Muskegon Michigan is a Foreclosure by Advertisement state and county. Most lenders use this foreclosure process to gain possesion ofyour property.
Michigan uses two forms of foreclosure: foreclosure by court action and foreclosure by advertisement. A mortgage may be foreclosed by filing a lawsuit in the Michigan circuit court. The court may order the property sold six months after the initial filing of the lawsuit. The property will be sold by the circuit court commissioner or any other person who is appointed by the court to conduct the sale. After the sale, the borrower has six months to redeem.
Foreclosure by Advertisement
If the mortgage contains a power of sale clause and there has been a breach of the terms of the mortgage, such as nonpayment of the loan, then the property may be foreclosed on through a non-judicial foreclosure by advertisement, unless the mortgage is held by the Michigan state housing development authority. Nonpayment of any installment of a mortgage constitutes a separate act which justifies foreclosure.
The notice of a foreclosure sale must be published once a week for four weeks in a newspaper of general circulation in the county where the land is situated. Within 15 days after the first publication, a true copy of the foreclosure notice must be posted in a conspicuous place on the premises described in the foreclosure notice. The lender or the lender's agents have a right to enter the mortgaged premises to post or deliver foreclosure notices.
The sale must be a public sale, conducted between the hours of 9 o'clock "in the forenoon" and 4 o'clock in the afternoon. The sale must be at the courthouse or place where the circuit court for the county tries lawsuits. The sale is to be conducted by the person appointed for the purpose in the mortgage, or by the sheriff, under sheriff or deputy sheriff. The sale must be made by auction to the highest bidder. The sale may be adjourned from time to time by posting a notice of such adjournment at the time and place where the sale would otherwise have been made. Any adjournment for more than a week must also be published in the same newspaper as the original notice, within 10 days from the date the sale was adjourned, and again once per week for each week the sale is adjourned.
The officer or person conducting the sale will execute, acknowledge and deliver a deed to the premises to the high bidder at the foreclosure sale. The deed must specify the last date by which the borrower can redeem the property. The deed must be recorded within 20 days after the sale. The register who records the deed shall endorse the time the deed was received. If the property is ever redeemed, the register will destroy the deed and record the word redeemed on the face of the special book for foreclosure deeds. The deed and the foreclosure do not wipe out liens or claims that existed prior to the date of the original mortgage.
Redemption
The borrower may redeem by paying the lender the sum for which the property was sold at foreclosure, plus interest at the same rate as the mortgage. If the foreclosure buyer recorded an affidavit staling how much in taxes and insurance the foreclosure buyer paid, following the foreclosure sale, then the borrower must repay that amount as part of the redemption process.
If a property is over four units or three acres and has not been abandoned, then the time period for redemption is one year from the date of the foreclosure sale. If the property has been abandoned, and if the balance is over two-thirds of the original loan, then the redemption period is one month. If the balance is two-thirds or less of the original loan, use one year. If the property is four units or less and does not exceed three acres in size, then two different redemption time periods apply.
Abandonment
For residential property of four units or less, or three acres or less, abandonment shall be presumed in the following circumstances:
Personal Inspection
The lender has made a personal inspection of the premises and the inspection does not reveal anyone who is presently occupying or about to occupy the premises.
Borrower Fails to Respond to Proper Notice
The lender has posted a notice at the time the personal inspection was made, and mailed it by certified mail, return receipt requested, to the borrower's last known address. The notice must state that the lender considers the premises to be abandoned, and that the redemption period in such event will be only 30 days. If the borrower does not respond to these notices within 15 days by mailing to the lender (first class mail) a letter staling the premises are not abandoned, then the premises are considered to be abandoned. Obviously, a borrower who wants to preserve his or her rights should get busy and write the lender to show the premises are not abandoned or else the borrower will lose most of the benefits of the right of redemption.
Deficiency
A lender is restricted to foreclosing against the property as the sole remedy, unless the lender has a separate document that obligates the borrower to pay a sum certain, such as a promissory note, or the borrower has otherwise agreed to pay a sum in a specific amount stated in the mortgage document. In order to recover a deficiency amount, which would be the balance due on the mortgage minus the sum collected at the foreclosure sale (or credited if the lender bids by canceling out some of the borrower's obligation), the lender must file a lawsuit. The borrower can defend by showing the foreclosure sale price was less than the true value of the property at the time and place of the sale. If the sale was for substantially less than the true value, the deficiency sum the lender can recover may be either defeated or reduced by crediting the property's fair value against the unpaid loan balance at the time of the foreclosure. However, these defenses do not apply if the lender forecloses by court action rather than by foreclosure by advertisement.
Now the bank owns the home.
After the sale
The original owners may still be living in the home. They have up to 6 months to pay the bank the full amount to keep the home. This seldom happens. The people can actually still live in the house and not pay anything and the bank can't kick them out until the six months is up. So sometimes these people live in the house for up to a year and not pay a dime! Sometimes the bank offers to give them $500 or $1000 to get out of the house and release all rights to the home. The bank does this to get the sales process started quicker.
