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Buying a HUD house in Battle Creek, Michigan requires that you follow an exact required procedure. The first thing you will need to have is a REALTOR that is licensed in the State you are buying the home in and he or she is registered with HUD through their brokerage.
Buying a HUD House in Battle Creek, Michigan
You will also need to have worked out ‘how’ you are going to buy the home before you attempt to place an offer. This means you will need either ‘proof of funds’ or ‘proof of financing’ in order to buy a home, and these need to be organized before you place an offer.
The reason for this is that once an offer is accepted, your REALTOR® is required to send a fully signed purchase agreement package to HUD within 48 hours and this needs to include your proof of funds or proof of financing. If this is not done, your offer can be cancelled and the home placed back on the market for sale to others.
Buying a HUD house in Battle Creek, Michigan or anywhere also requires an earnest deposit. According to the new HUD rules as of 2010 require the funds to be certified funds from a bank payable to HUD. This amount is $500 for offers up to $49,999 and $1000 for those above $50,000. The amount cannot be larger or smaller, even if you want to place a larger earnest deposit down.
Buying a HUD house in Battle Creek, Michigan also means that you must examine the bidding period for the house. HUD has a defined period for ‘Owner Occupant’ bids only, which is usually when the home first comes on the market. During this time period, only those that are going to actually live in and occupy the house for 12 months can bid on the home, and investors cannot.
The investor bidding period is called the ‘All bidders’ period. During this time owner occupant bidders and investor bidders can bid on the home, and the bidding closes out daily. For more information about buying a HUD house in Battle Creek, Michigan, give me a call at: 269-441-8182 or contact me through my website at: www.michaeldelaware.com.
As a Realtor in an market like many others across the country, I have helped buyers successfully negotiate and buy foreclosures from a bank. Having some insight into the process is always helpful to new investors and first time homebuyers, so that they can understand what is happening once their offer is submitted. See my other blog post on this as well.
Knowing what to expect in negotiating is essential to success as a buyer.
Some of the key things I have learned over the years is that a mortgage company or bank selling a foreclosure will usually have an intermediary company or division of their company that oversees the negotiating process. This organization is typically referred to as the ‘asset management’ company, or some similar name.
The asset management company will hire a local Realtor in the market area to list the property for sale. Before the listing occurs, there is usually a research and evaluation period that the asset management company covers on each given property. During this period, they are conducting an investigation with independent Realtors in the market area to determine a value. Once the research is completed, they submit to the listing agent an listing agreement that includes a price to list it at.
When offers come in on the property, no matter if it is a full price offer, or lower offer, they are countered by the asset management company. If it is a low offer, the counter will usually be in another price they will consider. If it is a full price offer, they will counter with requesting a higher down payment or earnest deposit, or a shorter closing time, etc. Fannie Mae properties for example will often include a deed restriction in their counter, stating that the deed will be recorded restricting you from selling the home to someone else within 3 months of the closing.
There are a lot of aspects to this process, but if you are looking for a Realtor that has experience with this in the Battle Creek market area, give me a call at: 269-441-8182 or contact me through my website at: www.michaeldelaware.com.
When one is seeking to buy a foreclosure, it always a good idea to consult with a Realtor that has been through the process a number of times. Banks and mortgage companies have a standard procedure in the selling of a foreclosed home. To them it is an unwanted asset. However, they are also cognizant of the need to reduce losses, so they do not part with these homes cheaply if they can avoid it.
Knowing how to submit a solid offer to begin with has everything to do with your success. I put together the following video in my series on ‘Buying a foreclosure’ on YouTube below to help buyers navigate through this process.
Buying a foreclosure is best done with a Realtor that is representing you.
Some of the facts one needs to realize in buying a foreclosure is that the seller, which is the bank or mortgage company, has conducted an evaluation on the property. They have hired a variety of local Realtors and appraisers to give them professional opinions on what it is worth on the market. They know the fair market value, and they know the distressed market value. Usually they list a property for sale at a distressed value or close to this when they launch it onto the market place.
So, unless their market information was flawed, they are usually attempting to sell it at a low value for the surrounding neighborhood. Knowing a few things about the negotiating process, including factoring in how long it has been on the market, condition, and location can help you gain a better understanding on how to be successful in buying the home.
Almost all banks and mortgage companies sell their properties through an intermediary service company, often called an asset management company. They have an exact procedure to follow on submitted offers, and as long as you follow that procedure they will review your offer.
Going in too low on a recently listed property can often result in a rejected offer, or a counter offer back at full list price. Going in low on a property that has been listed for over 90 days with no other offers can result in an entirely different response, for example, and can often get accepted or countered with a reasonable response.
So there is a balance to learn on this and I have included a video I created on this below. I hope it helps.
When you are buying a foreclosure, who are the various players involved in the process? When a home is taken back in foreclosure, the deed is now in the hands of the original lender. They have seized the property back due to a default condition, and the original homeowner and borrower is no longer in the picture.
So the bank or mortgage company is now the seller, and that is their role.
Buying a home that is a foreclosure has many players in the process.
Because they are a large corporation usually, they will hire or have established a
Buying a foreclosure can be an exciting process.
middle property management company which is also called an ‘Asset Management Company’ to contract with a local Realtor, and sell the home. This asset management company is going to take control of securing the home, by changing the locks, boarding up broken windows, and if it is in the winter, seeing that the property is winterized.
They will also sometimes delegate some of these responsibilities to the local Realtor, who will in turn hire local contractors, etc. The local Realtor is the listing agent. They receive a listing agreement which covers the price the seller is offering to market the home at, the terms they will consider, and it also covers a time frame for the listing period. These are the key players on the selling side.
