$30,000 5 beds, 3 baths Home in Detroit, MI

Detroit, MI - Homes for Sale:


1991 Ferdinand St, Detroit, MI 48209, $30,000 5 beds, 3 baths ow.ly/2Lwb6m

Carlisle Mitchell Insider Tips for Real Estate Investors is a trusted and reliable source of expert investment and market analysis for real estate investors world-wide. NEW! Now follow Carlisle Mitchell Insider Tips for Real Estate Investors on Facebook and Twitter

$62,500 3 beds, 2 baths Single Family Home in Houston, TX

12003 Green Coral Dr, Houston, TX 77044, $62,500 3 beds, 2 baths ow.ly/2KEUNn

Filed under: Carlisle Mitchell, Carlisle Mitchell Insider Tips for Investors, Real Estate Investors, Investment Properties

NY Based Crumbs Bake Shop to Auction 19 Retail Locations

NEW YORK - Crumbs To Close Multiple Locations; Seeks Sale of Company - Crumbs Bake Shop Inc., a New York based cupcake ... http://t.co/xosMX8xV8K

$24,000 3 beds, 2 baths Single Family Home in Detroit, MI

11964 E Outer Dr, Detroit, MI 48224, $24,000 3 beds, 2 baths ow.ly/2KpUG7

$32,000 4 beds, 3 baths Single Family Home in Detroit, MI

4014 Cortland St, Detroit, MI 48204, $32,000 4 beds, 3 baths ow.ly/2KpUGb

$79,000 3 beds, 2 baths Single Family Home in Houston, TX

9030 Talton St, Houston, TX 77078, $79,000 3 beds, 2 baths - 1268 sqft, 3 beds, 2 baths, single-family home in Hou... ow.ly/2KmgpK

$42,500 3 beds, 2 baths Single Family Home in Houston, TX

1427 Elton St, Houston, TX 77034, $42,500 3 beds, 2 baths - 1621 sqft, 3 beds, 2 baths, single-family home in Hous.. ow.ly/2KmgpN

Mortgage Modifications

A Mortgage Modification is permanent change in a homeowner’s home loan terms that makes the monthly loan payments affordable. The goal of mortgage modification is to prevent foreclosure.

Mortgage modification can benefit homeowners by preventing them from losing their home and can benefit lenders by avoiding the costly foreclosure process.

To apply for a mortgage modification, a homeowner must complete an application package documenting income, assets, expenses and financial hardship.

The biggest mortgage modification program in the United States is the Home Affordable Refinance Program, created in 2009 by the federal government in response to the nation's housing crisis. This program helps homeowners who are struggling to pay their Freddie Mac or Fannie Mae-backed mortgage apply for mortgage modification with their loan servicer.

These are borrowers who cannot do a traditional refinance to improve their loan terms because their home value has declined below the mortgage balance.

A similar program called the Home Affordable Modification Program helps borrowers with Federal Housing Administration-backed mortgages. Borrowers can also apply for a mortgage modification outside these federal programs. A nonprofit housing counselor can help with the process.

While a mortgage modification generally means less income for the bank because of a reduction in the mortgage’s principal amount, interest rate or both, this loss may be less than what the bank would experience by foreclosing on the borrower and reselling the property. Mortgage modification can turn a less-than-ideal situation into a win-win.

Still, foreclosure was much more common than mortgage modification during the housing crisis because banks claimed they lacked the resources to handle the large number of modification requests. As a result many homeowners who may have qualified for mortgage modifications were not able to get into a modification program and, instead, lost their homes to foreclosure.

Underwater Mortgages

An Underwater Mortgage is a home purchase loan with a higher balance than the free-market value of the home. This situation often prevents the homeowner from selling the home unless the homeowner has the cash to pay the loss out of pocket.

It also prevents refinancing in most cases. Thus, if the homeowner wants to sell the home because they can't afford the mortgage payments anymore, the home may fall into foreclosure unless the borrower is able to find a way to payoff or renegotiate the loan.

Underwater mortgages became commonplace in the aftermath of the 2000s housing bubble burst, and, combined with a bad economy, resulted in numerous foreclosures.

