Kris Wales - Macomb County MI real estate blog & homes for sale search site

Looking through my calendar today I realized that first time home buyers in my area (Macomb County MI) who wish to purchase this year in order to take advantage of the (up to $8000) 1st time home buyers tax credit could run out of time if they don't start the process soon.

BUSINESS DAYS LEFT BEFORE THE EXPIRATION OF THE 1ST TIME HOME BUYERS TAX CREDIT - 97

Here is a breakdown of how these business days will be spent during a typical home purchase transaction:

Please remember: You must be the owner of your new first home by the end of November in order to take the 1st time home buyers tax credit. There has been much speculation about it being extended, but as of this writing it has not been extended.

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One of the things that I'm asked by home buyers is "Can you recommend a home inspector". Of course I can, I can recommend several Macomb County MI home inspectors. I do like my home buyers to choose the inspectors themselves though after speaking with several and interviewing them.

A young first time home buyer in my area (Macomb County MI) asked me if I had a list of questions that I thought would be helpful to ask the inspectors as she called them. I drew up a list for her and sent them to her, and she used this simple questionnaire to help her decide upon which inspector to hire:

• Are you insured?
  
  
• Do you bring a ladder and walk the roof?
  
  
• Do you have a carbon monoxide gas detection meter?
  
  
• Do you check each electrical outlet or a sampling from each room?
  
  
• Do you climb into the attic?
  
  
• Do you test each appliance that is staying with the home?
  
  

This was a very simple set of questions that she could ask the home inspectors that she talked with, but it gave her a good sense of how each inspector conducted their business. I had not thought to have something like this as part of my buyers package of information and her question to me really made me put my thinking cap on.

Have you any questions to add that you feel a home buyer should ask a home inspector while they are interviewing them for the important job of evaluating the condition of their home?



~Kris Wales~ A partner for your real estate needs in Macomb County MI

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Prior to making your offer:

Always consider an offer on a bank owned home to be your “best and last” offer as many of these homes are already bargain priced. We are seeing many multiple offer situations on these homes. You may only get one chance to bid on them – make it your best offer from the start of the process. Even if the bank owner comes back with "present your highest and best offer" you will know that you have already done so and I can send the response "It is the highest and best" to the listing agent.

Bank owners and/or asset managers require full proof of funds (if a cash offer) or a pre-approval for mortgage letter with any offers submitted. If you haven't talked to a mortgage lender yet and submitted the necessary documents for a pre-approval, do it. The foreclosure owners will not look at an offer without one, or proof that you have the cash in full to pay for the home.

The bank owners also may require a certified or cashiers check payable to the listing office prior to reviewing an offer to purchase. I will try to get that condition waived, but for the most part we are unsuccessful in doing so.

Bank sellers will want to see a closing date of no more than 30 days from the date of first offer to purchase. If you experience a delay in your mortgage approval or other reason for delaying the closing you will probably be charged a fee for each day that the closing is postponed. The bank / asset manager may also withdraw the contract and put the home back on the market. Sometimes we will even see the verbage "Closing must take place the same month in which offer was accepted" in the contract. This ma not be possible if you are obtaining a mortgage, and you may elect to not proceed if we see this condition.

After your offer is submitted:

Offers on bank owned homes generally take 3-7 business days to receive a response back from the lender and/or asset manager. A signed acceptance of your offer may take an additional 3-7 business days. The old adagage "Hurry up and wait" surely speaks in volume for this waiting period from foreclosure owners.

Bank addendums & terms to the contract of sale must be agreed to by the purchaser and signed. (There are a few exceptions to this, for the most part their terms are inflexible.) Yes, they can be unreasonable. Only you can make the determination whether the additional hoops to jump through are acceptable to you. If they are not, then we'll move on to another home.

Home inspections

If the utilities are not on in the home they will have to be turned on in your name if you desire to have a full inspection on the home. (A full inspection is always recommended.) Note: The gas company will require that you be at the home when the gas is turned on. I should mention that you will only be given a 45 minute notice from the gas company to be there. Your home inspector cannot do a thorough job on your inspection unless the utilities are turned on.

Consider your offer to purchase with “As-Is” in mind. Banks/asset managers will normally not make any repairs to the homes.

Inspection contingencies are normally 5-7 days from the date of sellers acceptance. (Rarely do they allow more time.) You must be ready to proceed with a home inspection quickly in order to meet the deadline.

Closing on your home:

Closing date, time and location are set by the title company hired by the bank owners. We have very little flexibility, if any, in choosing a time that is preferable by the purchaser.

Many bank owned homes close in “escrow”. We will arrive at closing, sign all necessary documents and if the bank signed documents have arrived to the title company and funds have been exchanged, then you will receive your keys to the home.

If the bank signed documents have not arrived in time for the closing, you will receive your keys to the home and your closing documents at a later date. Most often this is within 1-3 business days of closing.

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If you have any further questions about purchasing a bank owned home (foreclosure) in Macomb County MI please don't hesitate to contact me. No pressure - just conversation.

~Kris Wales~ A Macomb County MI real estate agent & partner for your real estate needs.

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It appears that the Township of Chesterfield
(Macomb County MI) has decided to get in to the "buy a foreclosure - sell it for a profit" business.

The Macomb Daily has reported that Chesterfield Township has purchased two foreclosed properties and is going to auction them, hopefully for a profit. (One of these properties is said to be a vacant lot in a condominium complex. Now
who is going to purchase that from them?)

It was interesting to read the comments section of the article. It appears that most people believe the same thing that I do: Governments should not be in the real
estate business.



I wish the time and money spent by governement would be directed at helping people avoid foreclosure and creating jobs instead of buying properties and flipping them. (How's the Hope for Homeowners Program working for people in your area? In mine: Not so much.)

~Kris Wales~ A partner for your real estate needs in Macomb County MI

Want to chat about Macomb County MI real estate?

The City of Warren MI in Macomb County is in the process of enacting a city wide foreclosure registry.

I think it's about darned time that the city officials stepped in to combat the blight and the safety issues
that happen with some abandoned foreclosures.

Bank owners (and other owners) will be required to register the homes with the city within 5 days of
the notice of foreclosure in the courts or advertising the foreclosure in the newspaper. The bank owners
(or other owners) must inspect the homes to ensure the homes are safe: Pools drained and covered if they are not in operable condition with clean water, doors secured and windows locked (or boarded) and lawns maintained.

It's going to be up to real estate agents who market these homes for sale to keep on top of things with
their bank clients and notify them when they accept a listing within the City of Warren of this new ordinance.

I believe the ordinance is scheduled to take effect upon the 2nd official reading of it within the City Council. When this happens I will update you.

It's going to much more enjoyable for my buyer clients to view homes in the City of Warren once this ordinance takes effect. Neighborhoods and home values will also be helped by this long overdue ordinance. I hope other communities in Macomb County MI follow suit and enact their own.

~Kris Wales~ A partner for your real estate needs in Macomb County MI

If you would like a list of foreclosure homes for sale in the City of Warren (Macomb County MI) please contact me. I would be happy to send to you the list of homes as they come on the market that fit your needs and wants in a home. You also can view all of the homes for sale in Macomb County MI via MLS provided data here.