All the stories about the possibility of acquiring Detroit foreclosure homes for a few thousand dollars are true. With the current state of the foreclosures market anything is possible but then not everything is beneficial. So before getting carried away by marketing campaigns that scream cheap homes, learn the workings of the foreclosures sector first.
Detroit foreclosure homes are governed by the foreclosure process in the State of Michigan. The process is fairly similar to other states, when a homeowner defaults on their mortgage for three consecutive months they will receive a notice from their lender that signals the start of the foreclosure proceedings.
Foreclosures in Michigan
A bank representative, usually a foreclosure lawyer handles the proceedings. The home will be auctioned off at a pre-determined time and an announcement to this effect is published and released to the general public. Not a lot of homes get sold at auctions and so the property becomes the ownership of the bank or the lending company to whom the debt is owed. Be aware that the homeowner is given a period of 6 months to settle the entirety of the debt if they want to keep the home, but this seldom happens. The bank will commission a real estate firm to appraise the value of the property and do other tasks to make the home saleable, like change locks or put up a foreclosed sign.
Other than bank foreclosures there are also a large volume of government foreclosures available in the city. Government agencies can also seize properties due to various reasons but the most common is due to unpaid taxes. Tax foreclosures are managed by either the U.S. Department of Housing and Urban Development or the Internal Revenue Service.
Government foreclosures are likewise sold through auction, which may either be public or silent. These foreclosures are primarily offered to first-time buyers who will also be the owner-occupiers of the property.
Information on Detroit foreclosure homes can be found in local newspapers, the county courthouse and through banks and government agencies or their appointed real estate representatives.
Detroit foreclosure homes are governed by the foreclosure process in the State of Michigan. The process is fairly similar to other states, when a homeowner defaults on their mortgage for three consecutive months they will receive a notice from their lender that signals the start of the foreclosure proceedings.
Foreclosures in Michigan
A bank representative, usually a foreclosure lawyer handles the proceedings. The home will be auctioned off at a pre-determined time and an announcement to this effect is published and released to the general public. Not a lot of homes get sold at auctions and so the property becomes the ownership of the bank or the lending company to whom the debt is owed. Be aware that the homeowner is given a period of 6 months to settle the entirety of the debt if they want to keep the home, but this seldom happens. The bank will commission a real estate firm to appraise the value of the property and do other tasks to make the home saleable, like change locks or put up a foreclosed sign.
Other than bank foreclosures there are also a large volume of government foreclosures available in the city. Government agencies can also seize properties due to various reasons but the most common is due to unpaid taxes. Tax foreclosures are managed by either the U.S. Department of Housing and Urban Development or the Internal Revenue Service.
Government foreclosures are likewise sold through auction, which may either be public or silent. These foreclosures are primarily offered to first-time buyers who will also be the owner-occupiers of the property.
Information on Detroit foreclosure homes can be found in local newspapers, the county courthouse and through banks and government agencies or their appointed real estate representatives.