In nonrecourse states, where mortgage lenders can't pursue borrowers for more money once their homes have foreclosed, many borrowers who could still afford their mortgage and other bill payments strategically defaulted on their underwater mortgages because they believed they were cutting the losses from a bad investment.

Understanding Short Sales

Short sales are purchases negotiated with the owner and lender(s) before foreclosure. Typically the purchase price negotiated is less than the balance owed on the property.  For investors, short sales present an opportunity to buy real estate below market value and help borrowers avoid foreclosure.

Short Sale Process

• Both parties consent to the short sale process, which allows them to avoid foreclosure, which involves more fees for the bank and foreclosure being reported on the borrowers credit report. However, this agreement does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.
• The bank or mortgage lender agrees to discount the loan balance because of an economic or financial hardship on the part of the borrower.
• The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender.

Short Sale vs Foreclosure

• Neither side is "doing the other a favor;" a short sale is simply the most economical solution to a problem.
• Banks will incur a smaller financial loss than would result from foreclosure or continued non-payment.
• Borrowers are able to limit damage to their credit history, and partially control the debt.
• A short sale is typically faster and less expensive than a foreclosure.
• It does not extinguish the remaining deficiency balance unless settlement is clearly indicated on the acceptance of offer.

For more information about short sales visit Carlisle Mitchell - Real Estate Tips for Investors

U.S. Foreclosures Hit 8 Year Low

Foreclosure activity across the United States dropped to an eight-year low in May as banks reclaimed fewer homes and foreclosure starts saw their lowest levels in years, RealtyTrac said in a report on Tuesday.

RealtyTrac, which tracks and maintains housing market data, said 109,824 properties across the country were at some stage of the foreclosure process in May. That marked a 5 percent decline from April and left foreclosure activity -- foreclosure notices, scheduled auctions and bank repossessions -- 26 percent below the year-ago level.

Short Sales

Short sales are purchases negotiated with the owner and lender(s) before foreclosure. Typically the purchase price negotiated is less than the balance owed on the property.

For investors, short sales present an opportunity to buy real estate below market value and help borrowers to avoid foreclosure.

Carlisle Mitchell - Houston - Judicial Foreclosures

Carlisle Mitchell - Houston - Judicial Foreclosures.
Judicial Foreclosure is a foreclosure proceedings in which a mortgage lacks the power of sale clause. In such an instance, many states require the foreclosure to be processed through the state's courts. If the court confirms that the debt is in default, an auction is held for the sale of the property in order to acquire funds to repay the lender.

This differs from non-judicial foreclosures, which are processed without court intervention.
Many states require judicial foreclosure to protect equity the debtor may have in the property. Judicial foreclosure also serves to prevent "strategic disclosures" by unscrupulous lenders.

In instances where the sale of the property through the auction does not generate enough funds to repay the mortgage lender, the former homeowner will still be held liable for the remaining balance.

Income Property

Income property is property bought or developed to earn income using various investment strategies. 

Income property can be residential or commercial. Residential income property is commonly referred to as "non-owner occupied". A mortgage for a "non-owner occupied" property may carry a higher interest rate than an "owner occupied" mortgage as it is viewed by lenders as a higher risk.

A common practice during periods of home price appreciation is for investors to purchase residential income properties with the intent that rents will cover their monthly expenses for a period of time until the property can be sold for a large capital gain. 

As with all markets during times of fast price appreciation, and as with all market bubbles, investors that enter the market first and get out first usually do well. Investors that enter the market later, and get out last usually don't do as well.

Short Sales

Short Sales
A home that is listed for sale at a price lower than the amount owed on the mortgage. Homeowners hope to sell their home as a short sale to avoid penalties associated with going into foreclosure. What can make it difficult to buy a short sale is that there are often two mortgages on the home and both lenders must approve the sale. The ownership of the mortgages on a short sale home usually belong to more than one party, so you'll likely have to convince multiple banks and lenders to take a loss on their original loan. This is why it often takes so long to approve a short sale offer. If the short sale fails and the homeowner can't afford to pay his mortgage, then the bank forecloses on the home.

U.S. Home Prices Highest in 7 Years

U.S. home prices jumped 12.2 percent in May from a year ago, the most in seven years.

