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Steelworker
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Username: Steelworker

Post Number: 872
Registered: 02-2004
Posted on Friday, April 13, 2007 - 11:46 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I know its a buyers market and the prices for once has me interested in possibly buying. With a person with crap credit what would you estimate a monthly mortgage would cost with insurance and taxes for a house in Hamtramck, Ferndale, Hazeltucky, or Oak Park for a $75,000 home? Would it be unwise to buy in Hamtramck and should I avoid buying certain type of homes?
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Amy_p
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Username: Amy_p

Post Number: 777
Registered: 10-2003
Posted on Saturday, April 14, 2007 - 7:41 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Steelworker, I have a house in Hamtramck I would sell on land contract if credit issues were a problem. I became a surprise landlord, which is overwhelming me as a single person who's in school and works full-time. Feel free to e-mail me if you want any info, or just to ask about Hamtramck. (I was also a Realtor in a former life, but that was several moons ago. ;).

jeffersonrackstorage@gmail.com
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Steelworker
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Username: Steelworker

Post Number: 873
Registered: 02-2004
Posted on Saturday, April 14, 2007 - 1:30 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

there is one very large house in hamtramck that is beautiful and only $78,000 1900square foot. Only problem with it is its one block from carpenter and detroit. I have no idea how much on the high end a mortgage would cost (including insurance and taxes ect...) .Plus potential gas water bill in hamtramck all these financial things have me wondering if I should take the step to homeownership.(I hate that this forum never gets much traffic)
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Brandon48202
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Username: Brandon48202

Post Number: 167
Registered: 12-2004
Posted on Saturday, April 14, 2007 - 1:49 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The cost of carrying a typical 30 year fixed rate mortgage is about $600 per hundred thousand dollars borrowed. If you are concerned about your credit you may be required to put down a downpayment of 10% and your rate will be higher.

The average cost of owning a $75,000 home- mortgage, taxes, insurance, and utilities will be about $750 to $850/month.

In Hamtramck, you can now actually buy homes in good shape for less than $50,0000.
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Steelworker
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Username: Steelworker

Post Number: 874
Registered: 02-2004
Posted on Saturday, April 14, 2007 - 1:57 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I have heard of a land contract but what exactly does it entail?
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Amy_p
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Username: Amy_p

Post Number: 778
Registered: 10-2003
Posted on Saturday, April 14, 2007 - 9:01 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I think it usually works sort of like rent-to-own (only not cheesy), where the seller retains the title for a period of time while the buyer makes payments, until the buyer is able to get a mortgage or pay it off. Someone else will correct my errors, I hope, but I think a land contract would be for a year or two or three, at which time the buyer has a credit history of payments that enables him to get a mortgage, and all the payments he's made along the way go toward purchase of the house. I suppose we could always Google it... ;)
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Johnnny5
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Username: Johnnny5

Post Number: 491
Registered: 06-2005
Posted on Saturday, April 14, 2007 - 10:18 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

^^^ That's pretty much it, basically it's the property owner acting as the lender. They can be for almost any length of time and can contain a number of variables (As long as they are within the law.)

Personally if your credit has issues I would avoid buying at all in this market. IMO the bottom has not yet fallen out in Michigan real estate. Why take the risk, pay for the upkeep, taxes and higher interest rates that often come with blemished credit if there is little to no chance of the property appreciating? Wait a few years, improve your credit record, save money for a down payment and in the mean time take advantage of the low rent rates that are and will result from the oversupply and our lousy economy. With very few exceptions house prices are NOT on their way up anytime soon, wait a few years and buy at the bottom not on the way down.
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E_hemingway
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Username: E_hemingway

Post Number: 1149
Registered: 11-2004
Posted on Sunday, April 15, 2007 - 8:14 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

buy at the bottom not on the way down.



The same philosophy is used in buying stocks, gold or any sort of significant investment. The problem is finding the bottom. It's not like a little red light goes on and the media declares, "The bottom is here! Buy now!" Determining whether a market is near bottom requires a lot of research and even more gut feeling. If you're buying a place and plan to hold onto it for a while, say 10 years, getting it on the way down as opposed to the market's bottom won't make that much of a difference. For example, if you buy that place now and it turns out the market sinks more in the next year or two, taking another 10 percent off the value. But you're not moving for a while and 10 years after you buy the overall value increases 50 percent. That home purchase can turn out to be a nice little investment. On the flip side, say you wait that two years and it turns out you miss the bottom of the market. You might end up paying more for a lesser home when the market is on the upswing.

You should be asking yourself how long you plan on living there and whether you can live there an extra 5 or 10 years and still be happy. Life rarely works out the way you plan it. Also think about where the neighborhood will be 10 years from now. Do you have faith the neighbors and political leaders will maintain or improve the neighborhood? If you're at the stage of life where you would buy a house anyways and want to take advantage of the soft market, that could be a plan that works. If you're thinking you'll buy now, sit on it for two years and then sell it for a profit, well, that isn't a plan I would recommend.

