Saturday, September 5, 2009
Tuesday, January 8, 2008
According to RealtyTrac Massachusetts is number 19 in the nation for the number of foreclosures.
The RealtyTrac Monthly U.S. Foreclosure Market Report provides the total number of foreclosure filings - both nationwide and by state - over the preceding month. Data is also available at the individual county level. RealtyTrac's report includes documents filed in all three phases of foreclosure: Default - Notice of Default (NOD) and Lis Pendens (LIS); Auction - Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank).
Massachusetts Foreclosure Market Statistics - Oct 2007
State NODs NTSs NFSs LISs REOs Total
U.S. 41,404 58,597 22,485 48,356 53,609 224,451
Mass.
0 2 612 1,434 856 2,904
As you can clearly see foreclosed homes are a problem in our economy. These numbers are ONLY for the month of October. Almost 3,000 families in Massachusetts lost their home in 1 month.
Please contact me if you are in a situation where you may need Financial Intervention. You don't need to wait for foreclosure. You DO have options! Visit www.BerkleyMass.com for more information!
The RealtyTrac Monthly U.S. Foreclosure Market Report provides the total number of foreclosure filings - both nationwide and by state - over the preceding month. Data is also available at the individual county level. RealtyTrac's report includes documents filed in all three phases of foreclosure: Default - Notice of Default (NOD) and Lis Pendens (LIS); Auction - Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank).
Massachusetts Foreclosure Market Statistics - Oct 2007
State NODs NTSs NFSs LISs REOs Total
U.S. 41,404 58,597 22,485 48,356 53,609 224,451
Mass.
0 2 612 1,434 856 2,904
As you can clearly see foreclosed homes are a problem in our economy. These numbers are ONLY for the month of October. Almost 3,000 families in Massachusetts lost their home in 1 month.
Please contact me if you are in a situation where you may need Financial Intervention. You don't need to wait for foreclosure. You DO have options! Visit www.BerkleyMass.com for more information!
Friday, December 28, 2007
Debt Forgiveness Law Gets Signed!
Right before congress and the president closed shop for the season a very important piece of legislation got signed. The Mortgage Forgiveness Debt Relief Act has been signed into law!! I am inserting the artice from N.A.R. (National Association of Realtors) exactly as I received it:
Statement on President Bush's Signing of Mortgage Forgiveness Debt Relief By NAR President Richard F. Gaylord
WASHINGTON, December 20, 2007 -
“On behalf of the many individuals and families who would have been burdened by a tax after losing their home, the National Association of Realtors® thanks President George W. Bush for signing the Mortgage Forgiveness Debt Relief Act into law. Today the president offered a Christmas present to many people who have suffered the agony and humiliation of losing their home due to a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt.
“NAR has been advocating for such a change to the IRS tax code for nearly 10 years. We have always believed that it is clearly an issue of fairness and of not kicking people when they are down. By making the forgiven debt taxable income, individuals in already unfortunate situations most likely faced IRS actions because they did not have the money to pay the additional taxes. This legislation will relieve that additional burden and may also encourage families to work with their lender to negotiate terms, knowing they will now not be subject to an IRS bill.
“Today’s bill will ensure that any debt forgiven on a mortgage secured for a principal residence will not be taxed. This is very significant legislation. This may also mean that some day in the future these families can once again achieve the dream of homeownership.” The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
This is GREAT NEWS for all people affected by this housing correction.
Statement on President Bush's Signing of Mortgage Forgiveness Debt Relief By NAR President Richard F. Gaylord
WASHINGTON, December 20, 2007 -
“On behalf of the many individuals and families who would have been burdened by a tax after losing their home, the National Association of Realtors® thanks President George W. Bush for signing the Mortgage Forgiveness Debt Relief Act into law. Today the president offered a Christmas present to many people who have suffered the agony and humiliation of losing their home due to a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt.
“NAR has been advocating for such a change to the IRS tax code for nearly 10 years. We have always believed that it is clearly an issue of fairness and of not kicking people when they are down. By making the forgiven debt taxable income, individuals in already unfortunate situations most likely faced IRS actions because they did not have the money to pay the additional taxes. This legislation will relieve that additional burden and may also encourage families to work with their lender to negotiate terms, knowing they will now not be subject to an IRS bill.
“Today’s bill will ensure that any debt forgiven on a mortgage secured for a principal residence will not be taxed. This is very significant legislation. This may also mean that some day in the future these families can once again achieve the dream of homeownership.” The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
This is GREAT NEWS for all people affected by this housing correction.
