Farmington Hills Real Estate and Events talk Michigan

you have some issues.  Yes almost all of the banks and lenders have closed the loopholes of the past.  Gone are sub-prime loans.  Gone are state loans where self-employed people could get a loan without showing any income documentation.

But some rules are being stretched to get loans done.  I don't know how.

No credit scores or credit scores below 620:  My clients recently closed a loan when one of the borrowers had no credit score and very little credit history.  The other borrower had credit history and a decent credit score.  They were turned down by a local lender but Di-Tech was able to get it done. 

High Debt ratios:  I had one loans close where the loan officer told me the back end debt ratio was 51% on a FHA loan.  I was worried that the buyer couldn't afford the house.  I told him not to go that high, but he wanted the house and the loan officer some how got the high debt ratio done.

Owning another house.  You aren't supposed to be able to buy another house and be able to walk away from the first.  Fannie Mae put in a rule that you can't use a lease to off set the first house payment if you don't have 70% equity in the home.  But I have seen two different buyers walk away from homes when they had no equity in the home.  One did get turned down by another lender.  But they got loans anyway.  One was a FHA loan.  It was two different lenders so it is being done.

Over 6% sellers concessions.   Yes you won't believe it.  One of my last buyers that closed this month got over 6% seller paid concessions.  We had 6% concessions in the contract that were paid and then the seller gave some tax pro-rations too.  How that got past a lender and underwriter I don't know.  They even approved the HUD.  So it got past at least two people at the bank.

I can't believe some of this stuff is being done but it is happening.  And if it is happening here in Michigan it is happening across the country.  Feel free to call me with any questions.   

Here are some photos of Canton home styles if you are looking for Canton Michigan relocation information.  Here is a look at what Canton home styles are like.  Of course it is January here in the photos of Canton Michigan.  It snowed a couple of weeks ago and this is what is left.

                        There are many different tri-levels homes styles.

Here is a 1970's Canton colonial.

     This is a typical 1990's -2000 brick colonial

Canton MI has many ranch homes - great for old buyers that want main floor bedrooms and laundries!  Great starter homes too.

Another different style of Canton split level homes.

Most Canton homes have basements and attached garages.

If you are looking for Canton Michigan relocation information and more information on Canton home styles feel free to call or email me.  I know the area very well and I should be able to answer your question.  If I don't know the answer I will look it up or point you in the right direction to find it.

A Michigan Sheriff sale should not affect your short sale offer unless somebody other than the bank buys the property.

I had another agents client call me about this the other day.  He had an short sale offer in on a $800,000 Oakland County lake front property in West Bloomfield.  It had been dragging on since August with an out of state bank.  He didn't think there was much progress.

His agent couldn't answer his questions.  So here is was my answer to them.

Here are the two scenarios:

1.) Somebody other than the bank buys it at the Michigan sheriff sale.  If an person buys the home at the Michigan sheriff sale the bank is now out of the picture.  The homeowner can redeem the property for the the sheriff sale price.  So now if you are the buyer your price you offer needs to cover the sheriff sale price, the back taxes, the sales transfer tax, the title policy and the real estate commission.

BEWARE of trying to go behind the real estate agents back.  If you have a buyers contract or the seller has a listing contract one of you will be on the hook for the commissions.  So be sure that it can be done with paying all of the above.

2.)  If the bank buys the property back you continue on trying to get the short sale done.  You know only have 6 months to get the deal completed.  After that it becomes a foreclosure and who knows how long they will take to get the foreclosure on the market.  So if the Michigan sheriff sale take place and the bank owns it.... continue on.

Of course the third scenario you could always take the chance to drop the short sale and wait for the foreclosure.  But that is iffy.  Somebody else could buy it as a short sale or you could miss it come out when it comes out as a foreclosure.

These are my thoughts on how a Michigan sheriff sale affects a short sale offer.  I hope that guy gets his Oakland County waterfront property thru the short sale.

