Michigan, the Great Lakes State, has an economy that has suffered enormously from the mounting troubles in the dominant auto industry. The last recession began in 2000, and the current decline appears to bear no relationship to a normal nationwide economic slow down. Unemployment is high in the region and that factor coupled with the nationwide problem of the unwise/unhealthy subprime financing offerings of the last 2 years means it cannot be too surprising to see that the state and its major metropolitan areas of Detroit and Grand Rapids figure constantly in the top rankings of the greatest number of foreclosure homes nationwide, making the number of Michigan foreclosure listings one of the highest in the US.
Foreclosed homes in Michigan can range from older “rehab required” property to the big house in the woods and a vast range of single family and multi family units are available in this niche of the market.
Home buyers and investors looking amidst the large numbers of auction and REO properties for that solid deal have first to weed out from the leads available the ones with the profit potential in the neighborhood of choice. Internet database tools are invaluable here. Next is to make adequate financial allowance for the “as is” nature of the purchase. Minimizing the risk of being unable to get those expert appraisals and home inspection reports prior to making an offer is an important step in the process of securing the ROI or home at a discount. A predetermined list of possible costs refined by the “drive by” is a must. Then there is the perplexing question of the size of the discount to be sought, the price to offer in order to secure the property. All-cash offers speak loudly. Timing may be critical, not only because of competition from experienced investors. Getting an offer on the lender’s desk ahead of the MLS listing has got to be an advantage. Even in a market where numbers are higher than elsewhere in the the nation, it isn’t that easy to secure a great deal in discounted property or we would all do it!
More Resources
- bank foreclosures
- foreclosures in Pennsylvania
- Arizona foreclosure listings
- foreclosures in Illinois
- Massachusetts foreclosures
- Florida foreclosure listings
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Written by Alex Rolim.