If you find yourself in a situation requiring Financial Intervention and assistance in your home sale, please contact me as I am a trained, skilled Loss Mitigation Negotiator with a full team of professionals to assist you.
Contact
Bobbie Files
www.BerkleyMass.com
bobbiefiles@kw.com
508-238-5000 x.296 Office
Friday, December 7, 2007
What is a short sale and will it help me?
By now we've all heard that defaults on mortgage loans are on the rise, with some industry experts predicting record numbers of foreclosures this year. Whether this will have a dramatic impact here in the Berkley Area is really anybody's guess, but it is a possibility, which leads to my topic today.
What is a "short sale?"
If you've never heard of a short sale, you're in good company. Many (if not the majority) of home owners have never even heard of a short sale. The reasons for this are many, including the rarity of their occurrences. While a short sale is certainly not the answer for many homeowners struggling to keep up with mortgage payments, for others it may be a way to avoid having a foreclosure on that ever important credit report.
Here's how a short sale may come about:
Typically after a homeowner has defaulted (missed) anywhere from one to a couple of mortgage payments, your mortgage lender will send you a "notice of default." In the real estate and mortgage industry this is commonly referred to as an "NOD." NODs are likely to occur in greater numbers in slower or decreasing housing markets.
The NOD essentially states that the homeowner has 90 days to become current on payments due the lender, or else the bank will foreclose on your home. However, as banks are in the business of selling loans, not properties, they prefer not to foreclose on homes. That is not to say that they won't, but it is generally their last resort. For this reason, occasionally banks will approve a "short sale." But, keep in mind, it won't necessarily be easy to negotiate this with your lender.
Suppose you bought a home for $400,000, and opted for a 100% financing loan (which is not uncommon particularly in the last few years.) Everything was going smoothly, until an unforeseen hardship made it impossible for you to make your monthly payments. At this stage you will likely consider selling your home. But, when you go to do so, you find that your house has actually depreciated in value, and it will now only command $325,000 as determined by current market value. In order for you to avoid foreclosing, you would have to sell the home, not to mention come up with $75,000, plus closing costs, commissions and any past due amounts.
Should you determine that coming up with that money is simply impossible; you may opt to seek out a REALTOR® who has expertise in these situations, to try to negotiate a short sale on your behalf with your lender.
Here's how a short sale works.
After you receive your NOD from the lender, first contact a REALTOR® familiar with short sales (also known as short pays). It is urgent that you do this immediately, as you and your REALTOR® have only 90 days to achieve all of the following:
*List and market the property. It will be listed for sale just as any other property would, on the MLS System. It will be marketed as a short sale.
*Receive and accept an offer
*Submit the offer along with an explanation of why you can no longer afford to keep the home (sometimes called a "hardship letter.") to the lender.
*Negotiate with the lender for forgiveness of the remainder of the loan.
Negotiating for Forgiveness
If you did a double take on the last bullet, it's not the least bit surprising. A short sale in its most basic form is the lender forgiving you for figuratively costing them -in the above example- $75,000. They will usually agree to pay the closing costs and commissions for you.
Why would they do such a thing? Frankly, it's because it's easier for them to cut their losses, and at least recoup some of the money for the house, than it is for them to foreclose and sell the home at an auction. But note the following:
*Negotiation between your REALTOR® and lender is not easy, even with a compelling "hardship letter"
*Lenders will not be willing to negotiate at all, unless your REALTOR® provides them with an offer in writing from a buyer
*Lenders are not always expedient with their response to your request, pushing your 90 day deadline to the limit
*Lenders reserve the right to forgive some of the debt, but not all, leaving you to come up with any balance
*You may be subject to taxes on the amount of the loan forgiven. In the above example therefore, you may receive a 1099 statement from the lender for the total amount of debt forgiven. This would include the $75,000, the closing costs, the commissions plus any amounts past due. A 1099 in this instance could potentially put you at risk for owing taxes on an additional $98,000 in taxable income.
So Where Is The Good News?
The sole reason to seek a short sale would be to avoid having a foreclosure on your record. In the eyes of most lenders a foreclosure on your record is reason enough to deny you a loan for another house, even years in the future. At the very least, a foreclosure on your credit would likely relegate you to the "sub prime" category of borrowers, which is the segment of the market currently experiencing tightening guidelines and increasing restrictions. In lieu of having a foreclosure on your credit, you will be marked with the short sale, but it will not affect your credit as negatively as a foreclosure would.
