Haverhill MA Foreclosures
Haverhill Massachusetts bank owned foreclosures describe property the lender obtains after an unsuccessful foreclosure auction. The lender usually sells the real estate by direct sale or market their inventory through a Realtor. The lender will price the property for a quick sale as they have no interest in maintaining a foreclosed asset. When a Haverhill MA home owner defaults on their mortgage, the lender starts the process of obtaining the right to sell that property at auction in order to satisfy the debt. In MA, this process takes a minimum of 75-90 days and if the homeowner contests the process in court or files bankruptcy the delay can be significant. Go to Haverhill MA foreclosures to view current MLS listings of distressed real estate.
Haverhill Short Sales - Buying at Pre-Foreclosure
There are instances where a Haverhill MA home owner will attempt to sell their home before the lender begins foreclosure proceedings. The home owner is either already behind on their mortgage payments or will not be able to sell for a price that the net proceeds and additional resources would cover the balance owed on their mortgage. This is commonly referred to as a short-sale and requires the lender's approval. Obtaining approval can be a long and difficult process. Additionally, there is no assurance that the lender will accept any offer presented. If the Haverhill homeowner has entered the HAFA program (Home Affordable Foreclosure Alternative) offered by the government, the process is streamlined and offers the lender, homeowner and potential buyer additional incentives. Home buyers have a better chance of purchasing the property if a Seller is participating in this program. Lenders are in different stages of implementing this process and it is important to verify this information.
Massachusetts Foreclosure Law
In MA, non-judicial foreclosure is the most common method; judicial foreclosure is rarely used in MA. Lenders usually have a power of sale clause and must abide by strict notice requirements. If a homeowner files for bankruptcy, the court can overturn the foreclosure sale if sold for less than market value. Therefore, lenders in Massachusetts proceed carefully and follow the requirements set forth in the law. Review Massachusetts Foreclosure law for government legislation about MA foreclosures.
Buying Haverhill Massachusetts Homes at Foreclosure Auction
For most potential buyers, purchasing at a foreclosure auction is a "risky" undertaking and, in most cases, buying from the lender after the auction is a better option. Experienced investors understand the process and may have success in taking the risk. As a result, not many Haverhill MA foreclosure auctions end with the sale of the property to a bidder other than the lender. The lender takes back the title and takes possession of the property. These properties are referred to as REO (Real Estate Owned) or Bank Owned properties.
Haverhill Massachusetts Foreclosed or Bank Owned Real Estate
After a bank (lender, financial institution) takes possession of a property (after an unsuccessful auction), they mitigate items owed by the prior borrower, such as homeowner association fees. The lender also attempts to remove any tax liens against the property. If the property is occupied, the lender will make arrangements for the owner or tenant to vacate by eviction or with financial incentives.The property is cleaned and minor repairs are made to the property. The lender hopes to obtain a higher net sales price with minor improvements. Banks want to sell foreclosed property quickly because they don't want to tie up their money these assets. Additionally, managing a foreclosed property may see further reductions in value and is a "headache". Lenders that have significant REO inventory often have a separate department to manage their inventory. Most lenders hire experienced Haverhill real estate agents to market their properties and list their inventory in the Multiple Listing Service (MLS) to ensure full market exposure.
Buyers have the opportunity to view, investigate and inspect the property prior to final agreement to purchase. Some lenders will negotiate repairs and concessions, but in most cases their preference is to sell "as is" at a "discounted price". Banks understand that they must conform to federal and state laws in regards to property disclosure. They usually disclose that they have no knowledge of the property and can make no representations as they have never occupied the property. Banks may or may not provide owner financing on their REOs but in most cases, this would apply only to property that was in very bad condition. A buyer is likely to obtain a better value for properties that need substantial repairs. Buyers with accepted contracts have the option to conduct full home inspections even though the property is being sold "as is". If major problems are found, the lender usually will negotiate to either a substantially lower price or make the repair. Generally, negotiating with a lender is an easier process than negotiating with a homeowner. Lenders are typically unemotional about the process and are interested in making a "good business" decision for the company. It is not in a buyer's best interest to attempt to renegotiate a contract over trivial items that were disclosed or obvious prior to negotiation of the contract. Consider all properties for sale as a Haverhill foreclosure isn't always the best value for every buyer. Visit Haverhill MA real estate for information about the home buying process.
Negotiating a Contract for a Haverhill Property
Before submitting an offer, have your agent obtain all available disclosures and information on the property and ask questions such as: Are there any inspection reports? Has the lender agreed to any repairs not completed? Is there a special "as is" form? How quickly will the lender respond? How is the offer negotiated? Since lenders are not available on weekends and due to the volume of REO inventory, the negotiating process may take longer and create frustration for the buyer. Make sure that your offer contains your "credit" approval which demonstrates your qualifications as a buyer as the lender is more motivated to negotiate with a qualified buyer.
