Grand Rapids realtors: 63% of homes on market in foreclosure

Michigan Foreclosure News

Georgetown Township, MI (WZZM) - The first snowy day in West Michigan means several things, including the home buying season is coming to a close.

Last month the Grand Rapids Association of Realtors released its latest numbers.

They reflect that banks are taking the worst hit.

The association is reporting 63% of all homes on the market are either short-sale, or in foreclosure.

The difference being the bank has not taken control of short-sale homes; but the owner is behind on payments and is asking the bank to eat the loss once sold, if it can sell.

Sunday afternoon a home in Georgetown Township held an open house.

A while the snow certainly does not entice buyers, the fact that it's a short-sale may

"Never before and probably never again will there be such a great opportunity for buyers," says realtor Sue Prins.

Prins says unlike many homes in the past, today, homes in foreclosure or short sale are well-maintained.

"It's not what you may think for a short-sale or foreclosure, some people have that misconception," she says.

That means home buyers like Josh and Courntey VerVoort have a real advantage.

"We don't really know what we're looking for until we walk in and get that "wow" feeling," Josh says.

But they're still using their better judgement.

"We're taking some very careful steps to make sure we get into something that we know we can afford for the long haul."

In October the Grand Rapids Association of Realtors released new numbers on short-sale and foreclosures sales. For the first time, 63% of the homes on the market, are or will be controlled by the bank.

"It's stressful, it's hard, it's disappointing," says Prins. "I sit across from people sometimes very tearful over this situation."

Others though can get tears of joy, as they're about to get a great deal.

But Prins gives words of caution, saying inspections on foreclosed homes are even more important.

"With a short sale or foreclosure, the banks say we've never lived in the property, we make no claims about the property, so you buy it as-is."

It's one of life's lessons: almost everything good, comes with a little risk.

"We feel great because we're buying into a great situation, but at the same time we know that a lot of these people are selling because of a bad situation they got into. It's a little bittersweet," says Josh.

On top of the 63%, the association also says since 2005 short sales have increased 80%.

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