Please note that without the guidance of a REALTOR® trained in negotiating with lenders on your behalf for a short sale, the odds that you will be granted a short pay from a lender on your own are pretty slim. These short sales are not particularly common, and are only granted after much effort on your behalf by your REALTOR®.
However, should you find yourself facing hardship, and a potential inability to pay your mortgage loan, consult a REALTOR® immediately to see if any other options are available.
Contact
Bobbie Files
Keller Williams Realty
508-789-0217 Direct
bobbiefiles@kw.com
What is a "short sale?"
If you've never heard of a short sale, you're in good company. Many (if not the majority) of home owners have never even heard of a short sale. The reasons for this are many, including the rarity of their occurrences. While a short sale is certainly not the answer for many homeowners struggling to keep up with mortgage payments, for others it may be a way to avoid having a foreclosure on that ever important credit report.
Here's how a short sale may come about:
Typically after a homeowner has defaulted (missed) anywhere from one to a couple of mortgage payments, your mortgage lender will send you a "notice of default." In the real estate and mortgage industry this is commonly referred to as an "NOD." NODs are likely to occur in greater numbers in slower or decreasing housing markets.
The NOD essentially states that the homeowner has 90 days to become current on payments due the lender, or else the bank will foreclose on your home. However, as banks are in the business of selling loans, not properties, they prefer not to foreclose on homes. That is not to say that they won't, but it is generally their last resort. For this reason, occasionally banks will approve a "short sale." But, keep in mind, it won't necessarily be easy to negotiate this with your lender.
Suppose you bought a home for $400,000, and opted for a 100% financing loan (which is not uncommon particularly in the last few years.) Everything was going smoothly, until an unforeseen hardship made it impossible for you to make your monthly payments. At this stage you will likely consider selling your home. But, when you go to do so, you find that your house has actually depreciated in value, and it will now only command $325,000 as determined by current market value. In order for you to avoid foreclosing, you would have to sell the home, not to mention come up with $75,000, plus closing costs, commissions and any past due amounts.
Should you determine that coming up with that money is simply impossible; you may opt to seek out a REALTOR® who has expertise in these situations, to try to negotiate a short sale on your behalf with your lender.
Here's how a short sale works.
After you receive your NOD from the lender, first contact a REALTOR® familiar with short sales (also known as short pays). It is urgent that you do this immediately, as you and your REALTOR® have only 90 days to achieve all of the following:
*List and market the property. It will be listed for sale just as any other property would, on the MLS System. It will be marketed as a short sale.
*Receive and accept an offer
*Submit the offer along with an explanation of why you can no longer afford to keep the home (sometimes called a "hardship letter.") to the lender.
*Negotiate with the lender for forgiveness of the remainder of the loan.
Negotiating for Forgiveness
If you did a double take on the last bullet, it's not the least bit surprising. A short sale in its most basic form is the lender forgiving you for figuratively costing them -in the above example- $75,000. They will usually agree to pay the closing costs and commissions for you.
Why would they do such a thing? Frankly, it's because it's easier for them to cut their losses, and at least recoup some of the money for the house, than it is for them to foreclose and sell the home at an auction. But note the following:
*Negotiation between your REALTOR® and lender is not easy, even with a compelling "hardship letter"
*Lenders will not be willing to negotiate at all, unless your REALTOR® provides them with an offer in writing from a buyer
*Lenders are not always expedient with their response to your request, pushing your 90 day deadline to the limit
*Lenders reserve the right to forgive some of the debt, but not all, leaving you to come up with any balance
*You may be subject to taxes on the amount of the loan forgiven. In the above example therefore, you may receive a 1099 statement from the lender for the total amount of debt forgiven. This would include the $75,000, the closing costs, the commissions plus any amounts past due. A 1099 in this instance could potentially put you at risk for owing taxes on an additional $98,000 in taxable income.
So Where Is The Good News?
The sole reason to seek a short sale would be to avoid having a foreclosure on your record. In the eyes of most lenders a foreclosure on your record is reason enough to deny you a loan for another house, even years in the future. At the very least, a foreclosure on your credit would likely relegate you to the "sub prime" category of borrowers, which is the segment of the market currently experiencing tightening guidelines and increasing restrictions. In lieu of having a foreclosure on your credit, you will be marked with the short sale, but it will not affect your credit as negatively as a foreclosure would.
Please note that without the guidance of a REALTOR® trained in negotiating with lenders on your behalf for a short sale, the odds that you will be granted a short pay from a lender on your own are pretty slim. These short sales are not particularly common, and are only granted after much effort on your behalf by your REALTOR®.