Understand that lenders will sell at "fair" market value and do not expect "fire-sales" that you have seen of heard of in the media. As mentioned earlier, properties that need substantial structural and mechanical repairs will sell for less. There are fewer buyers qualified to buy these properties so lenders will offer greater discounts.
Virtual Homes real estate agents will assist you in the purchase of Haverhill MA foreclosures and bank owned real estate for sale. In addition, we can represent you as a Buyer's agent and represent your interests in the property search, research, negotiations, home inspection and closing of the transaction.
Sunday, October 24, 2010
Massachusetts Virtual View: Haverhill MA Foreclosures and Bank Owned Homes for Sale
Friday, October 22, 2010
Medford MA Condos for Sale
Medford MA Condo for Sale
If you are involved in buying a Medford MA condo, it is important to understand the legal ramifications of this form of ownership. Rules and regulations regarding the sharing of common areas, amenities and the land parcel have been stipulated in the condo docs. A condominium has its advantages but in some cases a specific Medford condo development may have restrictions that do not fit your lifestyle. To evaluate condos and single family homes for sale, visit Medford MA real estate.
What is a Condominium
The word condominium describes a form of land ownership and are governed by laws set out in Chapter 183A of the General Laws of Massachusetts and known as the Massachusetts Condominium Act. This act covers the requirements for unit owners and condominium associations including matters related to interests in common areas and facilities, mandatory provisions for the association’s by-laws and expenses incurred by the association of unit owners.
Condominiums in Medford consist of 2 or more units, the interior of which are individually owned. Unit owners share joint ownership of common areas (grounds, hallways, etc.). The master deed is a document that places the land into condominium status and details the ownership structure. If you were to buy a Medford MA home, you would own the land and the building and could have joint ownership of additional land and improvements. This type of ownership is often referred to as PRD (Planned Unit Development) or PUD (Planned Unit Development).
Each unit owner will own a “percentage of interest in the common areas” as outlined and specified in the master deed.The boundaries of individual ownership and common ownership are also described in the master deed. The typical areas for common ownership other than the land parcel include elevators, hallways, staircases and amenities such as pools and tennis courts. Some areas that are held in common, such as a parking space, balcony or patio, can be designated for exclusive use by one or more unit owners. This typically will include balconies, patios, and assigned parking spaces.
Medford MA Condo Styles
- Garden (flat) — Living area confined to one level.
- Townhome — Finished living space on two or more levels.
- Detached — Free-standing building (no other unit is located in that same building).
- Duplex — Often referred to as a condex with two units that are attached. There may be several duplexes/condexes within a particular complex.
- Triple Decker – A triplex unit typically a conversion from a 3 unit apartment building.
- Loft – Large open areas with high ceilings that may have been converted commercial or industrial space.
- Low Rise Building – A building with primarily garden-style units and no more than 4 levels in the entire building.
- Mid Rise Condo – Usually a building between 5-10 stories with retail or commercial mixed uses.
- High Rise – May contain garden and townhome units and greater than 4 levels total in the building. High rises are commonly serviced by an elevator.
Management and Associations
Trustee meetings are scheduled per the by-laws and are documented in meeting minutes. The unit owners meet on an annual basis, at a minimum, to ratify the budget, review expenditures, etc.
Monthly Condo Fees
The management and maintenance of the association is determined by the Trustees and ratified by the unit owners as specified in by-laws of the condominium. The monthly fees paid by each unit owner are calculated based on budget and the percentage of each owner’s interest in the common area.Special assessment may be necessary to cover expenses that are not in the budget or the reserve funds. Based on the amount of shortfall, this may be charged as a one-time fee or spread out over several months or years.
Rules and Regulations
The Rules and Regulations regarding the use of the condominium and facilities are usually determined and established by the Trustees and may be voted on and changed from time to time by the Unit Owners.
What a Medford Condo Buyer Should Know
Visit Medford MA homes for sale to view all condos for sale.
If you are thinking of buying a condominium unit, be sure to review:
- Condominium Documents — Master Deed, Condominium Trust, etc.
- Rules & Regulations – Pets may not be allowed. Can you rent the unit?
- Financial Statements — Annual and Current Budget, Delinquency Rate
- Capital Reserve Fund - Will FHA approve the fund?
- FHA, VA Approval – Is a current approval in place?
- Special Assessments – Pending and approved
- Management Company – Is there one? Who is it?
- Pending Legal Actions – Are there any?
- Ownership Concentration – How many units are owner occupied?
- Monthly Condo Fee – What does it cover?
- Master Insurance Policy – Verify coverage
- Annual Meeting Minutes and Trustee Minutes (When Available)
If you are going to buy a Medford MA condo you should have the documents reviewed by your attorney. Your Medford Buyer’s Agent should also be certain your offer provides for a cancellation should any part of the documents not be acceptable to you.
