|
|
|
Real Estate News Releases
|
(EMAILWIRE.COM, February 29, 2008 ) Detroit, Mi -- Has anyone figured out a good way to move properties profitably in our current market here in Michigan?
Who is eligible for this program you ask?
Anyone 62 years old or older is eligible. The house must be the individual's primary residence, it must meet HUD's minimum property standards and all they have to do is discuss the HECM loan program with a HUD approved counselor. That's it!
Do you think there is an opportunity here? Absolutely.
This is a fantastic way to get seniors into a house with no out of pocket expense and no house payments for as long as they reside in the house.
What are the benefits to the 62 and up homeowner?
Let me give you a simple example: We purchase a property at a steep discount on the NW side of town in a nice area. The ARV is $100k. We rehab the property. One of our clients, Joe Homeowner, aged 63, was introduced to the program and instantly became interested. He just happens to want to live on the NW side of town next to his grand-kids. We show him the property and he wants it. Our selling price is $65k.
That's $35k in built-in equity right off the bat for those of you keeping score at home.
HUD has already approved the property as meeting their minimum standards so that's no problem.
All Joe Homeowner has to do is discuss the program options with a HUD counselor and he's approved. No down payment, no out-of-pocket expenses, and no house payments for as long as it remains his principal residence.
He has $35k he now has access to anytime he wants, for anything he wants, as a 1) single lump sum. 2) For cash withdrawals set up as a "credit line" or 3) as a monthly cash advance for a specific period of time. Or any combination of the three cash advances.
And he never has to pay it back as long as he continues to live in the house!
That $35k will come in very handy in his golden years. Of course, he can only get as much as the house is appraised for.
But if property values go up eventually, so will his loan advances.
If the property appraises for $110k 2 years later, his $35k equity just turned into $45k that he can tap into whenever he needs to at whatever amount suits him.
No loan payments, no house payments. Ever.
The only stipulation to all this, and that's part of your HUD counselor discussion, is Joe Homeowner pays only the taxes and insurance on the property every year – that's it!
The counselors will make sure Mr. Joe Homeowner is able to afford the property taxes and insurance long before he closes on the house of his dreams. If that isn't going to be a problem, he's golden.
Obviously HUD and the government don't want to place people in homes they can't afford the taxes and insurance on; then nobody wins.
Detroit Investment Homes
Mike Schoen
248-778-8812
mike@rehelpnow.com 
|
|
|
|
Real Estate News by Sector
|
|
|
|
|
