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5 Reasons to Invest in Real Estate Remodels
Real estate investing can provide a lucrative and steady income over time. Investing in remodeled homes is a unique sector of the real estate market, which has distinct advantages. Let’s take a look at five reasons why real estate investing in remodeled homes is a good idea and can help you expand your portfolio, grow your returns over time, and even save money on your taxes.
Secure Reliable Income with Real Estate Investing
Real estate is a valuable investment because it is a reliable source of income. Housing will always be a desirable asset because people will always need it.
Any investments or improvements you make to your property can increase its value in a tangible way. Remodeled homes have already received significant improvement so all you have to do is enjoy the benefits.
Start Generating Revenue from Real Estate Remodels
When you invest in a remodeled house, all the work to prepare the property has been done, so you can start using it to generate revenue right away. With the ability to turn a profit from your investment almost immediately, it’s easy to see why remodeled homes make great real estate investing opportunities.
Since any major problems and repairs were taken care of, the property will require very little maintenance for the first several years. By investing in a remodeled home, you get to skip the steps of hiring contractors, finding designers, buying materials, managing remodeling projects, and paying the carrying costs during the renovation process. The convenience of a remodeled home is hard to beat.
Find Simple Financing Options for Real Estate Investing
It’s easy to secure financing for remodeled homes when you’re ready to get started. Because of their completed & turnkey state, remodeled homes are seen as a low-risk investment, which is very appealing to lenders. Also, since you can start generating income right away, mortgage payments can be managed easily, with profits left over for you to enjoy or reinvest into the property.
Enjoy Tax Benefits of Real Estate Investing
In addition to the predictable and steady income, real estate investing has several benefits come tax-time. You can deduct many of the costs related to your property, including upkeep and maintenance, mortgage loan interest, and likely most of the improvements you make to the property over the tax year.
Even though real estate is known to appreciate in value, you can still claim depreciation deductions for your real estate assets on your taxes. You’ll be generating income from your property and enjoying your real estate’s growing value, but can claim a lower income by factoring depreciation. The savings will start to add up and can help to offset your income taxes.
Discover Remodeled Real Estate Investing Advantages
When you’re making your initial investment, remodeled homes can be purchased for a better value than new construction homes. Remodeled homes also have more character than new homes, while still enjoying updated amenities. Generally located in established, desirable neighborhoods, it will be easy to find good tenants who appreciate a shorter commute, proximity to good school districts and parks with large, old-growth and shady trees. New developments won’t be able to offer the same benefits, as they’re often built further from town on clear-cut land.
Real estate investing has never been easier than with remodeled homes. Whether you’re just dipping your toes in the investing pool, or you’re a seasoned swimmer, real estate investing is accessible to everyone. With the right investment opportunity, you can start generating income right away and expand your investment portfolio with beautiful renovated homes that are full of character and West Michigan charm.
If you’re considering investing in West Michigan properties, or if you’re already an active real estate investor in the area, the Hometown Development team would love to work with you. Give us a call at 616-379-3090 or contact us online for more information about our projects and our investment partnership opportunities.
What to Know About Buying in West Michigan’s Competitive Housing Market
If you’re buying in a competitive market, you’re familiar with the experience of seeing a sign or listing go up on an available home, and almost as quickly, the house is already pending or sold. In a competitive market, there is a high volume of buyers looking for a low volume of homes available for sale. A highly competitive market is advantageous to the seller because they can often sell a home for much more than it’s worth because they know there will be buyers lined up around the block to place bids. Unfortunately, this means the average buyer with an average budget will have a hard time finding an affordable home in their desired area.
You have to act fast when you see a home come on the market you’re interested in, knowing that many others are doing the same. Particularly in West Michigan, people are flocking to the area, drawn to top performing school districts, exciting job opportunities, growing cities with small town charm and, of course, the gorgeous great lakes. To get the jump on upcoming homes for sale in the West Michigan housing market, you’ll want to work with people who know what houses are going to be available before they’re listed, like a real estate agent or investment firm that flips and resells local houses.