Some of the houses you have picked out before were short sales.... which could take up to 4-6 months to complete....or may never be accepted by a bank.  If you don't know what a short sale is:   It is where the seller owes more than they are listing it for.  After they get an offer they take it to the bank and ask the bank to be able to sell it less than what they owe. (every once in a while a lender approves a seller for a short sale in advance of putting it on the market)  BUT THEY DON'T APPROVE WHAT THEY WILL ACCEPT USUALLY UNTIL THEY SEE THE ACTUAL OFFER 

The bank doesn't put much manpower or resources towards short sales.  Sometimes one bank personnel has hundreds of short sales on their desk at any one time.   So communication is usually very poor and sporadic.  Sometimes it can be three weeks to a month before the bank even assigns somebody to look at it.

The quickest I ever got a short sale done from time of writing the offer to closing was 60 days with a local bank.  It is not unusual to take 4 - 5 months.

They say only about 60% of all short sales get done.  It may be a little higher than.  The reason the don't get done is the seller doesn't cooperate or qualify for a short sale,  the bank thinks the property is worth more money than you are offering, the house gets foreclosed on in the process, or you get tired of waiting and not getting an answer from the bank.

Normally I don't like to rush people into buying but "I'm saying don't wait until the last minute to buy a Michigan Home.

The reason I am saying this is because of the first time home buyer tax credit deadline.  Last fall right before the deadline, many Michigan home buyers were scrambling to find homes.  Their were many bidding wars.  I had one home we lost that had 15 bids on it and another Southfield home we lost that had 11 bids on it.  Another Westland home we lost had a $46,000 list price that went for $67,000.  Another home we lost by $10,000 to cash buyers.

All my clients ended up getting a home except one.  But many of them bid on 3 homes.  October was a crazy month to try to get a home.  I think home prices edged up during the month of October.

So my advice is if you are a Michigan first time home buyer and want the tax credit get out there looking now.  Don't wait until the last minute.  I think we may see a repeat of bidding wars and slightly higher prices.  If you don't need the home buyer tax credit continue on and take your time.

But don't wait until the last minute to buy a Michigan home if you need the tax credit.  

                       Search Michigan home listings and foreclosures

Yes FHA is going to reduce sellers concessions from 6% to 3% this spring.  There is no exact time.

But if you are a metro Detroit home buyer now might be the time to jump into the real estate market before you have to come up with more money.

Let me give you an example of closing costs when buying a metro Detroit home.

Average closing costs are about                                      $2200

3 1/2% required downpayment on $100,000 home            $3500 

Estimated taxes on some $100,000 homes                      $3600

So on a $100,000 you could need about $10,000 by the time you include inspections and insurance.  Many home buyers don't have that kind of money.  They need sellers concessions - money from the seller to help pay the closing costs.  If you are planning to buy a home this spring and need help from the seller for your closing costs you may want to buy sooner.  Before FHA reduces the limits

An open letter to David Stevens  Assistant Secretary of Housing - FHA Commissioner,

 David,

I hate to say it, but you have opened the floodgates or pandoras box.  So I might as well be the first to do it.  I am one of those guys that stands up and says what I feel.  Here are my thoughts on what the reduction of sellers concessions from 6% to 3% will do to the national real estate market.

Right now FHA is holding the real estate market up.  I would bet the majority of all loans being done right now are FHA loans.  And most of those FHA purchase loans are using 6% sellers concessions.  That is my professional guess.  You most likely have the exact numbers.

Most first time home buyers, and now many buyers that have re-entered the home buying market need that 6%.  What I think the administration is failing to realize is how much this will affect the housing recovery.

If you take all those home buyers out of the market that need the full 6% versus the 3% you are going to put the housing recovery into first gear.  Being in the trenchs in the metro Detroit real estate market I know for a fact that many of my homebuyers could not have bought a home without the full 6%.  In Motor City terms, Taking away the 6% is going to be like stepping on the brakes on the housing market.  A lot of buyers are going to be flying out of the car.