The bank usually waits for the six month redemption period to lapse because the owner has the right to come up with the money and buy the house back. Usually right away the bank has contacted 3 different real estate agents. The bank will ask the three Michigan Realtors give them a price that the house should sell for. The bank is asking the Realtor for a price, that price usually is fair market value in the eyes of the Realtor. So that foreclosed home is no deal in the beginning. It is around fair market value for its condition. The bank then hires a Realtor to change locks, winterize the home, clean carpets, and if necessary get the home in saleable condition.
So the bottom line is that the bank is trying to recover what they are owed on the house or get fair market value. They are not giving the property away. So some homes that are foreclosed are not always great deals. Though there are some fixer uppers that may be deals. There also are HUD foreclosures that go through a little different process. There may be deals in them.
The key to buying homes cheaply is to know values of the neighborhood and city and look for fixer uppers or homes below market value. Though some banks in the metro Detroit area are starting to bargain better and dump some of the properties because they have to unload the inventory. Banks like to sell the foreclosed homes within 30 to 90 days. So making a low offer on bank owned properties make get a buyer a low priced home.
Muskegon Mi . Foreclosure info
http://www.makinghomeaffordable.gov/
http://www.muskegonforeclosures.com
David Medendorp CCIM
I have compiled a list of bank owned, or Foreclosures , lender owned homes for sale in Muskegon. If you would like to invest in foreclosures this is the place for up to date information.
Please cal me or email me to get on
| Muskegon Foreclosures
This is the place to find foreclosure homes in Muskegon County. Most homes are selling for 25 - 90% below the previous value! This is a great time to invest in a growing beach town. Some investors are earning 100% return in their 1st year of investment. $319,900 **WATERFRONT**
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In the following artical you will learn what you need to do to save your home by doing a loan Modification or work out
Whats going on with banks has never before been posible. Now if your income has changed and you are unable to keep up banks are willing to consider both your ability to make future payments and what they might end up with if they take the properties back through the 6 month or 1 year forclosure process. Banks may give a interest rate reduction or reamortize your balance or help you figure out another way to save your home. The folling info is the best I have seen.
The first thing that a homeowner should do is identify that the mortgage on their current property is a lawful one. Meaning that there are no Truth in Lending Act or RESPA violations and there wasn't fraud involved on behalf of the lender or broker that originated your loan.
#1 Homeowner Tip = Have an experienced mortagee law attorney examine your loan documents for these potential violations.
#2 Homeowner Tip (Courtesy of Legal Aid Attorney, April Charney} The homeowner needs a complete written life of loan history to see all the bogus charges and fees included in their mortgage balance. Also, the homeowner should make sure that any inflated appraisal and/or loss of property value is calculated into the workout.
Red Flags and Things to Look Out For in Your Loan:
Start by comparing the loan you got with the one you thought you were getting. Are the terms the same? That is, is your Annual Percentage Rate ("APR") the same as the one you were quoted? Are your total monthly payments the same as you were told they would be? Is there a prepayment penalty, and if so, were you told about this prepayment penalty?
If you have refinanced your primary residence, that is, the home your currently live in, then the first thing you should look at is the "notice of Right to Cancel" which is also called the Three Day Right of Rescission. You usually has three days after signing loan documents to change your mind and cancel the loan.
The borrower must be told of this right in writing.
If the creditor fails to properly provide notice of this right to cancel, the right of rescission may be extended for up to three years.
When the right is extended for three years you can rescind the loan at any time before three years, meaning that the loan is treated as if it never existed. Essentially, you become entitled to all profits made by the creditor as a result of this loan. This means that the creditor must refund all interest paid, all closing fees, all broker fees, and even pay for your attorney fees. As you can imagine, this amount can be quite significant.
The extended right of rescission is a powerful tool to help borrowers who have been victims of predatory lending, and helping our clients exercise this right is often the first step in holding a creditor responsible for illegal behavior.
If it is determined that no laws have been violated on your mortgage, then it's time to approach your lender for a possible loan workout or loan modification.
The factors they will look at are:
1. Nature of Hardship Causing Your Mortgage Problems
2. Ability to pay
3. Amount Owed
4. Equity in the property
5. Future financial situation
6. What is better for them. To foreclose or pursue a loan workout with you and or modify your loan. Meaning which approach will best benefit the lender in the long run.
A loan workout or loan modification generally occurs where the parties to a problem loan mutually agree to workout the problem by creating new and better loan terms. The hope is that the new loan will enable to the borrower to meet their obligations.