On the buying side, there is you as the buyer and your own Realtor if you have one. You can work with the listing agent directly if you do not have your own Realtor, but realize that the listing agent as a contractual obligation to represent the seller. Their primary allegiance is to their client, which in this case is the bank. So is you want some independent representation in the process, it is recommended that you acquire the assistance of your own Realtor to represent you as a ‘Buyers Agent’ in the process.
If you are looking to buy a foreclosure in Battle Creek or the Southwest Michigan area give me a call, and I would be happy to assist you. I can be reached at: 269-441-8182 or through my website at: www.michaeldelaware.com.
The great deals in Battle Creek are a limited time opportunity. Many investors realize this; others are listening to the media and waiting for the other shoe to hit the floor, as they predict some impending doom. The truth of the matter of what is going on at this time in history is a major market correction that was decades in the making.
The Great Deals in Battle Creek Real Estate are a Limited Time Opportunity.
However, the prices will climb again, and realizing that in present time the great deals in Battle Creek are a limited time opportunity. For many years I used to avoid jumping into the investor market myself, and I always heard the stories of investors that bought something at such a great deal many years earlier when ‘times were different’ and they now were selling with a handsome profit. I admired that, and wished it were me.
After many years of experience in this area, I can tell you the time is now, not next year, or two years, or some other decade. If you have the capital, invest in sound rental homes while you can select from the best deals, and build your portfolio of investment property and rent them out and wait. Times do change, and this market will increase again.
This is the time you will tell your grand children about, and how you took advantage of the timing of the market, and built your fortune. Battle Creek has had an onslaught of foreclosures in recent years. However, our area has also done a good job of bleeding them out of the market place, as investors and first time home buyers have been seizing the opportunity.
I can tell you from a clear perspective of examining the Multiple Listing Service (MLS) on a daily basis that there are
This time will be spoken of for decades as the era for wise investors.
less bank owned homes in the high demand areas that there were last year at this time. The selection is growing ever tighter, and to me this is an indicator that prices will begin to climb. I already am seeing values going up in certain areas of town that in high demand, and more competition in bidding.
So if you have been sitting on the fence on whether you should invest, recognize that the great deals in Battle Creek are a limited time opportunity. Call me. Michael Delaware, Realtor at 269-441-8182 or visit my website and contact me through there: http://www.michaeldelaware.com/. The time it now. Don’t wait to make your move. The clock is ticking, and this is a time in our history of great investment deals.
Battle Creek area investment properties are being sought in greater frequency these days because of several developments in our State and National economy. One of the developments is that there has been a rising foreclosure rate across the country and especially in Michigan for the last 4 to 5 years. This has created an abundance of Real Estate Owned or ‘REO’ properties on the ledgers of major banks and lending institutions.
Factor in the increase of people who are no longer homeowners who can no longer qualify for a mortgage seeking
Battle Creek area investment properties are in high demand due to a rising foreclosure market.
places to live, and the influx of government subsidized housing funding programs like ‘Section 8’ and one has the perfect condition for a active investor market. Many new investors are seeking out Battle Creek area investment properties because they are inexpensive, and it is a safer place to put their money than in their declining 401K and other investment holdings.
Battle Creek area investment properties can be acquired on average in a price range of $25000 to $30000 each, and if in a good location and having three bedrooms, will rent for as much as $700 per month. So an investor holding Battle Creek area investment properties for five years can usually see a complete return on their initial investment and a more predictable retirement account.
Working with a knowledgeable Realtor that knows the area, and where to acquire the best properties in the high demand locations around town is key to your success. I have helped many investors new and seasoned acquire Battle Creek area investment properties and build their portfolios with great success. I can show you some of the best deals, and get you started in locations that are in higher demand, so that you minimize vacancy time on the rentals, which makes for higher profits in the long term.
I can be contacted through my website at: http://www.michaeldelaware.com/ or you can call me directly at: 269-441-8182. I look forward to helping you get started with Battle Creek area investment properties.
When one talks about rental house buying in Battle Creek, we are talking about being or becoming an investor.
Being a rental property owner can be a great business, but the key to success if working with an experience Realtor.
When you are a serious investor, you learn a few tricks about rental house buying in Battle Creek.
Most investors learn that location is very important for demand. Demand means that vacancy rates will be low per house, and when you are talking about owning and managing several, this is key to success.
When I started rental house buying in Battle Creek, I asked other landlords about what were the areas of town they saw the most demand. In other words, what part of town did they never have trouble renting, and what sized home? Most of the feedback I received at the time indicated two areas of town, so I concentrated on those.
I also found out that three bedrooms were easier to rent than two bedrooms, so if you wanted little vacancy time, concentrate on three bedrooms. The other option is to buy a foreclosure that can be converted into a three bedroom. However, it is much easier to buy an existing three bedroom than to do extensive remodeling.
Buying a rental house in a high demand area will reduce vacancy ratios.
Rental house buying in Battle Creek requires doing some research and it is recommended that you talk to other landlords. There is a local organization called the ‘Rental Property Owners Association’ (RPOA) and they can be a great resource for information for the starting landlord. So I would recommend that any investor start there, and even join, because they can be a wealth of local information.
Rental house buying in Battle Creek is a great business, but it is recommended that you work with an experienced Realtor so that you choose rental homes that are not only in the high demand areas, but also ones that do not require a lot of upfront investment to get them into use.
If you would like to get started in rental house buying in Battle Creek, visit my website at: http://www.michaeldelaware.com/ or give me a call at: 269-441-8182.
Smart Investors in Battle Creek use an experienced Realtor to scout out the best deals in the area.
Michael Delaware
