Buying a Grand Rapids, MI foreclosure homes allows you to purchase a property right now instead of having to wait to save a larger down payment or more money to buy a resale or brand new home. There are many homes to choose from as well as apartment buildings, multi-family homes, land, townhouses, condos and single family homes in just about all price ranges and neighborhoods. Your worries are over about finding a home you can afford to buy when you purchase a Grand Rapid repossessed homes at either an auction or from the bank. There are government foreclosed homes available as well. FHA, HUD, Fannie Mae and Freddie Mac foreclosure homes are currently being offered for sale at or below market value. It is also possible to find great deals on pre-foreclosure short sales as well. The median price of Grand Rapids homes is $343,690. Foreclosure homes can be bought at 30% to 60% market value.
Some banks are even fixing up their foreclosure REO’s to make them more attractive to prospective buyers. They are replacing the carpets, painting and fixing leaking roofs to help buyers qualify for mortgages on their foreclosure properties and get their foreclosure inventory reduced and off their books. However, not all banks are willing to invest in their foreclosure properties so you should be aware that all foreclosures are sold in an as is condition without any warranties or representations. Buyers still must conduct inspections to make sure they are aware of the home’s condition and budget for repairs when making offers on foreclosed homes. Homes that need cosmetic repairs are the best investments because they allow you to obtain a higher return on your investment. Most buyers stay away from homes that need major repairs and new home systems such as roofs, new plumbing, electrical and have structural damage because these are expensive items to fix. If you can make repairs yourself, it will save you a lot of money.
Foreclosures and Rent to Own
Many investors are purchasing auction homes and offering them as rent to own homes to buyers who do not have a large enough down payment or are unable to get a traditional mortgage to purchase a home. If you are thinking about doing the same, purchasing a Grand Rapids allows you to easily turn your cheap foreclosure home into a rent to own home. By making your cosmetic repairs and rehabbing the home, you should be able to attract a rent to own buyer/rent.
Typically, the buyer gives you a down payment equal to about 20% of the purchase price. The amount can be applied towards the purchase price of your home. The buyer makes monthly rental payments, a portion of which are also applied towards the purchase price for an agreed period of time, usually for a year or two. Then the buyer obtains a mortgage and pays you the remaining purchase balance. Rent to own situations work out well for both the investor and the buyer because the investor can sell the home for slightly more than if they were selling the home in a regular resale transaction because the rent to own buyer is willing to pay a bit more to be able to live in the home now and assume home ownership responsibilities without having to provide tax returns, worry about coming up with a large down payment and having to perfect credit.
First Time Home Buyers
First time home buyers are also purchasing Grand Rapids foreclosure properties because they offer them a chance to purchase home that they might not be able to afford otherwise in their favorite neighborhood. However, first time home buyers generally have to obtain financing and are finding competition from investors with cash. Smart buyers are getting pre-approved so that if they do find a REO or short sale they want to buy, they can present the seller with a pre-qualification letter so the seller knows they are qualified to purchase the home. First time home buyers generally don’t purchase homes at foreclosure auctions because they don’t the cash needed to pay for them. Auctions require the buyer pay in cash typically at the end of the auction.
Whether you are a first time home buyer, investor or looking for a bargain, purchasing Grand Rapids foreclosure homes gives you an opportunity to purchase a discounted property with built in equity. With affordable and abundant inventory and historic low interest rates, now is the perfect time to invest in foreclosure homes in Grand Rapids.