Tips and Tricks for Buying in a Competitive Market
Buying in a competitive market requires careful financial planning, thorough neighborhood research, and the development of good instincts that will allow you to make swift and sound purchasing decisions. Here are a few tips and tricks to help you navigate a highly competitive market.
Make a List
Do your research ahead of time about the areas you want to live in. Make a list of your top neighborhoods as well as characteristics you’re looking for in a home. Think carefully about the value of each of those items and rank them in priority. Planning ahead for what you’re looking for in a home means when one is available that checks all the boxes you’ll be ready to jump.
Make a Plan
Have a clear idea of your finances before trying your luck buying in a competitive market. If possible, get pre-qualified for a loan so you’ll have a better idea of your price range. Work with a lender you trust who can help you through the lending process and move things along quickly when you’ve found the right home.
Keep Your Cool
When it can seem like all of your top choices are getting swept away, it is best to keep an open mind. Try to be flexible with your criteria and expectations and, above all, be patient. It can be tempting to make offers left and right like a game of whack-a-mole to try and land a house when the market is hot, but trust that your ideal home has yet to come on the market and it’s waiting for the time to be just right.
Getting Ahead of the Game in the West Michigan Housing Market
In the West Michigan housing market, it can be tough to find the house you want at the right price. If you’re struggling to get ahead of the game, consider adding professionals to your house search team, or expand your search parameters.
Assemble Your Team
Working with a local real estate agent can have serious advantages when buying in a competitive market. A real estate professional can help you scout out homes you’re interested in and may know through their realtor network what homes are going to be available before they’re formally listed. Especially if you have no idea what you want in a home, an agent can work with you to refine your vision and make a list of features that are most important to you.
Out with the New, In with the Old
If you’ve been exclusively looking at newer homes, consider widening your search to include older homes that might need work done. You can often find these homes available at lower prices. If you’ve got DIY skills or are willing to put in the time and capital for home remodeling projects, these can be great price opportunities that don’t sell as quickly as other homes in a competitive market.
Find Hidden Gems
Another class of homes to look for are ones that were recently remodeled. You can still have the price savings and durability of a new home without putting in the remodeling work yourself. To get the jump on recently remodeled houses coming on the market in your desired area, work with a company that specializes in flipping houses.
Real estate investment firms are great to work with in the West Michigan housing market because they have a catalog of hidden-gem properties that have recently been remodeled or are currently being renovated for you to view. They purchase homes at a lower price in order to fix them up, and can pass those savings onto you as the buyer. These homes are typically in up-and-coming neighborhoods and offer you a great quality home for a discounted price.
If you’re hoping to purchase a home in West Michigan, Hometown Development can help! As a professional real estate investment firm, we remodel a number of homes in attractive neighborhoods here in West Michigan. Take a look at our gallery to see some of our previous projects, and give us a call at 616-379-3090 for information about our available properties.
My Home Has a Cracked Foundation. Can I Still Sell It?
If your home has a cracked foundation or needs other major repairs, it can be difficult to attract a buyer willing to take on extensive home repair projects. However, it is still possible to sell your home. Let’s talk about some options available to you to sell your home according to your budget and timeline.
Major repairs are red flags to buyers — even if they’re looking for a project or a fixer-upper. A house with foundation problems, a leaky roof, plumbing issues, pest infestations, or mold are all issues that require a good amount of work — and cash — to fix. Often, these problems are too expensive or complicated to repair yourself. If you need to sell your home, you still have options. Here’s how you can sell a home with foundation problems or any other major repairs.
How to Sell a Home that Needs Repairs
If you want to sell your home with major repairs, selling it traditionally will be difficult. Even home-flippers will steer clear of homes that need major updates or fixes. If you’re determined to sell your home, you might consider making the repairs to fix the foundation, leaky roof, pest problem, or other issues. This will take time and money, but it could be worth it if you can get the value out of the home sale.