Also, borrowing with bad credit will not be easy right now because of the subprime lending meltdown. The days of the zero-down, liar loans are long gone. Waiting a few years to get your credit and down payment right might be the way to go. Check out this story:

Subprime Meltdown Snares Borrowers With Better Credit

http://www.bloomberg.com/apps/ news?pid=20601087&refer=home&s id=a8ilcv.eOxMc

As far as easily figuring out what a place is worth and what a mortgage will cost, try zillow.com and mortgage-calc.com. You might also want to read "Home-buying for Dummies" or something like that. As far as what insurance and taxes will cost, talk to some of the neighbors and see what they pay. If they're all renters, that might tell you something about the neighborhood.

Hope this helps.
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Crew
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Username: Crew

Post Number: 1217
Registered: 02-2004
Posted on Monday, April 16, 2007 - 10:55 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Steelworker, You've been bouncing around between Ferndale, Midtown and Hamtramck long enough. It's time to put down some root and buy a place already. I'm glad to hear you're seriously considering buying a place.
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Steelworker
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Username: Steelworker

Post Number: 875
Registered: 02-2004
Posted on Monday, April 16, 2007 - 1:11 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Yeah i was thinking that. I would like to buy this tiny 1920's house in ferndale and im confident ferndale will continue getting better. Also i wouldnt be mad at all if I was stuck living there 5 to 10 years. But its really small house. Hamtramck is great but my only reserve is if its in decline or if recent influx of immigrants will continure to invest in hamtramck. My only reason im thinking of buying is if i can get something for around the same price(or little more) as i pay for rent now.
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E_hemingway
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Username: E_hemingway

Post Number: 1155
Registered: 11-2004
Posted on Monday, April 16, 2007 - 1:40 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

My cousin renovated a 600-square-foot cottage in Phoenix. He's single so the place actually works out well for him and his great dane size wise. In regards to which area is going where, Ferndale and Hamtramck are both heading in the right direction. I wouldn't fret too much about either overall if you feel good about the neighborhood.
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Steelworker
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Username: Steelworker

Post Number: 876
Registered: 02-2004
Posted on Monday, April 16, 2007 - 2:09 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The house in ferndale is small 891 square foot house but its just me and maybe (MAYBE) my GF. But its cute from street and I figure I could do a little work on it and for just me it would be fine just for me. My lease is not up till Sept so i have time to debate all the options and maybe talk to a mortgage person. I appreciate everyones help. Any more opinions or other helpful info is still wanted
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Bvos
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Username: Bvos

Post Number: 2149
Registered: 10-2003
Posted on Monday, April 16, 2007 - 9:26 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I wouldn't be so sure that the Ferndale housing market is on an upswing or stable. I know someone who owned a house for several years in Ferndale and couldn't get it to sell. He was forced to rent it out so he didn't go down the tubes trying to make payments on two houses. He recently got a job in Ferndale so it ended up working out for him in the end (he moved back into the Ferndale house and sold the house he was previously living in).

Hamtramck would be a much better investment IMO. For the prices, you can't go wrong. It would be pretty hard for them to get lower than they already are. Plus you'll also get a whole lot more house for the dollar than you will elsewhere. Hamtramck hit bottom a long time ago as a city and is on its way up.

Ferndale on the other hand might be at or near the bubble bursting in the real estate market. It's been going up at ridiculous rates for the past several years and houses there are now at values that are out of line with similar homes in surrounding communities. I know several people who follow the Ferndale market as a part of their job and they're quite worried about what the future holds from a real estate perspective.

If you can do the land contract thing, that might be your best way to go. Right now lenders are really tightening up on their underwriting standards, especially for the sub-prime market (where you'd likely have to go to) since they're having major default rates right now for numerous reasons.

The one thing to keep in mind with a land contract is that you won't actually own the house until the land contract is paid off. If you default on the land contract (miss or are late on one or two month's payments) most contracts allow the property owner to evict you but keep all the money you've paid in. No equity investment or any other sort of ownership interest is returned to you. So the owner is really in the driver's seat with a land contract and your legal status with the home would be tenuous or minimal at best.

I would enter into a land contract cautiously. If you get a good home owner, the land contract can be a pretty fair deal for you. If you get someone out to make a quick buck, you can get taken advantage of and put into a deal that you're nearly guaranteed to default on. I'd be sure to have an attorney review any land contract before considering or signing it.
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Amy_p
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Username: Amy_p

Post Number: 779
Registered: 10-2003
Posted on Monday, April 16, 2007 - 10:58 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

<--- Official "Good Home Owner" ;)
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Gannon
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Username: Gannon

Post Number: 8968
Registered: 12-2003
Posted on Tuesday, April 17, 2007 - 12:44 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Props to Amy_p, if you have to be in debt to anyone you could do MUCH worse!