Now I admit people that don't have any money into the purchase of the home are more likely to go into foreclosure.  I myself feel that buyers should have money into the home purchase.  Many of my buyers are getting gifts or some help with the required down payment.  I also agree with you that we need FHA to be  financially stable.  But I question the timing and putting all of these changes in at one time.

I'm not going to argue with the current administration that the economy is on it way to recovery.  But I know we need more time for all the people that have lost their home to foreclosure to become buyers again.  Time and jobs are the only cure for the housing recovery.  We need three years to go by, so foreclosed home buyers can get another FHA loan.  So they have time to save for a down payment.  We need time.

BUT CHANGING THE CONCESSION RULES AT THIS POINT IS GOING TO HURT THE HOUSING RECOVERY.  IT MAY EVEN REVERSE THE RECOVERY. Watch out for the crash is my warning.  I bet fall off will be 20% or greater.  That will be a crash we can't afford!

I myself think the bigger issue is debt ratios.  I still believe many lenders are pushing the upper limits for debt ratios.  I think that is an area where you should be looking at.  Buyers still could buy with 6% concessions, but they could only buy a smaller house with lower debt ratios.    Should the debt ratios come down to 38 or 39%.   Debt ratios are another major key on keeping a home and I have seen a few homes that should not have been bought (in my opinion)

Just my thoughts from a guy in the trenches.    

 Here are 15 inexpensive Livonia condominiums under $50,000.  There is one that is 1100 square feet listed at $39,000.  That's less that $50 a square foot.  If you notice there are some that have association fees as cheap as $125 a month. 

And only one of these Livonia condominiums are a short sale.  So you have a good choice of inexpensive Livonia condos under $50,000 that can be bought quickly.  

Tomorrow Sunday is the last day for the Plymouth Ice Festival in Wayne County Michigan.  It was a beautiful day to stroll thru Kellogg Park and look at the ice sculptures.

The weather was a little warm yesterday so the sculptures were cloudy and cracked looking though the newly carved ones looked great.

There were a lot of people out at 10 am in the morning and I am sure downtown Plymouth was packed later in the afternoon and at night.

There were carved fishes, squirrels, snowboarders, skaters and much more.

 ar

Dog sleds.  This year they didn't have many huge ice carvings as they have had in the past.  But they had more carvings than they have had.  Sure the ice wasn't the best because of the warmer weather, but it was fun trying to figure out what the carving was.

If you have nothing to do tomorrow come on down to Plymouth Michigan and enjoy the festival.  There are a few arts and crafts booths.  And lots of restaurants and bars to get some great food and drink and to   warm up.  Or you can do a little shopping in all the unique mom and pop stores.  Buy local and support people who live in the area.

I hope you have a great time.           Russ Ravary your local real estate agent

Here are the top 5 priced Northville luxury home that are currently for sale.  Northville Michigan is one of Metro Detroit's great areas to live.

Every home is different some may have an Olympic pool, or a billiard room, or a home theatre center.  Each home above may have some of these great features below.  Here are some of the fantastic features that these homes have:

• OLYMPIC SIZE SWIMMING POOL
• BILLIARD ROOM
• SAUNA
• SEPARATE APT PERFECT FOR GUESTS
• ACREAGE
• HORSE BARN
• BEAUTIFUL BAR
• CENTRAL VACUUM
• AIR CLEANER
• WHOLE HOUSE SOUND SYSTEM
• SPAS
• HOT TUB
• JETTED TUB IN THE BATHROOMS
• HOME THEATRE ROOMS
• PONDS OR STREAMS ON THE PROPERTY
• SECURITY ALARM (OWNED)

There are quite a few beautiful Northville luxury homes for salecurrently.  If you are looking for a Northville estate give me a call or email me at yesmyrealtor@gmail.com If you are relocating to the Metro Detroit area Northville Michigan is a place you want to visit on search

Search Northville Luxury homes for sale