If you can’t complete all of the repairs, focus on fixing the most important issues first — like the cracked foundation. A solid foundation will be less alarming to buyers and you’ll have a better chance of selling your home on the traditional real estate market. If the foundation only has small cracks or minimal damage, you might be able to have the cracks patched. However, if the damage is severe it may need to be replaced, which can be an expensive job. If you don’t have the funds or time to repair a severely damaged foundation, you might consider selling your home as-is.
What is an as-is sale?
In an as-is sale, you let it be known to buyers that you are selling your home in the condition that it is already in, without making repairs or updates. This will weed out buyers who are looking for a home in perfect condition and attract those who want a project or fixer-upper. Keep in mind you might need to adjust the asking price to reflect the needed repairs.
Benefits of an As-Is Sale
There are many advantages to selling as-is. A few of the most important ones for homeowners are:
- You can sell your home quickly
- You don’t need to make any repairs
- You don’t have to hire a real-estate agent
- You receive a fair price for your home
- You can avoid the stress of a traditional sale
Sounds great, right? How do you sell your home as-is?
How to Sell Your Home As-Is
If you want to sell your home as-is without making any changes or repairs, there are a couple of ways you can do this. First, you could try to find the perfect buyer. This would be someone who is looking for a house in an up-and-coming area they can flip. This person would be willing to purchase a home that needs repairs — but only if they can get it for the right price. They’re going to be extremely careful with their purchase decisions because they’ll want to make sure an investment in a home with foundation problems, for example, will pay off.
There is a chance you could find this perfect buyer and convince them your home is worth it. You may even be able to agree on a price low enough to tempt them. Still, finding such a buyer will take time. If you want to sell your home quickly, and for a fair price, you might consider working with a real estate investor.
Sell to a Real Estate Investor
A real estate investment company has the funds to make repairs like fixing a cracked foundation or replacing a roof. They can see opportunity in as-is homes like yours and have the time and capital to fix it — which you or a traditional buyer may not. Real estate investors look for homes they can buy in almost any condition and offer fair prices to the sellers. Their purpose is not only to give new life to a home, but to help homeowners get their lives back as well. Best of all, investors can close on an as-is sale much quicker than the traditional sale process — sometimes in less than a week. If you want to sell your house with foundation problems or other major issues, selling to a real estate investor will be your best bet.
Major home repairs like a cracked or problematic foundation are scary. It’s hard to imagine selling a home in that condition, and harder still to imagine the cost to repair the problem yourself. If your home has major damages that you just don’t want to repair yourself, look to Hometown Development. We purchase properties in any condition, and we’d be happy to take a look at yours. Give us a call at 616-379-3090 or contact us online for more information about our cash offer process.
Selling to a Home Investor? Here’s What to Look For
If you are considering selling to a home investor, you need an investor you trust who will not only live up to their word when it’s time to buy your home, but will also give you peace of mind that your home will be in good hands and that the investor will respect your neighbors and improve the community. When searching for a reputable investor, here are some details to look for.
What to Look For When Selling to a Home Investor
It’s important to do research on any investors you’re considering approaching to protect yourself and your property. While home buying scams are uncommon, there are a few that give home investors a bad name. Most investors provide a service to you and the community, while still supporting a healthy business model.
The Home Investor Has a Good Reputation
A reputable home investor will already have good standing in your community. They will be known for revitalizing aged homes and improving the value of the neighborhood.
To research an investor’s impact, go online to find reviews and client testimonials. If they are working in your area, there should be plenty of evidence to back it up. An investor without any online presence doesn’t inspire much confidence. If there is a startling lack of reviews or only an overwhelming amount of positive feedback, it’s healthy to be a little skeptical.
The Home Investor Has a Portfolio of Completed Projects
Most home investors love to talk about their past success stories. Call the number they provide and talk to a real person about the company and its values. Ask to see a list of recent purchases or a link to review a portfolio of their work. They’ll appreciate the personal interest and you will have a chance to see the kind of projects they take on to know if your home is a good fit.
