Detroit Real Estate

I read that with the Home Affordable Foreclosure Alternatives (HAFA) program launch on April 5, 2010 there will be a rise in short sale mortgage fraud.  I hate to say it but it is already going on and nobody is stopping it as of now.

Here are two examples of short sale fraud I have seen.

1.)   A real estate agent takes a short sale listing.  He tries to influence the banks BPO agent to give a low price.  If he is able to negotiate a low price below market value he has a "friend" buy the property.  The friend buys the property and then the agent re-lists the property after a little fix up.  The agent gets some of the profit from the sale and gets the listing commission too.

2.)   A seller hires a real estate agent they know to get ready to list a short sale.  The sellers friend or family member with a different name gets another agent.  The buyer tells them they know of a short sale that is coming on the market. The same day the house comes on the market before anybody else can bid on it the sellers friend or family member puts in an offer.  That offer goes into the bank because the listing agent is using first in only.

Other higher and better offers come in, but the sellers agent disreguards them because they use the "first in" rule.  They dis reguard their obligation to get the best deal or highest offer for the bank.  They protect the seller.  The seller's friend or family member buys the house.  The seller continues to live in the house.  The seller's friend either leases it back to the seller, or has the seller pay the mortgage payment to them.

The short sale seller has bought their own house back at a much lower price than they originally bought it for with the aid of their real estate agent.  They have beaten the bank out of money and helped commit mortgage fraud. 

It's happening already and I don't think the banks or the FBI is going after these people individually.     

Right now there are 47 Canton rental homes and condos for lease.  There are 13 Canton homes for lease as of today.  There are 34 Canton condos for lease starting at $875 a month.

If you are looking to lease and want to get a head start.  Here are the items you should have ready:

1. Credit report.  You should have a tri-merge credit report with all three bureaus with the three credit scores.
2. A financial application filled out detailing your work history, your credit obligations, who will live in the house, and your income
3. An employment letter stating length of employment, and yearly income.  Or your w-2's   
4. An letter of explanation for any credit issues you have had
5. Verification of rent.  If you have rented before get a letter from your landlord or have copies of your checks to prove you have paid your rent on time.
6. Bank statement 

So if you want your Canton lease to go smoothly gather up these things before hand.

Feel free to call me on my cell (313) 310-9855 or email  me at YesMyRealtor@gmail.com to get a list of the latest Canton rental homes or Canton condos for lease

Russ Ravary your local Plymouth real estate agent

This week I had four different people get denied for home purchase loans.  A few years back in 2004 some of these Michigan home buyers would have gotten their loans approved.  For example.

1. One borrower had only one open trade line.  Now days many banks want two to three open credit lines.
2. One potential home buyer had a 583 mid score, now you need a minimum 620 score to get a loan.
3. One had a bankruptcy.  A couple of years ago you could get a loan done with in a year of having a bankruptcy, now you have to wait at least 2 years.
4. One just had a very low score and bad credit.  Back then they could get a loan and just put more down.  Not any more.  No loan, no how.

All of these home buyers have to get their credit repaired.

Step one:  Pay all your bills on time.  You need at least on year of perfect credit history to bring your score up.  So pay your bills on time.

Step two: Don't let anything else go into collection.  No medical bills, or co-pays can go into collection.  Collections drive down your score. 

These are just the first two steps of credit repair.  Stay tuned for more credit repair tips

Russ Ravary your Wayne County real estate agent serving Livingston, Washtenaw, Oakland, and Macomb County in Southeastern Michigan 

FHA said it is trying to better position itself to "manage its risk while continuing to support the nation's housing market".  One widely speculated change wasn't made -- the increase of the FHA minimum down payment.

Here are the new FHA rules coming on April 5, 2010. 

Home buyer's can still buy with just 3.5 percent down.  However, there are 2 major changes that you must be aware of and will be effective for any case number assigned starting April 5th, 2010.

1.   An increase in Upfront MIP from 1.75 percent to 2.25 percent

2.   A reduction in maximum seller contributions from 6 percent to 3 percent.

Russ Ravary your Livonia real estate agent

Here are two ways to raise your credit score.

1.)  Pay down your balances.  Part of the credit score formula is based on how much you owe versus how high your limit.   If you are at you limit your score is going to be lower than if you were at 33%.  So start on one credit card and start paying them down.  Your credit score will go up.

2.)  Go through the credit report and get any errors credit fixed.  This takes time to contact the creditor that made the mistake and time to get the information to the credit bureau.  But it is worth it.  Little items will cost you points on your credit report.

And of course pay your bills on the time.  That is the most important thing you can do.  Don't let any medical bills go into collection and make ALL your payments on time.  Re-building your credit takes time but you have to get started.