Too many homes for sale on the street. Are any boarded up? Always keep an eye on the other houses near the one that you may purchase. They will tell you a lot about your possible future investment.

• Outdoor maintenance is often very telling of what is going on “underneath”. If the home you are looking at has straggly foundation plants or broken gutters, what else could be wrong?
• Foundation damage is always a major consideration. Check for proper grading and cracks bigger than 1/3 of an inch. Many times this can mean major structural issues.
• Strong odors outside and inside almost always indicate something “bad”. Investigate further.
• Be on the lookout for flickering lights and always check face plates for heat. This could mean faulty wiring.
• Windows with fog or water in between double-paned windows can signify trouble lurking.
• Stains and/or saggy walls usually indicate water damage, mildew or mold. An inspector must check for leaks and mold.
• Keep your eyes peeled during your tour for pests and rodents. Seeing evidence at this early stage is never a positive sign.

An alternative is houses that are being sold on a short sale. Due to the nature of this type of sale the owner is motivated to keep the house in great condition. You can often find a true bargain and a gem to boot in this situation.

Gift of money for home buyers

Canton and Plymouth, Michigan home buyers recently learned the $7,500 tax credit can now be a tax free gift and is extended to other buyers as well as first timers.

Originally the bill was passed last summer, as a part of the Housing Recovery Act, to encourage first-time home buyers to purchase homes within a certain amount of time, hoping to boost the housing market. That legislation required that the $7,500  tax credit be repaid over 15 years, making it more of a no-interest loan. The stimulus bill now under consideration would make that tax credit a true credit that doesn’t need to be repaid at all! Additionally the rules for  who qualifies have been greatly relaxed.

The news is spreading fast among the Canton, MI home buying community. The combination of this money incentive and great house values from short sale houses is prompting people to spring into action!

To be eligible, buyers cannot have owned a home for the past three years, and the new home has to be used as a primary residence. The credit slowly phases out if income rises above $75,000 for singles and $150,000 for couples. It disappears entirely at $95,000 for singles and $170,000 for couples. To apply for this credit, you must claim in on your 2009 tax return. It is that easy! As long as buyers do not sell for at least 36 months, they keep the $7,500. The credit is also refundable, meaning if your total tax bill came to $4,000 you can still qualify for a full $7,500 refund!

Timing is also critical. The current proposed bill requires that you must have purchased the home between April 9, 2008 and July 21, 2009. Newer proposals have that date stretch out to August 2009. The point is take advantage of this gift before you forget about it and it disappears!

The Bittinger Team is optimistic that the Stimulus

 Bill and other financial incentives are creating

the best home buying opportunities in months.

The Bittinger Team

When Trust and Experience Matter!

(734)-459-2600

Bittinger Team - Short Sale Experts

Canton and Plymouth home sellers and buyers are finding that it is much harder to obtain a mortgage today than it was just last year or even just last summer.

These days having the owner of the property hold a second or even finance the whole sale on a Land Contract is becoming as popular as it was years ago.

The obvious benefit to the home buyer is the fact they can finance the house without the usual hoops to jump through. Additionally it is often much easier to deal with an owner than a bank and the cost to finance is much lower.

So what are the benefits to the homeowner?

First and foremost you get the house sold!

Other benefits to consider with Owner Financing is the steady income you will receive from the mortgage payments. Right now with all of the market volatility that we are experiencing, this could be your one steady interest earner – in some cases up to 7% or more! This is a guaranteed return as long as the buyer continues to make their payments.

If you don’t need the proceeds from the sale of your home immediately, seller financing can be a great investment.  You might also consider partial seller financing. Most buyers will have a cap on their loan allowance, and as the seller you can consider financing the rest at a higher interest rate than normal. Keep in mind that as the seller you would not have to hold on to this mortgage forever, as it can be sold on a secondary market.

Although the benefits to both sides are many the pitfalls can also be numerous. The Bittinger Team has the experience necessary to guide you through this lucrative way of selling your home. Call us today for answers!