Importance of Working With a Medford REALTOR in Your Condo Purchase
Condominium structures and considerations vary by city, state and region. The above is just a general guideline on the most common type of condominiums. Your Medford REALTOR can provide additional details and educate you on everything that you need to know regarding your condo purchase, including information on co-ops and informal complexes such as converted multi-family buildings. Virtual Homes real estate has a network of experienced REALTORS ready to assist you in purchasing a Medford MA condo.
Medford MA Condo buying guide.
Waltham MA Condominiums for Sale
Waltham MA Condominiums for Sale
If you are interested in purchasing a Waltham MA condominium, it is important to understand the legal ramifications of this form of ownership. Rules and regulations regarding the sharing of common areas, amenities and the land parcel have been stipulated in the condo docs. There are a benefits to condominium ownership however certain Waltham developments may have restrictions that will affect your lifestyle.
What is a Condominium
The word condominium describes a form of land ownership and are governed by laws set out in Chapter 183A of the General Laws of Massachusetts and known as the Massachusetts Condominium Act. This act covers the requirements for unit owners and condominium associations including matters related to interests in common areas and facilities, mandatory provisions for the association’s by-laws and expenses incurred by the association of unit owners.
Waltham condominium units typically consist of two or more units. Unit owners share joint ownership of common areas (grounds, hallways, etc.). The master deed is a document that places the land into condominium status and details the ownership structure. If you were to purchase a Waltham MA home, you would have ownership the land and the building and could have joint ownership of additional land and improvements. This type of ownership is often referred to as PRD (Planned Unit Development) or PUD (Planned Unit Development).
The Master Deed specifies the percentage of ownership in common areas that each condo owner will have.The limitsof individual ownership and common ownership are also described in the master deed. In addition to the land and building structure, common areas also include any hallways, stairways, pools, tennis courts, clubhouses, elevators, and any mechanical systems that service all of the units.Some areas that are held in common, such as a parking space, balcony or patio, can be designated for exclusive use by one or more unit owners. This typically will include balconies, patios, and assigned parking spaces.
Waltham MA Condo Styles
- Garden (flat) — Contains one-level of finished living space.
- Townhouse — Finished living space on two or more levels.
- Detached — Free-standing building (no other unit is located in that same building).
- Duplex — Two attached units, sometimes referred to as “condex”. There may be several duplexes/condexes within a particular complex.
- Triple Decker – A triplex unit typically a conversion from a 3 unit apartment building.
- Loft – Large open areas with high ceilings that may have been converted commercial or industrial space.
- Low Rise Building – Commonly described as a garden style building that has 4 or fewer levels.
- Mid Rise Condo – Usually a building between 5-10 stories with retail or commercial mixed uses.
- High Rise – May contain garden and townhome units and greater than 4 levels total in the building. High rises are commonly serviced by an elevator.
Management and Associations
The Master deed contains a Trust Agreement or By-Laws whereby the criteria for management of development is specified. Monthly Condo Fees The management and maintenance of the association is determined by the Trustees and ratified by the unit owners as specified in by-laws of the condominium. Unit owner condo fees are based on the percentage of ownership of the common areas and the annual budget. If there is a shortfall, there may be a “Special Assessment” made to cover this additional expense. Based on the amount of shortfall, this may be charged as a one-time fee or spread out over several months or years.
Rules and Regulations
The Rules and Regulations regarding the use of the condominium and facilities are usually determined and established by the Trustees and may be voted on and changed from time to time by the Unit Owners.
What a Waltham Condo Buyer Should Know
Visit Waltham MA real estate - homes for sale to view all condos for sale.
If you are thinking of buying a condominium unit, be sure to review:
- Condominium Documents — Master Deed, Condominium Trust, etc.
- Rules & Regulations – Pets may not be allowed. Can you rent the unit?
- Financial Statements — Annual and Current Budget, Delinquency Rate
- Capital Reserve Fund - Will FHA approve the fund?
- FHA, VA Approval – Is a current approval in place?
- Special Assessments – Pending and approved
- Management Company – Is there one? Who is it?
- Pending Legal Actions – Are there any?
- Ownership Concentration – How many units are owner occupied?
- 10. Monthly Condo Fee – What does it cover?
- 11. Master Insurance Policy – Verify coverage
- 12. Annual Meeting Minutes and Trustee Minutes (When Available).
If you are going to buy a Waltham MA condo you should have the documents reviewed by your attorney. Your Waltham Buyer’s Agent should also be certain your offer provides for a cancellation should any part of the documents not be acceptable to you. Evaluate all Waltham MA condominiums, homes and real estate at Waltham MA real estate.
