So here's the good news.  In July, the sale of single family homes increased 8.6% over the same period last year according to the Grand Rapids Association of Realtors statistics (http://www.grar.com/).  According to the National Association of Realtors, "a forward-looking indicator based on pending sales of existing homes suggests the market may stabilize in the months ahead." (GRAR bulletin)  It truly is a great time to buy, especially if you are looking at a home purchase as an investment opportunity.

The Bad News... 

The bad news is that Michigan in particular, has a lot of homes that are either going into foreclosure or are already there.  Job losses, the economy, 2nd and 3rd mortgages, adjustable rate mortgages, have all contributed to the dilemma we face today in trying to sell the homes that will eventually sell at a loss.  Personally, I think that it is sad to see all of these homes in the foreclosure process.  Again, it's great for the buyers but buyers beware.  There can be issues with these homes and let's hope and pray that you can avoid some of the pitfalls that these sellers are experiencing at this moment.

The Great News... Ways to Prevent Foreclosure

Recently, the Grand Rapids Association of Realtors put up a booklet that can be easily downloaded from their site at http://www.grar.com/ named, Learn How to Avoid Foreclosure and Keep Your Home.  Here are some great points that I believe everyone should take notice of:

• Before an issue occurs...  If you are having troubles making the mortgage payment or foresee that this might be an issue, work with experts NOW to find the solution.
• Mortgage features to watch out for... teaser rates, option to pay less than full interest at any one time, adjustable interest rates with no cap limits, payments without the taxes and insurance figured in to the monthly payment amount.
• Realtors Can Help By...giving you options via refinancing, offering referrals to counselors or agencies, helping you find the lowest rate and fees to save you money, and of course by selling your home.
• Be sure to download the rest of the article for more helpful tips.  It truly has some great information.

The Foreclosure Process Has Started, Now What?

Before your home officially becomes a foreclosure, you always have the option to redeem yourself and pay up the missed payments in full and whatever other fees may be tacked on.  If you are falling behind, a short sale may be one of the best options for you.  Here's a really great article from CBS on what a short sale is and how it can be helpful as an alternative to a foreclosure. 

http://www.cbsnews.com/stories/2007/06/21/earlyshow/contributors/raymartin/main2961274.shtml 
Video URL http://www.cbsnews.com/sections/i_video/main500251.shtml?id=2960979n

References: CBS News. http://www.cbsnews.com/.  June 21, 2007. 

If you have any further questions, feel free to give me a call.