If you have been looking for foreclosures you probably are wondering where are they? There is a new Novi real estate game that many home buyers are not aware of. When looking for Novi foreclosures you probably have noticed that there are not many Novi foreclosures out there. Yet the media keeps saying there are more coming.
The new Novi real estate game is something many home buyers have no clue about. It is all about non profits. Non profits are getting the first choice of the foreclosures. Sometimes they are getting to see the foreclosed homes prior to them even being listed. So a regular buyer has no chance at all to purchase the foreclosure because they were never listed for sale to the general public.
In some cases the Novi foreclosures (this is happening all throughout the Metro Detroit area) are put up for sale to everybody, but the non-profit can buy them 30% below what regular buyers can pay for them. So even if you put in an offer on that Novi home a non-profit may get to buy the home cheaper than you. Yes they will award it to a non profit over you.
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Why do they do that? I do not know the whole financial part why a bank or fannie mae awards to a non profit, but I am guessing it is for tax reason. My belief is that it would be tax deductible the loss they are taking. So let's say the bank was owed $200,000 on a home and they sold it to a non-profit for $110,000. I am betting they are able to write that loss off or use it as a charity deduction. I honestly do not understand the whole corporate tax loopholes, but it must be a benefit to the bank that owns the Novi foreclosure to do that. Especially if they are doing it quite often.
So if you are looking to buy Novi real estate you probably will find there are less foreclosures out there for that reason. I am a local real estate agent that knows the market well. If you need help buying or selling a Novi home give me a call on my cell (313) 310-9855.
Find out what's happening in Noviwith free, real-time updates from Patch.
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