So you bought a foreclosed home. Now what?

But now thousands of foreclosures around the country may be invalid because of bank paperwork problems. Should you worry?

“Anyone who’s purchased a foreclosed property in the last three years should really be concerned,” says George Babcock, a Providence, R.I., attorney who represents homeowners who have been foreclosed on.

“They should call the attorney that did their closing and say, ‘Hey, do I have a problem?'”

Tax Auction Sales coming up, Call if you need a rep!

  • Step 1, look at the list of offerings…  http://www.michigan.gov/taxes/0,1607,7-238-43535_55601_55604—,00.html
  • #2: look up the property online/ local gov’t office/ physically inspect in person
  • #3: review the FAQ’s then go bid – OR send us on your behalf.
  • Subdivision plat maps for the entire state are available via the Department of Energy, Labor and Economic Growth (DELEG) at http://www.dleg.state.mi.us/platmaps/sr_subs.asp.

If the property doesn’t sell at the first “reserve” auction, or the 2nd “no reserve auction”, it can then be aquired via the Land Bank.  http://www.thelandbank.org/prop_acquisition.asp http://www.thelandbank.org/prop_find.asp?LRCsearch=setredo

RECENT RELATED ARTICLES/ INFO:

Where tax foreclosures are not handled by the state, the local governments are given option to sell properties themselves, typically thru the use of an auction company such as this one that offers online bidding at the first of 2 sales. Recall the spring sale is usually w/ reserve, often the fall sales ( for properties left over )  are no reserve and typically in person bidding is required: http://www.tax-sale.info/

Wayne County Treasurer to Auction Tax Foreclosed Properties Online

American Land Title Association (ALTA) policy, gives more coverage

ALTA’s expanded coverage policies cost about 10 percent more, but offer significantly more benefits. For example, the policies will pay up to 125 percent of the original insurance amount in case of claims to help account for inflation. Other expanded coverages include:

  • encroachments on the land made by neighbors after the date of the policy,
  • inability to access the property by vehicle or a pedestrian, and
  • zoning violations made by previous owners that must be corrected by the insured owner.
  • ( Paul pays for professional ed. classes, you hire him and get the knowledge at no extra charge ! …. back to class, p )

Detroit area long term prices headed up.

Housing Markets That Will Be Strongest by 2014

By Venessa Wong, Bloomberg Businessweek
Aug 4, 2010

Since reaching a peak in 2006, home prices in the Detroit area have fallen 60.5 percent, according to the Fiserv Detroit, MichiganCase-Shiller Indexes. As homes have become more affordable—the median home price in Detroit is lower than median family income—demand is expected to pick up. Prices are forecast to jump 33.1 percent over the next four years.

REO bargain hunting ? READ THE FINE PRINT

  • Some interesting posts I’m passing along
  • “…REO addendum are very extensive and put a lot of responsibilities and costs on the buyer
  • “…I’ve sold quite a number of REO’s to buyer clients. Prior to showing these properties I explain that if an offer is written, the bank will send us back their addenda, which will essentially be their new contract, weighted to the seller.  I also add that these bargain properties, are bargain priced for a reason and the sellers are removing any current and/or future liability once these properties are sold. I advise buyers in writing to review the offer AND addenda and  let them know that these addenda evolve with each sale meaning the sellers are updating the addenda to prevent a problem that occurred with their last deal.