However, should you find yourself facing hardship, and a potential inability to pay your mortgage loan, consult a REALTOR® immediately to see if any other options are available.
Contact
Bobbie Files
Keller Williams Realty
508-789-0217 Direct
bobbiefiles@kw.com
Tuesday, November 13, 2007
When are home prices going to rise
Please read the article below that I copied in full.
Everyday I get asked by sellers and homeowners "When are we going to be out of this?" Well if we use the information below as a guide by 2009 home prices will be finally steady.
The next most common question I here from Sellers is "The spring market is the best market should I wait till then to sell?" The answer to that would be a big "NO!!" If you wait until Spring you could lose an additional 2% more than now!
Everyday I get asked by sellers and homeowners "When are we going to be out of this?" Well if we use the information below as a guide by 2009 home prices will be finally steady.
The next most common question I here from Sellers is "The spring market is the best market should I wait till then to sell?" The answer to that would be a big "NO!!" If you wait until Spring you could lose an additional 2% more than now!
Than I hear "If I wait to sell a couple of years the market will be back." In a couple of years the market will no longer be declining and finally staying steady. If we go by the opinion below your home will be worth a full 4% less in a couple of years than it is today. And that is not taking into consideration depreciation based on condition. Roofs, furnaces, windows have all aged in that time and maybe getting to the point of replacement. 2-3 years can be the difference between having to replace a roof or selling it the way it is.
We are in a market of "Equity Preservation". By that I mean when you price your home you want to underprice your competition AND price your home lower than recent sales.
"WHAT?!?!" you're now screaming.
Let me explain.
We are currently losing value of 0.5 to 1% per month. A recent sale is one that has closed in the last 3 months, better yet the last month. Like I just said it is a sale that has CLOSED. Well that means that the offer to purchase was made 1-2 months prior to the closing. So if we take a sale that closed 1 month ago on an offer that was accepted 2 months prior that is a 3 month period of further depreciation. At 1% per month that is a full 3% of loss. If you price your home at or above the Sale price of that recent sale and your home sits on the market for over 30 days your home has now lost 4% in value.
A well priced home will sell and will sell quickly.
That is Equity Preservation.
Bankers: Worst is yet to come ( BOSTON ) – The chief economist for the Mortgage Bankers Association is advising members not to expect a recovery in the housing markets until 2009. The MBA’s Doug Duncan says he expects national median home prices to fall between 2 percent and 4 percent next year because of an oversupply of homes from foreclosures. Duncan said California , Texas , Arizona and Nevada would be the hardest-hit states because of speculation by investors, while Ohio , Michigan and Illinois would follow because of job losses. He said he expects mortgage originations to be off 15 percent this year and another 18 percent next year. Reprint from U.S. News.
I can help you with every aspect of buying or selling your home because I’m experienced, because I’m professional . . .and because I care. The relationship between a home buyer or seller and their agent is based on trust, shared goals and understanding. I strive to continually improve and to do this I listen and take the needs and wants into consideration. I'd love to hear from you! 
To get a fair Market Value of your home call Bobbie Files.
Bobbie Files
Your Bristol County Realtor
508-238-5000 x.296 Office
508-789-0217 Direct
508-238-5000 x.296 Office
508-789-0217 Direct
Visit my website at www.berkleymass.com for accurate real estate information.
Monday, November 12, 2007
Are you waiting to buy?
You first time homebuyers or present time renters... Are you ready to start your exciting but 'scary' property search? Homebuying is a big step...but it shouldn't be frightening...learn to enjoy the process...see it as a 'journey' from rent receipts to 'buying bricks'!
Remember they taught us in school the three major components essential to every family...food, shelter, and clothing...'homebuying' is the biggest ticket item in that picture.
Remember they taught us in school the three major components essential to every family...food, shelter, and clothing...'homebuying' is the biggest ticket item in that picture.
Another thing, is the present market worrying you or causing you to have second thoughts as to whether you should buy now or delay your purchase until better market conditions return?
Let me give you some ideas to consider...
*If your job is relatively stable, and your finances are under control, and you plan on staying in your home for at least 4 or 5 years, then consider purchasing now...interest rates are extremely good...they may not be when the market turns...also if you're waiting for property values to 'bottom out', an increase in interest rates could negate any savings in purchase price...today's sluggish 'buyers market' provides opportunities to capture some additional funds for closing from anxious sellers...and there is plenty of inventory to select from...in other words, let the market 'work for you'!
