The problem of abandoned homes is an interesting dimension of the housing crisis in Detroit, as well as in Ann Arbor and around the country.  With so many homes being foreclosed upon, the “orphaned” properties that remain have created difficult legal disputes as to who should care for the properties while the foreclosure process occurs. In many cases, the homeowners abandon their homes upon receiving their first notice.

The vacant properties bring down the value of the neighboring properties. While they are empty, the houses may be further destroyed by squatters or vandals spray-painting them. As a result, the properties remain abandoned and are not maintained.  They may create hiding places for gangs and crime.   In addition, existing damages and defects are not repaired by the bank holding the titles. They also attract arsonists

Disputes also occur because while the borrower is still the owner, the lender keeps the lien. Many court cases arise as to who will pay the taxes and maintain the houses.  More often than not the local cities lose out on the taxes. There are also numerous cases where the value of the home was so low that the banks just boarded them up and left them.

In several areas of the United States, “Bank Days” are being held in courtrooms. Judges and prosecutors are cutting deals and demanding that the lenders maintain, repair and do basic upkeep. Certain judges even fine the lenders if the house falls into disrepair.  The owners are not getting off completely free though from their responsibilities. For other judges, the taxes, upkeep and maintenance are split between the lender and the owners.

Homeowners, if you are in trouble with your mortgage and have received notice of pending foreclosure, seek help immediately!  There is plenty of foreclosure help available in Michigan, with housing counselors available right here in Washtenaw County.   Do not leave your home until the foreclosure is complete.  Until that time, the home is your responsibility to maintain.

Martin Bouma is a Certified Distressed Property Expert (CPDE) who can help you find an alternative to foreclosure.  If you are interested  in buying or selling a home , The Bouma Group can help you with your real estate needs in Ann Arbor, as well as keep you up to date about  Washtenaw County and Ann Arbor neighborhoods.

As we look back on the first 2 months of 2009, the Washtenaw County real estate market saw a trend of increased homes sales at much lower prices.  When comparing the first 2 months of 2009 to 2008, Ann Arbor area home sales have gone up 11.57 percent, while the average sales price has dropped 22.2%, and the average price/SF has decreased 20.1%.  These figures reflect the average of the 9 school districts in Washtenaw County.  The more important information is – how is my area doing?

The chart below shows the residential real estate market in each Washtenaw County school district, and you will notice large discrepancies in the different districts. The decrease in the average sales price ranges from a high of 40.2% in the Ypsilanti real estate market, to a low of 4.2% in Ann Arbor.  The decrease in the price/SF ranges from a high of 32.7% in Ypsilanti to a low of 4.5% in the Milan real estate market. The increase in the number of sales ranges from a high of 81.48% in Willow Run to a low of -40.74% for Dexter real estate.

What these real estate trends are showing us is that Ann Arbor area homes are selling, however they have to be priced correctly.  This can really be seen in Ypsilanti where sales were up 76.92%, however, prices were down 27.5%. This is very clear evidence that the foreclosure sales and short sales are putting a damper on prices, however they are offering an excellent opportunity for home buyers and investors.  With prices down as much as 40% and interest rates at historical lows, this is probably one of the greatest times in history to purchase real estate.   Even if Ann Arbor property values continue to drop a little, remember that a 1% increase in interest rates, decreases your home buying power by 10%.

The final statistic to watch is listing inventory.  The inventory of homes available for sale in the Ann Arbor real estate market are decidedly down from last year. In Ann Arbor and Saline, inventory is down 22%. In Ypsilanti inventory is down 37% and in Lincoln schools, inventory is down 25%.

The window of opportunity is right now

Putting all of this together, the three indicators that you should pay attention to are all pointing to the fact that this is probably the best time to buy a home in history.  Prices are down, interest rates are at historical lows, and inventory is decreasing. Don’t let this window of opportunity to pass you by.

Take advantage of this buyer’s market now! Contact The Bouma Group today for your free guide to buying a home, whether it be a short sale, foreclosure or condominium purchase!

Ann Arbor Foreclosure Danger Signs!

If you see or hear ads, street signs or receive phone solicitations with “promises” that say  “Guaranteed foreclosure Assistance“, or “Safeguard Your Ann Arbor Home from Foreclosure Guaranteed“, it should raise a few red flags. If you are behind on your monthly mortgage payments and you happen to see or hear these “to good to be true” solicitations, the Bouma Group encourages you to resist temptation to contact these types of organizations until you thoroughly check them out.

Read The Fine Print!

The Bouma Group advises you to always read the fine print of any offer to assist you with “creative strategies” to avoid foreclosure of your Ann Arbor home. The obvious cues that these promises may be “to good to true” could include:

1. Instructions that you pay a fee before any assistance is provided
2. Required payment of their services by cashier’s check or wire transfer only
3. Requests that you avoid calling your lender, your attorney, or a non-profit credit or housing counselor for assistance
4. Any offer to make you a “renter of your own home” and then repurchased your home at some later date once you are “back on your feet” financially

Certified Ann Arbor Foreclosure Experts

Offering you consumer-friendly solutions to help you avoid foreclosure, the Bouma Group is made up of expert Ann Arbor Realtors and foreclosure specialists. We will tap into our list of local Ann Arbor resources to determine the best solutions based on your financial situation. Because foreclosures and short sales are such sensitive topics, you will have peace of mind knowing we will never share your personal information. Should you determine that a Ann Arbor property short sale is the best choice, we will never divulge why you are selling your Ann Arbor property helping you avoid any potential embarrassment.

In conclusion, we may not be able to save every home in here Ann Arbor, but we can try to help consumers avoid being taken advantage of and determine which solution can best benefit financially distressed Ann Arbor homeowners.

Martin

Viable Solutions to Stop Ann Arbor Foreclosures!

It was out of this sense of need that our team was driven to successfully complete a series of training courses to obtain the Certified Distressed Property Expert (CDPE) designation. We are fully committed to helping financially distressed Ann Arbor homeowners. We feel it is both a responsibility and an obligation to reach out and help inform consumers that there are viable options to foreclosure.

How You can Avoid Foreclosure on Your Ann Arbor Home!

Our primary focus is to work with Washtenaw County homeowners facing foreclosure and to give them hope. There is a dignified solution to their financial crisis. Options include:

• Lender loan modification
• Loan refinancing (short or long-term)
• Possibly using a short sale to avoid foreclosure

In case you’ve heard of the term short sale but you’re not sure what it means, a short sale is a lender-approved sale of your Ann Arbor home at a sales price that is less than the outstanding loan balance of your mortgage.

A Team of Ann Arbor Real Estate Experts Ready to Offer Consumer-friendly Solutions!

As a Certified Distressed Property Expert, we will tap into local Ann Arbor resources in the fields of law and finance to offer assistance to homeowners who are facing foreclosure. If you have begun receiving late notices in the mail from your lender, you may still have an opportunity to avoid foreclosure on your home. Because protecting your privacy is critical, you are welcome to email our team at  Staff@Bouma.com or call us direct at (734) 761-3060. Don’t delay, call today!