Foreclosures in Harrison Township Michigan are a sad reality of the state of the overall Michigan economy.
Homeowners in Harrison Township are located near Lake St. Clair, and fall into Macomb county, which is considered to be in Southeast Michigan.
Because of its beautiful location and setting, it’s an ideal spot for people who want to own a vacation home or live in a charming area year round.
Information about Foreclosures in Harrison Township are sought out usually by two different kinds of people: the unfortunate distressed homeowners who are facing foreclosure, and real estate investors who are seeking out these people.
Believe it or not, investors are not necessarily predators to people in foreclosure although they may seem that way at first. Ethical real estate investors actually may help the distressed homeowner with a variety of creative tactics.
This article will discuss a couple of ways:
Short Sales to Prevent Foreclosures in Harrison Township Michigan
If a foreclosure goes all the way to the county courthouse steps the property will be auctioned off by the sheriff.
In this situation, everyone loses.
The lender (bank) has lost money because their loan to the homeowner has defaulted. It also costs them tens of thousands of dollars during the foreclosure process. Then, they may have to buy the house back at the sheriff’s auction against other bidders. If they “win” the auction, they are now holding a piece of property they don’t want to hold.
This is because banks are in the business of lending money, not holding real estate. They would rather not hold real estate and have another non-performing asset on their books.
The distressed homeowner loses because his or her home is auctioned off. Other than the public nature of it, which may cause emotional duress and embarrassment, the homeowner will suffer a significant mar on their credit for years to come, making life more difficult.
So, what can an investor do for you if you are facing foreclosures in Harrison Township Michigan? Well, not all real estate investors are ethical, so we are only speaking of the ones with integrity. And you must be careful about so called “foreclosure consulting” businesses that may be out to scam you.
The two options we discuss here are ethical and perfectly legal if done right.
They are: Short Sales and Lease Options
First, short sales.
A short sale on a house can be performed by a real estate investor. It doesn’t matter if the distressed homeowner finds the real estate investor or the investor finds the distressed homeowner.
Here’s how it works in simple terms: the homeowner agrees to let the investor try to short sale his home. The investor then contacts the bank’s loss mitigation department. The investor attempts to negotiate a discount on the defaulted mortgage. The bank, depending on the strength of the case the investor makes, will accept or decline the short sale offer, or make a counteroffer.
If the short sale is successful, the bank will want the investor to close on the home soon (often 30 days after the acceptance of the short sale) and pay for the property with cash.
The investor is now the new owner of the home. The distressed homeowner will have to move out and on with their lives….but they get to avoid having their house going to foreclosure and being auctioned off. This means that they avoid the embarrassment and credit destruction this event would have caused.
The second option for Foreclosures in Harrison Township Michigan is lease optioning the property.
A lease option is just another way of saying rent to own. If you’re a distressed homeowner facing foreclosure and you can’t make the payments on your home, you may want to work with a real estate investor who through his marketing and network connections may be able to find a tenant-buyer that will lease option your home.
The tenant-buyer will then move in, assume the monthly mortgage payments, alleviating you of that burden, and has an option to buy your home after an agreed upon amount of time spelled out in the lease option contract. Again, you will have to move out of your home just like you must do in a short sale scenerio, but you will avoid the foreclosure and the credit damage from it.
The last option to stop a foreclosures in Harrison Township Michigan is to file bankruptcy with a lawyer. Although we are not lawyers, you should understand that a bankruptcy will haunt you for years with shattered credit.
Many people make the mistake of thinking that because a bankruptcy will stop the foreclosure (which it will) that this means they will be able to keep their home. The reality is that a bankruptcy won’t allow you to keep your home.
So, in all three cases, short sales, lease options, or bankruptcies, you should be prepared to know that you will have to move out of your home and on with your life.
The question is: do you want to move on with a foreclosure or bankruptcy on your credit or not?
How to Stop Foreclosures in Harrison Township Michigan: Summary
Although all 3 tactics discussed above will stop a foreclosure, just be aware that there is no absolutel guarantee a real estate investor can help with foreclosures in Harrison township Michigan on either a short sale or a lease option.
This is because the bank may reject the short sale offer, or the real estate investor may not be able to find a tenant-buyer for your property.
But these are certainly two options worth considering if you are facing foreclosure, and ones with a significant degree of success.
Dan Ho is a real estate investor in Southeast Michigan. Visit How to Stop Foreclosures in Harrison Township Michigan [http://www.buy-sell-michigan-real-estate.com/michigan-home-foreclosures.html] to contact real estate investors who may be able to help you with your situation. Buy-Sell-Michigan-Real-Estate.com [http://www.buy-sell-michigan-real-estate.com/michigan-home-foreclosures.html] is the definitive resource on the web if you need to sell or buy Michigan homes and properties.