*Are you ready to buy but lack confidence in our economy...are you leary to 'commit' to a large purchase such as a home? Maybe you can consider looking at properties less expensive than you originally intended...something less expensive to maintain...perhaps not quite so large...something smaller but more energy efficient...instead of that 2,500 square feet 2 story colonial, maybe a 1,600 sq. ft. 'cape cod'! Remember to factor in taxes and insurance. Some homes that appear similar can be more affordable...crunch those numbers...get good at it.
*If you're in a 'moving up' category, the status of the economy is of negligible consequence...what you lose, if anything on your sale, you should be able to make up on your purchase...in fact your purchase can achieve a greater savings than what you may have lost on your sale! Am I getting you confused? Reread it until you get it!
If you're still confused this is where a true real estate professional comes in!
I always advocate
for the use of experienced real estate professionals which make the homebuying process a pleasure. Without going into detail, remember the agent that is showing you homes and explaining the financial aspects to you will be paid from the seller's proceeds...in essence you have a true real estate professional 'working to find you a home' at no cost to you! It is bewildering to me why many potential homebuyers take it upon themselves to accomplish this task on their own! You wouldn't pay for a flu shot if you could get one next door at no charge.
How do you find a 'true real estate professional'? It's not as difficult as you may think, call Bobbie Files. I will provide you accurate, reliable service. Putting your needs FIRST.
Let me give you some ideas to consider...*If your job is relatively stable, and your finances are under control, and you plan on staying in your home for at least 4 or 5 years, then consider purchasing now...interest rates are extremely good...they may not be when the market turns...also if you're waiting for property values to 'bottom out', an increase in interest rates could negate any savings in purchase price...today's sluggish 'buyers market' provides opportunities to capture some additional funds for closing from anxious sellers...and there is plenty of inventory to select from...in other words, let the market 'work for you'!
*Are you ready to buy but lack confidence in our economy...are you leary to 'commit' to a large purchase such as a home? Maybe you can consider looking at properties less expensive than you originally intended...something less expensive to maintain...perhaps not quite so large...something smaller but more energy efficient...instead of that 2,500 square feet 2 story colonial, maybe a 1,600 sq. ft. 'cape cod'! Remember to factor in taxes and insurance. Some homes that appear similar can be more affordable...crunch those numbers...get good at it.
*If you're in a 'moving up' category, the status of the economy is of negligible consequence...what you lose, if anything on your sale, you should be able to make up on your purchase...in fact your purchase can achieve a greater savings than what you may have lost on your sale! Am I getting you confused? Reread it until you get it!
If you're still confused this is where a true real estate professional comes in!
I always advocate
for the use of experienced real estate professionals which make the homebuying process a pleasure. Without going into detail, remember the agent that is showing you homes and explaining the financial aspects to you will be paid from the seller's proceeds...in essence you have a true real estate professional 'working to find you a home' at no cost to you! It is bewildering to me why many potential homebuyers take it upon themselves to accomplish this task on their own! You wouldn't pay for a flu shot if you could get one next door at no charge.How do you find a 'true real estate professional'? It's not as difficult as you may think, call Bobbie Files. I will provide you accurate, reliable service. Putting your needs FIRST.
Bobbie Files
Realtor of Choice
Start your search at http://www.berkleymass.com/
Are we getting a local train station??
Recently officials for Transportation and Southeastern Regional Planning & Economic Development District members met with the City of Taunton to discuss the options for the new South Coast Rail project.
The South Coast Rail project will connect Boston with Taunton, New Bedford and Fall River. They are weighing the 3 options available: connecting from Stoughton; relocating the Lakeville Station to Middleboro; or going through Attleboro. The Attleboro option being the least desirable to Taunton because of the number of streets that will be affected.
Regardless of how it gets here it looks like a commuter rail is coming.....not for another 10 years or so but it is going to get here.
I am curious. What is your opinion? Are you in favor of the commuter rail? Do you feel it will improve property values?
Let me know what you think.
Bobbie Files
Your Bristol County Realtor
bobbiefiles@kw.com
The South Coast Rail project will connect Boston with Taunton, New Bedford and Fall River. They are weighing the 3 options available: connecting from Stoughton; relocating the Lakeville Station to Middleboro; or going through Attleboro. The Attleboro option being the least desirable to Taunton because of the number of streets that will be affected.
Regardless of how it gets here it looks like a commuter rail is coming.....not for another 10 years or so but it is going to get here.
I am curious. What is your opinion? Are you in favor of the commuter rail? Do you feel it will improve property values?
Let me know what you think.
Bobbie Files
Your Bristol County Realtor
bobbiefiles@kw.com
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