know that this eliminates many of the homes on the market for you to view and consider.
Mortgage program guidelines are even tighter and more stringent than they were 3 or 4 months ago, and I see this continuing to happen while the housing market shifts & turns and until it corrects itself.

If you want to keep waiting for the housing market to "hit bottom" that's ok. Please keep this in mind though:

We cannot predict when the bottom will hit. We can only inform you as to what we are seeing and experiencing now as we are out and about each and every day helping home buyers with the changes that are taking place.

A reminder about the 1st time home buyers tax credit for Macomb County MI home buyers: It expires at the end of November

Sat, 22 Aug 2009 05:37:13 -0500

I am currently working with several 1st time home buyers in my area (Macomb County MI) and there is one thing that they also have in common: They do not want to miss out on the first time home buyers tax credit that expires at the end of November.

As of todays writing there are only 69 business days until the tax credit expires.

A couple of things to keep in mind: It will take approximately 45-60 days to process your mortgage from the time that your offer to purchase a home is accepted. Right now the home inspectors, mortgage lenders and underwriters are swamped with business. As we move in to October I fully expect things to become much busier for them, and for buyers agents in Macomb County.

If you are expecting to take advantage of this tax credit before it expires, get started right now.

Don't let the small print fool you! Purchasing a HUD home with an FHA mortgage - yes, you do need more than $1

Mon, 17 Aug 2009 05:40:12 -0500

HUD and FHA are currently running a program here in Michigan (and other states) in which you can purchase a home with a $1 down payment.    That sure gets the phones ringing if you advertise "$1 down HUD homes!" but it certainly doesn't tell the whole story:

HUD requires $1000 earnest money deposit for a home priced at over $50,000, a $500 deposit for those less than $50,000.   There is no getting around this - it is mandatory that a copy of this good faith deposit check (cashiers or certified funds!) is sent along with an accepted offer to purchase.

Did you bid higher than the FHA appraised amount on the home? If you did, and you are the winning bid, then you must pay the difference between FHA's appraised amount and the amount of your bid for the home. (This most often arises in multiple offer situations. Example: You bid $5000 higher on the home in order to be the winning bidder. If the appraised amount is less than your offer you have to pay the difference at closing in order to receive the loan)

At closing you will also be required to have a one year home owners insurance policy that has been pre-paid. Estimates here in the Metro Detroit area are anywhere from $400 to $1000 for a home up to $100,000 depending upon the type of coverage you want. Plan on having this money tucked aside in your bank account prior to bidding on a HUD home.

You will need much more than $1 to purchase a HUD home with an FHA mortgage.   The program is simply a way for a home buyer to not have to pay the 3 1/2% down payment that is normally required by FHA. It does not mean that you won't have out of pocket expenses. Please don't let the small print fool you and plan accordingly: Have some money in the bank when you are ready to start looking for your new home.

If you are thinking of purchasing a HUD home in Macomb County MI please talk to your buyers agent about what to expect for out of pocket costs prior to beginning your search for the HUD home.

Kris Wales - Macomb County MI real estate
Search Macomb County MI homes for sale
Chat about Macomb County MI real estate blog

Heads up everyone! We can't move the condo complex or the military base - what is an FHA buyer to do? *Information for Macomb County MI condo buyers

Sun, 16 Aug 2009 09:25:36 -0500

I don't know if everyone is aware of it or not, but there are big changes coming to the way FHA will insure condos as of October 1st.

After reading HUD mortgagee letter a couple of things stand out that I know will affect my Macomb County MI condo buyers, and they may or may not affect your local condo buyers:

**"... the lender must avoid or mitigate the following conditions before completing its review process..:

1.    The project is located in a Special Flood Hazard Area designated on a Federal Emergency Management Agency flood map.

2.    Potential noise issues, where the property is located within 1000 feet of a highway, freeway, or heavily traveled road, within 3000 feet of a railroad, or within one mile of an airport or five miles of a military airfield."

Oh my. Talk about throwing a monkey wrench in to condo buying (and selling a condo!) You can't move a military base or an airport, and you surely can't move a whole condo complex.   In my area we have Selfridge ANG (photo above) as well as DTW (Detroit Metropolitan Airport).

We have hundreds if not thousands of miles of heavily traveled roads.

As Michigan is the Great Lakes State we also have many areas within the FEMA designated flood plains.

The months after October 1st are going to be very interesting as the mortgage lenders and buyers agents try to figure out which condo complexes will pass FHA muster and how to help our buyers purchase a condo with financing other than FHA.

We may want to sit down with our mortgage lenders prior to the end of September to go over other options for our home buyers.

**Quote courtesy of HUD from their Mortgagee Letter 2009-19**

                                               Kris Wales - Macomb County MI real estate
                                               Search Macomb County MI homes for sale
                                               Chat about Macomb County MI real estate

Trying on the new budget for size before purchasing your first home - Give it a whirl! * Information for Macomb County MI first time home buyers *

Fri, 14 Aug 2009 16:50:15 -0500

Most first time home buyers know that the process to purchasing their first homes start with talking to a mortgage lender, and then choosing a buyers agent. However, I feel that the most important part of the process isn't often talked about: Creating a budget that is comfortable.

One of the things that I suggest to my local Macomb County MI 1st time home buyers is to sit down with a notebook and write down the expenses that they feel they will have in a new home that they don't have now:

Higher utility bills. (If you are in an apartment plan on paying double what you currently
pay for utilities.)

Maintenance costs. (Budget a monthly amount for routine maintenance on a home)

Higher gasoline prices. (Most home buyers purchase further away from their places
of employment than they live while renting. The higher gasoline prices can wreak havoc
if you haven't budgeted for it.)

Once you're comfortable with your projected budget you can begin to live with that budget before you purchase a home. Try that budget on for size so to speak for a few months to see if it really is comfortable for you. Take that added money and put it away and pretend it isn't there. (It won't be when you've purchased the home and moved in to it!)

Along with the knowledge that "I can do this!" you'll also have more money tucked away to use towards the purchase of your new home if you've tried out your budget for a few months.


                              Try on those bigger shoes to see if they'll fit!


Kris Wales - A Macomb County MI real estate agent

Photo courtesy of:

http://www.flickr.com/photos/christopherblizzard/ / CC BY-SA 2.0