The Home Investor Provides Clear and Understandable Agreements
Trustworthy home investors will be upfront about any costs and terms of the sale agreement. There won’t be any hidden clauses or fees to worry about or overly complicated “legalese” meant to distract or confuse you.
Regardless, you should always read all paperwork thoroughly before signing. If you are in danger of falling for a scam, they will likely try to get you to sign paperwork before you’re aware of what it contains. It’s better to be extra sure that everything is clear before you get too far in a situation you can’t get out of.
The Home Investor Will Manage Your Expectations
Experienced home investors won’t make lofty promises that seem too good to be true, but you can trust they will work to give you a fair price for your home. They often have larger goals of helping individuals out of tricky situations and serving the community. They genuinely care about helping homeowners like you.
Scammers only care about lining their pockets. Home-selling scams will promise you large sums of money with no strings attached. They prey on the worries of people in financial crises but don’t offer real solutions.
For example, if an investor buys your home and says you can keep living there – it’s likely a scam. Good investors buy homes to resell them. If you’re still living there they can’t flip the property, which means they likely have other intentions. If an investor is willing to offer a small window for you to find another place to live, it will be clearly stated in the agreement. Shady investors might buy your home and then charge you an exorbitant rent you can’t afford. Don’t trust this type of deal.
As a best practice, don’t exchange any money with an investor until the closing date. If you’re still unsure, have an attorney or listing agent represent you. You’ll be glad you took extra care if things go badly. If you do suspect a scam, you can call in a tip to a fraud-watching organization.
How to Sell to a Home Investor You Can Trust
If you’re looking for a reputable real estate investment firm to sell your home to, Hometown Development would be happy to help. A trusted local investment team, we purchase West Michigan properties in any condition and we can close in as little as five days. Give us a call at 616-379-3090 or contact us online to learn more about our process.
What is a Short Sale, and How Long Does it Take?
If you’re struggling to keep up with mortgage payments and are looking for a way out of debt, or you need to move out of your mortgaged home for a job or change in status, a short sale could be a good option for you. Here’s everything you need to know about a short sale, from what it is to the sale process to some tips for how to make your short sale a success.
What is a short sale?
A short sale occurs when a homeowner going through financial hardship sells their home for less than the amount owed in the mortgage in order to get out from under debt and avoid foreclosure. This is often in response to a new financial hardship or reason to move. When selling in a short sale, the earnings go directly to the lender to pay the mortgage. The remainder of the mortgage sum might be forgiven by the lender. Or, if the lender issues a deficiency judgement, the borrower is required to pay the difference.
Keep in mind that a short sale can be a lengthy process. This is because various stages require the bank’s approval. Short sales also involve a lot of paperwork to be completed and filed correctly. Throughout the process, you’re at the mercy of your lender and their schedule – and they are in no rush to sell your home while it can still be profitable.
Why should I sell my home in a short sale?
A short sale might be a great option if:
- You need to sell your home quickly because your status or situation has suddenly changed, such as divorce or job relocation
- If you’re behind on payments and want to avoid foreclosure
- If your home needs a lot of repairs or its value doesn’t match the amount you owe
Benefits of a short sale:
Selling your home in a short sale has many advantages:
- You can sell your home as-is without making any changes or repairs
- You can find a buyer who will pay cash, making for a simple transaction
- The right buyer or investor will work with you and your lender’s schedule
- You can save points on your credit score by avoiding foreclosure
How do I sell my home in the short sale process?
Selling your home in a short sale can be complicated and time-consuming, but for the extra effort it could seriously pay off. Here are the ins and outs of the short sale process:
You Qualify for a Short Sale
Since it’s ultimately up to your lender whether they will allow you to short sell your home, certain qualifications will make it more likely your lender will approve. Before a lender will consider a short sale, you have to already be in default on your mortgage payments and be able to show that you are unable to make payments.