Importance of Working With a Waltham REALTOR in Your Condo Purchase
Condominium structures and considerations vary by city, state and region. The above is just a general guideline on the most common type of condominiums. Your Waltham REALTOR can provide additional details and educate you on everything that you need to know regarding your condo purchase, including information on co-ops and informal complexes such as converted multi-family buildings. Virtual Homes real estate has a network of experienced REALTORS ready to assist you in purchasing a Waltham MA condo.
Waltham Massachusetts Condominium Buying Guide
Tuesday, October 19, 2010
Saturday, October 16, 2010
Framingham MA Bank Owned Homes and Foreclosed Real Estate for Sale
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Fred Doleac
Broker/Owner
Virtual Homes
55 Ponemah Road
Amherst, NH 03031
603-732-1800 or 800-856-2479
603-732-1817 Direct
Fax toll free - 888-884-0543
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Friday, October 8, 2010
Cambridge Massachusetts Homes for Sale : Virtual View - The New Real Estate Economy
Cambridge MA Homes for Sale - Your Guide to Home Ownership
Purchasing a home can be a very stressful and complicated process especially if you are a first time buyer. It is advisable to utilize the services of real estate related professionals who can offer client level services to assist you in purchasing Cambridge Massachusetts homes for sale. Buyers often interview lenders, Realtors, attorneys, home inspectors, accountants and financial advisors.
Financing a Cambridge Home Purchase
Most home buyers will finance the purchase of their home and there are various first-time home buyer financing programs offered by state agencies, local banks and national lenders. A common source for mortgage funding is the FHA (Federal Housing Administration). The major benefits of their programs include low down payment options (can be gifted by a family member), flexible qualifying, assumable mortgages, and rehab financing. Other government insured loan options include the VA (Veteran's Administration) and the USDA (United States Department of Agriculture - Rural Home Loans). In Massachusetts, a not-for-profit agency, MASSHousing provide special financing programs that provide mortgages for certain properties that other lenders may not consider.
Conventional financing, which typically requires a minimum of a 10% down payment, is readily available through a variety of mortgage lenders. Evaluate all your options and experienced loan officers will recommend programs that meet your specific needs. At the present time, interest rates for home mortgages are at historically low levels with fixed rates in the 4% range.
Your qualifications as a buyer is one of the most important elements in the negotiating process with a homeowner. If you are negotiating contingent upon mortgage approval, you must present evidence that your are qualified to meet that contingency from a reputable lender so that the Seller will accept your offer. The Seller does not want to take their home off the market unless there are reasonable assurances that the financing contingency can be met. If your home search takes a period of time, make sure your credit approval has been updated to reflect current mortgage underwriting standards for terms and rates. Sellers may accept a lower offer if your contract and financing demonstrate your strength as a buyer.
Primary Reasons to Consider Purchasing a Home
The major benefits of home ownership include solving your housing need and the tax benefits provided through the government. In many cases, especially for first time home buyers, you may own a property for less than it costs to rent it. Mortgage interest and property taxes are deductible expenses and your tax adviser can compute the actual costs of owning your property. Interest rates are at historic lows and there is a wide variety of property inventory at very affordable prices. Recent declines in property values offer exceptional values.
In many cases, home ownership provides you with a quality of life that you may not find in a rental. Various factors apply such as privacy, location, housing styles, space, amenities, fewer restrictions and rules to comply with. In addition, owning a home may be a good return on your investment provided that you are not forced to sell in a difficult market. A home of your own also provides you with stability in the community where school systems, recreational facilities and services are important to your lifestyle.
The Cambridge MA Home Search
Consumers in Massachusetts have the option of hiring a real estate agent to represent them in buyer agency and this is disclosed in a mandatory disclosure form required by state law. The agent has a fiduciary responsibility to represent the buyer's interests instead of the seller's. You should interview two or three agents to determine their qualifications before signing an agency contract.
Your real estate agent can assist you in searching for a property listed in the MA MLS and homes sold by their owners (FSBO). You will find that short sales, Cambridge foreclosures and bank owned property are listed in the MLS. Go to Cambridge MA homes for sale for a map based search of all Massachusetts MLS listings.
Home Inspection
Once you have found the Cambridge property and successfully negotiated a purchase and sales agreement, you should consider contracting for a home inspection. This process will give you more detailed information about the overall condition of the home prior to purchase. In a home inspection, a qualified inspector takes an in-depth, unbiased look at the property to evaluate the physical condition structure, construction, and mechanical systems; identify items that need to be repaired or replaced; and estimate the remaining useful life of the major systems, equipment, structure, and finishes.
Title and Closing
Your contract with the Seller stipulates that you will receive clear title to the property. Your attorney or Title Company will perform this service for a fee which is considered part of your closing costs. Schedule a final walk-thru inspection of the property prior to signing the closing papers. Once the closing is complete buyers can now occupy their new home.
Virtual Homes real estate agents will provide you with buyer agency services in finding the perfect Cambridge MA homes for sale.
