Delta River Drive Area!
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2610 Dunbar, Lansing, Michigan 48906
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Lansing Real Estate: Can a short sale help me avoid foreclosure?
Lots of homeowners in the Lansing area right now are struggling with tough choices about their mortgage. It has been reported that as many as half of Michigan homeowners are upside down in their mortgages. Something like an unexpected medical expense or divorce can throw a family into complete financial turmoil. In Lansing where so many people are upside down, life’s unexpected events can throw well-meaning people straight into foreclosure.
One option for a homeowner who is in default on their mortgage is to do a short sale on their property. This is a sale in which the mortgage company agrees to accept less than what is owed on the property. In order to qualify, a homeowner must have a verifiable hardship that affects their ability to pay back the mortgage. Simply being upside down does not qualify you to do a short sale. For those who qualify there are many advantages to doing a short sale over letting the house go to foreclosure. Some of the advantages of a successful short sale over a full-blown foreclosure include:
1) Not as damaging to credit, allowing a potential future home purchase to happen much sooner
2) Does not affect security clearances (a foreclosure can be viewed in the same way as a felony, depending on your level of clearance),
3) Does not affect current or future employment. Many employers or potential employers are now running credit checks. Since a short sale is not reported on a credit report it is not a challenge to employment
4) Possible to convince lender to give up right to pursue deficiency judgement. With foreclosure, the bank has the right to pursue a deficiency judgement. With a short sale it may be possible to convince the lender to give up this right.
5) Ability to control deficiency amount. Once the property goes to full-blown foreclosure you give up any right to control the property. In a short sale handled by an experienced agent the home is sold close to market value, in almost all cases this will result in a lower deficiency.
By the way, in a short sale closing the seller can NEVER walk away with a penny. That’s the bad news. The good news is that they bank pays all the costs of sale, so you also do not have to bring a penny to closing.
It is highly recommended that you seek the help of a CDPE (Certified Distress Property Expert) real estate agent to help you negotiate the short sale process. It is a very complex process and takes the help of an agent who has received special training. And in case you are wondering, yes, I am CDPE certified.
Please note that the bullet points above come from information from the CDPE distance learning class.
IF YOU ARE FACING FORECLOSURE OR IN FORECLOSURE, CLICK HERE TO FIND OUT HOW TO DO A SHORT SALE IN THE LANSING AREA
Photo Credit: http://www.flickr.com/photos/thetruthabout/3654707133/?addedcomment=1#comment72157623992166339
Spotlight on Lansing Neighborhoods: Lansing Eastside Neighborhood
Tucked in between the tall buildings of Downtown and Michigan State University, Lansing’s Eastside Neighborhood is a hidden treasure for Lansing real estate. Many people are drawn to the area because of the convenient location within biking distance of both East Lansing and Downtown. Others like the fact that there are numerous shops and restaurants within walking distance on Michigan Ave, the main drag through the neighborhood. You will also find access to parks and bike trails. The Allen Street Farmer’s Market attracts a crowd from around the region while Hunter Park offers a year-round greenhouse and the Lansing Rivertrail can be accessed easily and taken all the way to MSU or Old Town. Sparrow Hospital anchors the west end of the neighborhood as in a major regional employer. As you travel east along Michigan Ave, you will find a variety of locally owned shops, including some of my favorites such as Fabianos (chocolatiers), Emil’s (Italian Food), Gone Wired Cafe (coffee shop), Green Door (bar), and many others. The neighborhoods surrounding the shops are older homes, mostly built between 1910 and 1945. Big front porches invite neighbors to talk and give the area a quaint, old-time feel. You can check out lots of photos of the area by clicking this link. With everything this area has to offer, you may surprised that the average sales price in the last 6 months was $54,000 (figures generated from MLS data on 5/5/10). A wonderful neighborhood for those who are looking for an affordable housing option close to Downtown, MSU, or Cooley Law School.
Search all HOMES FOR SALE IN LANSING’S EASTSIDE NEIGHBORHOOD
1151 MITCHELL, LANSING, MICHIGAN 48917
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1151 MITCHELL, LANSING, MICHIGAN – WAVERLY SCHOOLS
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Lansing Real Estate: Selling Your Upsidedown House
Do you owe more on your Lansing real estate than your house is worth? If so, you join the ranks of 50% or more of homeowners in Michigan (not to mention 3 of this bloggers rental houses) So what is one to do when you owe more than your house is worth and it comes time to sell? Here are a few ideas.
1) Take out a personal line of credit to cover the deficit. A first step would be the check with your mortgage company to see if they could offer you an unsecured line of credit. If not, you may have more luck with smaller local banks so check with your local credit union to see what they can offer.
2) Savings – Of course you could always cover the deficit with money from your savings. This might be a hard pill to swallow, but if you are buying something is a higher price range just think about how much more you would have had to pay for that house a few years ago.
3) Rent your current house – You could become a landlord. If you aren’t into tenants and toilets you can always hire a local management company to cover the day to day issues.
4) Friends and Family – perhaps you could convince your friends or family for a personal loan.
5) Short Sale – A short sale is when the price you sell your house for is less than what you owe to your lender and your lender agrees to eat the defecit. A couple of quick notes on this. First, you MUST have a hardship in order to do a short sale. So if you have money in the bank, can continue to pay your mortgage, or any other options you are not a good candidate for a short sale. Second, a short sale is anything but short. Expect the process to take many many months. Finally, your credit will suffer if you pursue this option.
6) Trade – Perhaps you could find someone to trade with. Some builders are even considering trades to get their model homes occupied, so if you are moving from a smaller home into a much more expensive home you may check with local builders and Realtors to see if anyone would consider a trade.
7) Stay Put – Yes that’s right, a real estate agent telling you to stay put. If you can swing the payment and are not bursting at the seams, it may make sense to stay where you are for the time being.
House Hunters – My Television Debut
It was a very Hollywood moment earlier this month when House Hunters aired a show in which I was the featured real estate agent. The show, which was actually filmed in September of 2007, featured a young couple as they looked for their first home. You may have seen the show…a buyer is chronicled as they view three houses and then pick the one that they like. Well….it wasn’t quite that easy in real life. Shane and Emily, the buyers featured on the show, did actually tour the homes featured on the show. They also visited about a dozen or so more. In the end it was a fun experience and they ended up with a great house.
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