You should also be able to demonstrate that the cause of financial hardship is recent, such as medical costs or unexpected loss. If you weren’t up front with your lender about your situation prior to signing the mortgage agreement, they likely won’t be willing to help you resolve the debt and get back on your feet.
Your lender is also unlikely to accept a short sale if you have a cosigner. If you default on the loan, your cosigner will automatically be required to pay and selling will not be an option.
The Lender Is Open to a Short Sale
Before you can sell your home, your lender must agree. Talk to someone at the company who is authorized to make decisions on your lending agreement before going ahead with the process. Keep in mind if they think they could earn more from selling your home after its foreclosed on, they won’t want to help you sell your home in a short sale.
If, however, they are open to the option of a short sale, you can move on to finding the appropriate buyer.
Finding the Right Buyer
If your lender is open to a short sale, you must then find someone to purchase your home. There are various ways to do this, but most will list their home with a real estate agent or reach out to a reputable real estate investor.
The major benefit of an investor is they can wait for the lender approval process which can often delay a sale by several months. A traditional buyer, on the other hand, probably wants to move toward closing right away and could become impatient while waiting for a bank to sign off. If forced to wait too long, they might find another home to purchase.
Bank Accepts Short Sale Offer
If a buyer is found, the lender still has to accept or deny the offer. SInce they will likely lose money from the arrangement, it might be difficult to convince them to sell. If your lender believes they can make more money in a foreclosure they will most likely deny the offer. However, a lender may accept a short sale offer to avoid having to make repairs and sell your home traditionally. A short sale could be more profitable and timely than going through the foreclosure process.
Sell Your Home in a Short Sale
Once the lender accepts the offer, the buyer pays your lender the agreed-upon amount. This payment goes toward the lien on your home, which is just one part of the mortgage. The other part of the mortgage is the promise you made to pay back the loan. Your lender may still require you to pay the difference between the sale price and the value of your mortgage. If they do not forgive this sum they could hold you to this agreement by issuing what’s called a deficiency judgement against you in order to collect the money.
When the home is sold to a new owner, you must remove your belongings from the property. Once rid of your home and the debt that came with it, you are free to move on with your life.
How long does a short sale take?
While the process varies for everyone, short sales typically require a lot of paperwork and waiting periods for lender approval and can take from several weeks to months. Unfortunately, you’re often at the mercy of your lender, moving through the process according to their schedule and waiting on their judgement for whether you can fulfill your mortgage contract and free yourself from the debt. Be patient and seek out experts for help. Incorrect paperwork will delay the process further, so it’s better to be extra thorough when completing all necessary forms.
Short Sale Best Practices:
Here are some general tips for navigating the short sale process that will help things go smoother with minimal hassle.
Be honest with your lender.
Advise them of your situation when looking at financing options. It is equally advantageous for the lender to have an agreement you can repay. If a short sale isn’t a good option, work with your lender on a repayment plan.
Find a lawyer who can help you present your case.
Many attorneys and tax experts specialize in this difficult process and can help you navigate your financial records and compile the necessary paperwork.
Consult a real estate agent or a reputable real estate investor.
Lean on professionals to help you make the short sale a success and be ready to sell your home as soon as your lender agrees.
Be patient and keep reasonable expectations.
The short sale process can be long and complicated. Go into the process with an open mind and be flexible when it comes to your lender’s requirements. Focus on the possibility of walking away from the situation debt-free and in a good position to rebuild your credit and move forward.
I want to sell my home in a short sale. How do I find a buyer?
A short sale is one key way to get out from under major mortgage payments. If you’re working to arrange a short sale with your lender, and just need a buyer, let Hometown Development help. We purchase properties in any condition, for cash, and we can help ensure your short sale goes through. Call us at 616-379-3090 or leave us a message online, and we’ll get back to you with more information as soon as possible.
