Detroit Mortgage | Detroit Loan Modification
Published August 20, 2010 | 
Detroit Loan Modification
With the present financial crisis, the government has plans to bailout the “Big 3” which happen to have their headquarters in Detroit. What about for the distressed homeowners facing foreclosure? What can they expect?
Ordinary citizens of Detroit, just like the rest of America, should not expect any benefit from the government’s bailout programs. This is according to most analysts and observers.
Detroit is among the hardest hit areas when it comes to the number of foreclosure filings this year. In fact, in the October report of Realty-Trac, Detroit registered the highest foreclosure rate among the nation’s 100 largest metropolitan areas. Within this year, close to 5 percent of Detroit’s households entered some stage of foreclosure. This is a whopping 4.8 times the national average.
Many believed that 2007 would be the worst year for Detroit. Last year, a total of 72,616 foreclosure filings on 41,273 properties were reported in the Detroit metro area. This figure is up by 68 percent from the 2006 numbers. Though 2008 is not yet over and data is not yet available, those who predicted a better real estate market in Detroit for this year could be wrong.
These numbers are large enough for any government bailout program. What is left for Detroit homeowners, which is actually more promising than bailouts, is loan modification initiative. Seeing the benefits of loan modification a large number of homeowners have recently sought loan modifications from their lenders, thus, lenders are somewhat overwhelmed.
Recently, Fannie Mae and Freddie Mac announced that they will roll out a plan to modify hundreds of thousands of loans in an effort to prevent foreclosures. According to the Wall Street journal, the mortgage giants, under the federal conservatorships, aim to reduce mortgage payments to no more than 38% of household income.
The Treasury Department will also encourage private lenders, especially banks, to follow the same model. This plea however, is not backed by any state legislation to compel private lending institutions to initiate loan modification to their delinquent borrowers. Fortunately, there are dedicated loan modification experts available who can assist homeowners in cutting down their monthly mortgage payments.
©2008 Tom Brady
Reprint rights available for free.
Tom Brady is a loss mitigation specialist for LIG Loan Modification Services, a loss mitigation company that offers loss mitigation services such as loan modification, short refinance, forbearance, short sale, and deed in lieu of foreclosure. To see how your loan can be modified, visit http://www.LIGLoanMods.com or call 1(888)220-9787.
Posted in Detroit Mortgage | 
Detroit, detroit loan modification, loan, Modification, mortgage | 
Leave a commentDetroit Mortgage Video | Facing the Mortgage Crisis | Detroit Public TV | Michigan Radio
Published August 8, 2010 |
At 9pm on Wednesday, August 5, Detroit Public TV presented Facing The Mortgage Crisis, a special show with a panel of experts discussing steps you can take to save your home. Find more info at: facingthemortgagecrisis.org
Posted in Detroit Mortgage | Crisis, Detroit, Facing, Michigan, mortgage, Public, Radio, Video | Leave a commentDetroit Mortgage | Building Your Wealth Through Detroit Cash Flow Properties
Published August 1, 2010 | Building Your Wealth Through Detroit Cash Flow Properties
Detroit took some tough jabs with auto industry scale-downs. Some of that pain is subsiding, as communities are rejuvenated with new investment. The dismal local economy has created ample opportunity for investors to take advantage of Detroit wholesale properties.
The power of passive income
Passive income is a recurring revenue stream that does not require great or regular effort. Rental property is perhaps the best example of such a revenue stream, with the added benefit of appreciation. Right now, Detroit area properties are priced so low – relative to current rental costs – that positive cash flow opportunities abound.
Investors can profit significantly from Detroit investment properties because it is such a great market model to generate cash flow. Here are some examples of real Detroit real estate income property scenarios:
18719 Westphalia, Detroit MI 48205
3 Bed 1 Bath 1500 Sq Feet
ARV 80k+
Comps
19168 Strasburg 1293 Sq feet. Sold on 10/12/07 for 100,000. 0.56 miles from Westphalia
13859 Linnhurst 1324 Sq feet. Sold on 10/31/07 for 89,900. 0.6 miles from Westphalia
Your Wholesale Price only ,000. Estimated Repairs ,000
In this example, with a fixed rate mortgage financing the purchase with nothing down, you would breakeven at about 0 rent. That covers the mortgage payment, management fee and the taxes. This calculation was based upon including the ,000 estimated repairs, and folding it into the financing.
Here is another, real world example:
Positive CASH FLOW!!!
Fully remodeled and Rented at 5/mo. complete with Management
13591 Faust St 48223 3BR 1BA 1300 SF
Wholesale Price ,900
This property breaks even with around 0 in rental income.
Just as there are employees and self-employed people, there will always be owners and there will always be renters. Thus, it is an effective working model of passive revenue achieved through rental property.
Growing your long-term wealth
In addition to the strengths of passive income, cash flow properties in Detroit real estate contribute to your long-term wealth and prosperity. While your renters are paying your mortgage payments, you are enjoying “free equity” building up in your home. Thus, not only are you earning passive income from Detroit investment properties, but you are also simultaneously increasing your asset value.
In addition, as the graph of time clearly indicates, real estate will always appreciate. In the long term, Detroit real estate value will increase, especially considering that the supply of land is infinite. Subsequently, you are not only generating passive income and building free equity, but you can profit from future appreciation – all which pad your wealth.
How to enter into successful cash flow Detroit real estate
The main component to successfully profit from Detroit investment properties is knowledge. Most of the decline in many Detroit neighborhoods has hit the bottom already, and the inevitable upward bounce is already beginning. By having the knowledge it takes to choose a profitable cash flow Detroit investment property, you can enjoy the long-term benefits of growing your wealth.
In fact, it is possible to use Detroit houses to build equity and wealth in as little as five years.
Urban Detroit Wholesalers is dedicated to upgrading the value of your Detroit real estate portfolio. Read our market analysis, current news, and pertinent case evaluations of Detroit investment properties.
Posted in Detroit Mortgage | Building, cash, Detroit, Flow, mortgage, Properties, Through, Wealth | Leave a comment