Cambridge MA home buying resource
Sunday, October 3, 2010
Massachusetts Virtual View: Somerville MA Short Sales
Somerville MA Short Sales - Pre-foreclosure Values
As a home buyer looking for value in the purchase of real estate a short sale may be your best Somerville Massachusetts short sale is a difficult and often a frustrating process. To achieve your goal, hire experienced professionals that understand all aspects of the transaction. Expert advice can be provided by real estate agents, attorneys, mortgage brokers, bankers and home inspectors. Visit Somerville MA real estate for tools and resources to evaluate the community.
What is a Short Sale?
Homeowners in financial distress should consider various options, including a short sale, prior to foreclosure. This process may be the best option to preserve their credit and limit their debt exposure. In MA, the laws governing foreclosures provide incentives for lenders to workwith homeowners that have financial hardships. The foreclosure process takes time and money and may prove to be more costly to the lender. In April of 2010, the government enacted legislation under the HAFA (Home Affordable Alternatives Program)which provided homeowners and lenders with a streamlined process and incentives to negotiate short sales.
The first step in the process is to negotiate a contract with the homeowner that must be approved by the lender. If the contract is not acceptable to the lender then the Seller may not have sufficient time to sell to another party and avoid foreclosure. The following tips will increase your chances of negotiating a successful Somerville MA short sale.
Are You a Qualified Buyer?
Providing creditable evidence that you can purchase the property is absolutely necessary. The Seller is not likely to accept your offer without a valid credit approval as the lender will not grant approval. Obtain a credit approval from a reputable lender or if a cash buyer provide proof of funds. The approval must not contain conditions such as selling an existing property as this is an issue for the lender. If you are a strong motivated buyer with flexibility in your closing date, you will have greater success in negotiationg Somerville short sales.
Indentifying Potential Somerville Listings
Sellers selling short typically have a time-line they must meet to avoid foreclosure. If they have not connected with their lender(s) and started the process, it may not be possible to close before foreclosure. Your real estate agent can identify properties that you may consider. To preview properties currently available go to Somerville MA homes for sale. Additional information our agents will obtain includes:
Is the seller's short sale package prepared for submission to the lender? How many liens are on the property? If more than one, what are they? Is there a plan to obtain releases from all the lien-holders?Don't take yourself out of the market for a property that has no chance of closing. Consider all properties for sale including Somerville MA short sales and foreclosures.
Offer and Acceptance by the Seller
The first step is to negotiate a contract with the Seller and you will be competing against other contracts. Some real estate agents market the property substantially below market value to entice buyers. Others price the property at the bottom of fair market value. The terms and conditions of your offer can be as important as the offered price. Sellers and lenders prefer offers with fewer contingencies.
Your Deposit - Sellers will not be likely to accept your offer with a low deposit. A buyer that has little to lose can easily pursue another property and "walk away". To demonstrate good faith offer the Seller a strong deposit.
Home Inspection - be prepared to invest the time and money in the home inspection prior to lender approval. A seller can't take the risk of conducting the inspection after lender approval. The buyer can easily "walk" from the home inspection and lenders normally will not approve them.
Flexible Closing Date - once the lender approves the offer, they may require a "quick" closing. You must be prepared to comply if you want to consummate the sale.
Subsequent Offers -As a rule, real estate agents must present all offers. A contract with a higher sales price may have a better chance of being approved by the lender. The lender will give the homeowner direction as to submitting additional offers. Also, be prepared to lock your interest rate thru closing so that your mortgage commitment will be valid.
Lender Approval
Lenders will do their "due diligence" to substantiate the value of the property and have no set formula to determine an acceptable price. However, Freddie Mac (one of the largest secondary market lenders) has a target sales price of 88% of one or more broker price opinions (BOP). Have realistic expectations of the approval process as it may take between 30-180 days and market conditions can change. If the lender and the Seller are participating in the HAFA program, these timelines will be streamlined for a quicker response. In fact, the Lender may have approved a listing price for the property.
As the Regional Manager of Virtual Homes Real Estate I can assist you with Somerville Massachusetts short sales, foreclosures and MLS listings currently on the market. I personally service Middlesex and Essex County buyers looking to purchase in those areas. Please call me at 800-856-2479.
Somerville MA short sale buying guide.
Haverhill MA Foreclosures and Bank Owned Homes for Sale
Haverhill MA Foreclosures and Bank Owned Homes for Sale
Haverhill MA foreclosures, bank owned and REO (Real Estate Owned) are terms commonly used to describe properties that are owned by a lender (investor, financial institution; typically a bank), after an unsuccessful sale at a foreclosure auction or property obtained by a "deed in lieu." The lender will then resell the real estate by direct sale or market their inventory through a Realtor. Buyers often benefit by purchasing Haverhill MA foreclosures as the lender's interest is to dispose of the asset quickly and aggressively price them to reflect market conditions.