What to Expect When Selling Your Home As-Is
If you’re considering selling your home, you may be looking for an option that will complete a sale quickly and efficiently, with minimal stress or manual labor. With an as-is sale, you can expect to sell your home fast, without having to deal with the usual repairs and delays of a traditional home sale. If you’re ready to move out and move on, an as-is sale might be the perfect choice for you.
What is an As-Is Sale?
Many homeowners are unfamiliar with an as-is sale. An as-is sale occurs when the homeowner sells their home exactly as it is, without making repairs, cleaning, or updating the home’s condition. The buyer will probably have the resources and time to make those changes, and purchasing the home for a slightly lower price allows them to do so. An as-is sale helps you sell your home quickly and without hassle, so you can get on with your life.
As-Is Selling Process
When you’re selling your home as-is, a potential buyer will assess the home and appraise its value. Based on the home’s value and any necessary repairs or changes, the buyer will make an offer, often in cash.
Once the offer is accepted, the closing process is easy. The buyer will be ready to pay right away, so you won’t have to wait for them to secure a loan or other financing. You’ll receive the agreed-upon amount, and your transaction is complete.
The buyer already knows the condition of your home from the walk-through, so there won’t be any surprises. They will take care of any repairs or updates after the home is sold, so you won’t have to worry about it. The amount you receive might be slightly lower than if the house was in perfect selling condition, but you escape the hassle of trying to prepare it for sale. Here’s a helpful offer comparison of a traditional vs. as-is sale if you’d like to know more about the financial aspect of an as-is sale.
You won’t need a realtor if you sell your home as-is, you’ll just work with the buying agent and can avoid realtor’s commission fees completely. The entire process will only take a week or two, and you can get started on whatever is next in your life.
What to Expect When Selling Your Home As-Is
You won’t need to make repairs.
Even if you spend the time and money to make the necessary changes to your home before selling, there’s no guarantee you’ll be able to make that money back in the list price. Selling your home as-is means you’ll have your money faster, and for a good value based on your home’s current condition. However, fixing major issues such as a leaky roof or a foundation concern may have monetary benefits.
You can sell your home fast.
The process can vary, based on the housing market and local competition, but the total length of the as-is sale process is from five days to two weeks. As-is sales don’t require multiple showings or inspections, which further cuts downtime before closing. Compared with a traditional home sale which can take two months or more, a quick as-is sale is very appealing.
You don’t need a realtor.
Realtors can be a hassle. They are often more concerned with their cut of the profits than what you as the homeowner will get out of a sale. Realtors aren’t necessary with an as-is sale. The buyer and the seller communicate to agree on an offer that best matches the home’s value.
You can unburden yourself from a weighty mortgage or fear of foreclosure.
If you’re feeling pressure from mortgage lenders or are in the foreclosure process, an as-is home sale can help you get out from under your debt quickly and painlessly, and free you of the worry of losing your home. Don’t let your debts sink you. You can take control of your finances by selling your home as-is for an instant economic solution.
You can move on quickly.
Most importantly, once you sell your home in an as-is sale, you can move on right away. Start the next chapter of your life in a new home, without having to cope with the stress of selling your old one. You can have the life you want, and an as-is sale might help you get there.
As-is sales aren’t right for everyone. If you have the time, money and skills to repair your home and prepare it for sale, entertain showings and negotiate with potential buyers, host inspections and wait for the sale to close, you might be more comfortable with a traditional sale. However, if you’re concerned repairs won’t have much of an impact on the sale price, or the hassle just isn’t worth it, or you need to sell your home fast, an as-is sale will put money in your pocket much faster.
If you still have questions about the process, or if you think an as-is sale is the right option for you, Hometown Development can help. Give us a call at 616-379-3090 or contact us online for more information.
Behind on Mortgage Payments? Here’s What You Can Do
I’m behind on mortgage payments. What can I do?
Getting behind on mortgage payments can be a slippery slope, and the longer you ignore the problem, the more dangerous it becomes. It can feel like you’re running out of options, treading water until a life-preserver is thrown out to you. Ultimately, you want to avoid foreclosure and losing your home, as this will put you in a difficult financial situation that it is very hard to recover from. Don’t lose hope, as you have options when it comes to catching up with your payments or getting rid of your mortgage altogether.