I've heard of land contracts written over twenty year spans, like a mortgage. Usually, if the buyer defaults, they lose every dime they ever spent towards the purchase...like Bvos said.

You might be able to use the contract to prove shared ownership for tax purposes, though. For some reason that just bounced to the front of my noggin...I consider land contracts the ONLY way to buy real estate, because I've never trusted mortgage bankers. I studied it in my distant past...a few dead brain cells ago.


That whole thing seems to be a racket...the 'American dream' is soured by unethical profiteers...and we're seeing the results of rampant greed now with this market 'adjustment'.
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Steelworker
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Username: Steelworker

Post Number: 877
Registered: 02-2004
Posted on Tuesday, April 17, 2007 - 12:11 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Wow lots of people with a pro hamtramck opinion. I worry that its true if house prices drop anymore in hamtramck it will become detroit where houses are not worth even living in or renting out. AMY P where is the house at?
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Norwalk
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Username: Norwalk

Post Number: 59
Registered: 11-2006
Posted on Tuesday, April 17, 2007 - 1:54 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

4 years ago I bought a 1500sq ft home in Hamtramck for $87,000 4 bedroom all w/ walkin closets 1 & 1/2 bath's 2 car garage 9' ceilings fully enclosed back porch, living room , dining room kitchen and sitting room. Open stair case stained glass windows. All in all a great house with with great neighbors Taxes are about $200.00 per month Insurance is $1500.00 per year. My water bill this month was $58.00. I love this dirty little town!!
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Amy_p
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Username: Amy_p

Post Number: 780
Registered: 10-2003
Posted on Tuesday, April 17, 2007 - 6:09 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Steelworker, the house is on McDougall, between Casmere and Commor. It's pretty much the opposite of Norwalk's, though--a 2 bedroom (plus open upstairs) with almost no updates. Sturdy with high ceilings, though. I always wanted to restore it to 1920s mode.
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Steelworker
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Username: Steelworker

Post Number: 878
Registered: 02-2004
Posted on Tuesday, April 17, 2007 - 11:28 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

hummm Should I ask the price in the thread or maybe just email you? I seen one for sale on www.trulia.com on mcdougall for 44,500. Is yours listed there?
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Sid
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Username: Sid

Post Number: 448
Registered: 12-2003
Posted on Wednesday, April 18, 2007 - 10:47 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

don't
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Hamtramike
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Username: Hamtramike

Post Number: 469
Registered: 12-2003
Posted on Wednesday, April 18, 2007 - 8:48 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

steelworker,

I may have something for you. 4 bedroom, all new drywall, plumbing, electrical, 2 full baths,driveway, a block off JoCampeau, right between holbrook and caniff... It's a single family but can easily be converted back to 2 if you want to live cheap. My payment is not only in your price range, it is an assumable, conventional mortgage .... E-mail me and i'll send you a few pics. e-mail address is my name at yahoo.
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Steelworker
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Username: Steelworker

Post Number: 879
Registered: 02-2004
Posted on Thursday, April 19, 2007 - 9:20 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Is it me or am I the only one who can not find Email address on these forums? Hamtramike whats your email???
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Bearinabox
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Username: Bearinabox

Post Number: 169
Registered: 04-2006
Posted on Thursday, April 19, 2007 - 4:57 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Reread the last sentence of his post.
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Hamtramike
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Username: Hamtramike

Post Number: 470
Registered: 12-2003
Posted on Thursday, April 19, 2007 - 6:10 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

hamtramike
at
yahoo
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Jimaz
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Username: Jimaz

Post Number: 1944
Registered: 12-2005
Posted on Thursday, April 19, 2007 - 6:25 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Steelworker may have been asking why names to the left of this page no longer link to email addresses. If so, you're not alone, Steelworker. I think that change happened a few months ago.
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Eastside_charlie
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Username: Eastside_charlie

Post Number: 31
Registered: 02-2007
Posted on Thursday, April 19, 2007 - 9:35 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

My humble advice..... Buy at an auction, tax or lender. After getting the latest 10 sold houses in the area (comps) and then bid at least 30% less than the lowest priced comparable home.
That way you have built in equity if your situation changes soon.
Hook up with a lender to get pre-approved so you are 100% sure you can close in 30 days.!
Hint, buy in an area where families want to send their children to.
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Steelworker
Member
Username: Steelworker

Post Number: 880
Registered: 02-2004
Posted on Saturday, April 21, 2007 - 12:45 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

not a big fan of living in areas with families, I am a big fan of entertainment(drinking) districts (hamtramck, ferndale, ect....)

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