COMPREHENSIVE LOSS MITIGATION SERVICES

TIPS FOR AVOIDING REAL ESTATE PITFALLS

 Real estate foreclosures are occurring at unprecedented rates in Michigan.  Much of the fallout is due to risky adjustable rate mortgages coupled with falling real estate prices.  This combination has lead to an inability for many homeowners to refinance out of these “bad” loans or to sell their homes at a profit, or for more than they owe. 

As a consequence, real estate values are declining, banks are tightening credit, and many are ambivalent about buying or selling real estate.

If you are a seller contemplating a move, there are a number of things to consider.

The “loss” on your current property may not be more than the “savings” on the new property.  Since more expensive properties may appreciate at a greater rate, this could be an advantage. 

The real estate tax liability will possibly be reduced when you purchase.   You should always pay close attention to the “taxable value” when your property is assessed each year.  There is a very short window within which to protest real property assessments each year.

What are the current costs associated with holding onto your current property verses the potential savings of buying a less expensive property.

In a tough market, the greatest recommendation I would make is working with seasoned professionals.  Anyone that has been in the industry for 10 to 15 years has some sense of the ups and downs of this market.   I would always advise interviewing several real estate agents and mortgage professionals before making a decision.  You might also need to consider hiring a real estate attorney to represent you.

 Respectfully submitted by:

            Ellen S. Mahoney

We welcome your questions and inquiries. Please contact us at 248.505.2509, or ellen@lmcsm.com.