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

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 residents have prepared themselves in case of an emergency by implementing "ICE"; a life-saving system they have put in place for themselves and their families that everyone should know about.

Nearly all Americans carry a cell phone on them. It stores hundreds of numbers, some of which are your closest friends and family, but it does not contain any information about who you are. In the event of an emergency paramedics are now being instructed to look through the cell phones of accident victims for contacts saved as "ICE". This intelligent protocol assists victims when they are unable to communicate themselves. It provides first responders (paramedics, fire fighters and police officers) the right contact information so they not only can identify who you are quickly, but will also help them get in contact with your family right away to obtain medical information and to inform them of your condition.

Here is what to do: Re-type contacts into your cell phone with "ICE" before their name. If you would like more than one emergency contact simply type multiple ICE contacts. For example: "ICE-Mom", "ICE-Michael", "ICE-Jennifer" and so on if necessary. Your local government has more information about ICE and other ways you can help first responders in case of an emergency.