Make a Plan
First, you need to accept where you are and understand the importance of your next steps. Taking action early can save you a lot of headaches down the line, and leave you in better financial shape for the rest of your life.
Second, take ownership of your financial decisions. You are in control, and what you decide will impact your future. Read through your lending agreement so you know the terms and the rights available to you as a homeowner. Make a plan that is realistic for paying your debts.
Finally, ask for help if you need it. Know that there are resources out there to help you and others like you get back on your feet. You are not the first person to struggle with a cumbersome mortgage, nor the last. There are people who specialize in this exact situation who are prepared to lend a hand and assist you in dealing with your debts and continue to move forward.
If you’re behind on mortgage payments, there are things you can do to help yourself. Let’s explore some of your options.
Catch up on Mortgage Payments
The quickest way to fix this problem is to catch up on payments by paying them outright in a lump sum. This will bring you up to current payments and you can go back to paying normal amounts next month. To acquire funds for this lump sum, you may consider selling assets like non-sentimental valuables or antiques. Look around your home for ways you can downsize and get rid of possessions you don’t need, like an extra television set or expensive camping gear. Every little bit you can sell will help you get closer to your goals.
Talk to Your Mortgage Lender
Another action that could help you if you’re behind on mortgage payments is to speak with your lender about possible solutions. They may be open to arranging a new repayment plan or adjusting the terms of your mortgage to help you meet more achievable monthly payments. Let’s look at a few options you can bring up with your mortgage lender.
Forbearance
Forbearance means your lender would temporarily postpone or reduce payments until you can agree on a repayment schedule. Agreeing to forbearance means your lender will not pursue foreclosure, which will give you peace of mind as you work on a plan that benefits both parties. Keep in mind that when your repayment is due, you will need to pay back all of the missed payments to bring your account current.
Reduction of the Mortgage Principal
Your lender might be open to reducing the amount you owe, or the principal of your loan. The lender might agree to this if they could recover more money through a lowered principal than they would in a foreclosure, especially if you owe more than what your home is worth.
Mortgage Refinance
Refinancing your loan means you make a completely new loan agreement with new payment amounts, interest rates, and payment schedule. It may lower your monthly payments, which could help you keep up with the schedule. You must be up to date on payments to refinance your loan or you will still need to settle the other mortgage, but it could help prevent you from falling behind on mortgage payments by making them more manageable in the future.
Selling Your Home to Pay Off the Mortgage
If you’re falling behind on mortgage payments, it can feel overwhelming when the debt stacks up month after month. If you want to get rid of your mortgage payments altogether, you may consider selling your home to pay off your debt. There are a few different ways to do this. You can sell your home in a short sale, with the help of a realtor, or sell it as-is for a quick sale.
Sell Your Home in a Short Sale
A short sale is when you sell your home for less than you owe. You can avoid foreclosure with a short sale, but you basically start from scratch. It might be an option if you’re desperate to get out from under your debts. You have to discuss it with your lender before you can sell your home in a short sale.
Sell Your Home With a Realtor
If you choose to sell your home with a realtor, you will work with their office to prepare your home for sale. It could take months before it’s ready to be put on the market, and months more before an offer is received. Although you might be able to sell your home for a higher price with a realtor’s skilled help, their commission will slightly lower your profits — and the amount you can pay back on the mortgage. Plus, the time it takes to sell your home this way puts your further behind on mortgage payments, leaving you with a bigger debt to settle at the end of the process.
Sell Your Home As-Is for Cash.
In an as-is home sale, professional real-estate investors will give you a fair price for your home’s value. You don’t have to worry about making repairs or working with a realtor. Most importantly, you can be paid for your home sale right away. You can have your debts paid in as little as five days and move on to the next chapter of your life.