The foreclosure process begins when the homeowner defaults on their mortgage. The first step for the lien holder(s) is to obtain the right to sell at auction. In MA, this process takes a minimum of 75-90 days and if the homeowner contests the process in court or files bankruptcy the delay can be significant. Go to Haverhill MA foreclosures and register to receive a list of distressed real estate.
Haverhill Short Sales - Buying at Pre-Foreclosure
There are cases where a Haverhill Massachusetts home owner will attempt to sell their home before the bankforecloses on the property. The home owner is either already behind on their mortgage payments or will not be able to sell for a price that the net proceeds and additional resources would cover the balance owed on their mortgage. This is commonly referred to as a short-sale and requires the lender's approval. Obtaining approval can be a long and frustrating process. Additionally, there is no assurancethat the lender will accept an offer at or above the listed price or any viable contract presented.
If the Haverhill homeowner has entered the HAFA program (Home Affordable Foreclosure Alternative) offered by the US Treasury Department, the process is streamlined and offers the lender, homeowner and potential buyer additional incentives. Home buyers have a better chance of purchasing the property if a Seller is participating in this program. Lenders are in different stages of implementing this process and it is important to verify this information.
MA Foreclosure Law
In Massachusetts, non-judicial foreclosure is the most common method; judicial foreclosure is rarely used in MA. Lenders usually have a power of sale clause and must abide by stringent notice requirements. If a homeowner files for bankruptcy, the court can overturn the foreclosure sale if sold for less than market value. Therefore, lenders in Massachusetts proceed carefully and follow the requirements set forth in the law. Review Massachusetts Foreclosure law for government legislation about MA foreclosures.
Buying Haverhill Massachusetts at Foreclosure Auction
For most potential buyers, purchasing at a foreclosure auction is a "risky" undertaking and, in most cases, they will opt to purchase from the lender after the auction. Experienced investors understand the process and may have success in taking the risk. As a result, not many Haverhill MA foreclosure auctions end with a bidder being successful with an accepted offer. The lender takes back the title and takes possession of the property. The property is now "bank owned" and is often referred to as REO (real estate owned).
Haverhill Bank Owned or Foreclosed Real Estate
After a bank (lender, financial institution) forecloses on the property (after an unsuccessful auction), they mitigate items owed by the prior borrower, such as homeowner association fees. The lender also attempts to remove any tax liens against the property. If the property is occupied, the lender will make arrangements for the owner or tenant to vacate by eviction or with financial incentives.The property is cleaned and minor repairs are made to the property. The lender hopes to obtain a higher net sales price with minor improvements.
Banks want to sell foreclosed property quickly because they don't want to tie up their money these assets. Additionally, managing a foreclosed property may see further reductions in value and is a "headache". Lenders that have significant REO inventory often have a separate department to manage their inventory. In most cases, the lender will list their foreclosures with Haverhill real estate agents who market and manage the property. Buyers have the opportunity to view, investigate and inspect the property prior to final agreement to purchase. Lenders often market property "as is" which puts the potential buyer on notice as to the lender's position on minor repairs.
State and Federal requirements regarding property disclosure must be followed by lenders. They usually disclose that they have no knowledge of the property and can make no representations as they have never occupied the property. Banks may or may not provide owner financing on their REOs but in most cases, this would apply only to property that was in very bad condition. Property that has major structural defects or will require extensive repairs will be the buyer's best value.
Buyers with accepted contracts have the option to conduct full home inspections even though the property is being sold "as is". If major problems are found, the lender usually will negotiate to either a substantially lower price or make the repair. Generally, negotiating with a lender is an easier process than negotiating with a homeowner. Lenders are typically unemotional about the process and are interested in making a "good business" decision for the company. It is not in a buyer's best interest to attempt to renegotiate a contract over trivial items that were disclosed or obvious prior to negotiation of the contract. A Haverhill MA bank owned property isn't always the best value for a consumer. It's an old myth that "foreclosures" are a bargain. Consider all available property for sale which can be viewed at Haverhill MA homes for sale.
Negotiating a Contract for a Haverhill Property
Before submitting an offer, have your agent contact the listing agent and ask typical questions you would ask of any seller and some additional ones such as: Are there any documented inspections? Has the lender agreed to any repairs not completed? Are there required bank addendums?How quickly will the lender respond?How is the offer negotiated?
Since lenders do not typically work on weekends and due to the volume of REO inventory, the negotiating process may take longer and create frustration for the buyer. Make sure that your offer contains your "credit" approval which demonstrates your qualifications as a buyer as the lender is more motivated to negotiate with a qualified buyer.
Understand that lenders will sell at "fair" market value and do not expect "fire-sales" that you have seen of heard of in the media. As mentioned earlier, properties that need substantial structural and mechanical repairs will be negotiated aggressively There are fewer buyers qualified to buy these properties so lenders will offer greater discounts.