When applying for a loan modification, make a game plan on how exactly you are going to approach them. These people are trained in minimizing loss for their company and they get paid to by getting the most amount of money out of you as possible or declare that your case is un workable and foreclose on you. That is how they mitigate loss. If you understand this, then you'll know that you have to approach them and all conversations very carefully.Everything can and will be used against you.Your lender has two platoons of employees who talk with delinquent borrowers. The first is the collections department, which consists of people who try to pry money out of you and get you current on the payments. The second group consists of the loss mitigation specialists. These departments go by different names, depending on the servicer, including foreclosure prevention, loan resolution and delinquency customer service.We'll use the most common name for the department: loss mitigation, or loss mit. It can be difficult to get through to the loss mitigation department if collection agents are discouraged from transferring calls. This is one of the benefits of having a helper, such as an attorney or a housing counselor. The first will intimidate bill collectors and the second might have contacts within the loss mitigation department.
The trick with any bank and getting a work out done is learning to navigate their phone system so as to increase your chances of getting a live person. Over the years I've learned some tricks that help, sometimes you hear options that you know will lead to a person like when it says "to speak to a representative press ___" but sometimes they don't give you these options. So, you have to think, what options WOULD get a live person. For example often anything that involves new clients signing up will get a live representative...because they always want new business. You have to be a little savvy though; you can't just tell the sales guy you called them so you could get a warm body to answer the phone!
Once you get a live person, you want to be working your way up to a decision maker. This is sometimes harder to do for a homeowner than a 3rd party. Often with the homeowner they get stonewalled at the first level, and sadly the first tier in Loss Mitigation is really a glorified collections department. They are paid hourly employee's who have very little if not zero motivation to go the extra mile and help you get some needed comfort and relief while resolving your problem. Often they just compound the problem by being rude and demanding, telling people things like "just pay your bills". So it's essential that you get beyond these people and to a specialist.
Sometimes to get to this point you have to put up with the hourly employee's through a process of filling out their forms and information. Providing them with items such as pay stubs, tax returns and a whole host of financial information. Once everything is provided, then some lenders will assign the file to someone higher up in the loss mitigation department.
The MOST crucial element to this whole process is your Budget and if you have done your due diligence, you'll be ready . They will ask you for a detailed list of your monthly expenses. If it's too tight, you may not get approved, if you have too much extra income you are going to have an outrageous payment plan. Don't agree to it!
The 2nd MOST important thing you can do is DO NOT SPEND YOUR HOUSE PAYMENTS. Often people stop making their payment because they are falling behind on other bills, or they can't quite make the whole house payment. Over the years more often than not, the people I met with still have an income coming in each month, they just can't meet all their obligations, so while the house is falling behind they take advantage of the fact that they aren't paying the house payment in order to catch up on other debts. THIS IS NOT WISE AT ALL. Sock away as much of that money each month as you can. Its crucial, here's why;
If you don't pay your mortgage for 3-4 months and your lender decides to negotiate a repayment plan or a loan modification, then they will want what is called "good faith" money for you to come to the table with. Typically this is from 30-75% and sometimes 100% of what you owe in delinquent fees and attorney fees. Often I speak with homeowners who spend all their money and have nothing to work with. If that is the case, then don't expect them to work with you or you better have a REAAAALLLY good explanation and proof as to why you have no money to bring to the table.You can search for more homeowner tips under the category "Loan Modification" on the right bar of my blog.Other great reads from Moe to help you in your questIf you need help
Call Today 888-4-SMhusa
http://loanmodificationexplosion.com/?cat=14
I have been in the Real Estate business in Muskegon for 22 years and intement market knowledge call me for
a opinion advice or to "GET YOUR PROPERTY SOLD" Or "Buy a new one"
David Medendorp Muskegon Realtor
ALT REALTORS
4265 Grand Haven Road
Suite 100
Muskegon, MI 49441
We are in the Alstrom office building!
Muskegon MI 49441
231-206-3367
http://www.sellmuskegon.com
http://www.altpropertymanagement.com
http://www.muskegonforeclosures.com/index.html
david@sellmuskegon.com
For rental information visit www.ALTpropertymanagement.com
Call my Licensed Assistant Anna Shear 231-798-6430 anna@sellmuskegon.com
call Dave's Assistant Deserae 231-798-6430 des@sellmuskegon.com
My sales partner is Jason Dolinski jason@altpropertymanagement.com
original post
There are many great buys in Muskegon both properties owned by banks and individauls.
I am still seeing prices drop slightly but the big thing is seller overall are pricing there properties at market prices.
Now would be a great time to buy. Follow this link to Muskegon Hud homes for sale
http://hud2.towerauction.net/cgi-bin/e7_search.cgi
select Muskegon.
call me if you want to see or buy a home.
David Medendorp
http://www.sellmuskegon.com
http;//WWW.MUSKEGONFORCLOSURES.COM
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I have been selling in Muskegon ,West Michigan for 20 years. I know almost every property in the market. I am very knowledgeable of investment, real estate and waterfront properties and market trends
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