Metro Detroit foreclosures
Some Metro Detroit foreclosures are in bad shape. Such bad shape that banks won’t loan on them. You see when you get a mortgage you have to have an appraisal. The appraiser is going to come into the home and check it out for the bank. As of May 1 banks hire the appraiser themselves. So there is no more funny business going on. No more blind eye to missing drywall, or a missing toilet.
The water and the furnace have to be working in order for the bank to approve the appraisal. If there is:
- missing kitchen cabinets
- missing drywall
- broken toilet
- broken sinks
- Leaking roof
- Mold on the walls or ceilings
The house is not going to pass the banks criteria. The appraiser will note the problems. Then the bank most likely won’t do a mortgage on the house because the “collateral” (the house) isn’t worth it. They won’t to loan on a house that needs work, a house that would be unsaleable, a house that is in below average condition. I call it the house is “unmortgageable”.
It actually becomes a very sticky situation sometimes if there are a few items that need to be fixed to pass the appraisal. Many times the bank won’t fix them. So the Metro Detroit home buyer sometimes has to spend money and fix the items before they own the house. It is supposedly not allowed but it is a catch 22. If you don’t fix it the house doesn’t pass the bank’s guidelines. So many times it happens. In fact one of the last Dearborn Heights foreclosure I closed the home buyer put in a new hot water heater and toilet before they owned the house. Before they closed.
But there are also 203k loans where the bank loans the money to do the repairs necessary on the home.
If you have questions about Metro Detroit foreclosures feel free to give me a call or email me
Cell (313) 310-9855
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Russ Ravary your Metro Detroit real estate agent
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