The Bittinger Team: When Trust and Experience Matter

Office: 734-459-2600

Great News! Fixed-rate mortgages are currently at a ten year low! Call us today and find out just how this can benefit you today!

More owner financing tips for buyers and sellers

Canton, Michigan home buyers and sellers are enjoying the excellent new reports which indicate the falling of interest rates, as well as learning other optimistic news about the Real Estate Market! 

Currently interest rates are declining for most fixed-rate mortgages, which are the most popular and make up nearly 75% of all mortgages. These types of mortgages are very commonly used by first time home buyers, as well as those who would like to know what their monthly budget of expenses will be.  They are also frequently used for home buyers who plan on keeping their homes for longer periods of time.  Fixed-rate mortgages seem to benefit buyers in today’s market because buyers are purchasing what they can afford. Many buyers have gotten into trouble with adjustable-rate mortgages because they are able to buy more expensive homes, and ultimately when their mortgage rate increases, they can get in over their head. Often times people in these situations end up in Foreclosure and their credit tarnished for an extended period of time. Fixed-rate mortgages are much safer, and with the decline in interest rates we are hopeful that the future of our economy will continue to grow steady, while our home values increase at the same time.

Here’s the great news: A 30-year fixed-rate mortgage averaged 5.47% for the week ending December 11, 2008, down from the prior week’s 5.53% average and 6.11% a year ago. The rate hasn’t been lower since March 25, 2004, when it averaged 5.40%. With the recent new reports of interest rates dropping to 4.91% as of December 16, 2008, we should be very optimistic that our housing market is on a path to recovery.

Another beneficial reason that right now is a great time to buy a home is due to the tax credit that will only be offered until July of 2009. First time home buyers can take advantage of up to $7,500 in tax credits.  But you must act fast to take advantage of this added incentive!

 Call The Bittinger Team today, and let us walk you through the necessary steps of buying and/or selling a home in today’s market.  We guarantee results.

THE BITTINGER TEAM : When Trust and Experience Matter

Office: (734) 459-2600, Email: Team@Bittinger.com

The Bittinger Team, Realtors with RE/MAX Classic in Canton, MI, stay ahead of the pack in this topsy turvy Real Estate market by proficiently helping ”distressed” homeowners avoid foreclosure by successfully  navigating them  through short sale procedures  with their lenders.

Due to declining values and other reasons, the Real Estate market has literally been turned upside down with homeowners owing more on their homes than what those homes are worth. These distressed homeowners are confronted with the agonizing decision of how they should proceed… Foreclosure or Short Sale?? 

It’s no surprise that the Foreclosure and Short Sale process has caused much confusion in the community with homeowners and even with Realtors and Real Estate attorneys.  “There is definitely more misinformation than information on this subject” states Kelly Adkins, Realtor with The Bittinger Team.

What is a Short Sale?

A “Short Sale” is a relatively new phrase to many homeowners, but this type of sale has been part of the real estate market for many years.

A homeowner is “short” when the homeowner owes an amount that when combined with closing costs and commission is higher than current market value.

A Short Sale occurs when a negotiation is entered into with the homeowner’s lender to accept less than the full balance of the loan at closing.  A buyer closes on the property and the property is “sold short”. 

With a successfully negotiated short sale the seller won’t get any money at closing, but they will avoid the emotional toll a foreclosure can cause.  In addition, the seller won’t have to come to closing with any money and their credit won’t be destroyed.

This sounds easy enough, however it is an involved process that takes time, patience, good communication skills, organization and professionalism.

Every Realtor Member of the Bittinger Team; Lee Bittinger, Noel Bittinger, Kelly Adkins, LeaAnn Malmin and Debbie Louiselle has become a CERTIFIED DISTRESSED PROPERTY EXPERT (CDPE).  This means they each understand the Short Sale and Foreclosure process thoroughly. They specialize in the sale of distressed properties and can assist both buyers and sellers.  They can quickly assess any situation and be able to suggest which strategy is best for a homeowner to avoid foreclosure. Each agent attended an intensive two-day seminar and countless webinars to earn this kind of designation.  They are 5 of only a handful of Realtors in the entire Detroit metropolitan area who hold this new designation.  “We’re educating ourselves constantly because things are changing so fast.” said Noel Bittinger.

