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Foreclosure in Saginaw : Real Estate Advice

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  • Home Buying5
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Activity 2
Thu Nov 22, 2007
T.E. & Naima Sumner answered:
Michele, One of the reasons for foreclosures is the type of loan owners had. Saginaw particularly has a lot of new construction and a lot of first time homebuyers that should not have been approved for a loan, were put into a 2 year ARM program. So when they bought their house 2 years ago, they had an interest rate of about 7 to 8% then they were supposed to work on their credit and refinance before the 2 years were up but most of them didn't do anything and their interest rate adjusted and went up to 10% to 12% and they couldn't refinance and lost their homes. I am not guessing, I know this for a fact.

Second, right now there are only 7 homes that are foreclosures in Saginaw. That is not so bad considering that are 154 homes for sale on the market. NRH has 26 foreclosures on the market and 338 homes of which about 55 are new construction.

NRH is almost out of land for new construction therefore new homes are going to be in a higher price range i.e. 300K to 480K. Saginaw on the other hand is still growing and a lot homes can still be very affordable.

Let me know if you need any more information about the local market I invite you to visit my website and call me if you have any questions. I'll be happy to email you homes that match your search criteria so you have a better idea of what you get for your money here...
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Tue May 15, 2012
Patti Pereyra answered:
With a short sale, your credit will not be as severely impacted as with a forecosure - but do not mistaken - it will be impacted. But because the drop in your score is less with a short sale, you just may have the opportunity to repair your damaged credit more quickly and thus get back into the housing market that much more quickly.

However. Your lender has to agree to a short-sale. You may have to provide some pretty solid and compelling evidence that you are and will be unable to make payments, that your property is in need of repairs you are unable to afford, that you are impacted due to a distressed housing and/or employment market. In "short", you will need a good reason as to why the the lender should agree to your short sale.

Because a foreclosure can be an expensive legal process for lenders, they may be willing to work with you; but again, you will have to make your case.

Another issue to worry about in a short sale (and with a foreclosure, too) is the possible impact the forgiven debt can have on your income tax. Forgiven debt can be considered income and can thus create tax implications. Your lender will issue a 1099 for the forgiven portion, so it will be recorded. That would be the last thing you need when you are already in financial straits, so be sure you understand the terms of your mortgage and talk to a financial adviser before proceeding with either avenue.

Best of luck to you.
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