As the Regional Manager of Virtual Homes real estate I can assist you in the purchase of Haverhill MA foreclosures and bank owned real estate for sale. In addition, we can represent you as a Buyer's agent and represent your interests in the property search, research, negotiations, home inspection and closing of the transaction.
Your foreclosure buying guide for homes, condos and real estate for sale in Haverhill, MA
Massachusetts Virtual View: Quincy MA Condos for Sale
Quincy MA Condos for Sale- Condominium Buying Guide
If you are involved in purchasing a Quincy MA condo, it is important to understand the legal ramifications of this type of ownership. Since you will be sharing land, amenities, common areas and amenities, there are rules and regulations that you must be familiar with. There are a benefits to condo ownership however certain Quincy condos may have restrictions that will affect your lifestyle. Visit Quincy MA real estate for information that will assist you in evaluating all property for sale.
What is a Condominium
A condominium is a form of land ownership which is governed in Massachusetts by laws found in the Massachusetts Condominium Act. This act covers the requirements for unit owners and condominium associations including matters related to interests in common areas and facilities, mandatory provisions for the association's by-laws and expenses incurred by the association of unit owners.
Quincy condo units typically consist of two or more units. Unit owners share joint ownership of common areas (grounds, hallways, etc.). The master deed is a document that places the land into condominium status and details the ownership structure. If you were to buy a Quincy MA home, you would have ownership the land and the building and could have joint ownership of green space with improvements This type of ownership is often referred to as PRD (Planned Unit Development) or PUD (Planned Unit Development).
Each unit owner will own a "percentage of interest in the common areas" as outlined and specified in the master deed.The boundariesof individual ownership and common ownership are also described in the master deed. The typical areas for common ownership other than the land parcel include elevators, hallways, staircases and amenities such as pools and tennis courts. Areas that service a specific unit, while still held in common, may also be designated as the "exclusive right to use" of a specific unit. Parking spaces, patios and balconies are typical examples of an exclusive area.
Quincy MA Condo Styles
- Garden (flat) - Contains one-level of finished living space.
- Townhome - Finished living space on two or more levels.
- Detached - Free-standing building (no other unit is located in that same building).
- Duplex - Often referred to as a condex with two units that are attached. There may be several duplexes/condexes within a particular complex.
- Triple Decker - A triplex unit typically a conversion from a 3 unit apartment building.
- Loft - Units developed from commercial/industrial buildings and converted to large open living areas.
- Low Rise Building - Commonly described as a garden style building that has 4 or fewer levels.
- Mid Rise Condo - Often mixed use buildings of 5-10 stories.
- High Rise - May contain garden and townhome units and greater than 4 levels total in the building. High rises are commonly serviced by an elevator.
Condominium Management and Associations
The document that establishes the criteria for managing the condominium and common areas is called The Trust Agreement or the By-Laws and is recorded with the Master Deed. This document describes the structure and responsibilities of the Trustees who assume responsibility for the management of the association. Their tasks often include establishment of an annual budget, collection of fees; enforcement of rules and regulations, and managing of finances. Trustees may hire a professional management company to assist with these responsibilities. (The unit owners usually meet on an annual basis (minimum) which are scheduled by the Trustees according to the by-laws. At this meeting, the individual owners vote on the annual budget and to review other expenditures and condo issues.
Monthly Condo Fees
The management and maintenance of the association is determined by the Trustees and ratified by the unit owners as specified in by-laws of the condominium. Unit owner condo fees are based on the percentage of ownership of the common areas and the annual budget. If there is a shortfall, there may be a "Special Assessment" made to cover this additional expense. Based on the amount of shortfall, this may be charged as a one-time fee or spread out over several months or years.
Association Rules and Regulations
The Rules and Regulations regarding the use of the condominium and facilities are usually determined and established by the Trustees and may be voted on and changed from time to time by the Unit Owners.
What a Quincy Condo Buyer Should Know
Visit Quincy MA homes for sale to view all condos for sale.
If you are thinking of buying a Quincy MA condominium unit, be sure to review:
1. Condominium Documents - Master Deed, Condominium Trust, etc.
2. Rules & Regulations - Pets may not be allowed. Can you rent the unit?
3. Financial Statements - Annual and Current Budget, Delinquency Rate
4. Capital Reserve Fund - Will FHA approve the fund?
5. FHA, VA Approval - Is a current approval in place?
6. Special Assessments - Pending and approved
7. Management Company - Is there one? Who is it?
8. Pending Legal Actions - Are there any?
9. Ownership Concentration - How many units are owner occupied?
10. Monthly Condo Fee - What does it cover?
11. Master Insurance Policy - Verify coverage
12. Annual Meeting Minutes and Trustee Minutes (When Available)If you are going to buy a Quincy MA condo you should have the documents reviewed by your attorney. Your Quincy Buyer's Agent should also be certain your offer provides for a cancellation should any part of the documents not be acceptable to you.