In addition to holding the CDPE designation, they have sold over 75 homes on short sale just in the past 1.5 years.  It is invaluable to find a real estate agent who has the capability and knowledge to quickly sell your home in these devastating and heart-breaking situations.

“In today’s market, agents cannot simply place a for-sale sign in a front yard or hold a house open to sell a house” states Noel Bittinger.  “Currently there is an increasing need for skilled and knowledgeable agents to work with homeowners who are in over their heads and want to make a short sale to avoid foreclosure or even bankruptcy.  Unfortunately, many of the short sale transactions are being handled by untrained salespeople who are doing more harm than good because they are getting nowhere with the lenders.  When you are dealing with financial distress, it is a totally different procedure.  It is not longer about numbers, it is about saving lives.  The Bittinger Team has the tools, information and tactics needed to help a distressed homeowner understand their options as they face the threat of foreclosure.  Help means talking with lawyers and financial experts, and negotiating with the lenders who hold these troubled loans.” 

“This is a very difficult time for these homeowners; they need more consulting and hand holding than the average homeowner.  We help them understand the process and what their best options are.  They don’t know where else to turn.” states Noel Bittinger.

“What they most appreciate is that our conversations about their personal situation are kept very confidential, as this is a very humbling experience for many.” said Lee Bittinger.

“When every other homeowner who was contacting us to list their home was in an upside down situation, we realized that we better get ourselves educated thoroughly on this process to help these families keep their credit clean by avoiding foreclosure.” states Lee.

“Much of the time, I don’t feel like a Realtor,” Noel said.  “I feel more like a counselor and an accountant and an attorney all rolled into one.  There’s a whole lot of crying going on out there with these struggling owners.  They break your heart.”

To most agents a short sale is such a mysterious thing,” Lee says.  “Most of the Realtors don’t want to bother with them because they’ve heard so many horror stories.  They are basically afraid of them.”

A recent story, a Farmington Hills agent put an offer from a buyer and did not hear back from the bank for five months, tying up the deposit that long.  Ultimately, the bank foreclosed.  This was due to lack of proper follow up and incomplete paperwork. “It can take up to 60days for lenders to give final approval for a short sale”, Lee said.  “It requires a ton of paperwork and it can be very frustrating for both buyer and seller.”

Another story is about an attorney who advised a distressed homeowner to declare bankruptcy rather than to go through a short sale or a foreclosure.  “While bankruptcy may be a better option than foreclosure, it will still cause divesting damage to the homeowner’s credit report.  It will stay on for years and many times it can lead to foreclosure anyhow.   Upon analyzing this homeowner’s situation we determined that he is very qualified to do a short sale, yet his attorney actually told him that nobody should do a short sale.”  States Lee.

Not every homeowner can do a short sale.  Sellers must be able to demonstrate a financial hardship like job loss or mounting medical bills, etc.    

“Many times, all this counseling and help ends up in no sale. But it’s a wonderful feeling knowing you have helped one more family stay in their home” said Lee.

The Bittinger Team is reaching out to all local families in distress. Call them today!  They can quickly help get you on the right path to recovery for the future during these painful times.

The Bittinger Team

When Trust and Experience Matter

(734) 459-2600

Join the thousands of home buyers who are seeking great bargains on fantastic homes within the 6 counties of Southeastern Michigan! The Bittinger Team has recently partnered up with www.bestmichiganhouses.com to provide a valuable resource to the community. Join now! These deals will not be around forever!

Canton and Plymouth, Michigan Home Buyers: If you are interested in saving money on your energy bills please know that there are home builders out there that are making solar power a viable option for you. We represent several small custom builders that offer Solar Power as an option and can also retro-fit a current house with solar power.