Get Some Help
If you still have questions about catching up with mortgage payments, go to a government agency like Housing and Urban Development. They have housing counselors available to guide you through the process of catching up with missed mortgage payments. Counselors can give you real answers about what to expect if you aren’t able to pay your debts as well as practical solutions to avoiding foreclosure and bankruptcy. Their advice is free, so it never hurts to ask.
You’ve already made a great first step by looking for a solution before you’re underwater. You’ve taken control of the process and are well on your way to forming a clear plan that will lead you out of mortgage debt.
Here at Hometown Development, we know it can be tough to feel like you’ll never catch up. Our team is here to help. If you’re behind on mortgage payments, we can offer you a fair cash offer for the market value of your home to help you get out from under that cumbersome mortgage. Call our office at 616-379-3090 or contact us online to learn more.
Why Now is the Time to Invest in West Michigan Real Estate
If you’re looking for new opportunities to invest in real estate, West Michigan has some of the fastest-growing real estate markets in the country. Michigan is already on many investors’ radar because of the low cost of living, competitive housing market and low vacancy rates.
A Grand Opportunity
The city in Michigan with the highest investment value right now is Grand Rapids. It’s the second-largest city in the state with a population of about 200,000. Many view it as the most promising city in Michigan.
Grand Rapids has a strong economy and low unemployment rate, which draws people in from surrounding areas. It also has a growing student population which pertains to several colleges in the area. The young people are staying in the city after graduating, buying homes with a stable income from a healthy job market. Property values have been steadily rising in recent years and are projected to grow at least at the rate of inflation for the next few years. Typically, homes receive two offers and are sold in about two weeks. This positive return on West Michigan real estate investment is hard to pass up.
Competition is extremely high for prospective buyers and investors. Most residents of Grand Rapids are homeowners, not renters. Those who are renting are reluctant to end their leases, meaning less turn-over in rentable properties. Currently, the trend is to flip older houses and turn them into multi-family rentals, rather than build high rises or condominiums. It is still a seller’s market, meaning there are more buyers than there are homes to sell them.
Rising Stars
Many towns surrounding Grand Rapids are showing similar growth patterns, making them equally lucrative investment sites, possibly without the intense competition. East Grand Rapids and Kentwood are developing quickly. As prices rise in Grand Rapids, residents will be moving outward to find available homes with a short commute. These communities boast excellent schools and are attracting many young families.
Also, Michigan is still home to much undeveloped land, and as more people flock to centers of industry and community, suburbs will need to be expanded. This land is typically very economical and is generally ready to build, thanks to Michigan’s malleable landscape and consistent elevation. What’s special about Michigan is the dedication of its residents to their small communities. Developments not only capitalize on this cultural need, but serve the people by bringing them together and creating neighborhoods where they can connect.
Bright and Brighter
What are continuing to be solid real estate investments are properties along the shore of Lake Michigan in cities like Grand Haven, Holland and further north in Traverse City. Second homes and vacation rentals don’t stay on the market long and appreciate well over time.
Lake Michigan properties are increasing in popularity for the purpose of retirement. Grand Haven has a very active community and walkable plan. Combined with its proximity to the beach, it is a very popular spot to settle for older residents. Grand Haven has a healthy population of year-round residents, so activity doesn’t stop in the colder months. Homes in this area are still increasing in value and make for lucrative investment properties.
The Future is in West Michigan Real Estate
Now is the time to get in on the ground floor before the market opens up and prices skyrocket. Working with local real estate investment companies that specialize in serving their communities would give anyone an edge in those markets. An investment in returning older homes to their former glory — especially those homes that have an existing hold in growing communities — can provide you with the return you need, while helping restore our West Michigan neighborhoods for the larger community. A partnership between a keen investor and a knowledgeable development company would be fruitful for all parties.
West Michigan is one of the fastest-growing regions of the country and its real estate market is ripe for investment. For attractive real estate investment opportunities, talk to the team at Hometown Development — we’d love to work with you! Leave us a message online, or give our office a call at 616-379-3090.
