Welcome to my first blog! Thank you Todd Waller from Real Estate One for referring me to this resource.
The number of foreclosed homes in Michigan keeps on climbing. All of the issues in Michigan are further compounded by the collapse of the sub-prime mortgage business. As we all know, this has combined to make it a very difficult environment for real estate.
But have no fear, where there are challenges, there are also opportunities. As we see home values decline, this should allow us to market homes to people who once thought they were out of range. We will also see bargain hunters, investors, among others jumping on the opportunities as they arise.
One of the difficulities we are seeing is trying to finance a home that has either not been maintained and/or has been foreclosed. We've all seen them, cabinet's missing, holes in the wall, copper plumbing removed, doors kicked in, appliances missing, etc.
So the question then becomes, how do we match such a challenged property with an opportunistic borrower -especially if the borrower has no cash on hand to make the much needed improvements? The answer, 203K FHA. This is essentially an FHA and renovation loan combined. We can lend for the improvements, up to 6 months of payments (while the work is completed) and the borrower can put as little as 3% of purchase price (not including improvements) down to take advantage of these opportunities.
As this market continues to have issues these opportunities will only get greater. Enough doom and gloom, now is the time to look for the opportunities in our market and get people into great homes at great values!
Thank you for reading and please do not hesitate to contact me with questions, 734-913-4346 x1004.
Sincerely,
Jim Hood
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