A great example of a large builder that offers Solar Power as a standard option is Victoria Gardens by Shea Homes (a south and south western new home builder). Their pledge to achieve superior environmental performance as well as reducing the cost of home ownership is about to become a reality.  Each 3-kilowatt solar power system will lower the homeowner’s electric bills by up to sixty percent, and can result in a carbon footprint reduction of up to forty-eight percent.  Not only is this a wonderful savings for the homeowner but also allows them to remain energy independent when electricity rates increase.  In addition, this wonderful option yields environmental benefits for the entire community.  Each Shea Green Certified Homeowner will be able to track how much power their system is producing, as well as its environmental benefits, all through a Web-based remote monitoring system.  For more information about Shea solar powered homes please go to www.sheasuperiology.com/trilogy/ 

A few local builders are also talking about including solar power in their option mix. It may be a hard sell because buyers shy away from things they are not familiar with. The savings are impressive however and in these economic times when energy is becoming scarce now may be the right time to investigate this alternative to traditional energy sources.

These developments come at a very fortuitous time as just a few weeks ago our government signed the Emergency Economic Stabilization Act of 2008, which will allow for three things.  First, the Solar Investment Tax Credit will be extended for another eight years.  Secondly, it will lift the cap on the $2,000 allowance.  Thirdly, it will allow the credit to be put toward a homeowner’s alternative minimum tax.  In addition to these federal credits, home buyers may also be eligible for state or local credits or rebates.

If you have a solar power house why not leave a comment on this blog and let us get your story out to the public. How much did it cost over traditional systems? Did you get government financial help? Has the savings been worth It?

Many would like to know if such a decision would be right for them.

 Learn more about solar energy

2) ROUTINES: Stick as close to the previous schedule as possible (waking times, daytime rituals, meals, bedtime routines, etc). This will help them adjust more quickly to the new home.

 

 Losing your home to foreclosure is a reality many people have a hard time facing. The growing number of foreclosures in Canton, Plymouth, and the surrounding communities are accompanied by homeowners unwilling to face the facts. Instead of hiding, the best advice is to talk to your lender as soon as you can.

Call any lenders who have a lien against your home (a first mortgage, second mortgage, home equity loan, construction loan, etc.). Let them know your situation and how much you can afford to pay per month. Don’t exaggerate how much you can pay. Give a realistic estimate, and see what they have to say. Ask the lender’s representative to explain all of your options:

•   How long would they give you to sell the home and pay off the debt?

•   Would they be willing to negotiate a short sale – accepting less than you currently owe as “payment in full?”

•   How much would it cost to reinstate the loan – catch up on missed payments (plus any penalties and interest)?

•   Would the bank be willing to negotiate a forbearance, in which you could catch up on back payments in installments?

•   Is the bank willing to modify the mortgage – perhaps by increasing the term (stretching payments over a longer period of time), decreasing the interest, forgiving a portion of the debt, or adding missed payments on to the end of the mortgage?

•   Would the bank be willing to accept a deed in lieu of foreclosure, whereby you would provide the deed and keys for the home in exchange for having any remaining debt forgiven?

Once you have all of your options on the table, you can make a much better decision of how to proceed.

During the 2005-2007 correction:

Median household income grew by 5%

> 4 Million jobs were created

> 2 Million Legal Immigrations (4 Million IRS I-10 status)

> U.S. Population grew by 5 Million people

> House prices fell, so affordability is up

> 3 Million Family formations

> Retiring boomers abated sales or purchases

> Pent up demand from the correction will work off the inventory

> U.S. population growth by another 5-7 Million people to a total of 315 Million by 2010

> 1 Million + Legal immigrants/year

> X Generation 30 Million

> Y Generation 70 Million

Estimates are that about 100 Million people are growing into home buying age; youngest 20+, oldest early 30’s.   It’s estimated that only 5% own a home now. 

By 2010, we will likely be in a balanced market.  Enough inventory to meet demand; but not at the point where there are not enough listings. 