Real estate data provider CoreLogic said Tuesday that home prices rose from a year ago in 48 states. They fell only in Delaware and Alabama. And all but three of the 100 largest cities reported price gains.

Prices rose 26 percent in Nevada to lead all states. It was followed by California (20.2 percent), Arizona (16.9 percent), Hawaii (16.1 percent) and Oregon (15.5 percent).

CoreLogic also says prices rose 2.6 percent in May from April, the fifteenth straight month-over-month increase.

Steady hiring and low mortgage rates have encouraged more Americans to buy homes. Greater demand, a limited number of homes for sale and fewer foreclosures have pushed prices higher. Prices are still 20 percent below the peak reached in April 2006, according to CoreLogic.

Sales of previously occupied homes topped the 5 million mark in May for the first time in 3 ½ years. And the proportion of those sales that were "distressed" was at the lowest level in more than four years for the second straight month. Distressed home sales include foreclosures and short sales. A short sale is when a home sells for less than what is owed on the mortgage.

Home sales are expected to increase in the coming months. That's because the number of people who signed contracts to buy homes rose in June to the highest level since December 2006. There's generally a one- to two-month lag between a signed contract and a completed sale.

One worry is that higher mortgage rates could slow the housing recovery. Still, rates remain low by historical standards. And increases in rates could boost home sales. That's' because many Americans may act to lock in the lower rates before they rise further.

A survey by the University of Michigan released last week found more Americans believe it is a good time to buy a home because both rates and prices are just starting to rise.

Rates have been trending higher for two months. And the average rate on a 30-year fixed mortgage leapt to 4.46 percent last week, according to mortgage buyer Freddie Mac. That's the highest in two years and a point more than a month ago.

Mortgage rates surged after Federal Reserve chairman Ben Bernanke said last month that the Fed could scale back its bond buying later this year and end it next year if the economy continued to strengthen. The bond purchases have kept long-term rates down.

Economists say that higher mortgage rates are unlikely to stifle the housing recovery. A more critical issue is whether potential buyers can get loans. There are signs that banks have become more willing to extend mortgages.

No Slowdown in Sight for Houston Housing Market

HOUSTON — Home buyers kept Houston-area REALTORS® hopping in February, generating a 15.5 percent increase in sales compared to the same month last year, according to the latest monthly data compiled by the Houston Association of REALTORS® (HAR). The buying spree held local housing inventory to the same level as January — 3.6 months — which is the lowest supply of homes on the market since December 1999.

February marked the 21st consecutive month of increased home sales, with average and median prices reaching the highest levels for a February in Houston.
Contracts closed on 4,407 single-family homes during the month. All housing segments saw gains except for those priced below $80,000. That suggests the likelihood of an exhausted supply of available homes at that price point. Homes selling from $250,000 to $500,000 registered the greatest sales volume increase, accounting for the price appreciation.


“The recent flurry of home buying and reduced inventory may seem unusual, but is exactly what the Houston market experienced back in the late 1990s,” said HAR Chairman Danny Frank with Prudential Anderson Properties. “The difference is that now we are seeing multiple offers and bidding wars. We are still in a seller’s market, and I would advise anyone who is considering selling their home to consult a REALTOR® who can price it right and handle all the details and paperwork, including sorting through whatever offers may come in.”

The single-family home average price increased 9.6 percent year-over-year to $220,445, the highest level for a February in Houston. The median price—the figure at which half of the homes sold for more and half sold for less—rose 7.9 percent to $161,700, also a record high for a February.

Foreclosure property sales reported in the HAR Multiple Listing Service (MLS) declined 23.4 percent compared to February 2012. Foreclosures currently make up 15.8 percent of all property sales, down from 19.6 percent one month earlier. The median price of foreclosures climbed 7.7 percent to $85,000.

February sales of all property types in Houston totaled 5,324, a 17.2 percent increase over the same month last year. Total dollar volume for properties sold rocketed 26.5 percent to $1.1 billion versus $887 million a year earlier.

February delivered positive results to Houston’s overall real estate market when all sales categories are compared to February 2012. On a year-over-year basis, total property sales, total dollar volume and average and median pricing were all up.