Michigan Foreclosure Report by Mark Ijlal

There is lot of crap out on the Internet implying that nothing ever changes in real estate investment. Off course if you are a guru selling a course taped in 1975 then yeah it does make sense talking about how nothing ever changes in real estate investment.

Anybody with even 10% of their brain cells functioning can see that this is not the same real estate world as it was 5 or 10 years ago. Lots and lots of thing have changed – most for the better; some for the worse.

One of the really interesting things that I am recently seeing is one that not too many people saw coming.

I am talking about Short Sales – conventional wisdom being that they worked flawlessly when you are dealing with preforeclosures with 2 or more liens. The first mortgage holder rarely if ever discounts and even if they do discount – it is really nothing to brag about. On a $100,000 mortgage they might knock off $5,000 or $10,000.

The second mortgage holder, the third mortgage holder – all fair game and big discounts could be asked and had. Nora is doing – check this out – a commercial Short Sale right now in Wayne county where the bank has already discounted from $600,000 to $450,000 – on a building / business worth $700,000.

Well that was so last week. :- )

I had my coaching group monthly training session last night. Rodney Townsend one of my members had some really interesting insights to share with the group about the Short Sale deals he has in play right now in Michigan – in cities ranging from Muskegon, Detroit, Rochester Hills to name a few. From zero to 8 deals in play in the last 60 days.

Rodney shared with the rest of the members what he has been up to – and interesting thing on a very very good deal that he just closed which will NET him $25,000 after everything – on a Short Sale – was that the bank discounted $50,000 – on the first mortgage. The housed needed paint, carpet and new windows.

Now if you have no clue about Short Sale then you are not going to care – but if you know anything about Short Sales then you should have fallen off the sofa by now.

I know I did.

A bank discounting first mortgage to the tune of $50,000 on a house with require cometic stuff to flip – that is unheard off. It is not a REO – it is freaking preforeclosure with the homeowner still there. You cant even say that the bank had it for months and months and just wanted out.

Freak occurrence?

Doubt it because I have another member with a house discounted $92,000 – once again on first mortgage with no major renovations. Actually this member had almost let the deal go because his idiot partners went chicken on him at the last minute so he stopped faxing the bank. Next thing you know the bank called him wondering what happened?

Let me repeat that – the bank called him wondering why he stopped talking the Loss Mitigation Department.

Some other really interesting things that were also shared by Rodney during the last night training that I will write about later.

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