Builders will start to replenish new home supplies as there will be a demand for 129 Million housing units vs. 127 Million now built. 

> 30-year fixed-rate mortgages at 6% on average, they are down from 6.3% a year ago — lower rates mean buyers can afford more

 

> As a forward-looking factor, mortgage interest rates continue to hover just above the 40-year lows — there is mortgage money available at some of the lowest rates in history

> Excellent homes-for-sale selection, both new and resale

> Great value – homes priced to sell

> More affordable housing and lower monthly payments

> Owning a home offers good tax benefits

> Homes are still a great investment and are increasing in value in most markets

> Build incentives and promotions available

Yes there are reasons to celebrate in what seems to be a down market. Keep in mind these statistics are for the country as a whole but here in the Detroit market we are experiencing a significant increase in sales activity right now. Could it be that we may recover faster than the country as a whole? As I mentioned, we went into a slump at least a year or two ahead of the country.  Maybe it’s our turn to lead the country out of this home sale slowdown. 

Here’s more evidence of this. Our partner website for searching homes, www.bestmichiganhouses.com , has been registering record traffic. What’s more interesting is the people that have been coming to this site are coming back in record numbers on a daily basis. The return is probably because the site is so user friendly, but it also seems there is so much more interest in finding a home. People are requesting more from the site than they have in the past few months.

Now you may be asking yourself how to take advantage of the surge in home buying interest that is occurring. Our website www.thebittingerteam.com is designed to be a resource site for people interested in buying, selling, and investing in real estate. Although we do have information on our team and how we work, the main function of the site is to provide resources to you the consumer to help you understand all aspects of the real estate market.

Here is an example of how the site can help you. The two buzzwords you hear in the real estate market today are "Foreclosures" and "Short Sales".

The tab labeled "Foreclosure Help" takes you to pages that explain in detail how foreclosures work, how they are different in Michigan as opposed to the other states, online resources for further information, and a wealth of other pages that are being added to further your knowledge of the Foreclosure market.

Similarly the "Short Sale Help" tab takes you to pages concerning Short Sale FAQ’s, the effect short sales have on appraisals, helpful hints to see if you qualify for a short sale, and a host of additional information on the process and what it may mean to you as a buyer or seller.

There are lots of reasons to buy a house right now. With interest rates and house prices so low there is no reason to wait. If you currently own a home and it fulfills all your needs then the best advice is to stay where you are. If however you have been contemplating moving because the home no longer fits your needs, an upgrade to a house that does may make  a lot of sense. While you may take a financial hit on your current house you could stand to make a windfall on a bargain you will buy to replace it.

If you would like advice on your situation don’t hesitate to call us at 734-459-2600. We can help you over the phone to decide which way is best for you and your family.

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Home buyers are, for the most part, honest and law abiding. We have been approached by some over the years that could not afford a home they intended to buy but were ill advised to fudge their application to get them into the house.

Fraud for housing may include any of the following attempts to deceive the lender into approving a mortgage loan:

 > Claiming on a loan application that you earn more money than you actually earn.

  > Presenting counterfeit paycheck stubs to verify employment or income.

 > Intentionally overestimating the value of your assets on a loan application.

 > Claiming on a loan application to work for a particular employer when you do not.

 > Adding someone to the loan application as a co-borrower who does not intend to live in the home with you or assist you in making payments.

 > Signing a loan application that contains blanks you know the loan officer will fill in for you later with false information that will help you qualify for the loan.

 > Getting a friend or relative who owns a business to say that you work there.

 > Fudging the numbers on a document, such as a tax return, to make it look like you earn more than you do.

 

Whenever you apply for a mortgage loan, you must sign the application – technically referred to as a 1003 (ten-oh-three) or Uniform Residential Loan Application. Just above the space for your signature is a statement worded something like this:

I/We fully understand that it is a federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1001, et seq.

In other words, it is a felony to lie on a loan application, whether for profit or housing.