Foreclosures can offer significant savings, but they come with unique risks. Daryl Wizinsky's team has the experience to help you navigate REOs, short sales, and auctions to find real value while avoiding costly mistakes.
Understanding the three main types of distressed properties helps you choose the right opportunity for your situation and risk tolerance.
Michigan follows a specific legal process for foreclosures. Understanding this timeline helps you know where a property stands and what to expect.
After 90+ days of missed payments, the lender files a notice of default. The borrower receives official notification and has opportunities to catch up on payments, negotiate a loan modification, or pursue a short sale.
If the default is not cured, the lender files for foreclosure. Michigan allows foreclosure by advertisement (non-judicial) for most residential properties, which is faster and less expensive than judicial foreclosure.
A notice of sale must be published in a local newspaper once per week for four consecutive weeks before the sheriff's sale. The notice is also posted on the property.
The property is auctioned at a public sheriff's sale. The lender typically sets the opening bid at the amount owed. If no one outbids the lender, the bank takes ownership and the property becomes an REO.
Michigan law grants the former owner a 6-month redemption period after the sheriff's sale. During this time, the owner can reclaim the property by paying the full amount owed plus costs and interest. Properties classified as abandoned may have a shortened 1-month redemption period.
After the redemption period expires unclaimed, the bank takes full possession and typically lists the property for sale as an REO through a real estate agent. This is when most foreclosures become available to buyers through standard MLS channels.
Buying a foreclosure is not like buying a standard home. The contracts are different, the timelines are unpredictable, and the risks are higher. Daryl Wizinsky's team has handled hundreds of distressed property transactions and knows exactly how to protect your interests.
We perform a thorough comparative market analysis to ensure the foreclosure price represents genuine value after accounting for needed repairs. We coordinate comprehensive inspections including structural, mechanical, mold, and pest assessments. We review title history for liens, back taxes, and encumbrances.
For investors, we analyze cap rates, renovation costs, and projected rental income to ensure the numbers work. For homebuyers, we help you estimate total cost including repairs and connect you with trusted contractors who provide accurate bids before you make an offer.
Our goal is simple: make sure the discount is real, the risks are understood, and you walk into the purchase with open eyes and expert guidance.
Michigan has a 6-month redemption period after a sheriff's sale during which the former owner can reclaim the property by paying the full amount owed plus costs. Some properties have a shorter 1-month redemption period if the mortgage was for a property that has been abandoned. The redemption period makes buying at auction more complex than in many other states.
REO (Real Estate Owned) properties are bank-owned homes that went through the full foreclosure process. The bank is the seller and the home is vacant. Short sales are properties where the current owner sells for less than what is owed on the mortgage with lender approval. Short sales have longer timelines (3-6 months for lender approval) while REOs typically close in 30-45 days.
Yes, for REO properties and short sales you can typically include an inspection contingency in your offer. Auction properties are almost always sold as-is with no inspection opportunity. We always recommend thorough inspections on foreclosures since these homes often have deferred maintenance, vandalism damage, or hidden issues that are not apparent during a showing.
You can use FHA, VA, and conventional financing on REO properties and short sales as long as the home meets the lender's minimum property requirements. Auction properties typically require cash. Some foreclosures may need repairs before they qualify for government-backed loans, in which case an FHA 203(k) renovation loan can be an excellent option that rolls purchase price and renovation costs into one mortgage.
Foreclosures in Michigan typically sell for 10% to 30% below market value depending on condition and type. REO properties in good condition may only be discounted 10-15%, while properties needing significant work can be 30% or more below comparable sales. Always factor in estimated repair costs to determine your true savings compared to buying a move-in-ready home.
Common risks include hidden structural or mechanical issues, water damage from winterization failures, vandalism or theft of copper and appliances, title issues or outstanding liens, back taxes owed, and properties sold strictly as-is with no seller disclosures. Having an experienced agent like Daryl who has handled hundreds of distressed properties helps you identify and mitigate these risks before closing.
With over 21 years of experience in distressed properties, Daryl Wizinsky's team helps you find genuine deals, avoid costly mistakes, and close with confidence on REOs, short sales, and auction properties.