Importance of Working With a Quincy REALTOR in Your Condo Purchase
Condominium structures and considerations vary by city, state and region. The above is just a general guideline on the most common type of condominiums. Your Quincy REALTOR can provide additional details and educate you on everything that you need to know regarding your condo purchase, including information on co-ops and informal complexes such as converted multi-family buildings.
As the Regional Manager of Virtual Homes real estate I can personally provide buyer agent services for your purchase of a Quincy MA condo.
Quick and easy Quincy MA Condo Buying Guide
Methuen MA Short Sales
Methuen MA Short Sales - Pre-foreclosure Values
As a home buyer looking for value in the purchase of real estate a short sale may be your best option. Buying a Methuen Massachusetts short sale is a difficult and often a frustrating process. To achieve your goal, hire experienced professionals that understand all aspects of the transaction. Expert advice can be provided by real estate agents, attorneys, mortgage brokers, bankers and home inspectors. Visit Methuen MA real estate for tools and resources to evaluate the community.
What is a Short Sale?
Homeowners in financial distress should consider various options, including a short sale, prior to foreclosure. This process may be the best option to preserve their credit and limit their debt exposure. In MA, the laws governing foreclosures provide incentives for lenders to workwith homeowners that have financial hardships. The foreclosure process takes time and money and may prove to be more costly to the lender. In April of 2010, the government enacted legislation under the HAFA (Home Affordable Alternatives Program)which provided homeowners and lenders with a streamlined process and incentives to negotiate short sales.
The first step in the process is to negotiate a contract with the homeowner that must be approved by the lender. If the contract is not acceptable to the lender then the Seller may not have sufficient time to sell to another party and avoid foreclosure. The following tips will increase your chances of negotiating a successful Methuen MA short sale.
Are You a Qualified Buyer?
Providing creditable evidence that you can purchase the property is absolutely necessary. The Seller is not likely to accept your offer without a valid credit approval as the lender will not grant approval. Obtain a credit approval from a reputable lender or if a cash buyer provide proof of funds. The approval must not contain conditions such as selling an existing property as this is an issue for the lender. If you are a strong motivated buyer with flexibility in your closing date, you will have greater success in negotiationg Methuen short sales.
Indentifying Potential Methuen Listings
Sellers selling short typically have a time-line they must meet to avoid foreclosure. If they have not connected with their lender(s) and started the process, it may not be possible to close before foreclosure. Your real estate agent can identify properties that you may consider. To preview properties currently available go to Methuen MA homes for sale. Additional information our agents will obtain includes:
Is the seller's short sale package prepared for submission to the lender? How many liens are on the property? If more than one, what are they? Is there a plan to obtain releases from all the lien-holders?Don't take yourself out of the market for a property that has no chance of closing. Consider all properties for sale including Methuen MA short sales and foreclosures.
Offer and Acceptance by the Seller
The first step is to negotiate a contract with the Seller and you will be competing against other contracts. Some real estate agents market the property substantially below market value to entice buyers. Others price the property at the bottom of fair market value. The terms and conditions of your offer can be as important as the offered price. Sellers and lenders prefer offers with fewer contingencies.
Your Deposit - Sellers will not be likely to accept your offer with a low deposit. A buyer that has little to lose can easily pursue another property and "walk away". To demonstrate good faith offer the Seller a strong deposit.
Home Inspection - be prepared to invest the time and money in the home inspection prior to lender approval. A seller can't take the risk of conducting the inspection after lender approval. The buyer can easily "walk" from the home inspection and lenders normally will not approve them.
Flexible Closing Date - once the lender approves the offer, they may require a "quick" closing. You must be prepared to comply if you want to consummate the sale.
Subsequent Offers -As a rule, real estate agents must present all offers. A contract with a higher sales price may have a better chance of being approved by the lender. The lender will give the homeowner direction as to submitting additional offers. Also, be prepared to lock your interest rate thru closing so that your mortgage commitment will be valid.
Lender Approval
Lenders will do their "due diligence" to substantiate the value of the property and have no set formula to determine an acceptable price. However, Freddie Mac (one of the largest secondary market lenders) has a target sales price of 88% of one or more broker price opinions (BOP). Have realistic expectations of the approval process as it may take between 30-180 days and market conditions can change. If the lender and the Seller are participating in the HAFA program, these timelines will be streamlined for a quicker response. In fact, the Lender may have approved a listing price for the property.
As the Regional Manager of Virtual Homes Real Estate I can assist you with Methuen Massachusetts short sales, foreclosures and MLS listings currently on the market. I personally service Middlesex and Essex County buyers looking to purchase in those areas. Please call me at 800-856-2479.
Resource for evaluating Methuen MA short sales, foreclosures and real estate for sale
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