This post will mark the first in a bi-monthly series I will publish on available foreclosure listings in the Gladwin, Michigan area. I will include available foreclosure listings in Clare, Michigan, Harrison, Michigan Beaverton, Michigan and the surrounding areas as well.
I will start with a summary of important information to know and consider before beginning the process of searching for bank owned and HUD properties.
Definition of foreclosure according to wikipedia is:
The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that "the lender has foreclosed its mortgage or lien". If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgement.
Definition of HUD property
When someone with an FHA Insured mortgage defaults on the loan, the lender forecloses on the home; FHA pays the lender what is owed; and then HUD takes ownership of the home. In Michigan and other states HUD turns over the property to Michaelson, Connor and Boul Inc. (MCB) a Marketing and Management contractor for HUD. MCB maintains and sells these properties in accordance with HUD guidelines.
A great resource for answers to frequently asked questions about searching for, viewing, and the buying process of HUD homes is available at the FAQ page on mcbreo.com. Click here to view it!
1. The first step in buying any foreclosure or HUD home is to determine if you have the cash available or if you can qualify for some type of financing. When submitting an offer to purchase a foreclosed property most banks or government agencies will not even consider your offer unless it is accompanied by a letter of pre-approval from a lender or a proof of funds letter showing the availability of your cash. This step cannot be skipped and I cannot stress the importance of getting this in order before searching for available homes.
2. Find a local real estate agent familiar with the area you are looking in. Real estate is local and an out of town agent may not be fully aware of the intricacies of selling real estate in that specific area or know about certain things happening locally that may affect your decision to purchase in that area or buy that specific home. I am an Accredited Buyers Agent fully qualified to represent buyers in the Gladwin, Michigan area and the surrounding communities of Beaverton, Harrison, Clare and Hope. I have extensive knowledge of the local real estate market and am very experienced in the sale of foreclosure properties. 60% of my business so far this year has come from the sale of foreclosed properties or HUD homes.
3. Buying a Foreclosure or HUD property is not like buying from an individual. Almost all foreclosures or HUD properties are sold as-is, where-is meaning that you will be buying the property in its present condition and no repairs will be made by the owner. Typically the house is priced according to its fair market value taking into account its condition. This does not mean that you should not do an inspection! As a matter of fact that is one of the most important steps...this will ensure you are fully aware of the condition of the home you are going to purchase and determine if you want to or can repair the home.
There will be additional paperwork involved in making an offer to purchase a bank owned/foreclosure property. Banks typically have an addendum to the purchase agreement, as-is statement and other documents that must be reviewed and signed and either sent along with the offer to purchase or signed after acceptance of your offer. The complexity and length of these documents is another reason why it is so important to choose an agent familiar with selling foreclosure properties. Your agent will guide you through the process answering your questions along the way.
Banks work on their time line not yours and do only what is in their best interest. For the bank selling the property it is all about the bottom line. They will decide if your offer makes financial sense based on the local market, the value of the property and your method of payment. They will respond when they can (and do try to do so in a timely manner) but they do not have to respond at all if they do not like the offer. Banks can review multiple offers to purchase a property at one time and in this case usually require the highest and best offer from all parties who are interested in purchasing.
Below is the list of foreclosure properties for sale in the Clare/Gladwin Board of Realtors MLS and a link to the HUD properties in the Gladwin, Beaverton, Clare & Harrison areas. I strongly advise that you contact me to check the properties availability as foreclosure and HUD properties are priced to sell in 90 days or less. The Gladwin, Michigan market has an average of 7.5 months to sell a property so when a bank decides on a list price to sell the property in 90 days or less they are priced well below market value and tend to sell quickly.
HUD Properties in Gladwin, Michigan
1835 Oak Rd, Gladwin
HUD Properties in Beaverton, Michigan
3120 Guernsey Rd, Beaverton
2385 Cornell Dr, Beaverton
HUD Properties in Harrison, Michigan
4791 Edgewood Drive, Harrison
3400 Cedar Rd, Harrison
4061 W Oakley Rd, Harrison
2080 Jefferson Rd, Harrison
4240 Dan Dr, Harrison
3864 Camino Rd, Harrison
2779 Timberlane Rd, Harrison
No HUD properties currently available in Clare, Michigan.
No HUD properties currently available in Hope, Michigan.
I have identified 42 foreclosure properties in the MLS. Since this is the first post on this topic I will include all foreclosure listings. Subsequent posts will include only foreclosure properties new to the market since the last post.
My job as your Realtor is to guide you through the process of buying a foreclosure or HUD property and to answer your questions with my experience, patience and understanding. Buying a foreclosure or HUD property is a big deal, exciting and could be a great way to invest or buy your first home! Keep in mind any first time buyer who qualifies gets to take advantage of the up to $8,000 tax credit. It doesn't matter if you are a buying a foreclosure or HUD property!!
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I do offer a service to my clients that automatically emails you new listings that come on the market meeting your specific criteria. This eliminates the need for you to spend endless hours online sifting thru the current inventory. It also notifies you the day it comes on the market so you don't miss a great opportunity! Send an email or contact me by phone or text and tell me what you are looking for! I will set up the notification for you.
Sonya Loose, an Associate Broker with Red Carpet Keim Real Estate in Gladwin, Michigan specializes in residential real estate with expertise in foreclosure properties and identifying investment opportunities. To contact Sonya you can email to sonya@sonyaloose.com, visit my website at www.buyorsellwithsonya.com or call me directly at 989-429-2600.
